News: Housing Development Finance Corp , India's largest mortgage lender, expects property prices across the country to correct between five to fifteen percent on average, its Chief Executive Keki Mistry told reporters on Monday.
Indian developers have seen a sharp slowdown in sales as rising interest rates deter residential buyers and funding for builders becomes scarce as economic growth slows in Asia's third-largest economy.

India's HDFC CEO expects 5-15 pct fall in property prices - Reuters -

It seems to be true for Pune also. I have been tracking few properties in Pune, and one of the projects, that was launched two/ three months ago, placed lot of hoardings etc. in city and located in one of the most sought after areas, Wanowarie is not able to close 20 bookings so far.

Further, one of the projects in Baner, that had good review on Ravi Kareendkar's blog, was able to reduce its inventory by just two flats in last three months.

Also surprised to notice frequent property fairs at the rate of 2 events per month and renaming of old Iven township to Life Republic by Kolte Patil (one of biggest builders) in Pune as new marketing gimmick. I believe that the builders are using old tactics such as property fairs to hike the price on regular intervals to create the artificial demand (by hiding unsold inventories), merely to satisfy the poor chaps who have earlier booked the flats.

Your comments please!
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  • Originally Posted by buyerpune
    News: Housing Development Finance Corp , India's largest mortgage lender, expects property prices across the country to correct between five to fifteen percent on average, its Chief Executive Keki Mistry told reporters on Monday.
    Indian developers have seen a sharp slowdown in sales as rising interest rates deter residential buyers and funding for builders becomes scarce as economic growth slows in Asia's third-largest economy.

    India's HDFC CEO expects 5-15 pct fall in property prices - Reuters -

    It seems to be true for Pune also. I have been tracking few properties in Pune, and one of the projects, that was launched two/ three months ago, placed lot of hoardings etc. in city and located in one of the most sought after areas, Wanowarie is not able to close 20 bookings so far.

    Further, one of the projects in Baner, that had good review on Ravi Kareendkar's blog, was able to reduce its inventory by just two flats in last three months.

    Also surprised to notice frequent property fairs at the rate of 2 events per month and renaming of old Iven township to Life Republic by Kolte Patil (one of biggest builders) in Pune as new marketing gimmick. I believe that the builders are using old tactics such as property fairs to hike the price on regular intervals to create the artificial demand (by hiding unsold inventories), merely to satisfy the poor chaps who have earlier booked the flats.

    Your comments please!


    There are news in market which contradicts to to news you posted
    Property prices in Pune are expected to remain firm - Economic Times
    2012 property prices to remain firm with upward bias, says report - Express India
    Business Line : Features / Investment World : Pune residential demand firm: ASK

    To make myself happy :), I will say these news might be promotions/gimmicks carried out by builder lobby to attract buyers and make impression that prices are not going down and current time is best time to buy,which is actually not.

    There will be correction if current situation persists for 6 more months and many buyers dont fall pray to builders in this duration.
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  • quote

    There are news in market which contradicts to to news you posted
    Property prices in Pune are expected to remain firm - Economic Times
    2012 property prices to remain firm with upward bias, says report - Express India
    Business Line : Features / Investment World : Pune residential demand firm: ASK

    Unquote

    did some research on these news items, In-fact, all three items are same news and quoted "ASK Property Investment Advisors". ASK Group started with its real estate vertical - ASK Property Investment Advisors. With its first offering, launched in 2009, it successfully mobilized a whole of Rs. 340 crores from domestic investors and in 2011, the second domestic real estate fund of Rs. 520 crores has been successfully closed.

    It seems that the company has invested in Pune real estate and this news was floated on 6/ 7th January, coinciding with "Profest" property exhibitions. I suspect a vested interest in this.
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  • buy ready possession, these are troubling times, even if you can afford and end up booking under construction property, chances that bookings may not be closed for a project for a long time delaying its pace.
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  • Originally Posted by buyerpune
    did some research on these news items, In-fact, all three items are same news and quoted "ASK Property Investment Advisors". ASK Group started with its real estate vertical - ASK Property Investment Advisors. With its first offering, launched in 2009, it successfully mobilized a whole of Rs. 340 crores from domestic investors and in 2011, the second domestic real estate fund of Rs. 520 crores has been successfully closed.

