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Petrol Price Hike-Its Impact On Real Estate

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Petrol Price Hike-Its Impact On Real Estate

Last updated: May 25 2012
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  • Petrol Price Hike-Its Impact On Real Estate

    Direct impact on the region where metro is already operational or will be operational within 2 years means where the work is already going on

    I am sorry but this petrol hike is just another blow in most of the Noida xxxx real estate and gurgaon 8x 9x sectors

    Far of regions of Delhi like Narela will gain and ofcourse Faridabad will zoom.

    rohit
  • #2

    #2

    Re : Petrol Price Hike-Its Impact On Real Estate

    Originally posted by rohit_warren View Post
    Direct impact on the region where metro is already operational or will be operational within 2 years means where the work is already going on

    I am sorry but this petrol hike is just another blow in most of the Noida xxxx real estate and gurgaon 8x 9x sectors

    Far of regions of Delhi like Narela will gain and ofcourse Faridabad will zoom.

    rohit
    could you please explain how??
    Thanks

    Comment

    • #3

      #3

      Re : Petrol Price Hike-Its Impact On Real Estate

      Originally posted by rohit_warren View Post
      Direct impact on the region where metro is already operational or will be operational within 2 years means where the work is already going on

      I am sorry but this petrol hike is just another blow in most of the Noida xxxx real estate and gurgaon 8x 9x sectors

      Far of regions of Delhi like Narela will gain and ofcourse Faridabad will zoom.

      rohit
      Good Morning Rohit , you sold off your Revanta Unit already ? : P

      Any way , areas with good public transport will benefit of people reduce dependence on personal vehicles due to frequent hike in petrol / diesel. So, , your post makes sense in the current scenario but the future is hybrid/ battery operated vehicles IMO.

      Comment

      • #4

        #4

        Re : Petrol Price Hike-Its Impact On Real Estate

        With increasing petrol people will try to reduce far off travel to work... so places where there are jobs wil get appreciated. Noida expressway will appreciate as when new jobs are created.

        One more aspect... with falling rupee and run away inflation... property price will tend to increase independent of petrol.... not a good scenario as a whole though.

        Comment

        • #5

          #5

          Re : Petrol Price Hike-Its Impact On Real Estate

          Originally posted by Veeru Dada View Post
          With increasing petrol people will try to reduce far off travel to work... so places where there are jobs wil get appreciated. Noida expressway will appreciate as when new jobs are created.

          One more aspect... with falling rupee and run away inflation... property price will tend to increase independent of petrol.... not a good scenario as a whole though.
          Yeah this is what I wanted to say...
          Thanks

          Comment

          • #6

            #6

            Re : Petrol Price Hike-Its Impact On Real Estate

            Originally posted by Veeru Dada View Post
            With increasing petrol people will try to reduce far off travel to work... so places where there are jobs wil get appreciated. Noida expressway will appreciate as when new jobs are created.

            One more aspect... with falling rupee and run away inflation... property price will tend to increase independent of petrol.... not a good scenario as a whole though.
            Premium / Luxury properties will gain primarily as they are becoming increasingly affordable for NRIs due to rapid rupee decline verus Dollar / Pound / Euro . Plus , hyper inflation currently is increasing RE prices constantly as well for all segments of RE.

            Comment

            • #7

              #7

              Re : Petrol Price Hike-Its Impact On Real Estate

              Originally posted by suavedude View Post
              Good Morning Rohit , you sold off your Revanta Unit already ? : P

              Any way , areas with good public transport will benefit of people reduce dependence on personal vehicles due to frequent hike in petrol / diesel. So, , your post makes sense in the current scenario but the future is hybrid/ battery operated vehicles IMO.
              never - I plan to live there after 5 years

              rohit

              Comment

              • #8

                #8

                Re : Petrol Price Hike-Its Impact On Real Estate

                In developed countries like the US, migration of people from suburbs to cities is already happening in a major way due to increase in crude prices. A number of stories related to this have appeared in American media in last few months. One such example is:

                The World Has Little Use For A Suburban American Single Family Home Priced Over $250K - Business Insider

                It is pertinent to note that the American housing bubble started deflating in 2007-08 only after crude prices started zooming.

                In our country reverse has been happening since last 10 years or so. Before 2003, very few people in Delhi moved out to Noida or Ghaziabad. Before 2003, those who bought in Noida, Gurgaon or Ghaziabad did that only because they couldn't afford to buy property in proper Delhi as proper Delhi RE was relatively more expensive compared with say Noida or Gurgaon.

                Now with Noida and particularly Gurgaon prices catching up with some areas of Delhi, this opportunity for arbitrage is become less and less lucrative. For those having a job or business in Delhi, cost advantage of distant areas of Noida, Gurgaon, Greater Noida etc. is becoming less and less attractive because of increasing petrol prices. Hope diesel and CNG prices will also go up sooner or later. Clearly areas in proper Delhi and localities outside Delhi but connected by metro are at an advantage.

                Is there anyone on this forum who believes that increasing fuel prices will have NO effect on RE prices in distant areas of Delhi NCR such as Yamuna expressway?
                Last edited May 24 2012, 08:59 PM.

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                • #9

                  #9

                  Re : Petrol Price Hike-Its Impact On Real Estate

                  Petrol Prize hike - No impact on Real estate. It'll continue to give super-normal returns.

                  High inflation - No impact on Real estate. It'll continue to give super-normal returns.

                  Slowing economy - No impact on Real estate. It'll continue to give super-normal returns.

                  Its no surprise that real estate prices in India will continue to grow rapidly.
                  The only surprise is that why all these fund managers, foreign investors, FDI guys etc just don't invest it all in RE?
                  'LIVE FOR INDIA'

                  Comment

                  • #10

                    #10

                    Re : Petrol Price Hike-Its Impact On Real Estate

                    As I see, these hikes may have a short term stagnation in prices.

                    Not because of any reason that people will prefer to travel less, or to far off areas..But primarily because of negative market sentiments.

                    If every person starts talking daily about rising prices on each corners, that itself creates a sort of worry for him, to shell out big money at this point of time....and hence the postponement of his decision to buy.

                    If I'm correct, most RE rallies have happened, when the general market sentiment was positive and everyone felt that they are thriving!

                    Comment

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