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Builders & RE Bulls Theory Proved Right !!!

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Builders & RE Bulls Theory Proved Right !!!

Last updated: June 15 2016
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  • Re : Builders & RE Bulls Theory Proved Right !!!

    Originally posted by Venkytalks View Post
    Prices came down in 2008-9? I dont remember that happening.

    What happened was that affordable type of flats were released at prices which were less than that of luxury specification flat.

    So from 3600 psf for luxury, 2400 psf for affordable type of small flat was released on Gurgaon Sohna road.

    Currently, the 2400 psf is being resold at 4400 psf and 3600 psf luxury is being resold at 6600 psf.

    Prices did not come down, but an opportunity was created for smart investors

    I agree with Bhuvang. RE prices will not come down, because Rupee will devalue by depreciation and inflation until 10 crore for 1BHK will start making sense.


    This has happened in 1970s and 1980s, why would it not happen now? People have forgotten the inflations and depreciations of yesteryear in the face of financial stability of 1995-2011 (YES STABILITY was what we saw in 2008 also).

    In real instability with stagflation - Indian common man will not be able to affors RE. He has always lived in Juggi and our politicians are ensuring that he never will be able to shift to decent housing.

    Congress has always done this - it is their nature.

    Right now is the bear market with low prices. In 10 years, 10 crore will be the cost of a juggi.
    Part street & Mont Vert Tropez are few more example, where prices got reduced more than 20% (as compared to their launches rate in 2007) in 2009. if you don't believe then just google it, you will get the proof.

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    • Re : Builders & RE Bulls Theory Proved Right !!!

      Originally posted by Venkytalks View Post
      Prices came down in 2008-9? I dont remember that happening.

      What happened was that affordable type of flats were released at prices which were less than that of luxury specification flat.

      So from 3600 psf for luxury, 2400 psf for affordable type of small flat was released on Gurgaon Sohna road.

      Currently, the 2400 psf is being resold at 4400 psf and 3600 psf luxury is being resold at 6600 psf.

      Prices did not come down, but an opportunity was created for smart investors

      I agree with Bhuvang. RE prices will not come down, because Rupee will devalue by depreciation and inflation until 10 crore for 1BHK will start making sense.


      This has happened in 1970s and 1980s, why would it not happen now? People have forgotten the inflations and depreciations of yesteryear in the face of financial stability of 1995-2011 (YES STABILITY was what we saw in 2008 also).

      In real instability with stagflation - Indian common man will not be able to affors RE. He has always lived in Juggi and our politicians are ensuring that he never will be able to shift to decent housing.

      Congress has always done this - it is their nature.

      Right now is the bear market with low prices. In 10 years, 10 crore will be the cost of a juggi.


      Not sure whether you know about Pune , but prices definitely came down in Pune .
      We've seen prices going to 2300 psf levels in areas which are HOT now .Check Mont Vert , Lake Town and many more projects .
      If opportunity was created once for smart investors in 2008 then why wont it be created again ?
      We will witness mass riots if inflation gets out of hand .

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      • Re : Builders & RE Bulls Theory Proved Right !!!

        Originally posted by BlotJab View Post
        Part street & Mont Vert Tropez are few more example, where prices got reduced more than 20% (as compared to their launches rate in 2007) in 2009. if you don't believe then just google it, you will get the proof.
        Exactly - I had that Mont Vert Brochure and the rate list .

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        • Re : Builders & RE Bulls Theory Proved Right !!!

          Originally posted by BlotJab View Post
          Part street & Mont Vert Tropez are few more example, where prices got reduced more than 20% (as compared to their launches rate in 2007) in 2009. if you don't believe then just google it, you will get the proof.
          And please don't compare Delhi Vs Pune. It is like comparing Germany Vs Spain.

          Ares near by IT companies (like Hinjewadi) are supposed to be occupied by IT people only, at the end of the day. No businessmen from Delhi will come to these areas to stay. And how much IT couple can afford ( assuming they will continue to work in IT for next 25 years)... 50 lakh...60 lakh...90 lakh or what. The day IT couple can start affording 1 Cr Rs flats (around 200k$ as of todays currency conversion rate), there won't be any IT industry in India, as India will become US and India will offshore his work to US as labour cost will less in US then. And, US house prices will go up and as their currency would depreciate.

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          • Re : Builders & RE Bulls Theory Proved Right !!!

            Originally posted by BlotJab View Post
            And please don't compare Delhi Vs Pune. It is like comparing Germany Vs Spain.

