Prices doubled from 2009...enough said....
Read more
Reply
538 Replies
Sort by :Filter by :
  • raj - I work in Middle East out of Offices in Bahrain and Saudi Arabia...

    I agree double figure increase may not be common. But all my friends who are working here in Saudi and Bahrain hava been getting raises from 7% to 15% for the last 3 years...

    May be you are not working with the right company

    BTW I work in the PE/VC industry

    I would appreciate if you talk with respect.

    Thanks
    CommentQuote
  • How much one makes is a function of the qualifications, industry and professional backgrounds...there can not be a generlised answer for the increase...

    1-2% is very low may be valid for western countries, In ME 5-15% is the norm. While I was in India i got 15%+ average increase for all the years i worked there...
    CommentQuote
  • Originally Posted by amit001
    raj - I work in Middle East out of Offices in Bahrain and Saudi Arabia...

    I agree double figure increase may not be common. But all my friends who are working here in Saudi and Bahrain hava been getting raises from 7% to 15% for the last 3 years...

    May be you are not working with the right company

    BTW I work in the PE/VC industry

    I would appreciate if you talk with respect.

    Thanks


    Applogize if you found my reply a bit harsh....didnt intended for...

    I and my frnds work in oil sector, and I certainly see a raise of just 5 to 7 % a year....guys in UK/Europe are feeling happy to get a raise of 2-3 %....with 30 % flat tax and really high renting amount...

    My point was to explain that NRIs are no more positioned so brightly as they were before 10 years from now....
    their saving would not have kept pace with rise in indian RE....
    CommentQuote
  • Originally Posted by amit001
    raj - I work in Middle East out of Offices in Bahrain and Saudi Arabia...

    I agree double figure increase may not be common. But all my friends who are working here in Saudi and Bahrain hava been getting raises from 7% to 15% for the last 3 years...

    May be you are not working with the right company

    BTW I work in the PE/VC industry

    I would appreciate if you talk with respect.

    Thanks


    Bahrain and KSA ? - Oh yeah, you still should be called an NRI.
    CommentQuote
  • Originally Posted by amit001
    How much one makes is a function of the qualifications, industry and professional backgrounds...there can not be a generlised answer for the increase...

    1-2% is very low may be valid for western countries, In ME 5-15% is the norm. While I was in India i got 15%+ average increase for all the years i worked there...


    15+% ? that was the time when everyone else was getting 70% rise for 3 years regularly.
    And if you are in KSA - so be it PE/VC or ? Ever heard quality of life ? By quality I meant, mental suffocation and not clean wide roads.
    CommentQuote
  • bahrain is not a consevative country..it is not exactly dubai..but quiet metropolitan with good international schools..and money..and yes it has no oil..remember they have grandprix as well...had visited it for few days..


    Originally Posted by ashish18
    Bahrain and KSA ? - Oh yeah, you still should be called an NRI.
    CommentQuote
  • Originally Posted by ashish18
    Bahrain and KSA ? - Oh yeah, you still should be called an NRI.


    Have u ever been to Bahrain come there and see the quality of life every second expat here is from us and uk whether I can be called Nri or not that I am nor sure but with the money I make here I cam surely hire a guy like u under me wherever u are working :bab (22): learn to respect others
    CommentQuote
  • Hey Raj - no problem sorry for being little strict....

    You are right the average range is 5-7% in Bahrain; in our industry PE/VC guys dont settle for 5-7% and always get atleast a 10% rise (an aberration was 2009)

    Originally Posted by rajtjrll
    Applogize if you found my reply a bit harsh....didnt intended for...

    I and my frnds work in oil sector, and I certainly see a raise of just 5 to 7 % a year....guys in UK/Europe are feeling happy to get a raise of 2-3 %....with 30 % flat tax and really high renting amount...

    My point was to explain that NRIs are no more positioned so brightly as they were before 10 years from now....
    their saving would not have kept pace with rise in indian RE....
    CommentQuote
  • I think people who have never been to Middle East have a lot of misconceptions abt the region...

    My company head office is in Bahrain (To be shifted to Dubai from Next year) but I work out of/frequently travel to most of the GCC cities like Saudi. Dubai, Abu Dhabu, Qatar, Bahrain and the quality of life in some of teh cities like Doha, Bahrain, Abu Dhabi and Dubai is world class.

