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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  • Have you ever think why pune leads in demand vs supply gap???

    1. Pune Builders are most arrogant lot...
    2. Price reduction is least in Pune.
    3. Flat availability told by them is always 3-4 flat in entire project (even if they have 100s of flat unsold, this reduce options for genuine buyer & that keep buyer away from their project).
    4. They change their rates like "Aalu-pyaaj" like if you go on saturday & if u call up mondy then most likely you will get a different rate...

    5.Last but not least I found Pune's builder most unethical (no transparency in anything) thats also reason some genuine buyer (like me) afraid to deal with them


    so, if Anybody from the builder is reading this then they should improve on these points, then only I think sale will increase otherwise "KEPP DREAMING":D:D:D




    Originally Posted by akssenti
    Today's Indian express has an interesting article on real estate.


      Pune leads the country in demand vs supply gap. Too many empty flats no buyers. Bombay follows pune.
      More than 60% projects delayed and average delay of 8 months.
      Real estate gurus warning against price rise which would kill slight recovery in market.
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  • Hello Ashsih,
    the above points may be true for many builders, but i have a diff say on tht. recently i confirmed a unit at pethakars samrajya in kothrud. since day one i had got a proper service. i liked their systematic approach towards sales. also as reg transperancy they hd informed me abt all aspects of the sale including the indemnity bond for vat (which i think many builders r not disclosing at the start and make it mandatory at the end).
    if u hd a chance to go to kothrud do visit their site ans sales office.

    sam....
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  • Backing

    Pune bldrs have better finance options available. Hence held out for this long.

    Also education sector is immune to recession and generates huge monies.

    Bldrs r used to dictating terms to their customers. So i for one was impressed by Mr Sanjay , mktg exec of Ozone Villas at Wagholi.

    Now if i go, i do dictate terms to resalers/investors/bldrs.

    If ever it does not work out for me, i would go the way of my friends.

    Build own house and have that satisfaction.
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  • Words

    Dilawar Nensey, joint managing director at Royal Palms India.
    He said it also made sense for the company to offer discounts than sit on high-cost debt.
    Analysts say if the offer clicks, other developers may be forced to drop prices amid talk of a property glut.

    Ya liked these words in the article.:D

    And Pune leads in vacant no. of flats in India just ahead of Mumbai.
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  • Disclosure

    ]http://www.indianrealtynews.com/real-estate-india/mumbai/hiranandani-developer-to-collaborate-with-maharashtra-govt-for-affordable-housing.html


    Just c the Hirnandani bldr agreeing to price stability .


    Just c the Hirnandani bldr agreeing to price stability .
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  • Originally Posted by realacres
    ]http://epaper.hindustantimes.com/ArticleText.aspx?article=03_08_2009_703_003&kword=&mode=1
    I can confirm the same about Panvel.
    In a project 1/1.5 year ago going rate was 2900-3000 psf (a friend book at that rate). Now it is 2100 psf.
    Friend has booked a loss of 12/13 lacs before taking possession.

    It seems there is huge over-supply/inventory in Mumbai/Pune and buyers NOT ready to commit
    I can confirm the same about Panvel.
    In a project 1/1.5 year ago going rate was 2900-3000 psf (a friend book at that rate). Now it is 2100 psf.
    Friend has booked a loss of 12/13 lacs before taking possession.

    It seems there is huge over-supply/inventory in Mumbai/Pune and buyers NOT ready to commit
    I can confirm the same about Panvel.
    In a project 1/1.5 year ago going rate was 2900-3000 psf (a friend book at that rate). Now it is 2100 psf.
    Friend has booked a loss of 12/13 lacs before taking possession.

    It seems there is huge over-supply/inventory in Mumbai/Pune and buyers NOT ready to commit
    I can confirm the same about Panvel.
    In a project 1/1.5 year ago going rate was 2900-3000 psf (a friend book at that rate). Now it is 2100 psf.
    Friend has booked a loss of 12/13 lacs before taking possession.

