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Has Pune Properties started showing price down trend?

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Has Pune Properties started showing price down trend?

Last updated: January 4 2013
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  • #21

    #21

    Re : Has Pune Properties started showing price down trend?

    Originally posted by stohid View Post
    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

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    • #22

      #22

      Re : Has Pune Properties started showing price down trend?

      Originally posted by pksden View Post
      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

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      • #23

        #23

        Re : Has Pune Properties started showing price down trend?

        Originally posted by Makarand_keer View Post
        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.
        Think the trend of last 3 years after this thread started tells the whole story.

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        • #24

          #24

          Re : Has Pune Properties started showing price down trend?

          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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          • #25

            #25

            Re : Has Pune Properties started showing price down trend?

            +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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            • #26

              #26

              Re : Has Pune Properties started showing price down trend?

              Originally posted by gharondabhai View Post
              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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              • #27

                #27

                Re : Has Pune Properties started showing price down trend?

                Originally posted by RAJESHP View Post
                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 ....
                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 ..

                Comment

                • #28

                  #28

                  Re : Has Pune Properties started showing price down trend?

                  Originally posted by frugality View Post
                  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 ....
                  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.
                  Last edited January 29 2011, 01:04 PM.

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                  • #29

                    #29

                    Re : Has Pune Properties started showing price down trend?

                    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.
                    If you are happy, you are successful.

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                    • #30

                      #30

                      Re : Has Pune Properties started showing price down trend?

                      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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