I have got confirmed news from one of family friend who works with one of the reputed builders (from Pune), that property market in Pune is getting worse day by day. Many people who has signed but not made agreements are cancelling the deals (due to job conditions). Plenty of new projects are at High Risk. Many wise builders stopped the launch of new projects (including Paranjpe, DSK, Kumar).
People don't have money to pay EMI. Investors are not getting good rents. They want to sell off.
All in all, by Diwali rates will be down, if not the same.

You still can buy a flat if you have secured job and enough of money in hand. Those who want to take loan (more than 10L), please don't take risk.

Sansona
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  • Hi Sansona....is this really a confirmed news ? I also heard the same thing from the person who is a close associate to a reputed builder in Wakad.:D
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  • Logical step

    Hi,

    I think its a logical step


    Consider


    1. Weak demand due to eco condition.

    2. Tight liquidity.

    3. Speculator abandoning their investmants.

    4. Overleveraged builders.


    Its a buyers market!

    physical sign


    1. No construction activity or very low activity at project site.

    2. Stalled projects.

    3. Inferior quality in building.


    Till affordability increases, it is one way street. Down:(

    Avoid rate hype by builders and their cronies. Stock market rise is

    sentiment based not supported by fundamentals. Avoid the trap.

    Try for these ready possession investor flats. Wait if possible
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  • yes, indeed this is true. I know about a reputed builder who had 70 bookings for his project. but in the last 2 months 27 people have cancelled the bookings, and over 30 people have behind in their bimonthly payment schedule.... the builder has put the project on hold for the next 2 years!! I am sure that the few remaining bookings also will result in payment defaults if no construction takes place...
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  • I do not subscribe to the dooms day prediction for the real estate market. There would always be scope for correction but never a major crash where you expect rates to touch 1500 or 2000 in decent areas.

    I checked out Pimple Saudagar today GK is now quoting 3000 on paper and ready to negotiate very little until you confirm booking by cheque. Also, even then he is not doing too much reduction.

    I also checked out Laxmi Aangan and even they are quoting 3000 today. I did not even ask how much they were bargaining. This means the market has actually gone up. I also saw lots of people enquiring and some even booking flats. All places i saw Rajveer, Laxmi Aangan, Suncrest in PS were having decent amount of people.

    I may of course be wrong but with market being a little stable and signs of recovery coming in i think the worst in real estate has gone by.

    This is stictly my personal opinion.
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  • Originally Posted by amit_2009
    yes, indeed this is true. I know about a reputed builder who had 70 bookings for his project. but in the last 2 months 27 people have cancelled the bookings, and over 30 people have behind in their bimonthly payment schedule.... the builder has put the project on hold for the next 2 years!! I am sure that the few remaining bookings also will result in payment defaults if no construction takes place...


    I am sure many small builders and investors may sell desperately but the bigger builders seem to be in a better state. I would not expect rates to go much lower now. Maybe 5% maximum and that too not in all areas.
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  • 3k for a far place

    Originally Posted by akssenti
    I am sure many small builders and investors may sell desperately but the bigger builders seem to be in a better state. I would not expect rates to go much lower now. Maybe 5% maximum and that too not in all areas.



    Yes there may be slight upswing , but it may be temperory like the stock market based sentimental buys.

    LOOK satyam is downsizing, so r host of companies. Salary cutting. C the effect on others. My brother in MNC company, not much chance of retrenchment, but is fearful of company going bust, salary cutting, displacement etc+ etc NOT interested in buying now.
    Clearly, IT driven mass buy r over. Affordability is a big mantra now.

    The hiden problem of cancellations, stalled projects, changed plans, investor flats offloading is yet to be seen.

    If u can afford, go for ready possession at reasonable distance fm city with facilities.

    U can go chk out the empty flats in any no. of projects. Do u think builders can afford to let these remain vacant for want of buyers.

    Though am a optimistic abt things, but would prefer to wait some more time.

