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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  • Bankers caution realtors against raising property prices.

    Bankers caution realtors against raising property prices
    July 8, 2009
    IRN.

    Leading bankers on Tuesday cautioned real estate developers against raising residential prices, saying that any such move at this juncture would stall recovery in the market. “Certain top-rung developers have already started increasing prices, especially in mid-income projects, following the recent pick up in sales. Besides, with liquidity no longer a constraint, certain developers are seeking once again to increase their margins,” Mr Deepak Parekh, Chairman, HDFC, said.

    He said that the real estate market had just begun correcting itself and it would be “extremely unfortunate if the developers were to increase the home prices at this juncture.” Mr Parekh, who was speaking at Habitat Business Forum event organised by FICCI, expressed scepticism on whether existing developers would stay committed to affordable housing segment.

    Mr S. Sridhar, Chairman and Managing Director, Central Bank of India, echoed similar sentiments, He pointed out that it would be “short-sighted” if the players were to raise prices thinking that the demand is coming back into the market. “It is difficult to generalise but as a whole there is some more scope for downward adjustment in prices, or in certain places it should plateau. That will stimulate the demand. If the real estate players revise the prices upwards, it will stall the recovery process,” Mr Sridhar said. He said that the demand for housing loans had picked up among the banks.
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  • Some more economic woes:-
    Jet airways has slashed more than 50 employees of it's technical staff.
    Steel,auto & airline are one of the most evident forms of economy. If these sectors are in doldrums, it means economy overall, continues to be in bad shape.:(
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  • Nothing concrete.

    While infrastructure and JNNURM score, the neglect of the housing sector leaves the real estate industry disappointed with the Union Budget, says Shilpa Sachdev


    Though the real estate industry has welcomed the increased spending on infrastructure and JNNURM, it strongly feels the Budget did not offer anything substantial to boost the housing sector, even failing to grant direct benefits such as tax exemption for developers under Section 80IB (10) of the Income Tax Act, encouraging construction of small units at affordable prices and other measures to facilitate buying.
    Satish Magar, CMD, Magarpatta Township Development Construction Company Ltd and President, Credai Pune says: "The finance minister has failed to extend any crucial benefits to the real estate sector, which is a key economic driver. There were no exemptions in interest rates and income tax. We were also hoping for 80IB to be revised."
    The Budget has failed to provide any incentive even to the purchasers of affordable homes, laments Kumar Gera, Chairman, Gera Developments and CREDAI. "It was widely expected that the exemption of interest on self-occupied residential house property presently restricted to Rs. 1. 50 lakh per annum would be increased to Rs. 3.00 lakh, but nothing has been done in this respect too. As far as increase of allocation for JNNURM Scheme by 87% to Rs. 12,887 crores and enhancement of allocation for housing and provision of basic amenities to urban poor to 3,793 crores is concerned, it would provide some relief through Government authorities only without much participation by the private sector," he adds.
    Deepak Jadhav, head, marketing and sales, Amanora Park Town, says "No doubt infrastructure is important and that has been given some importance, which is good. But real estate goes hand-in-hand and that has been totally ignored.” Vinay Phadnis, CMD, Sahil Group, agrees. “The finance minister announced an excellent budget for the 'Aam Admi', but sectors like real estate and hospitality are ignored. We were expecting government to take concrete steps to boost employment and growth in real estate but this budget is not in sync with what real estate players wish for.”
    Some experts point out the growth of infrastructure will foster the growth of the real estate industry. Anuj Puri, Chairman & Country Head, Jones Lang LaSalle Meghraj says: "The fact that India Infrastructure Finance Company (IIFCL) will be given more flexibility and has been authorised to raise Rs 100,000 crore for the development of the infrastructure sector is an indirect boon to the industry. Of late, an increasing number of infrastructure projects have a real estate component by virtue of a cross-subsidisation principle. Therefore, boosting infrastructure projects gives an impetus to real estate.”
    “The intended clearing of regulatory bottlenecks for infrastructure projects will help bring forward many pending projects,” he adds. “The increased allocation for NHAI will mean improved and accelerated connectivity and will open up new areas for development. The JNNURM hike will give a significant boost to mass housing schemes on the fringes of metros. The allocation increase to the Rajiv Awaas Yojna will enhance the prospects of urban slum dwellers of getting better quality housing. The increased allocations towards Rural Electrification Scheme, the Rural Housing Fund and Rural Road scheme may serve to improve the real estate markets in far-flung areas... This may herald the beginning of organised real estate in the semi-urban and rural areas. The tax relief to manufacturers of prefabricated concrete slabs and exemption on goods made at construction sites spells good news for developers of lower income housing segment.”
    However, pointing at some negatives, Mr. Puri adds, "The increase in Income tax exemption limits is not sufficient to make a significant difference in buyers' purchasing power, but may serve as a feel-good factor.”
    But it is a balanced Budget, according to Shrikant Paranjape, Chairman of Paranjape Schemes Construction Limited. "The finance minister did not make any major announcement that will boost the real estate sector, but the measures he announced towards infrastructure development certainly will push up the housing industry. Though the Budget comes to the rescue of the 'aam aadmi' as touted, there is much more the government needs to do for the real estate industry.
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  • Finer points