    Every 2/3 expat in these cities are people from US and Europe who are dying to work here for tax free salaries....and also the growth currently witnessed in some of the cities is much better than the cities of Europe and US whose economies are in Doldrums.

    Qatar will be hosting the 2022 FIFA world cup and will be investing $ 100-150 bn dollars in the country in the next 10 years. Saudi arabia has announced projects worth $ 800 billion in the country. Abu Dhabi is oil rich too and a host of development is taking place. Dubai is a little weak but should be back on its feet soon.

    Some of the cities like Dubai Doha and Bahrain offers a great cosmopolitan and liberal culture. Come to these cities and see for yourself. I have been to Europe and East Asian countries like Singapore and Honking and what these Middle Eastern cities offers is no less..

    Taxation is a great advantage - All salaries are tax free here so If I work in UK i will pay 40-50% of my income as tax.IN Middle East One save it all, so a flat 40% increase in the bottom line.

    Given a choice I would still work in a Dubai/Abu Dhabi/Doha/Bahrain instead of working in a European/American City
    CommentQuote
  • Originally Posted by amit001
    I think people who have never been to Middle East have a lot of misconceptions abt the region...

    My company head office is in Bahrain (To be shifted to Dubai from Next year) but I work out of/frequently travel to most of the GCC cities like Saudi. Dubai, Abu Dhabu, Qatar, Bahrain and the quality of life in some of teh cities like Doha, Bahrain, Abu Dhabi and Dubai is world class.

    Every 2/3 expat in these cities are people from US and Europe who are dying to work here for tax free salaries....and also the growth currently witnessed in some of the cities is much better than the cities of Europe and US whose economies are in Doldrums.

    Qatar will be hosting the 2022 FIFA world cup and will be investing $ 100-150 bn dollars in the country in the next 10 years. Saudi arabia has announced projects worth $ 800 billion in the country. Abu Dhabi is oil rich too and a host of development is taking place. Dubai is a little weak but should be back on its feet soon.

    Some of the cities like Dubai Doha and Bahrain offers a great cosmopolitan and liberal culture. Come to these cities and see for yourself. I have been to Europe and East Asian countries like Singapore and Honking and what these Middle Eastern cities offers is no less..

    Taxation is a great advantage - All salaries are tax free here so If I work in UK i will pay 40-50% of my income as tax.IN Middle East One save it all, so a flat 40% increase in the bottom line.

    Given a choice I would still work in a Dubai/Abu Dhabi/Doha/Bahrain instead of working in a European/American City


    I know a few people who are actually moving from UK / Europe to even Saudi due to better earnings and saving prospects. Plus it is closer to India.
    CommentQuote


  • For a staggering $2 million (approximately Rs. 8.8 crore) a week, the largest yacht in the world can be at your disposal. :)

    You read that right! You can rent the Rosehearty at a whopping $310,000 (approximately Rs.1.3 crore) per week.
    :D

    Amevi and all its amenities can be rented for $1 million (approximately Rs. 4.49 crore) per week. :bab (59):
    CommentQuote
  • Originally Posted by BlotJab
    What was my point and what did you disucss? Let me ask in straight forward way, why did you start this thread? You have not yet given one single example where we can see property rates are doubled since 2009. It seems like you are very new in this RE field. Let me give you one real example which is directly related to me, then you may start thinking the RE sector from different point of view.

    My family bought one flat in 1994 for 2L Rs (sort of 1BHK, area less than 500 square feet). We sold that flat in 2005 for 2.25L Rs. So we got profit 25K in 11 years. I used to wonder on these days that why RE rates don't increase. Recently flat in same society was sold at around 18L (2010-2011). Did you understand something out of this, as expected you didn't. Let me make you understand. RE rates can only be increased if there is demand and most importantly if people (who have demand) can afford it. There has been demand of houses from end users since 1947, however after 1991 economic reforms people's affordability increases and so RE increases till 1995, however after 1995 and till 2005, affordability of people didn't increase that much, though demand was there but builder didn't see any bigger margin so that they can acquire land and build houses to get the profit. From 2004 onwards people have started earning more and increase in affordability was clearly visible from 2006 onwards, and so RE started increasing from 2005 to 2008. During recession, again affordability was hit and we saw slow down in each sector. Today in 2011, RE rates are already reached beyond the affordability of comman men, and I don't see affordability of comman men is going to be increased drastically in next 4-5 years (provided there is no recession in between). It seems like you still not able to accept the fact that todays world is dynamic and you can't sell 1 Rs thing for 10 Rs to the people who can't really afford to buy 5 Rs thing. Common man wake up.



