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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  • GK worth nothing more than 2000-2100...
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  • Originally Posted by vrmadhu
    Hi,

    Does any one know have any experience of buying a flat in Sicillia (Raviraj Builders) in BT Kavede Rd? Any idea what the rate is for the ready possession flats?

    Thanks



    Hi,

    Can anybody answer this plz, if you have the inputs.

    Thanks
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  • GK is defenitely worth more. You get free jhumars in your living rooms, looks excellent.
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  • 7/13/2009 1:49:48 PM

    ="http://www.accommodationtimes.com/AT/www.accommodationtimes.com"]www.accommodationtimes.com

    After two months of good deals, market slowdown again
    By Staff Reporter

    After two months of demand enhancing and deal closure, the real estate market is stagnated again. The fall of further 10% was witnessed in the month of July 09. Peer estimating that deals which were not finalised six month back and still hanging on bargian were the reason for last two month increase in market sentiments.
    There are no buyers for properties at current level since predictions for further fall is on the air.
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  • Originally Posted by tsongt
    GK is defenitely worth more. You get free jhumars in your living rooms, looks excellent.


    :D I agree. Buy a G.K property only for the jhumars they provide. Rest everything is average
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  • Excess liquidity

    Its a short burst, which the bldrs have killed with their shameless greed. Excess liquidity with easy credit.

    One can read warning by bankers to bldrs not to increase flat rates. But small increase in buy, the price increases. Whats the justification ???


    Instead of giving homes to people & with decent margins (profit) as suggested by one and all, These people r holding onto flats with no sales.:)

    The situation will worsen with poor monsoon + rate hike later in the year.
    The sales r going to stagnate and prolong further till next year for sure.

    The investors r also stuck with flat. Some have entered at high rates at the peak and are sitting on huge money stuck in RE. know a friend with flat bought at rates around 3000+ last year and the flat is under construction at snails pace.

    Methink:The Pune property rates will be down through out diwali and till the next year
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  • And this will go on till builders are fully squeezed out!

    Originally Posted by aditi sharma
    7/13/2009 1:49:48 PM

    ="http://www.accommodationtimes.com/AT/www.accommodationtimes.com"]www.accommodationtimes.com

    After two months of good deals, market slowdown again
    By Staff Reporter

    After two months of demand enhancing and deal closure, the real estate market is stagnated again. The fall of further 10% was witnessed in the month of July 09. Peer estimating that deals which were not finalised six month back and still hanging on bargian were the reason for last two month increase in market sentiments.
    There are no buyers for properties at current level since predictions for further fall is on the air.



    You may recall the squeezing out of weak players and transfer of assets into the hands of the strong. This happens every time the markets fall and is essential for the next upward phase because its only the strong who can take markets to a new high - Darwinian stuff.

    So, why did prices go up in May/June. Is it coincidental that there was supposedly "green shoots" and the stock markets took off? I don't think it was a coicndence! :D

    Anyways, another nail was hammered into the builders coffin yesterday when the proposal was put up that 100% of FDI into RE must be locked in for long term. This will scare away ho money which was substantially being ploughed into the RE market.

    Demand and Prices will decline in waves gradually till bottom is reached when there is almost zero volumes and no bulls are left standing. Then the bears start getting bullish. This is a long time away.

    cheers


    You may recall the squeezing out of weak players and transfer of assets into the hands of the strong. This happens every time the markets fall and is essential for the next upward phase because its only the strong who can take markets to a new high - Darwinian stuff.

    So, why did prices go up in May/June. Is it coincidental that there was supposedly "green shoots" and the stock markets took off? I don't think it was a coicndence! :D

    Anyways, another nail was hammered into the builders coffin yesterday when the proposal was put up that 100% of FDI into RE must be locked in for long term. This will scare away ho money which was substantially being ploughed into the RE market.

    Demand and Prices will decline in waves gradually till bottom is reached when there is almost zero volumes and no bulls are left standing. Then the bears start getting bullish. This is a long time away.

    cheers


    You may recall the squeezing out of weak players and transfer of assets into the hands of the strong. This happens every time the markets fall and is essential for the next upward phase because its only the strong who can take markets to a new high - Darwinian stuff.

    So, why did prices go up in May/June. Is it coincidental that there was supposedly "green shoots" and the stock markets took off? I don't think it was a coicndence! :D

    Anyways, another nail was hammered into the builders coffin yesterday when the proposal was put up that 100% of FDI into RE must be locked in for long term. This will scare away ho money which was substantially being ploughed into the RE market.