    Would prefer to buy in the down going market than look out for the bottom. personally i dont know ur area, but 3k/ft for such afar place, cmon u can now get flat beside Kalyaninagar at these rates.

    these r peak rates :(
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  • I agree with akssenti

    Guys,
    Dont compare Pune Builders with other city builders like DLF, Unitech etc. Pune Builders have made money like anything during boom times and have good cash reserves. Even in these times, people like Paranjpe are NOT ready to negotiate the rates at all. Doesnt that tell you anything? I have had personal exp with GK and they dont bring the rates heavily down. My advice is also that see your budget and buy he house if you like the scheme. Rates have gone up again from whet they were in Feb-March, indicating some demand. Builders like GK are smart in understanding demand and hiking rates immediately. I am not forcing anybody to buy now or scare prospective buyers but dont expect heavy crash in prices.

    REMEMBER: Realty articles in business magazines concentrate HEAVILY on Delhi/NCR/Bangalore/Mumbai areas. Pune's realty equation is TOTALLY different.
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  • Due to bounce in share market looks like builder are not ready to negotiate as much as last month. looks like there is raise by Rs100/- everywhere.
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  • I don't think the upside move in share market is going to increase demand of real estate, especially in Pune.
    Pune prop market (in aundh annex and around hadapsar) is solely dependent on IT industry and things are not too good for IT folks.
    I wrote a post on my blog ]http://sarang333.blogspot.com/2009/03/real-estate-pune.html regarding various factors which may affect Pune market.
    Please comment on my blog if you disagree with any of the points in teh post. regarding various factors which may affect Pune market.
    Please comment on my blog if you disagree with any of the points in teh post.
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  • define "everywhere"? looks like a 'broker-type-comment' !
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  • Think Rationally rather than dream

    First, this slump is good time to purchase the sweet home if you were left behind because of earlier sharp rise in prices.
    Second, its possible that it may go down further but at the same time its possible that it can go up. Chances of second becomes more as we have seen over the period that price of all commodities nonetheless rise. And the price of this essential commodity of house is bound to rise over the period, immaterial of job/economic slump, as Indian population is ever rising and so many new married couple looking out for house.
    Third, stop dreaming. Think rationally and when you feel the price is right go for the buy rather than just waiting that it should come at this price.
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  • I made this comment based on post on the same forum. Check forum on aishwaryam (2150 to 2275) , rajveer (2600 - 1700) & park royal (2700 - 2850). Few people who has booked flats has mentioned these prices. I do not believe in wide guess or predictions.
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  • HI
    look at indexpress report on Sat.

    Expert believe,v might be near the bottom -the most optimistic view
    BUT the prices arent going to go up soon!

    The prop mkt is unrelated with stock .
    mkt
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  • Originally Posted by amit_2009
    define "everywhere"? looks like a 'broker-type-comment' !

    Lets not get personal by saying broker type comment and things. If you read the forum itself you will realize its a common phenomenon. If you want examples:


      Wakad Aishwaryam greens has risen his price. Please check that thread.
      GK has risen his prices in Pimple Saudagar. Please check Rajveer Thread.
      Gera in Kharadi has risen there prices for SkyVillas and Emerald City.
      Laxmi Villas is now quoting 3000 in PS.
      People are looking at the ground situation and giving information. We dont want prices to rise either but thats the reality. Lets not get personal on this forum.People are looking at the ground situation and giving information. We dont want prices to rise either but thats the reality. Lets not get personal on this forum.People are looking at the ground situation and giving information. We dont want prices to rise either but thats the reality. Lets not get personal on this forum.People are looking at the ground situation and giving information. We dont want prices to rise either but thats the reality. Lets not get personal on this forum.People are looking at the ground situation and giving information. We dont want prices to rise either but thats the reality. Lets not get personal on this forum.People are looking at the ground situation and giving information. We dont want prices to rise either but thats the reality. Lets not get personal on this forum.People are looking at the ground situation and giving information. We dont want prices to rise either but thats the reality. Lets not get personal on this forum.
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  • Is it similar to sentimets in stock market - i.e ephemerel

    The sentiment turns negative the next moment.

    The fundamental dont suupport it,

    chk ur own comments and the latest in rajaveer thread.

    Me thinks stable govt and stock market dont have such a quick impact on prices.

    its customer psychology, builder r using. it will subside, give some time, big herds - IT/investors people r away

    Patience. Upside potential has very less steam. Upcoming State election will add pressure to these builders to provide monies to the parties.

    Keeping fingers crossed.
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