    It seems that the company has invested in Pune real estate and this news was floated on 6/ 7th January, coinciding with "Profest" property exhibitions. I suspect a vested interest in this.


    :bab (34): Bang On Target... Thnx
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  • Originally Posted by KaiBhau
    :bab (34): Bang On Target... Thnx


    Thanks KaiBahu. I would like to share few more observations. I have been looking for a property with a reasonable rate for the last six months. Most of the builders have increased the price after Diwali (with hardly any real sale). This shows how is artificial inflation phenomenon working in Pune real estate market.

    Even the scene in second hand market is not great. Last month, I contacted one of the agents at NIBM road and he shared that the sale nos. have come down drastically in last six- seven months. Reason: the rate being quoted in Dec/ Jan is about 15 to 20% more than March/ April 11 level. If I look at the newspaper for resale properties, I observed that almost 70% of ads are being repeated for the last three months.

    Contrary to all the points observed, I have hardly seen any correction either in new or resale market. Reason: lot of investors in new property market, who have appetite to hold the property. Even in resale market, people are only willing to come down marginally on the quoted price as owners own more than one property and willing to wait till they get expected price.

    Don't have any idea what will be the scene in next three months?
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  • Statements made by banks should not be taken on the face value as they are one of the effected party if prices increases and transactions come down. They are happy when prices quoted are low even though builder may then delay the project by 3-4 years to earn extra interest income as many customers will buy into these projects and their EMI meter would start.

    HDFC was the first bank in NE to disburse loans. It is surprising that there legal department was not aware the pending court cases in High Court.

    They could not even see the future of Noida Extension, even though so many cases were going on in the High Court, and now they are prophesying the future of real estate prices in India.

    What a Joke.
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  • Originally Posted by amarakbar
    Statements made by banks should not be taken on the face value as they are one of the effected party if prices increases and transactions come down. They are happy when prices quoted are low even though builder may then delay the project by 3-4 years to earn extra interest income as many customers will buy into these projects and their EMI meter would start.

    HDFC was the first bank in NE to disburse loans. It is surprising that there legal department was not aware the pending court cases in High Court.

    They could not even see the future of Noida Extension, even though so many cases were going on in the High Court, and now they are prophesying the future of real estate prices in India.

    What a Joke.


    Statements made by HDFC can be surely presumed to be reliable. They are the best bankers in Asia and Mr. Parekh is highly regarded individual. He had predicted the crash in indian RE in 2007 itself.
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  • saying same thing for a long time...

    Pata nahi kyo par ye HDFC wale kabhi nahi thakate....saying same thing for a long time...

    2008-07-17 09:36:25
    HDFC's Deepak Parekh sees drop in property prices

    Fri Nov 26 2010
    Scam may hit property prices: Parekh - Indian Express
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  • Originally Posted by vibhav_pune
    Pata nahi kyo par ye HDFC wale kabhi nahi thakate....saying same thing for a long time...

