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Pune Property Rates Will be Down by Diwali

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Pune Property Rates Will be Down by Diwali

Last updated: September 23 2016
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  • Re : Pune Property Rates Will be Down by Diwali

    Nope, my point is that current rates are high too ... these rates ahve remained unchanged for last 6-12 months and because people are buying homes its still not changed.

    People think that demard is less, but it might be with other cities, I think in case of Pune demand is steady and good enough that builders can eat profit on it ...

    Anyways, Sansai is correct, now the demand for small will increase, and bigger flats will remain empty till the next boom comes knocking in... which bytheway might be sooner than later ...Still Builders will get their profits on So called small demands ...

    Guys Gov is paying 1% which is going either builders pockets or Banks pocket so .... you can guess rest ...

    lets take an example, everybodies least fav township Nanded City ....
    These guys had originally planned 11 storeys building for their 2.5 and 3 bhk buildings ... looking at the demand and response they got after rate reduction which was 2750 at that time ... they changed the layout of their plan ... you know what they did ? they added 11 more storeys on top of 11 already there ... why they will do this unless something they know that we don't ?

    Anyways, I pitty on the smaller builders for this,along with aam janta., they are just going to get screwed in the end with this polities ...
    Last edited by Space; July 31 2009, 11:27 AM.

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    • Re : Pune Property Rates Will be Down by Diwali

      Truth

      Originally posted by Space View Post
      Hey Guys ..

      One thing I learned from this past year is that, regardless of whatever may be the condition ...

      People ARE buying homes in PUNE.

      So every economics goes for a toss. I know 13 people booked a flat in last 6 months and there are 7 more looking for it. This is just the case in the office. Don't want to talk about rest of them out there.

      There is still a pool of people like few of the bloggers here, who are waiting for that right momoent to buy. Which tells me they will buy sooner than later say 2011

      Then there are more people who have actually booked a 'economy' flat or purchases a land somewhere in outskirts because it was cheap. I fear them most .. because they will be ready to buy something else in next 2 years.

      It might be as simple as "How Many of Them Want to Buy Home" vs "How Many Homes Are Available" and Pune looks still good for Builders.
      lets talk in this way.. what is per capita of Pune its 1000$ in 06, which double of the nations average. Not considering IT guy as they are less then 10% of city's population.

      Median home price range in Pune - 20 Lakhs to 70 Lakhs

      Per capita range of US 17K to 37K

      Median home price range in US - 157k to 250k i.e. 78.5 Lakhs to 1.25 crore.

      So per capita is 17 to 37 times of Pune and home price just 2 to four times?????

      take whatever considerations population density etc ... but truth is truth.

      while 3-5 years back the prices are realisitic 5 - 15 Lakhs.

      If a person buys home of 40Lakh today and expects price to go 80Lakhs in 5 years how this is possible. Who will be buying your home at 80L when you yourslf wont be able to afford buying a better one at 1cr.

      Earlier it happened because of WTO - GATT etc. there was a sudden inflow of good salaries leading to profits to corporate.

      What you forsee now ???
      Diamond mines being discovered when you dig earth?

      so if population doubles in 5 years, prices cannot follow the same. jobs will be more competitive, and lesser salaries.

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      • Re : Pune Property Rates Will be Down by Diwali

        Same boat

        Hi Spaceman,

        The bigger the fish the bigger the lake

        These big bldrs have taken bigger bets, add to it the election funding pressure. So all in all - they will also be squeezed for sure.

        If the situation becomes that much serious, the Big daddy's will finally go with their electorates and dump the bldrs/ their own investments.

        The high liquidity + low monsoon are feeding to condition ripe for disaster/crash. If the eco is not able to sufficiently pull thro' the pressure, then all bldrs/investors will have had it.

        The rates will zoom and become unsustainable stagnating sales with additional investors dumping their costly unrentable/meagre rent flats to save their money with rising EMI and stagnating/ decreasing sale values.
        Last edited by Sansei; August 1 2009, 11:51 AM. Reason: spell

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        • Re : Pune Property Rates Will be Down by Diwali

          This is crazy out in Pune.
          I have friends who have bought flats recently for 42 lacs/EMI is almost 40k but they could have rented the same flat very well for 10k

          I am not in Pune but in San Diego CA, the same thing happened in San Diego
          If you buy the house, you pay $4k//monthly but renting out you just get $2k.
          At this time san diego realestate is in very very bad shape
          This news is for florida though. http://news.yahoo.com/s/ap/20090801/...onely_highrise

          Florida at one time had the hottest real estate market

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          • Re : Pune Property Rates Will be Down by Diwali

            Originally posted by aviraj View Post
            I agree. Buy a G.K property only for the jhumars they provide. Rest everything is average
            How much do jhumars, invertor, false ceiling, modular kitchen, fans & tubelights cost?? I am sure not more than 1 lakh rupees. But G K charges nearly Rs 200/- per sq ft more than other builders in Pimple Saudagar. If you take a 1100 sq ft flat then you are paying Rs 2.2 lakhs more & getting only 1 lakh. G K is still in 1.2 lakhs profit. If you consider construction quality then G K is not different than Goel Ganga, Sukhwani etc.

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            • Re : Pune Property Rates Will be Down by Diwali

              30% of restructured loans to become NPAs

              http://www.moneycontrol.com/mccode/n...al=mkt_topnews
              If you are happy, you are successful.

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              • Re : Pune Property Rates Will be Down by Diwali

                Crash seems unlikely, although a slow downturn (10% a year for 3-4 years)is expected. If crash was going to happen, it would have happened already. From this forum and other forums it is clear that there is still intense interest in Pune RE. Even after demand is down by 70-80% (based on registration numbers), builders are not reducing price. The investors are not ready to reduce price on resales as they are not in a hurry. For a crash here onwards there needs to be some major negative development on the international and/or domestic markets. Again, pune is relatively small RE market controlled by a cartel.

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                • Re : Pune Property Rates Will be Down by Diwali

                  Realty April-June net seen slumping as sales dip

                  http://www.livemint.com/2009/07/2215...-seen-slu.html

                  Do not invest in real estate stocks:-

                  http://www.moneycontrol.com/india/ne...i/13/11/408322
                  If you are happy, you are successful.

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                  • Re : Pune Property Rates Will be Down by Diwali

                    I agree with space here. People are buying. Dont know why I feel an upward (or atleast stable) trend in the market now.
                    Eat, Pray and Love

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                    • Re : Pune Property Rates Will be Down by Diwali

                      Rude jolt: no salary for three months and then pink slips for 44 IT engineers

                      More pain in IT continues. Biggest of this would be? RE ofcourse.

                      http://www.expressindia.com/latest-n...ineers/497689/
                      If you are happy, you are successful.

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