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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  • How do you get hold of investor flats.. magic bricks.. or keeping eyes and ears open..
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  • alas

    Originally Posted by akssenti
    How do you get hold of investor flats.. magic bricks.. or keeping eyes and ears open..



    alas brokers r already there hat in hand for a deal.:(
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  • Akssenti - Social Worker, not a broker !!!

    Originally Posted by Sansei
    alas brokers r already there hat in hand for a deal.:(


    Sensei,

    Buddy, Please don't call a him broker.

    Don't you know, he has already a bought a flat in Pimple Saudagar. And he is just here to 'help' out the people buying and to 'guide' them :D

    And just to help people, even after buying a flat for himself, he even enquires all projects in Pimple Saudagar and posts the rates. We should not term such a "social worker" as a broker. :)
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  • Diwali is a good time for purchase but it these gloomy times even diwali might not have a very big effect on the market.

    My personal opinion is that the rates would b stable. At the max some freebies could b provided.

    Home loan agents are a good source of sensing the market. The market is on a recovery stage. Of course IT ppl are facing job security issues but there are still many IT ppl who are looking for investment.
    My advice would b pick up a good location and a good builder. Don't go for locations which might take alot of time to develop.
    Also see how the upcoming budget and monsoon plays a role on the real estate market.
    Let me noe if u agree or disagree wit my opinion
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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.


    Hahaha. If this is the case, why have Paranjape & DSK come up with 'Fixed Deposit Scheme'. What happened to Blueridge & Vishwa? Rohan despite price cuts offering 'Price Protection Scheme' & the list can go & on.....
    What are Pune builders? Just the face of NCP. It's politicians which run the RE show. The hopeless performance by NCP in lok sabha has made several builders worried lot as NCP wants their money back for coming state elections.

    What's more, DLF etc. are listed entities. They can raise money through QIPs by sale to FIIS. What can PBAP do? Abandon or go bankrupt if not reduce prices!!

    Btw, Paranjape have reduced prices for BR.
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  • akssenti or Mr. Broker

    Originally Posted by akssenti
    I am hoping you are right and i am wrong friend. It will do all of us a world of good if real estate prices correct further. Lets check back by Diwali and see what happens. I am praying that you are correct but my instinct tells me otherwise. I can see a lot of people buying today in Wakad, PS, and Kharadi. If it keeps going that way ... who knows..

    BTW i checked out Rajveer on Sunday, place was packed with people and builder was quoting 3000. I had checked it out in Feb also when he was quoting 2750. Now his last prices seems to be 2800.

    So as you say lets keep patience and hope for the best....

    Also i feel stock market is linked coz a lot of investor money comes into the real estate market from people in Mumbai looking for an alternate house in Pune. Met some such people when i was house hunting and they told me that they have bought stocks when market was 8.5 and will sell it when it touches 14-15 and invest in property. May such speculation is causing the sudden jump. Who knows.. i dont trust paper reports coz I have spoken to some builders who then get interviewed by newspapers and the rates and information given in contradictory. Especially for developing areas like Kharadi, Wagholi, and PS.


    2 months back No one had imagined in their wildest dreams that the market will got to 15K this year!! & that is a fact. whatever you have quoted above makes no sense!!

    After going through all your posts ... there is only one conclusion ... U R not a genuine Buyer.. A buyer never wants prices to go up...

    There are many brokers here .. it is IMP to identify them and not be misled by their posts.
    Remember, Brokers have no work these days .:)
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  • Election

    Originally Posted by realacres
    Hahaha. If this is the case, why have Paranjape & DSK come up with 'Fixed Deposit Scheme'. What happened to Blueridge & Vishwa? Rohan despite price cuts offering 'Price Protection Scheme' & the list can go & on.....
    What are Pune builders? Just the face of NCP. It's politicians which run the RE show. The hopeless performance by NCP in lok sabha has made several builders worried lot as NCP wants their money back for coming state elections.

    What's more, DLF etc. are listed entities. They can raise money through QIPs by sale to FIIS. What can PBAP do? Abandon or go bankrupt if not reduce prices!!

    Btw, Paranjape have reduced prices for BR.




    Refer earliar post,


    Waiting and hoping elections would be a dampner to RE price.

    Money would be required in huge no.s to fund elections. The buiders

    would need to produce it for parties and private people example DSK,

    hence would be under some pressure to produce money.

    Me thinks, if economy doesn't throw a spanner in form of upsurge, the

    builders would be under greatest stress during campaign phase.
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  • Expecting lot of goodies fm NCP during

    elections.
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  • Originally Posted by neoonline
    2 months back No one had imagined in their wildest dreams that the market will got to 15K this year!! & that is a fact. whatever you have quoted above makes no sense!!

    After going through all your posts ... there is only one conclusion ... U R not a genuine Buyer.. A buyer never wants prices to go up...

    There are many brokers here .. it is IMP to identify them and not be misled by their posts.
    Remember, Brokers have no work these days .:)


    I dont really care what you think Neo online. If you see my posts you will see I already bought a house and am only saying what i see. You can live under your happy dreams forever and wait for builders to beg you to buy their flat. I am tired of optimists like you. Have a good life.
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  • Get your facts right, RE broker.

