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cnbc awaaz said prices will fall!!!

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cnbc awaaz said prices will fall!!!

Last updated: June 26 2012
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  • cnbc awaaz said prices will fall!!!

    A programme on CNBC Awaaz declared that prices of RE in mumbai/delhi have been reduced...and overall the RE prices will fall down...due to Builders not getting enough moolah from Banks for new projects and the monsoons approaching....

    Soo will the rates really fall in Pune?? also if thr is any market correction, will it also happen with Big, reputed Builders also??
    can we have some expert comments on this...?
  • #2

    #2

    Re : cnbc awaaz said prices will fall!!!

    Originally posted by salilh View Post
    A programme on CNBC Awaaz declared that prices of RE in mumbai/delhi have been reduced...and overall the RE prices will fall down...due to Builders not getting enough moolah from Banks for new projects and the monsoons approaching....

    Soo will the rates really fall in Pune?? also if thr is any market correction, will it also happen with Big, reputed Builders also??
    can we have some expert comments on this...?
    For once, experienced pros have beaten even the TV channels in breaking this news. Almost majority opinion here is that RE prices won't just see a substantial correction but an imminent crash.
    First sign of RE downturn is absolute dryieng up of liquidity which can be seen in more than 50% fall in property registrations in NCR/Mumbai.
    In our areas in North delhi, prices in beautiful locations like Pitampura/Rohini, prices are already down 25-30% from peak 6 mths back but in my opinion, are still obscenely priced and should see a further correction.
    I am surprised CNBC reported all these so late. Its a Falling knife, see to it that nobody is Hurt.
    Don't just go by my Name

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    • #3

      #3

      Re : cnbc awaaz said prices will fall!!!

      Originally posted by salilh View Post
      A programme on CNBC Awaaz declared that prices of RE in mumbai/delhi have been reduced...and overall the RE prices will fall down...due to Builders not getting enough moolah from Banks for new projects and the monsoons approaching....
      Couple of days ago, I have read the same news related to NCR and Mumbai due to residential absorption rate down by over 50% in the last quarter and so the correction is highly expected in these regions. See details
      Even today, I came across the similar article

      Originally posted by salilh View Post
      Soo will the rates really fall in Pune?? also if thr is any market correction, will it also happen with Big, reputed Builders also??
      I too thought of the same but the other day I saw one programme on NDTV-Profit where Bangalore and Pune are declared the most sought locations among people including NRIs and have recorded the good sales as compared to NCR/Mumbai in the last quarter. Also, they have mentioned that appreciation in realty prices since last one year were phenomenal in Pune and Bangalore.
      That means there won't be correction sooner.

      Comment

      • #4

        #4

        Re : cnbc awaaz said prices will fall!!!

        RE prices in pune are destined to correct by Diwali 2012

        Comment

        • #5

          #5

          Re : cnbc awaaz said prices will fall!!!

          Dont expect a drastic fall in prices. And we buyers are to blame for this. Rates are at an all time high right now. Even a 2BHK flat is prices near 60L in places like Wakad/Pimple Saudagar. It's not as if people are not ready to buy, but the moment builder gives even a 10% discount, buyers will form a group and approach the builder. Seeing the sudden demand, the builder will hold on to price cuts. So the moment price drops a bit, people will again jack it up. People who are waiting for 30-50% drop in prices will only keep waiting

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          • #6

            #6

            Re : cnbc awaaz said prices will fall!!!

            It is true that NCR price are nearly stagnant for last one quarter, an nearly zero growth means loss of capital opportunity considering time value of money.
            Being lesser funds available for builders may force them to restrict launch of new projects till there are stream of funds availabilty, this can lead to lower the supply side. On the contary till there is no dilution in demand side it will help in increasing existing/underconstruction property prices and new projects will dry .

            This is my personal view and happy to have a debate around this.

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            • #7

              #7

              Re : cnbc awaaz said prices will fall!!!

