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Prices Going down in Noida - OverSupply the killer!

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Prices Going down in Noida - OverSupply the killer!

Last updated: November 16 2010
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  • Prices Going down in Noida - OverSupply the killer!

    So, finally it is happpening so many projects in Noida/Noida Ext. that either prices stagnant or are actually coming down.

    So all the charlatans of RE are finally exposed! all projects trumpeting that they have sold 100 percent and launching phase 2 were proved to be nothing more than spurious claims.

    The ground reality it seems is that only some good reputation builders 3C, Gaur, Mahagun have actualy sold 50-60 percect units, rest all are fakers.

    And still we see new projects getting launched every day!

    So, the people who have taken a loan of 30-35 lacs and wud end up paying 60-70 lacs in 15 years with a big unconstructed non-liquifiable liability who has no buyers need to think.

    What are your comments on this?
  • #2

    #2

    Re : Prices Going down in Noida - OverSupply the killer!

    Due the necessary due dilligence before comming to any deal ...
    U may still be duped or cheated , but try to do ur homework as much as u can...
    Do not rush into a decesion ... Don't work if the borker says only few units left ...


    Originally posted by anirudhbhatnagar83 View Post
    So, finally it is happpening so many projects in Noida/Noida Ext. that either prices stagnant or are actually coming down.

    So all the charlatans of RE are finally exposed! all projects trumpeting that they have sold 100 percent and launching phase 2 were proved to be nothing more than spurious claims.

    The ground reality it seems is that only some good reputation builders 3C, Gaur, Mahagun have actualy sold 50-60 percect units, rest all are fakers.

    And still we see new projects getting launched every day!

    So, the people who have taken a loan of 30-35 lacs and wud end up paying 60-70 lacs in 15 years with a big unconstructed non-liquifiable liability who has no buyers need to think.

    What are your comments on this?

    Comment

    • #3

      #3

      Re : Prices Going down in Noida - OverSupply the killer!

      Price will incraese as inflation goes up & all things cost rises . But it will be not like what happened in past like double in 3 years & triple in 6 years.

      Comment

      • #4

        #4

        Re : Prices Going down in Noida - OverSupply the killer!

        Oversupply

        1. I also agree with my friend here. The principle of demand and supply says that there is far more housing projects in Noida ext/ Gr Noida than the actual demand.Where ever somebody with money could find a land in this area as bought it and undertaken a residential project.It seems to be a overkill.

        2. But then are there any visible sign of any reduction in prices or increase in discounts being given ? Well lets hope everyone gets his nest in this concrete jungle.
        Last edited June 28 2010, 12:25 PM.

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        • #5

          #5

          Re : Prices Going down in Noida - OverSupply the killer!

          May not

          I was of the similar view earlier when many people, brokers told me that projects like ECO VILLAGE have no takers. In fact I had put up athread also indicating Prices will go down. But in Last 1 month or so the prices havent gone down. The Prices for the two best projects in NOIDA Extension, Gaur City and EARTH TOWNE have infact risen, while for not so good projects like ECOVILLAGE, AMRAPALI, PATEL, PANCHSHEEL ETC they have neither risen nor dropped. But I feel, that several factors like, Starting of Construction Work, Bank Loans, Revision of Circle Rates by UP GOVT, METRO, etc will lead to rise in prices, though they may rise slowly.

          Comment

          • #6

            #6

            Re : Prices Going down in Noida - OverSupply the killer!

            Temporary Phase

            Originally posted by anirudhbhatnagar83 View Post
            So, finally it is happpening so many projects in Noida/Noida Ext. that either prices stagnant or are actually coming down.

            So all the charlatans of RE are finally exposed! all projects trumpeting that they have sold 100 percent and launching phase 2 were proved to be nothing more than spurious claims.

            The ground reality it seems is that only some good reputation builders 3C, Gaur, Mahagun have actualy sold 50-60 percect units, rest all are fakers.

            And still we see new projects getting launched every day!

            So, the people who have taken a loan of 30-35 lacs and wud end up paying 60-70 lacs in 15 years with a big unconstructed non-liquifiable liability who has no buyers need to think.

            What are your comments on this?

            This is a temporary phase. Prices will go up anyway. There will always be a shortfall of houses.
            IF you look at the overall economic condition, how many people own a their own house in India. Less than 2%. what does this mean, there will always be a shortage in supply of construction material like cement, wood, steel etc...

            yes if yu are looking at prices going down in 6 months or 1 year that may be the case but owning a house is a lifelong investment and starts from a 5-year timeframe. People will always benefit from property investment if the location and construction quality is good.
            MM

            Comment

            • #7

              #7

              Re : Prices Going down in Noida - OverSupply the killer!

