Any body experienced down trend in Pune Real esate prices?

There are news like, recent rise in inflation will have effect on real estate prices.

Thanks
Makarand
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  • Prices in outskirts of Pune

    Let me share here with all, my experience of Nov. 11, ‘08. I visited a mid-sized builder, for enquiring for the first time a commercial property. After finishing our discussions about the commercial office space, I asked him about the residential property they were offering.

    I was talking to one of the partners of the company, who was responsible for sales. He showed me their brochure containing 4 – 5 apartments in Baner – Balewadi area. I could see that all their properties (possession by mid ‘09) were only few hundred meters away from Katraj - Dehu Road bypass. After asking him about the rate, he said that before the slowdown started, they were offering those flats (2, 2.5 & 3 BHK) for Rs. 3,300 per sq. feet. However because Diwali was very cold for them from the point of view of customer enquiries, they were offering the same property now at 2,850. On my way out of his office, I overheard him offering these properties to someone on phone at 2,600!

    So the learning I got from above interaction was that if someone approaches a builder with ready cash today, one can squeeze a further discount of at least 10 – 15 %. They are clearly desperate for sales.

    However I would not recommend someone to buy today, even with above discounts. Keep watching the market closely, before putting your hard earned Lakhs of Rupees. Remember, it may be your ones in a lifetime investment.
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  • Real Estate Prices will started to rise by Jan again from what is now!

    As RBI cuts its PLR rate .75% and banks are following the same in this week and Finance ministry is given signal that there will be further .75 - 1% cut in CRR if situation not improve in realty and automobile sector which were hard hit by the recession as of now. And moreover Pune Municipal Corporation has increasing its FSI from 1 to 2.5% there will be huge demand creation process that government and developer associations are doing will give fruit as people have to invest before march to settle the taxes primarily businessmen and industrialist, as there is no sign of improvement in job sector as of yet middle class people certainly looking for rented accommodation instead of purchasing new houses as of now, but this trend can also change by january as local job market shows trends of improvement specifically in retail and healthcare sector.

    But, when compared to other states and cities Pune's downtrend in real estate is very neglegible as demand still there after US recession and other indian cities recorded record fallout in the realty area.

    After Mumbai terror attack, most of the new customers are preferring pune instead of mumbai, that shows major shift in indian real estate segment, and mumbai is hardly hit in terms of real estate after new delhi.

    Meanwhile Pune is also attracting international IT firms attention as more and more international IT companies occupying their spaces in Pune, so the future job market in Pune will be more stronger than Mumbai, these all factors lead Pune as No. 1 place for invest. But whomsoever want to invest has to act fast and the time is now.
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  • The beginning of the end of the so-called BOOM!

    World financial sector collapse: NRIs cannot buy properties as fast as earlier.

    Mumbai blasts, Satyam collapse: more layoffs and uncertainity, local IT guys hold back...

    Get ready for the 'Foreclosure Crisis' in India....
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  • Pimpri Saudagar Rate???

    What is the latest rate in pimpri saudagar??

    Some agent said its 2800 per sq feet but discount milega.... Is he lying?
    What was rate 6 months back???
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  • Originally Posted by stohid
    Hi,
    Does anyone know abt rates in wakad area? I have gone thru lot of sites but prices are not comng down..they quote around 3000 per sqft..is this OK?
    iam planning to buy a 2 BHK in windwards..any opinion?

    No buddy recently Park Street wakad quoted 3950 for 3BHK penthhouse which is insane I guess people are ready to buy at higher prices which are encouraging builders to go for LOOT :bab (36):
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  • Originally Posted by pksden
    I live in Pune... I have been seeing prices in Pune falling since last one year.

    In India Price fall is very sensitive thing for builders and investors to discus.
    When it was said that prices are stagnant , many builders were accepting booking secretly at lower prices if you negotiated.

    6 months back when i did survey for commercial property i found that some some projects were available at lower prices.

    3 months back a builder accepted that the Residential prices have fallen 20% but commercial prices are stable.

    Recently i also saw some new projects being launched at lower then market prices that were not heard in Pune for last 2 years in mainly city limits.

    Though many prominent builders/projects are quoting higher prices, i am sure similar properties can be bought atleast 20% cheaper. and due to further increase in interest rates expected... i think many small builders will have almost nil bookings and will need to run around to sell almost at cost to exit projects.


