Prices doubled from 2009...enough said....
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  • any reason to mention lady gaga twice :)

    anyway my request to the singer is -- lady gaga tu mat ga :D

    have a nice weekend
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  • Rediff lists down the reasons why RE prices will not fall:

    SIX reasons why property prices WILL NOT fall in your city! - Rediff Getahead
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  • Originally Posted by nitesh321
    Rediff lists down the reasons why RE prices will not fall:

    SIX reasons why property prices WILL NOT fall in your city! - Rediff Getahead


    Check the guy who has written this and go and check that website :

    Siddhesh Joglekar runs estatelister.com


    Check RE rates listed in TOI and Indian Express . Why are they different for the same neighbourhoods ?


    Everybody associated with RE business is heading for troubled waters...
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  • Six REAL reasons for RE bull:

    1. Inflation is high, pushing up rental values. Expect rent to double

    2. High inflation will push up building costs and labour costs. Expect 100% doubling of cost of construction as steel, cement and labour costs double.

    3. High cost of capital will get passed on. Capital cost is high for the company and for the buyer.

    4. Demand far exeeds supply as population moves from 2500$ annual per capita to 10,000$ annual percapita productivity (50 million people) - these being the managers of the aam janta which will move from 500$ per capita to 2500$ per capital annual productivity (500 million people.

    5 million people are likely to move from 10,000 $ per capita to 25000$ per capita in the next few years (=1Lakh per month salary) - these are the high level managers - will drive real estate sales for the next 50 years.

    5. Poor quality of governance, barriers and bad laws are continuing to make real estate a opaque and poor quality market. Expect supply to be far less than demand.

    6. Rupee depreciation is likely for next 10 years at 5% per annum, matching the differential inflation in the two economies. This and high fiscal deficit will lower money value continuously, making real estate rise along with general inflation
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  • constructions can stall if inflation is too high to make building expensive
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  • Originally Posted by puser
    constructions can stall if inflation is too high to make building expensive


    It is very likely.

    NOIDA flats sold at 2000 psf prices are already too expensive to build. Even flats sold at 3000 psf are barely making money for builder (since his bribes are not reflected in the books, assume 30% cost as bribe).

    But this abandonment will reduce supply and make delivered flats more expensive.

    We are returning to the 70s and 80s economy
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  • Agree with Venky.

    My personal view is - if your finances permit, go for a RTM - RE now. The way things are unfolding, RE may just become a dream for majority of Middle class buyers within a few years.
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  • Originally Posted by bhuvang
    Agree with Venky.

    My personal view is - if your finances permit, go for a RTM - RE now. The way things are unfolding, RE may just become a dream for majority of Middle class buyers within a few years.


    this is the very same FEAR and PANIC has led to a giant real estate bubble in India and in Pune moreso where people flock to every prelaunch offer and fund builders for their projects.

    come on man...home is basic necessity...how can builder sell only for premium buyers? there will always be homes available for all kinds of income groups..if they're not then i am afraid we are heading in wrong direction and we may arrive at the cusp where social dissatisfaction may burst to the point that people will start coming on roads and riot like greece.

    if construction cost goes up due to demand, it can come down as well when real estate sales will dry down, orders to raw materials will be canceled, with shrinking order book prices in raw materials will also correct...unsubstantiated claims like the one buy now or never has created this unsustainable bubble, please avoid inducing fears without any backing information.
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  • Originally Posted by puser
    this is the very same FEAR and PANIC has led to a giant real estate bubble in India and in Pune moreso where people flock to every prelaunch offer and fund builders for their projects.

    come on man...home is basic necessity...how can builder sell only for premium buyers? there will always be homes available for all kinds of income groups..if they're not then i am afraid we are heading in wrong direction and we may arrive at the cusp where social dissatisfaction may burst to the point that people will start coming on roads and riot like greece.


    Agreed. Social unrest is a thing to watch out for.

    We badly need a agreed / disagreed button on Posts. Would say some unnecessary replies like this one. :bab (6):
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  • RE price reduction - not even in dreams

    Originally Posted by puser
    if construction cost goes up due to demand, it can come down as well when real estate sales will dry down, orders to raw materials will be canceled, with shrinking order book prices in raw materials will also correct...unsubstantiated claims like the one buy now or never has created this unsustainable bubble, please avoid inducing fears without any backing information.


    Chap, i'm not inducing any fear, just trying to be practical.

    As per my experience, the very concepts of Demand and Supply that drive all markets doesn't work that straight in Indian RE, esp in metros like Delhi and Mumbai. I agree with you that as order books shrink, prices are bound to come down. But hey, don't forget that fat layer of Black money hoarders that are always on the lookout for newer investment avenues, esp ones where their piling cash can be easily stashed but can't be easily traced. And man, RE is the best bet for them, believe or not.

    So as soon as prices of some RE (house/flat/appt/plot, u name it) come down, the first thing that an agent does is call such people and get the deals done overnite. And middle class guys like us just keep waiting at home with fingers crossed, praying for price correction.