            Ares near by IT companies (like Hinjewadi) are supposed to be occupied by IT people only, at the end of the day. No businessmen from Delhi will come to these areas to stay. And how much IT couple can afford ( assuming they will continue to work in IT for next 25 years)... 50 lakh...60 lakh...90 lakh or what. The day IT couple can start affording 1 Cr Rs flats (around 200k$ as of todays currency conversion rate), there won't be any IT industry in India, as India will become US and India will offshore his work to US as labour cost will less in US then. And, US house prices will go up and as their currency would depreciate.
            Very well said...Those areas which are rising only based on IT..don't have much future..IT industry can't afford salary rising at this pace...Thereby, "affordability" is key..

            IT couples (earning 6-8 lpa, sw guys) can't go beyond 40 lacs
            IT couples (earning 12-13 lpa, managers, biz consultants) can't go beyond 55-60 lacs..

            This is 1st hand data

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            • Re : Builders & RE Bulls Theory Proved Right !!!

              Originally posted by Venkytalks View Post
              Prices came down in 2008-9? I dont remember that happening.
              then you were not paying attention. prices indeed came down in 2008 and 2009. someone i know was looking for a property during that time and got 30% discount in Wakad (Pune) over advertised rate. the builder himself admitted that with so many companies going under in the US, they had to reduce prices to attract buyers. that's a true story. there are many more like that, be assured.

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              • Re : Builders & RE Bulls Theory Proved Right !!!

                Lots of people seem to be objecting to the price situation. Unfortunately I cannot talk about Pune, I know nothing about it.

                I was one of the people scouting around for property in 2009 Jan. onwards in Gurgaon with a small budget,initially resale (since all launches of Sept 2008 had stalled and nothing new was launched.

                In resale, very few people were willing to sell - I found many broker type of people who were in distress willing to sell (they had made a booking to flip it). I found these people very shady and unreliable and I was not interested in this type of deal. They were holding out and waiting for a few months - the builder gave these people extra time for subsequent payments and so they had some comfort to hold on. So they were willing to sell maybe 200Rs over the price at which they had booked.

                I went to 4 builders for direct negotiation. All their launches were in luxury specs and were quite high budget. Again, they refused to sell below their list prices and refered me to brokers for discounts. Brokers went from 2% to 5% discount.

                BAsicaly, in Gurgaon, nobody was desperate to sell and were ready to wait it out.

                In plots also, people who had booked in 2006 or 2007 and were sitting on good profits even after the crash were selling. So BPTP plots sold around 6000-8000 psy levels and had run upto 14000 levels, not came down to 10000 levels (current price 30000).

                I finally booked at the bottom in May 2009, in a new launch at 1900 psf BSP, in an affordable type of launch. Project of 200 flats sold out in 1 month and the company relaunched a more expensive project (which also got sold out). Currently they have sold out another project at 3800 psf at same location, but with much better specification.

                So even for a person willing to scout for a good deal, there was no discount and no price crash, except for those willing to take a lot of third party and black money risk in resales. As far as I am concerned, there was no real discounts or price crash, except for occasional distress sales by people in over their head - and who wants to deal with such people?

                I went only to the tier 2 companies (tier 1 like DLF and Unitech were in bad shape and continue to be so. I never went to the tier 3 companies which were actually giving discounts - because these are not investment grade properties.

                So no real price drops for a middle class professional person - only at the lower levels and at the luxury levels (prices already 1 Cr plus in 2007 did come down to 80L in Unitech etc).

                Later on, I again scouted around for a second booking in NOIDA. Except Omaxe grandwoods, there were no discounts. And Omaxe was about to collapse - strict no-no for me.

                I am aware of the situation in Pune and Bangalore and also in Mumbai (mostly from this forum). Discounts were mostly from companies which were about to collapse (very big or very small). Who wants to buy original or resale from such companies?

                In already built ready made flats there was no price reduction at all - only deals drying up.

                Can you name a single already occupied project where prices fell? That is what a real price fall means - ready made houses become cheap.

                Booking is like a share - volatile and subject to all kinds of panic. They are only pieces of paper.

                Real estate has to be real !!!
                Venky (Please read watch a or before posting)

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                • Re : Builders & RE Bulls Theory Proved Right !!!

                  Originally posted by fundoo158 View Post
                  IT couples (earning 12-13 lpa, managers, biz consultants) can't go beyond 55-60 lacs..

                  This is 1st hand data
                  is 12-13lpa the total salary of the couple or each individual!!!

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                  • Re : Builders & RE Bulls Theory Proved Right !!!

                    Originally posted by Jai_Singh View Post
                    is 12-13lpa the total salary of the couple or each individual!!!
                    Each individual ofcourse...but even with that ur inhand comes around 70K smthing..but typically these ppl are having more liabilities and at 32+ age bracket....so, bit tight on what emi they can afford..

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                    • Re : Builders & RE Bulls Theory Proved Right !!!

                      Just to add more facts about low rates in 2008/2009..
                      I know deals were done in balewadi at rates of 2300 psf in Mar 2009

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