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

    <<>>


    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?

    <<< It's relative my friend. People who don't have a roof and at their mid forties, ask them... they will answer you, don't look at the world through your narrow IT Junta lens >>>


    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?

    <<<< I say the same thing once again, LAND IS LIMITED >>>>


    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!!

    <<< Hope you understand what is reverse mortgage... our old people don't know about credit card, forget about exotic credits... So whatever transactions are happening is based on solid financial base, not leveraged >>>


    And Calculated Risk is better than Speculation.
    <<< Yes my dear friend, those Lehman brother friends also said that >>>



    Check comments inside <<< >>>>
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  • Man, why should I ask Uncle?? I was there in 2005!! And the population didn't increase multi-fold from 2005-2008.

    Narrow IT junta lens :D. I am not an ITG, infact now be prepared to get bashed up here from ITGs :D.

    Land is limited? Yes, but then even incomes are limited right?? Bill Gates can't buy US or Ambani can't buy Mumbai even if they sell all their assets!!

    Limited land is classic eg used by builders. If such is the case, did land mass increased when prices dipped?
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  • If we are comparing s,lcds,hd with RE .Another aspect to compare is how basic amenities went 4 folds or more like basic dal,groceries,gold etc.do you expect dal to be sold at 7-10per kg now ever in future (although the intrinsic vale is this only)



    everything depend on the purchasing power .5 year back a normal govt employee had a basic salary of 10k month next pay commission the salary became 35k why???? just because everyone knows that prices of everything is increasing.

    Buying property was allways difficult
    buying a flat of 14-15 l was very difficult when the salaries were 10k
    buying a flat of 35-40 l is very difficult when the salaries are 40 -45 k


    I dont remember that property rates were ever justified but i have seen ppl becoming rag to riches by timing the market rite
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  • Originally Posted by varun bhardwaj
    If we are comparing s,lcds,hd with RE .Another aspect to compare is how basic amenities went 4 folds or more like basic dal,groceries,gold etc.do you expect dal to be sold at 7-10per kg now ever in future (although the intrinsic vale is this only)



    everything depend on the purchasing power .5 year back a normal govt employee had a basic salary of 10k month next pay commission the salary became 35k why???? just because everyone knows that prices of everything is increasing.

    Buying property was allways difficult
    buying a flat of 14-15 l was very difficult when the salaries were 10k
    buying a flat of 35-40 l is very difficult when the salaries are 40 -45 k


    I dont remember that property rates were ever justified but i have seen ppl becoming rag to riches by timing the market rite




    Bang on Target Realacres

    each and every consumable in this Planet has end users to it ....
    and in long run (days to years depending on what the consumable is) ultimately the end user has to come in picture.

    Each has seen its glorious days of earning ... Computer/LCD/Mob.ile and now each is at its market driven prices.

    there is no scarcity of land in India. Only scarcity is medium to develop.

    Did you hear Google is venturing into low cost housing ?

    Some are basic ... and in globally linked world the prices are inter connected.

    So today Pune RE prices are higher then US (Oranges to Oranges). Why ?

    Pls dont give the (Sorry to use the word) Bullshit reply of population.
    See this link and then tell
    https://www.indianrealestateforum.com/forum/other-forums/general-real-estate-discussion/187-real-estate-outpaces-gold-in-the-%C2%91investment-for-life%C2%92-context?p=116456#post116456
    ( https://www.indianrealestateforum.com/forum/city-forums/pune-real-estate/8408-value-for-money--indian-cities-vs-rest-of-world/page6?t=10848&page=6 )


    The 5 yr tripling of RE prices no other country has seen such a bubble in their RE Bubble history.

    Japan died at double.

    US died at double.

    UK, Ireland ..... all are far below Indian RE Bubble and all those are burst.


    Pune last 5 yr service class(IT or whatever) is more linked to US dynamics then to that of India.

    Which part of population you are talking about?

    If an IT ENDUSER of flat in Wakad or Kharadi is finding it difficult to buy who you will think will replace him ?

    Who will have double the current purchasing capacity in next 2-3 yrs to sustain the prices?
    Or Price Rise for that matter.


    For that matter you can go thru this chauffeur-Boss story
    http://www.indianrealestateforum.com/93348-post1998.html

    There is redical change happening due to digital medium ..... Egypt blocked internet and TWITTER ;)
    and no Madamji or P.... can stop it......


    perhaps that could be wrong for India because we have become Tolerant even when some one pisses :bab (63): on us.

    Just heard on Zee news someone saying ... there was such a concern when a single 64 Crore Bofors scandel came in 90's
    Now even several lakh crore is nothing...




    Originally Posted by rohit_warren
    Double from where ?

    need to understand at which state the economy of a particular country is - UK actually started with Industrial Revolution
    US actually saw the breakout after the end of world war II
    Japan was in the same ship as of US

    India saw the breakout after 2006 so still a way to go to reach a place from where it will crash after it doubles.

    India 2030 is the decade that should concern you - as of today its a time to figure out the best undervalued deal.

    Just stay bit cautious about over leveraging and you would do just fine.
    Rohit


    correct yourself ...... you can get tons and tons of charts telling when the price increase started ....

    All bubbles got burst in 7 - 10 yrs ...
    the steeper it is the faster it burst ...

    and seeing the demographics(70 % poor population country prices competing with world's topmost prices) and world situation ..... ours will be more painful ....