    Hi all,


    The budget has finer points.

    Here they r:

    FBT is out, but perquisites will be taxed above 1 lk.

    Gift tax is in,even though surcharge is out.

    Wtax limit increased fm 10 lk to 30 lk.

    Pan non compliant tax payer will be taxed flat 20 % on income.
    CommentQuote
  • Originally Posted by Sansei
    Hi all,


    The budget has finer points.

    Here they r:

    FBT is out, but perquisites will be taxed above 1 lk.

    Gift tax is in,even though surcharge is out.

    Wtax limit increased fm 10 lk to 30 lk.

    Pan non compliant tax payer will be taxed flat 20 % on income.


    How does this affect RE ?
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  • Originally Posted by vbrege
    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.


    I am a newbie here but in USA.
    I hear a similar story everywhere all the time: It is different here and different this time. But guys it is never different here. It all boils down to economic fundamentals and affordability

    It wn't crash but prices are going to go down quite a lot.
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  • Pertinent points

    Friends,

    Following is the link to an article, that shows how the abolition of FBT in the budget would result in less take home pay for employees.


    ]http://in.reuters.com/article/personalFinance/idINIndia-40871020090710



    It directly translates to less home loan eligibility for everyone applying new loans.In my opinion it will surely impact the confidence and financial planning of buyers who were planning new purchases.



    It directly translates to less home loan eligibility for everyone applying new loans.In my opinion it will surely impact the confidence and financial planning of buyers who were planning new purchases.
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  • Monetising

    The Govt is monetising the debts with ingenious methods like Oil bonds etc.

    Fiscal deficit at 6.9% along with state/ Govt entities deficit + such

    oil/fertiliser bonds r giving a bad picture of the economy.

    The Govt has to pay back these bonds some day directly/indirectly.

    The effects; liquidity is going to dry up for others.

    Rates r going to go up before yr end and with failed monsoon in north

    the picture is bearish.
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  • If the monsoon has failed, prices of food items have gone up and liquidity is going to dry up then how wil the rates go up before the year end?
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  • BT to revert 2,000 call centre jobs from India to UK

    Originally Posted by realacres
    ]http://www.commodityonline.com/news/India-fiscal-deficit-68-SP-retains-negative-rating-19388-3-1.html

    BT to revert 2,000 call centre jobs from India to UK
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  • BT to revert 2,000 call centre jobs from India to UK

    more bad news.
    http://in.biz.yahoo.com/090716/50/batw87.html
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  • Good question!

    Originally Posted by badethakur
    If the monsoon has failed, prices of food items have gone up and liquidity is going to dry up then how wil the rates go up before the year end?



    Bade mia,

    All commercial entities need capital to run business and grow. Only some of it is share capital. Much of it is debt.

    When liquidity dries up, demand gets much ahead of supply, right?

    When supply of tomatoes dwindles, what happens to its price? Stratosphere, here I come.

    The price of money (or debt money) is interest. When money supply dwindles, where will prices go? Stratosphere, here I come!!! :D

    cheers
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