    Again, don't think Black money comes from only Reliance and Tata cadre. It comes even from road-side kirana stores, main market showrooms, jewellers, and, hell lot of other small business you and me deal with every month.

    Secondly, in the ongoing economic turmoil where all the assets are eroding in value including currency itself, where do you think people are going to put there money for safety - i could see only two - GOLD and RE.

    Current economic slowdown is in progress since 2008, but tell me frankly, how many locations (Metro/Tier I/Tier II) in India do you know where prices have not increased (forget about being stagnant). You will yourself get the answer.

    And as far as builders are concerned, my frnd - who do you think are there prime financers. Politicians/criminals/businessmen, who route there huge unaccounted wealth thru builders into RE. So personally, i don't even dream of a day when our DLF, Unitech, Supertech, Amprapali etc. would reduce prices or else go bankrupt.

    My POV..... :bab (6):
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  • Big borrowers of India Inc default on Rs 47,000 crore loans

    Big borrowers of India Inc default on Rs 47,000 crore loans - The Times of India

    Guys,

    those who still doubt on what i said in last post, here is another evidence, 47000 crores in default.

    Where do you think a major portion of this would've gone.... think think !!! :bab (59):
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  • Originally Posted by bhuvang
    Chap, i'm not inducing any fear, just trying to be practical.

    As per my experience, the very concepts of Demand and Supply that drive all markets doesn't work that straight in Indian RE, esp in metros like Delhi and Mumbai. I agree with you that as order books shrink, prices are bound to come down. But hey, don't forget that fat layer of Black money hoarders that are always on the lookout for newer investment avenues, esp ones where their piling cash can be easily stashed but can't be easily traced. And man, RE is the best bet for them, believe or not.

    So as soon as prices of some RE (house/flat/appt/plot, u name it) come down, the first thing that an agent does is call such people and get the deals done overnite. And middle class guys like us just keep waiting at home with fingers crossed, praying for price correction.

    Again, don't think Black money comes from only Reliance and Tata cadre. It comes even from road-side kirana stores, main market showrooms, jewellers, and, hell lot of other small business you and me deal with every month.

    Secondly, in the ongoing economic turmoil where all the assets are eroding in value including currency itself, where do you think people are going to put there money for safety - i could see only two - GOLD and RE.

    Current economic slowdown is in progress since 2008, but tell me frankly, how many locations (Metro/Tier I/Tier II) in India do you know where prices have not increased (forget about being stagnant). You will yourself get the answer.

    And as far as builders are concerned, my frnd - who do you think are there prime financers. Politicians/criminals/businessmen, who route there huge unaccounted wealth thru builders into RE. So personally, i don't even dream of a day when our DLF, Unitech, Supertech, Amprapali etc. would reduce prices or else go bankrupt.

    My POV..... :bab (6):


    And what is your theory as to why prices did go down in 2008-2009 ? Why did the black money not get invested in RE then and not allow prices to fall ?
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  • :bab (45): hypothetical may be unrelated situation
    1. a person X has black money of worth of say 1 cr :D
    2. a person X goes to a premium builder and invests 1 cr to builder in his township project
    3. builder takes money but refuses to acknowledge any payment done by person X(a bigger money hoarder:D), now what options do person X has as money was black it never "legally" belonged to person X

    i think saying black money all the time is easier but people having and managing blackmoney perhaps are under big tensions than we can imagine.
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  • Originally Posted by puser
    :bab (45): hypothetical may be unrelated situation
    1. a person X has black money of worth of say 1 cr :D
    2. a person X goes to a premium builder and invests 1 cr to builder in his township project
    3. builder takes money but refuses to acknowledge any payment done by person X(a bigger money hoarder:D), now what options do person X has as money was black it never "legally" belonged to person X

    i think saying black money all the time is easier but people having and managing blackmoney perhaps are under big tensions than we can imagine.


    It is not done like this.

    People having black money do either of below two things.

    1) They buy flats at any apartment (ready possession or under construction), they offer the deal to builder that they can give 30-40% money on cash, deal is signed at 60-70% of market value. Once the deal is signed, builder can't cancel the deal, however in some cases if builder gets default or some other means if project gets cancelled, then buyer will get only 60-70% money back (as per the deal in written). But there are very less chances of this, and builder never prefer to do this.

    2) Second thing is possible for big players only (more than 1 Cr Rs), they do partnership with contractors and buy the land (using the same procedure as above) and construct small projects and sell them to other investors. Here is the trick, contractors should be having sufficient amount of white money.
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  • Originally Posted by puser
    :bab (45): hypothetical may be unrelated situation
    1. a person X has black money of worth of say 1 cr :D
    2. a person X goes to a premium builder and invests 1 cr to builder in his township project
    3. builder takes money but refuses to acknowledge any payment done by person X(a bigger money hoarder:D), now what options do person X has as money was black it never "legally" belonged to person X

    i think saying black money all the time is easier but people having and managing blackmoney perhaps are under big tensions than we can imagine.


    2 no ka dhanda sab se imandari mai hota hai...
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