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Lets review RE sector in last one year

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Lets review RE sector in last one year

Last updated: August 23 2011
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  • Lets review RE sector in last one year

    We have been showing our views on RE sectors for long time, I think now time has come to go back and review that how did RE sector perform in last one year (lets say from last year's October to this year September). So we should give the area(or poject) name and property rates in October 2010 and current rate and then people can see the reality.

    Let me start with Pimple Saudagar and Wakad, there are many projects in these two areas, so I am not mentioning any specific project name.

    1) Pimple Saudagar --
    Rate in October 2010: 3600 (Basic) + 1.5L for parking+ 70K MSEB etc.
    Rate currently: 4000 (included parking and other things) + VAT + Stamp duty+ Registration
    Effective % increase = 6%

    2) Wakad
    Rate in October 2010: 3500
    Current Rate: 3700-3900
    % increase = 8%

    Please share your experience, views.
  • #2

    #2

    Re : Lets review RE sector in last one year

    With the fear of recession, the real estate prices may go down.

    Comment

    • #3

      #3

      Re : Lets review RE sector in last one year

      Originally posted by BlotJab View Post
      We have been showing our views on RE sectors for long time, I think now time has come to go back and review that how did RE sector perform in last one year (lets say from last year's October to this year September). So we should give the area(or poject) name and property rates in October 2010 and current rate and then people can see the reality.

      Let me start with Pimple Saudagar and Wakad, there are many projects in these two areas, so I am not mentioning any specific project name.

      1) Pimple Saudagar --
      Rate in October 2010: 3600 (Basic) + 1.5L for parking+ 70K MSEB etc.
      Rate currently: 4000 (included parking and other things) + VAT + Stamp duty+ Registration
      Effective % increase = 6%

      2) Wakad
      Rate in October 2010: 3500
      Current Rate: 3700-3900
      % increase = 8%

      Please share your experience, views.
      Good one...To make it more interesting and bust demand/supply theory...Wakad was 2300 in July 2009 for comparison . PS might be couple of hundred more .

      Comment

      • #4

        #4

        Re : Lets review RE sector in last one year

        Originally posted by suryawork View Post
        Good one...To make it more interesting and bust demand/supply theory...Wakad was 2300 in July 2009 for comparison . PS might be couple of hundred more .
        Rate in Wakad was 2500 in 2007. Rate in PS was 3500 before recession. I think, now is the time when we should compare the RE prices year on year basis, not like comparing 2007 with 2011. So my point is to just compare the prices between last years October and current value. So that we can see how much return RE has given in last one year. Based on that (& ofcourse future economic situation), we can make prediction for next year's RE return. I think, my point is clear here, people should share their views.

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        • #5

          #5

          Re : Lets review RE sector in last one year

          And all this while we have been expecting 15- 20 % downfall in prices


          what a paradox....

          donno who is insane now.....the builders or IREF

          Comment

          • #6

            #6

            Re : Lets review RE sector in last one year

            Originally posted by kingmanish View Post
            And all this while we have been expecting 15- 20 % downfall in prices


            what a paradox....

            donno who is insane now.....the builders or IREF

            Well, it depends upon how do you look at the things? If you pay 10% interest on your load amount and loosing the return on your down payment money (if you had put it in FD or Gold), and at the end of the day you realized that your property value got appreciated only by 5% in one year, and when coming years are not looking excitement for RE sector.

            Though you should also consider that last year was assumed to be in succession. And when you see stock market recovered from 12K to 19K (though it is 16K now) in last one year, Gold/Silver has given more than 60-70% return and economy was growing in last one year but RE sector fell down in most of the cities of India. But for Pune, it has increased , how much it is increased , that is what we would like to discuss here. Did it increase more than FD returns?

            Comment

            • #7

              #7

              Re : Lets review RE sector in last one year

              Originally posted by BlotJab View Post
              We have been showing our views on RE sectors for long time, I think now time has come to go back and review that how did RE sector perform in last one year (lets say from last year's October to this year September). So we should give the area(or poject) name and property rates in October 2010 and current rate and then people can see the reality.

              Let me start with Pimple Saudagar and Wakad, there are many projects in these two areas, so I am not mentioning any specific project name.

              1) Pimple Saudagar --
              Rate in October 2010: 3600 (Basic) + 1.5L for parking+ 70K MSEB etc.
              Rate currently: 4000 (included parking and other things) + VAT + Stamp duty+ Registration
              Effective % increase = 6%

              2) Wakad
              Rate in October 2010: 3500
              Current Rate: 3700-3900
              % increase = 8%

              Please share your experience, views.
              This clearly indicates that RE investment in present time is HIGH Risk LOW Returns..one will earn more on Bank FD's, isn't it??

              Comment

              • #8

                #8

                Re : Lets review RE sector in last one year

                Originally posted by monds View Post
                This clearly indicates that RE investment in present time is HIGH Risk LOW Returns..one will earn more on Bank FD's, isn't it??
                And if you consider home loan interest...returns in RE seems much more less...

                Comment

                • #9

                  #9

                  Re : Lets review RE sector in last one year

                  Originally posted by gandalf View Post
                  And if you consider home loan interest...returns in RE seems much more less...
                  And yet, after plenty of posts which clearly dictate that RE is not the most efficient investment out there, a misguided soul will go "Which area is the best for RE investment in Pune? I want to buy a 2BHK ASAP for investment purpose" and I am literally in #facepalm mode.

                  Comment

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