              This is game played by builders

              I have seen this TV show yesterday and before as well by same anchor. This one is also paid program and there is game behind this. The builders are more united to act in co-ordination where as RE buyer is always un-united and emotionally driven in our market. I have no surprise to see this paid TV show.

              The only point I have taken from the program is builders have come forward to accept in public that there is no sales happening. This is probably big mistake they have done by accepting as now people will go on dormant stage to see real fall in prices. Then arise a question of why they are doing this? Are they seeing lot more trouble ahead and want to get out of it as soon as possible?

              My take is.. they are doing this to attract enthusiastic fence sitters who are desperately waiting for price fall news. This is one of the last trap they are using to get maximum possible bakraas for their hyped price. How?

              So far they are jacking up price artificially every two week by 2-3% irrespective of no/very low sales happening. They have learned from 2009 time how to fool investors/buyers who starve to hear discount. They know once they publicly accept the pain of low sales and show openness for bargaining they will surely get some fence sitters who are waiting for price cut word irrespective of how much it is effective.

              So for example.. a project having 4000/psqft rate around 6 months back.. will now have rate around 5200/psqft. With 15% discount it will come down to 4420/psqft. Now when 4000 was not affordable for many how come 4420 will do magic after discount?

              So people who are really desperate and feel that they have miss the bus in 2009 and most importantly waiting for 1st home may go for such initial crap offers but surely will repent it later.

              This 10-15% is not going help builder surely and they will have to come down more.

              Why I'm saying this is paid show because it was hinting that this monsoon period is best opportunity for buyers to get discount since diwali can be used to jacked up price again. What is going change after diwali for RE to see another wave of appreciation?? They are just using this mass communication media to fool buyers to see how much it really fetch buyers for them.

              Does it really should matter for people how much builder increase / decrease? they should only bother about their budget with no over leveraging and VFM buying. That is the key. This future opportunity should be used to buy in good location with all basic + much needed amenities and not rely on proposed stuff.

              I think personally that rates should come down to at least 2009/2010 levels since increase in 2011 was absurd and not at all relevant to the market fundamentals.

              Comment

              • #8

                #8

                Re : cnbc awaaz said prices will fall!!!

                where are RE gurus on this forum?

                Where are those so called RE gurus or bulls who were propagating.. cascade theory, black money theory.. and US/india earnings theory to justify indian RE prices.

                How the sales have down across all cities irrespective of all these great theories? Any explanation from the author of these theories?

                I'm waiting for reply on how black money is only helping Pune market to float while other metro cities seeing downward pressure. This is one more theory I have seen that Pune is different market. why? because you have invested in that?

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                • #9

                  #9

                  Re : cnbc awaaz said prices will fall!!!

                  Originally posted by AaplaAbhari79 View Post
                  Where are those so called RE gurus or bulls who were propagating.. cascade theory, black money theory.. and US/india earnings theory to justify indian RE prices.

                  How the sales have down across all cities irrespective of all these great theories? Any explanation from the author of these theories?

                  I'm waiting for reply on how black money is only helping Pune market to float while other metro cities seeing downward pressure. This is one more theory I have seen that Pune is different market. why? because you have invested in that?
                  "They Rise together, they Fall together", each region, each broker, each investor believes his story is special but it isn't, when fire spreads, it engulfs everybody and everything, be it Delhi, be it Pune or Mumbai, each area is facing recession in RE and pain will only get worse in coming days...
                  Don't just go by my Name

                  Comment

                  • #10

                    #10

                    Re : cnbc awaaz said prices will fall!!!

                    Originally posted by Mr bullish View Post
                    "They Rise together, they Fall together", each region, each broker, each investor believes his story is special but it isn't, when fire spreads, it engulfs everybody and everything, be it Delhi, be it Pune or Mumbai, each area is facing recession in RE and pain will only get worse in coming days...
                    Will Merkel or Barak Osama bail out the builders and the Indian citizens who bought from them at obscene prices? Manmohan (well, its really us, the tax payers) is bailing out lazy Greeks and greedy Spaniards.

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