    Charts attached for calculating the rate and speed of rise of some big RE bubbles
    Actual large images http://www.creativeclass.com/creative_class/_wordpress/wp-content/uploads/2009/05/housing_bubbles_chart.png

    we are in ITS NOW OR NEVER phase ?????
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  • Originally Posted by frugality
    Bang on Target Realacres



    The 5 yr tripling of RE prices no other country has seen such a bubble in their RE Bubble history.

    Japan died at double.

    US died at double.

    UK, Ireland ..... all are far below Indian RE Bubble and all those are burst.



    Double from where ?

    need to understand at which state the economy of a particular country is - UK actually started with Industrial Revolution
    US actually saw the breakout after the end of world war II
    Japan was in the same ship as of US

    India saw the breakout after 2006 so still a way to go to reach a place from where it will crash after it doubles.

    India 2030 is the decade that should concern you - as of today its a time to figure out the best undervalued deal.

    Just stay bit cautious about over leveraging and you would do just fine.
    Rohit
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  • Originally Posted by gharondabhai

    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.


    I like to contradict you here, now days car is necessity and Home is luxury. When someone in critical situation in night and you need immediate transport for hospital. Another point, safe travel for your family in the city.
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  • Originally Posted by frugality


    correct yourself ...... you can get tons and tons of charts telling when the price increase started ....

    All bubbles got burst in 7 - 10 yrs ...
    the steeper it is the faster it burst ...



    we are in ITS NOW OR NEVER phase ?????


    That chart is indexed at 1997 and looks back till 1987 - and the advancements started much much before.

    In India things are getting penetrated to lower levels - why worry - still the the bottom of the pyramid has not been reached.

    For we metro dwellers it could be now or never but the tier 2 and tire 3 cities and small towns things have just started to yawn - bahut time hai abhi bubble form hone mai

    Rohit
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  • Originally Posted by gharondabhai
    Few more additional points

    Land is limited



    Land is not manufactured any more! and population in cities keeps growing. Correct.

    If there is shortage of houses and more people, it would reflect in the rentals for the house. Rentals have stagnated for last 3 yrs. Are all land lords in charity mood?
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  • Originally Posted by varun bhardwaj

    everything depend on the purchasing power .5 year back a normal govt employee had a basic salary of 10k month next pay commission the salary became 35k why???? just because everyone knows that prices of everything is increasing.

    Buying property was allways difficult
    buying a flat of 14-15 l was very difficult when the salaries were 10k
    buying a flat of 35-40 l is very difficult when the salaries are 40 -45 k



    Again correct. Yes it was difficult then and now also. But point to note is:

    Rent then was ~7K for flat costing 15L
    Rent today is 10-12K and price of flat is ~50L

    So earlier rent ratio was 200 and now its 400+ not a good ratio to buy home.

    Deviation of rent from EMI is indicator of bubble.

    Good luck.
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  • Originally Posted by Saurabh01
    I like to contradict you here, now days car is necessity and Home is luxury. When someone in critical situation in night and you need immediate transport for hospital. Another point, safe travel for your family in the city.



    I kind of agree with this. However, its very important to retire with your OWN, fully paid home and good amount of cash sufficient for next 20 yrs according to inflation when you retire.

    If anything is missing, you are in trouble. Most of us would not have any pension...

    However that home can be in your home town, where its cheap, but you need one for sure, before you retire.
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  • Originally Posted by RAJESHP
    I kind of agree with this. However, its very important to retire with your OWN, fully paid home and good amount of cash sufficient for next 20 yrs according to inflation when you retire.

    If anything is missing, you are in trouble. Most of us would not have any pension...

    However that home can be in your home town, where its cheap, but you need one for sure, before you retire.

    I agreed with you, my point is take the priority and buy your dream home with comfort level.
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  • in my opinion, "land is limited" "land price will never come down" is a myth. people are influenced by the 2003-2007 RE boom and they buy this theory. a majority of the people understand only RE investment. that is the main reason the bubble is growing.

    if you live in bangalore,just look at the empty land from hebbal to airport. (especially from yalahanka. its literally empty). and for the last 6yrs people have been hyping with airport tag. the other day my car driver was asking me if i would be interested buying land in his village. ( about 60 km from airport). i ask him why i should buy and he replies i can sell it after sometime with a profit.

    that is the perception about RE in india. until that changes, its very difficult for the price to come down.
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  • Originally Posted by kaatesha
    in my opinion, "land is limited" "land price will never come down" is a myth.


    Very correct, there is plenty of land in country and that is why we will see lot many new cities which will be well planned, will have great infrastructure. Navi Mumbai, Greater Noida, upcoming Dholera city in Gujarat are the example of same.

    Another argument people give is that India has huge population so demand is high. Actual stats that stats that should be considered is 'how many people can actually buy RE'. India has 37% population BPL (this is when Indian standard for considering BPL is also low), so overall number of people who can afford RE in India will be similar to that in USA. So if bubble can burst in USA, it can burst in India as well.
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  • If clear land titles & developed basic infra is put to place, many will buy land & their dependency on builder will be reduced. However, the builder-politicos nexus currently makes it difficult for mango man to do so.

    Once develop-able land with proper infra & title are made available, prices will dip by over 60% with ease. Issue is not land but usable land.
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  • Do you means RE prices today are exactly 50% inflated ?

    How does one do a valuation of a true RE price ?
    Originally Posted by realacres

    Once develop-able land with proper infra & title are made available, prices will dip by over 60% with ease. Issue is not land but usable land.
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