    I agree with you. I think prominent builders/projects are holding tight and will play wait and watch game and things will be clear in the next coming months considering the budget round the corner. I think buyers should hold tight and should not buy property at the present crazy level. They are making axis and trying to take BANER/PIMPLE SAUDAGAR/WAKAD round about 3900 mark and make buyers confuse and panic mode as if prices are increased everywhere without any rational justification behind it and cooking up real estate boom thing:bab (65):
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  • Originally Posted by Makarand_keer
    Any body experienced down trend in Pune Real esate prices?

    There are news like, recent rise in inflation will have effect on real estate prices.

    Thanks
    Makarand

    Ummm. well ... you see ... its kind of ... ok. No. :D
    Think the trend of last 3 years after this thread started tells the whole story.
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  • India Real Estate price softens (10-15%) but never crash to 30% for a prolonged period. But when the price soften, the supplies also limited.

    Now think logically

    Why the price will crash? -- Probably there is a major economic crisis

    What will happen to your source of income? -- Definitely it will be shaky for most of the people.

    When your job is shaky, will you buy a new house ? -- You know the answer, definitely home buying is not the priority when your source of income, in most of the cases your job is at stake.

    Who buys during the crash ? -- People (Investors) with spare money, with great holding power and a lot of risk appetite ... you say we middle class fit into this category? come on!!

    So by the time we get courage to buy, price has already appreciated from it's bottom (during the peak of crash) ... so how much is the effective saving ... probably at the most 15% if you TIME IT CORRECTLY.

    Now if the expected crash does not come in next two year, how much is the appreciation in normal area ... So if you get 15% discount on 2 years later price, it may not be effectively saving.

    I know we all love to buy at the bottom ... but no one know what is the bottom.

    Unlike share 1 unit of reliance share is same but one 2BHK is not the same as another 2BHK.

    Your money, you decide when is a right time to buy based on your own priorities, money is one factor only.
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  • +1, Very Good Summarization bhai..
    Even the ppl who hoard that they did good investment in RE in past were not sure of their investment if it will give them a good return and no one predictate that such crash will come.
    It always that ppl with avg capability (intelect, resource) will never figure out what is top and what is bottom of the trend.
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  • Originally Posted by gharondabhai
    India Real Estate price softens (10-15%) but never crash to 30% for a prolonged period. But when the price soften, the supplies also limited.

    Now think logically

    Why the price will crash? -- Probably there is a major economic crisis

    What will happen to your source of income? -- Definitely it will be shaky for most of the people.

    When your job is shaky, will you buy a new house ? -- You know the answer, definitely home buying is not the priority when your source of income, in most of the cases your job is at stake.


    Ask the question why did RE prices crash in USA? Was there a economic crisis when crash happened. Answer is BIG NO. Economy is very very good then. Then why it happened?

    Good luck.
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  • Originally Posted by RAJESHP
    Ask the question why did RE prices crash in USA? Was there a economic crisis when crash happened. Answer is BIG NO. Economy is very very good then. Then why it happened?

    Good luck.



    yeah

    they forgot that affordability is the major factor...... and Price check not been in place like in all other goods ... too much speculation...

    Perhaps for RE again it matters for End user only .... if they can afford it its fine otherwise sooner or later such pains will come

    and the Human tendency to forget the previous lessons .... RE bubble has been there for Centuries ....


    Ok lets take a simple analogy

    today's 2 wheeler Hero Honda CD100 types is available in 30 - 40 k.
    Lets assume in a years time it starts to sell at 1.5 lakh to 3 Lakh for whatever reasons...

    Who you think will start buying it ?

    the rich person who has 1.5 lakh spare and don't know to drive 2 wheeler?
    The Investor thinking it will be 2/4 lakh soon ?

    You will say I am talking senseless ..... its the end user that matters here right?

    A car owner who can afford it won't be buying it just bcoz he can afford it.

    Apply the same case to RE ....

    So what your flat costs 10 Crore ..... Ambani is not going to come and stay in it ....
    Or your 4 Crore Flat in Aundh ..... a Rich Navi Mumbai Businessman will not leave his existing home to come and start living.

    ITS USER WILL BE ONE WHO WORKS NEAR THAT PLACE ETC. OTHERWISE IT HAS TO REMAIN VACANT.


    Sooner or later an End user has to use the flat whose value slowly depreciates with time.