              Originally posted by Munish Malhautra View Post
              This is a temporary phase. Prices will go up anyway. There will always be a shortfall of houses.
              IF you look at the overall economic condition, how many people own a their own house in India. Less than 2%. what does this mean, there will always be a shortage in supply of construction material like cement, wood, steel etc...

              yes if yu are looking at prices going down in 6 months or 1 year that may be the case but owning a house is a lifelong investment and starts from a 5-year timeframe. People will always benefit from property investment if the location and construction quality is good.
              Rightly said. Given the oversupply in Noida and Noida ext, one wd have expected some reduction in prices. But that is not the case. Prices have generally edged up only. So in my opinion if the prices have not dropped now they are not likely to drop anytime soon. some stability nevertheless is expected. Which I guess wd be good for future buyers and even ppl who have alreadt purchased as it will allow for greater demand and earlier completion and habitation of the projects.

              Comment

              • #8

                #8

                Re : Prices Going down in Noida - OverSupply the killer!

                Originally posted by mt0587 View Post
                Rightly said. Given the oversupply in Noida and Noida ext, one wd have expected some reduction in prices. But that is not the case. Prices have generally edged up only. So in my opinion if the prices have not dropped now they are not likely to drop anytime soon. some stability nevertheless is expected. Which I guess wd be good for future buyers and even ppl who have alreadt purchased as it will allow for greater demand and earlier completion and habitation of the projects.

                i have different view and feel the prices will drop due to reduction in demand though builders will try and they have done in past to maintain the prices iunspite of worse economic scenario...

                THEY HIBERNATE WHEN RECESSION HIT'S ( STALLS ALL PROJECTS IN HAND AND DOES NOT LAUNCE ANY NEW)

                double dip recession is round the corner .. take hint from our PM comment on below link..

                http://www.business-standard.com/ind...ion-pm/399644/

                also review today's standard charted...

                also the US economic boost of $787b would expire by coming january , and since US govt itself wont be having money to rescue second time along with europe also in problem problem would be more wide spread then ever...

                now what is the impact on prices for RE in india ...

                all the euphoria will be gone and for people who have invested alreday , they would be trapped again as the interest rate would inch higher and will become unmanageable for most...

                thus u will be able to buy the same stuff at same price 2-3 years down the line...

                why not use that money somewhere else and refrain from investing today ... it will be better because if masses hold on to there wealth and not give in to the gimmicks of the brokers / builder nexus today the even the todays price rise will be stalled , where the prices have risen almost by 10 -60 % depending on the are .. i would say the time to invest in RE has gone ... should have done a year ahead and not now...

                Comment

                • #9

                  #9

                  Re : Prices Going down in Noida - OverSupply the killer!

                  Sanjay he did not said double dip recession in cornor.
                  He just warned about fiscal contraction

                  he siad:

                  " “Concerns about debt sustainability normally suggest a need for fiscal correction. But circumstances are not normal. The recovery is still fragile and private demand in industrialised countries is likely to remain weak,” he said"

                  we all agree that recovery is fragile but still economy is recovering.

                  Comment

                  • #10

                    #10

                    Re : Prices Going down in Noida - OverSupply the killer!

                    subodh: I am pleasantly surprised that you changed your views.

                    A few friends of mine tried to negotiate very hard for discounts but didn't get much. Atleast Gaur definitely has inflated prices.
                    Also, i am of the view that in our country, the demand and supply curve need to be taken with a pinch of salt. For a very long time, most of the flats in Noida were out of reach for common people with single incomes. Just a small incident i recollect - 4 yrs back i moved to Noida and my father said that he has 15 lakhs which he wants to invest in Noida housing. I went to a broker and he laughed at me and said " apne papa ko kehna ke woh jahaan pe hai, wahi theek hai. Noida mei itne se kuch nahi hoga".
                    With Noida extension coming in, these guys(guys like me and thousands others like me) have the chance to finally buy a house of their own. Hence, the thousands of flats being put up for sale everyday will find buyers, either as investment tools for the richer guys or as actual dwellings for end users who wish to fulfill their dream of owning a home.
                    An obscure analogy would be the maruti 800/Nano. It made/will make the dream of owning a car for most middle/lower middle class buyers a reality. With affordable/no frills housing, i think we might be seeing the same revolution.
                    As far as appreciation goes, i think the 2004 to 2007 period was one big bubble and that phase coming up again seems like a distant probability to me.

                    Comment

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