    Demand and Prices will decline in waves gradually till bottom is reached when there is almost zero volumes and no bulls are left standing. Then the bears start getting bullish. This is a long time away.

    cheers


    You may recall the squeezing out of weak players and transfer of assets into the hands of the strong. This happens every time the markets fall and is essential for the next upward phase because its only the strong who can take markets to a new high - Darwinian stuff.

    So, why did prices go up in May/June. Is it coincidental that there was supposedly "green shoots" and the stock markets took off? I don't think it was a coicndence! :D

    Anyways, another nail was hammered into the builders coffin yesterday when the proposal was put up that 100% of FDI into RE must be locked in for long term. This will scare away ho money which was substantially being ploughed into the RE market.

    Demand and Prices will decline in waves gradually till bottom is reached when there is almost zero volumes and no bulls are left standing. Then the bears start getting bullish. This is a long time away.

    cheers
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  • Some facts.

    1.) Foreign investment in stocks this week:- $6bn resulting in massive gains in stock exchange (nothing to do with economy).

    2.) Forex reserves decreased by $560 mn this week.

    3.) RBI has till date reduced interest rates by 450bps points but banks have reduced only by 225 bps points.

    4.) Bankers have indicated that interest rates will be hiked by 100 bps points/1% in Sept 09 due to liquidity crunch in market due to heavy Govt. borrowing.

    5.) Borrowing & spending is worst form to revive economy as this is a temporary & artificial phenomenon without proper economical fundamentals.

    6.) Bankers reluctant to reduce rates & give loans as they fear that the number of NPAs in various sectors including home loans will only increase in coming months.
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  • Wiseman and Realacres
    I have no idea what you are talking even though i know you are proponents of slow market.

    How do you explain the demand hike in sft rates in recent months. I don't think that's due to few leftover transactions as somebody suggested. Also look at the stock market.

    I know some of my friends keep saying the sky is falling run away from market ... come on ... look at the gains people are making if they have taken steps in RE or BSE.
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  • RE and stock markets are not always in sync. In US, the stock market has gone up significantly while RE market is still bad.
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  • Originally Posted by ttt43
    RE and stock markets are not always in sync. In US, the stock market has gone up significantly while RE market is still bad.


    Depends on which part of US RE you are looking at. Where i am, you have to be lucky to ratify a contract in less than 30 offers. Of course other option is to pay 10 - 15% above asking rate.
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  • High - low

    After a prolonged lull, there is always activity.

    Now days RE is falsely behaving like a stock market.

    So u can have slight UP due to the same pyschological effect.

    Just look at the under lying causes, due u see any for this upsurge???

    Experts r warning at the unsustainable way the Stocks r sky rocketing.

    It will come down fast trapping smaller and retail players in the bargain.
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  • No problem. You must follow your own judgement!

    Originally Posted by anikat
    Wiseman and Realacres
    I have no idea what you are talking even though i know you are proponents of slow market.

    How do you explain the demand hike in sft rates in recent months. I don't think that's due to few leftover transactions as somebody suggested. Also look at the stock market.

    I know some of my friends keep saying the sky is falling run away from market ... come on ... look at the gains people are making if they have taken steps in RE or BSE.



    Anikat,

    Not at all an issue. Each individual must follow his/her own judgement. If you think markets have started to pull away upwards on a sustained basis, then you must jump in!!!

    We on the other hand have the benefit of past experience. We know that any trend is confirmed only by increasing volumes! A mere Rs.100/200 per SFt increase in quoted figures does not make a trend. How many people are going in for these prices without negotiations?

    We know that, despite the all-clear signal being given by the Govt (what else can they say?) the recession is far from over. In fact, from a structural point of view, most of the big Banks in the US are technically bankrupt. This year alone 100s of banks are going bankrupt in the US. As of yesterday the TARP special investigator says that the total bailout package in the US is not $13 Trillion as we al think but it may be as high as $23.7 Trillion. And politicians in the US are saying this is too small a bailout!!!:D And do you really think that all this won't have an effect on Indian economy? Dream on!

    So, as I said. I know that worse is still to come. And this will surely tell on RE and other asset prices in 2010 upto 2012. Some say it will take 8 years or more to fully recover.

    But you should not be taken in by all this depressing talk. Just simply go ahead and buy RE if you think the worst is over!!!;)

    Human never learn from other's experience, always only from their own!!!

    cheers
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  • Agree

    Another wise one from wise man.

    The FDI has decreased to $ 2.1 Bn in May that is almost down from almost 4 Bn last yr. The trend of declining FDI is continuing since beginning of this yr. So hot money is coming in stock market?
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  • http://online.wsj.com/article/SB124814704494767611.html?mod=googlenews_wsj

    This WSJ Reporter too is hunting for a home in pune and disappointed.
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