    Actually you have demonstrated the importance of understanding RE cycle. YOu bought on the peak of the previous cycle and sold on the trough of the next cycle.

    Prices definitely have doubled in last 2 years. I booked a flat in 2009 May at 1900 psf, now price in the area is supposedly 3800 listed by the same builder. That is a doubling, isnt it?

    Previous cycle ended its peak in 2007. Next peak is expected in 2014 or 2015. Right now we are probably heading into peaking of the interest rate hikes in next few months (unless extra-ordinary events come when all bets are off).

    The current moderation in prices is a buying opportunity.

    Sensible option is to buy well before the peak of the next cycle - after which prices will reach another orbit and will become unaffordable for almost everyone.

    Right now, many are able to afford the 1-2 crores needed to buy a flat. In 2016 or so, you might not be able to do so because of the effects of hyper-inflation and Rupee depreciation
    CommentQuote
  • Comparing to

    Originally Posted by Venkytalks
    Actually you have demonstrated the importance of understanding RE cycle. YOu bought on the peak of the previous cycle and sold on the trough of the next cycle.

    Prices definitely have doubled in last 2 years. I booked a flat in 2009 May at 1900 psf, now price in the area is supposedly 3800 listed by the same builder. That is a doubling, isnt it?


    The current price ur quoting is in the same project or some other project? It is common for builders to increase rate as the project nears completion. This used to happen in 2009 and it also happens now. We should compare rates of projects which were in the same stage.
    I really don't think this RE cycle thing applies to india. Like u mentioned once the government has put a host of things in place to ensure that getting land and building houses is as difficult as it can possibly be. The rate of increase in R.E prices witnessed from 2003 is unprecedented in the history of independent India. Do you have any info on such rate of RE price increase previously in India?
    CommentQuote
  • its not at all black money now.

    in my office (IT professional) ,i know couple of people who had booked apartments worth more that 1.2 Cr in IREO skyon in gurgaon. i could not comment right and wong or discuss ROI but just want to communicate there are people in service industry also who are doing high value transaction.
    CommentQuote
  • Originally Posted by Venkytalks
    Actually you have demonstrated the importance of understanding RE cycle. YOu bought on the peak of the previous cycle and sold on the trough of the next cycle.

    Prices definitely have doubled in last 2 years. I booked a flat in 2009 May at 1900 psf, now price in the area is supposedly 3800 listed by the same builder. That is a doubling, isnt it?

    Previous cycle ended its peak in 2007. Next peak is expected in 2014 or 2015. Right now we are probably heading into peaking of the interest rate hikes in next few months (unless extra-ordinary events come when all bets are off).

    The current moderation in prices is a buying opportunity.

    Sensible option is to buy well before the peak of the next cycle - after which prices will reach another orbit and will become unaffordable for almost everyone.

    Right now, many are able to afford the 1-2 crores needed to buy a flat. In 2016 or so, you might not be able to do so because of the effects of hyper-inflation and Rupee depreciation


    Sir if you are saying prices are doubled even in any perticular specific one project then I am ready to accept it. However I was under impression on following things.

    1) Prices in PS in 2009 were 2800, now they are 3900-4200. (% increase around 40%)

    2) Prices in Wakad in 2009 were 2500, now they are 3700-3800

    3) Prices in Aundh in 2009 were 4200, now they are 5500

    4) Prices in Pashan, Baner in 2009 were 3400-3500, now they are 4600-4700

    5) Prices in Boat club road in 2009 were 7000-8000, now you do better know current prices.

    6) Prices in Magarpatta in 2009 were 3500-4000, now they are 5000-5500.

    I could see prices in Talegoan or any area 80KM away from Pune were in the range of 1500-2000 in 2009, and now prices are in the range of 3000 Rs.

    I still think that prices are only increased by 40%, whereas blue chip stocs like L&T ( & others) have increased more than 120%. Like L&T was in the range of 800 in 2009 and now it is in the range of 1800. Increase of prices by 40% in 2.5 years means effectively you get the profit of not more than 10%.
    CommentQuote