    So now comes the main point .....
    If for example a sales person cannot buy Hero Honda bcoz it has started costing 1.5 lakh
    either his salary to increase X times so that he can afford Hero Honda CD100 at the new price

    OR

    Hero Honda CD100 price has to reduce to his affordability level.


    till this balance is not reached Sales will not happen ....
    Call it "NO REAL SALE ZONE" and the Bike and in this case Flat will be lying unused.
    and even if investor makes the sales happen some investor has to bear the losses.


    In this "NO REAL SALE ZONE" there are Investors/Politicos/Dummy and some End users.

    now once the price reach the sale zone where it is affordable to the End users of that 'RE' lot of loss will be made ....

    and this loss will go to buyers in "NO REAL SALE ZONE" - Investors/Politicos/Dummy and some End users.


    and for this above line to be wrong ....... everyones salary from Watchman to IT pro to Banker has to increase X times for it to become affordable...

    So there we are .......

    Either prices to fall or Salaries to double/Triple ... :)


    --------------------------------------------------------------------

    One more point to ponder ....

    Applying the Greater Fool theory on Nations ...... seems so called EM are the last fools ... ?????
    And a bankrupt powerful Bully nation is far more dangerous ..
    Why he will accept his defeat ?
    And there is one more big Bully in rising next door ....:bab (38):
    So if World Rebalancing has already started then India will be caught offguard big time ...


    perhaps politicos may have already started buying bases in safe heavens ..
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  • Originally Posted by frugality
    yeah

    So there we are .......

    Either prices to fall or Salaries to double/Triple ... :)

    --------------------------------------------------------------------
    One more point to ponder ....
    There is one more big Bully in rising next door ....:bab (38):
    So if World Rebalancing has already started then India will be caught offguard big time ...

    perhaps politicos may have already started buying bases in safe heavens ..

    Agree with Frugality.

    For salary to double/triple in let's say next 3-5 years these should happen:
    1. Indian working-class's productivity goes up by 2x/3x which is distant-dream.
    2. INR depreciates to 90-120 Rs against USD. Which would be dangerous situation where interest-rates may go up from 9% to 18%. So its zero-sum game coz EMI will double-tripple.

    BTW, Indian business has been acquiring assets in Europe, Africa and China.
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  • Absence of end user means bubble

    It can't be said all is well in RE if investors are present. If the end users can't buy either from builder or investors, it means bubble is building up.
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  • Few more additional points

    Land is limited

    Home is basic necessity where as car is still considered luxury

    If you look historical trend, a car and a home used to cost 2 lakhs just fifteen years back. Now the car still cost more or less the same but home costs atleast ten times.

    US is different, simply credit card is something unheard of to many in India.

    Price crash or distress sale always looks attractive and everyone hope to get one....

    Being hopeful is good but being realistic is better. All are not LUCKY
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  • Originally Posted by gharondabhai
    Few more additional points

    Land is limited

    Hmm, so when RE price more than tripled in 4 yrs, did the sea encroached upon land or did the population doubled ??

    Home is basic necessity where as car is still considered luxury

    It ain't luxury per se. We can just say it is secondary requirement. Luxury is called when car is a Merc, Beemer, Audi, RR or Veyron. Don't know how can Nano or alto can be called as LUXURY?

    If you look historical trend, a car and a home used to cost 2 lakhs just fifteen years back. Now the car still cost more or less the same but home costs atleast ten times.

    Here you got it wrong my friend,

    How many cars were produced earlier?? How many people who used to buy car applied for loan?? Did banks even gave loans easily that time? As far as prices are concerned, let me give more simple eg.

    15 yrs ago, the PC which used to run DOS costed over 85k . Today you can buy laptops with much better config at less than half this price. Same is the case with cell fones. Just less than decade ago when I was in school, the 4x CD writer of costed INR 9600/-. Today one gets 32x dual layer DVD writer for under INR 1100/-!!

    Man, there was waiting list of 1.5-2 yrs for Bajaj scooters :D. Is that the case now?

    US is different, simply credit card is something unheard of to many in India.

    C'mon man, people don't buy house on credit cards. Even in US people bought on home loans on not credit card loan for the simple reason people don't have credit limit equivalent to the price of house!!

    Being hopeful is good but being realistic is better. All are not LUCKY

    And Calculated Risk is better than Speculation.
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