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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  • looking at the budget it seems the rates are gonna go down for sure now...
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  • no its not seems to be as all the builder are hiking thier prices.
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  • Originally Posted by nitinmehta83
    no its not seems to be as all the builder are hiking thier prices.

    Do you work for Wadhwani builders?
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  • no i am not.

    yesterday i visited sai marigold the price what i got is 3000PSF non negotiable..
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  • Originally Posted by nitinmehta83
    no i am not.

    yesterday i visited sai marigold the price what i got is 3000PSF non negotiable..

    Just forget about Wadhwani. Better options are there. See info posted by fellow members in PS area thread.
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  • Folks .. please stop going to these property expos and builder offices .. only then will the rates come down .. they are basically running a retail outfit, the magic word for all retailers is "footfalls" .. footfalls X conversion rate = customers .. remember .. like retailers .. builders can exercise control over the "conversion rate" but they are helpless about "footfalls" ..
    if "footfalls" go down .. prices WILL go down .. as long as "footfalls" remain up .. nothing will happen


    Originally Posted by realacres
    Just forget about Wadhwani. Better options are there. See info posted by fellow members in PS area thread.
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  • Originally Posted by Kimmig
    Folks .. please stop going to these property expos and builder offices .. only then will the rates come down .. they are basically running a retail outfit, the magic word for all retailers is "footfalls" .. footfalls X conversion rate = customers .. remember .. like retailers .. builders can exercise control over the "conversion rate" but they are helpless about "footfalls" ..
    if "footfalls" go down .. prices WILL go down .. as long as "footfalls" remain up .. nothing will happen

    I have stopped attending prop exhi from last quarter of 2007.
    Tip:- Price quoted at exhibi are higher than what you get at site office. Recent eg. is of Goel Ganga group at exhibi held at Hotel Orchid which my friend attended. The difference:- INR 10.4L for 2BR!!
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  • Pune and Jacked up prices

    Hello All,
    This is my maiden post reply!

    This is a very interesting discussion you guys have going on here. I have been in Pune for the last 3 years. At that time, the property market was just about to take off (unknown to me :( ) on its exponentially growth trajectory.

    What i have observed about the real estate rates here is as follows:


      Pune has typically been a speculators market. A lot of investors brought flats at dirt cheap rates, and later sold them at exhorbitant prices.
      The rates here are not a true reflection of market condition; these rates are decided on the whims and fancies on one group - the builder- broker nexus.
      These guys meet every month to decide on the rate in each 'area'. And the builders be damned if they would bring down the price.
      When the markets tumbled recently, the builders refused to bring down the prices. Instead what they did waws, to offer to pay your 6 months EMI/ give you a completely fitted modular kitchen/ home theatre and other electronics for the house etc. This would ensure that the rates would not come down, and people would still buy.
      Unfortunately, for them, these schemes did not really gather steam, because people were just not too sure about getting invested for 20 years, when the security of one's job was questionable.
      When the markets were on a rise, people bought immediately, thinking that the markets would move in only one direction -UP. Now when the markets tanked, people are waiting, hoping that the rates would keep going further south.
      I personally think, that, if collective buying can halt for some time, the rates will level at a more reasonable level rather than going all over the place. We have not yet reached the bottom, i feel, and there is still some scope for correction.
      I think i will wait till Diwali to get a better understanding of the picture, before i take the plunge. :D
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  • Visit

    Pl visit stalls, sites and anything discount mela,


    Just ensure u give ur price and some GOOD advice to these people

    Other wise their greed is unfetered and they live in their mind castle

    feasting on unearthly profits fm people.

    When ever u communicate do give back ur piece of mind.

    R any bldrs/proxies listening.

    Heed the common sense - reduce price and get good sales and rational

    profits/margins.
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  • Patience is the name of the game.

    Originally Posted by Kimmig
    Folks .. please stop going to these property expos and builder offices .. only then will the rates come down .. they are basically running a retail outfit, the magic word for all retailers is "footfalls" .. footfalls X conversion rate = customers .. remember .. like retailers .. builders can exercise control over the "conversion rate" but they are helpless about "footfalls" ..
    if "footfalls" go down .. prices WILL go down .. as long as "footfalls" remain up .. nothing will happen

    Kimmig,
    There are all kinds of people in this world. So there will always be buyers.
    This is the primary reason why the RE correction takes time. So patience is the name of the game here.
    Wait for 1-2 yrs and you will be in a market you wanted to be in.
    In an effort to understand who are these people who buy in this market, here is what I think.
    (Very personal thought, not trying to offend any one.)
    I see broadly 2 types of buyers.

    1) Who come new to city.
    These people are often in the age group of 35-40, who move to their dream city finally for good
    and first thing they want is buy a house. They survey several sites for 3-4 months and
    finally think that this is the rate in Pune and so no point waiting to long. Builders prey on them

    2) Old, retired people who have lived through their life in Pune and who have their son/daughter
    working in IT in USA/UK or just returned from Onsite and NOT married.
    These old people have lot of money from their retirement coupled by Dollar income from their kids.
    They have their own house which they bought when they were young and they always believe that RE prices will always rise. They want their kids to buy house before getting married.

    These "smart" buyers fall to below statements:

    1) Dont miss the bus this time..

    2) If you are buying house to live in it, buy it if you can afford it. Dont try to time the market.
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  • Down rates

    Hi ,

    The election moves have started .

    PMC is mulling of increasing the FSI.

    Presently Gaothan area has FSI 2 and other suburbs 1; These will be

    doubled. This is supported by one and all. Profits to bldrs - monies in elections.

    So the money pressure eases for bldrs. Buyers beware the bldrs will

    now increase the constructions in projects, floors etc etc etc...

    But where is the monies when there r not many buyers in markets

    Loads of FSI /TDRs doesn't produce money only selling does:D

    So the pressure is only going to increase.
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  • guys any views on park street?
    Are their owners from Park Street in this forum.

    TJ:)
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  • Gimmicks

    History of official support:

    10 yrs back, PMC started the concept of TDR's - transfer of development

    rights. bldrs received additional 40% built up permission. However, due to

    Scams and blame game on officials, these became stricter and finally

    uneconomical.

    The bldrs started using Slum rehab projects to garner greater FSI to

    increase their profits. Their sole aim was profit and profits - leave aside

    the houses for poor. They r the loyal followers of the netas.

    Bldrs started to exploit the loop holes in bldg laws. They used the

    premiums to close open galleries for flats, they charged the free FSI for

    staircase and open parkings to their customers and reaped more and

    more profits.

    Then the special town ship projects came into being. But the bldrs had to

    comply stricter rules on water, waste management, etc etc etc... The

    responsibilty seems an everlasting commitment. So it did not find many

    takers.... So the new FSI gimmick

    Another aspect, they r planning to give State transport corporation

    land on 3 FSI to private bldrs for commercial use on 2/3 of total prop.

    This move is ostensibly to provide revenue to STC. Poor STC was

    running on losses all these yrs, nobody bothered. Now it has started

    showing revival - the vultures r out to finance the election on their lands
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  • Originally Posted by tj2008
    guys any views on park street?
    Are their owners from Park Street in this forum.

    TJ:)

    Visit parkstreet thread.
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  • High FSI, no sales.

    Sansei,
    Lets see what happens to Kumar 45 Nirvana Hills at Karve road. High FSI means additional load on already poor infra. But you rightly said, even higher FSI can't make builders happy. Reason:- There exists lots of dead inventory currently. Until & unless this is sold, what's the use of more FSI?:D
    For this happen, RE prices have to crash else even FSI of 0.00001 won't help nor would FSI of 1000.:p
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