    2008-07-17 09:36:25
    HDFC's Deepak Parekh sees drop in property prices

    Fri Nov 26 2010
    Scam may hit property prices: Parekh - Indian Express


    Prices did go down in this period of 2008-2009. Many people who were sitting on fence till 2008, managed to get good deals. It was possible to get 2BHK in 25L in Wakad in early 2009 period. There is huge demand for housing today, but the purchasing power is in 25L-40L. Builders are quoting way too much.
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  • HDFC has been offering 8% fixed interest rate for some time,0 processing free for wisteria, wakad ; does it mean that builders will keep prices same but correction will happen in drop in interest paid:bab (59):
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  • The fall in real estate in India is going to be much bigger and will last for a very long tiime. That we are in a property bubble is a well established fact and not just a speculation any more. There are just no end user buyers at the current prices. All the so-called buyers in the market today are speculators and investors who are trading one property with another. In general investors are selling in big cities and buying in small towns which have the potential of becoming cities.
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  • I've checked with my friend in Gurgaon. The realty price are more or less stable there for the last three four months. But in Pune, builders are increasing the per sqft rate without any rational. Probably, most of politicians of Maharashtra have put their black money in Pune realty, and the cartel of politicians and builders is responsible that despite poor sale, real estate prices in Pune are not showing any down trend.

    Considering the scenario, even if price fall happen in Pune, it will be for the small builders who have less political backing, major projects would be unaffected.
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  • Friends, on price correction issue, I noticed one article of makaandotcom . http://www.myiris.com/newsCentre/storyShow.php?fileR=20111226180202200&dir=2011/12/26


    Sharing excerpts of it below



    Home buyers looking for a correction in property prices:

    The meltdown of 2008 and early 2009 saw the property prices correct by 25-30% in major Indian cities. Post meltdown period saw a very smart recovery in 2010 with property prices reaching their pre meltdown levels. Most Indian cities saw prices reaching their new high. The sudden drop followed by an equally sharp rise, left many homebuyers wondering regarding the genuineness of these moves.

    When asked to give property price forecast for 2012, an overwhelming 34% are expecting property price correction up to 10% while another 24% are more optimistic and are expecting a correction of more than 10%. This is in line with the popular sentiment in the real estate market. On the other hand, 9% believe property prices will increase up to 10% and another 10% believe prices will increase more than 10% in the coming year. The remaining 29% are predicting for stability in property prices.

    makkan`s take:

    We do not expect a meaningful correction in the property prices in 2012 although there are early sign of some token correction (read under 10%) in some Indian cities. The property prices will remain range bound till the first half of 2012 with a slight negative bias. We are expecting a demand revival during the July-Sept`12 period which will lead to hardening of property prices in second half of 2012.

    End user demand to drive property market in 2012:

    2012 is going to be a year that will be dominated by end users. Home buyers seem confident for making a property purchase in 2012 with some help, in the form of a price correction & softening of home loan. We asked home buyers on the main reason for buying a house in 2012.

    A whopping 70% of the national home buyers want to buy a house for self consumption. It is interesting to know that 20% are looking at buying a house for long term investment (time horizon more than 3 years) and another 10% are looking at investing for short term (time horizon 1-3 years).

    makaan`s take:

    The trend of `end use` consumption is extremely healthy for the property market. End consumer lead markets typically exhibit moderate but sustainable growth when compared with markets that are driven by speculators & short term investors.
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  • folks, I hate not providing original content but here is probably the only source of unbiased information. A must read with dire consequences for Indian Realty
    World Bank warns emerging nations - FT.com
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  • Originally Posted by expat101
    folks, I hate not providing original content but here is probably the only source of unbiased information. A must read with dire consequences for Indian Realty
    World Bank warns emerging nations - FT.com


    From the same report:

    "And several big developing countries have taken steps to prevent growth from overheating and fueling inflation. India, Brazil, Russia, South Africa and Turkey are taking steps to rein in borrowing in order to cool their economies"

    This indicates that other than Europe, there is structurally nothing wrong with the Indian economy. An overheated economy means a lot of pent-up demand, which is fueling inflation. Its only natural that these countries will take steps to control inflation. So the reduced growth rate of 7% that we may observe in India in 2012 is artificially manufactured by the Govt. by increasing interest rates. This low growth rate can be easily reversed by lowering interest rates and the latent demand pressures will rise again. What this report is telling me is that real estate prices may stagnate for a few months under a strict monetary policy but will rise dramatically once the interest rates come down. So if your intent was to predict a doomsday scenario, you just ended up giving the exact opposite picture - at least to me :)
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