    It seems there is huge over-supply/inventory in Mumbai/Pune and buyers NOT ready to commit
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  • Originally Posted by hitmady
    I can confirm the same about Panvel.
    In a project 1/1.5 year ago going rate was 2900-3000 psf (a friend book at that rate). Now it is 2100 psf.
    Friend has booked a loss of 12/13 lacs before taking possession.

    It seems there is huge over-supply/inventory in Mumbai/Pune and buyers NOT ready to commit

    Thanks for info, hitmady. Seems that ready possession flats will be going at prices lower than bookings, a complete U turn than what it prevailed earlier.

    Along with recession, 6mn hectares of Kharif shortfall is there this year.
    Bio-fuels may well become expensive than crude oil now! Thinking of investing in sugar & dal than RE & stocks!:D
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  • interest rates may stabilise or head even lower over the next six months

    "Mr. Bhatt, the Chairman of India's largest bank, SBI, has some good news for people seeking to buy homes. Speaking to a leading daily, he observed that interest rates may stabilise or head even lower over the next six months as the liquidity in the system is pretty comfortable at the moment. However, he refused to comment anything on what would be the scenario six months later as he felt that the economy was still in a pretty dynamic state. Mr. Bhatt further added that he foresees SBI's own home loan book doubling this fiscal vis-à-vis last year.

    Please bear in mind that perhaps these projections do not take into account the demand that will result if developers bring down their price meaningfully. As noted recently by our founder, Mr. Ajit Dayal, "Driven by their own frenzy to get rich quick, the real estate developers have started to build too much property. The projects under construction are probably 5x what the actual demand will be at the price points being currently quoted. Drop the price by 20%, and the demand could jump by 100%: still leaving an oversupply of 2.5x. But drop the price by 40%, and probably every square foot available will be sold out". Looks like there is ample room for the prices to come down and if they indeed do, the resultant growth in home loan disbursals could only be imagined. "

    Taken from http://www.equitymaster.com/5minwrapup/detail.asp?date=8/21/2009&story=6

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  • Unfazed by China correction, JPMorgan says bull mkt is back

    Read the conversation religiously....One of the best market analysis I have seen.... I dont wanna take any names but friends, do take a hint from here :)


    http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=412328
    As I was saying for the last few weeks, Markets are stablising ;)
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  • Vicious practice of under-writing new projects!!!!!

    I will have to post it here since a new thread did not appear..!!! I dont think it is abbusive.

    Buyers beware of the Broker-Builder nexus of under-writing of projects…
    Brokers are increasingly underwriting properties in new projects being launched by developers—blocking a large number of apartments during so-called soft-launches, hoping to offload them at a premium to end-buyers after the formal launch.
    This will help builders claim huge sales immediately and create an artificial scarcity in the market.

    Check the article below that talks about it
    ]http://economictimes.indiatimes.com/Market-News/NCR-brokers-do-a-realty-check-again/articleshow/4926417.cms

    VK

    VK
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  • shantinagar,kondhwa-katraj highway

    Hi friends,
    One of my friend in Pune inquired for Shantinagar at kondhwa-katraj highway near to VIT hostel.
    Builder quoted rate around 3130/sq. feet and said rate will go up in coming days.
    My friend did some research and found that around 100-150 flats are still lying with builder.
    Also I found from another friend that many people have bought flats there merely for investment purpose and its not just 1-2 flat for investment.
    Its bunch of 40-50 flats bought by these group of friends merely for investment.

    What I can found from this study is that lots of flats are available but NO buyer.

    As suggested by friends I too hope rates will come down in the coming days.
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  • There r indications Diwali will have unbashed promotional sales at discounted rates.

    Those bldrs/ investors who are reluctant will surely get stuck with these properties and will have to shoulder INT burden which r set to increase shortly.


    Another project with investors is Gera Emerald, in Kahardi. Now investors r pulling out, as they r getting possession.
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