    Originally Posted by akssenti
    Buddy you get your facts right. All these things happened before my post and I had factored that in. Go and see bookings in Nanded city. They have dropped drastically after prices have fallen coz people are losing confidence. Also, what i meant was that correction has happened around Feb March time. If you expect 25% more then best of luck. BTW Kalpatrau has suddenly hiked to 2500 non negotiable from 2250 negotiable. Hope you get a good deal and your dream correction.

    This means that builders are axing their own feet. Good. Pune builders are genius. Perhaps they can teach their counterparts in Mumbai, Bangalore, Delhi-NCR. The might of Pune builders is bigger than DLF, Unitech, Hiranandani, Omaxe etc. Btw, stocks have nothing to do with RE. I sit in the market day in & out. The hike in stock markets is due to allowance of P-Notes by SEBI & RBI due to which FIIs are pumping money. Who knows they may soon vanish. How can you justify that domestic MF are sitting on cash reserves of INR 20,000 Cr? Stock market are altogether different which are not based on future prospects alone but also the ability of the companies to manipulate these prospects.
    *Btw, at Nanded City, there is nothing to be seen that too despite price cuts from INR 3500/sq ft to INR 2500/sq ft which is lower than their launch price. Those who are canceling their bookings are not getting their money in one stroke but in form of PDCs, that too after lots of follow up to the office. :DHad their been good bookings & project sold out as claimed by them, why the need to reduce prices? Have builders suddenly converted themselves from leech to social workers?:p
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  • Cool down

    Looks like there is some heated discussions going on. My view is that real estate is also affected by the stock market. Its really simple. Many ppl have invested and lost their liquidity. Due to low prices they could not sell their shares.
    Now that the share market has almost doubled, ppl who were having huge losses and covered that up.
    Also by diluting their portfolio they have got some cash in hand which they are looking to invest in properties.
    So no one can say that stock market has no effect on real estate.
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  • Originally Posted by ashishporwal86
    Looks like there is some heated discussions going on. My view is that real estate is also affected by the stock market. Its really simple. Many ppl have invested and lost their liquidity. Due to low prices they could not sell their shares.
    Now that the share market has almost doubled, ppl who were having huge losses and covered that up.
    Also by diluting their portfolio they have got some cash in hand which they are looking to invest in properties.
    So no one can say that stock market has no effect on real estate.


    Someone who has made so much money from stock market, has to be called a good investor.

    Will such a good investor, 'invest' in Pune RE market in such scenario ? A 3BHK which costs 50L struggles to fetch even 14k per month => Annual rent => 1.68 L. And if you make FDs of 50L, you can get 4.5L per anum. Buying right now is similar to the people who were buying when stock market was 21k, just because of the hype.

    In my opinion, people who have made good amount of money from stock market won't buy at these rates at all. If at all someone has 50L in case, he will invest in land but not in flat.

    Gone are the days of 2005,buying a flat was called a good investment.Only genuine buyers who need a place to live are thinking about buying.
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  • Hi,

    Rates r continuing to slide atleast in EAST pune.

    The pressure is only going to increase with election funding looming around the corner
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  • Originally Posted by ashishporwal86
    Looks like there is some heated discussions going on. My view is that real estate is also affected by the stock market. Its really simple. Many ppl have invested and lost their liquidity. Due to low prices they could not sell their shares.
    Now that the share market has almost doubled, ppl who were having huge losses and covered that up.
    Also by diluting their portfolio they have got some cash in hand which they are looking to invest in properties.
    So no one can say that stock market has no effect on real estate.

    For a time being if we consider that there are no FIIs, no P-notes etc. & the bull run is only due to domestic investors, I strongly disagree that these investors would invest the money in RE. Reason:- No appreciation in RE.
    Had this been the case realty shares would have gained a lot. DLF, Unitech, Omaxe, Purvankara are selling their stakes for QIPs. Promoters stake is reducing. Out of the books debt may be higher than in books. Investors invest with intention not to live but to leave. They purchase to sell. If profits are not there in RE, who will invest?

    Btw, I would like to inform that the market cap of BSE still stands 90% less than that during the peak. Think about it. Market cap is more important than no. of shares being traded.
    IT is in doldrums. Read the following where Satyam employees are getting 60% pay cut.

    ]http://www.expressindia.com/latest-news/200-satyam-employees-from-city-in-exercise-to-downsize-staff/476226/
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  • Very less connection between RE & Stock market

    I agree with real acres, especially on the fact that stock market is driven differently than real estate. With P-notes, it became easy for FII to put their money in this market. If you notice stock market follows the global cues. But real estate market is not!!

    I have friends in US/Canada who had bought very good house for $200K (80Lacs - 1Crore Rupees). The salary vs House price ratio is 1:2 or max 1:3. i.e if you are earning $80K annually you should be getting houses priced at $150K-250K

    But that's not the case in India. We see salary vs house price ratio starting from 1:4 onwards. This is purely sentimental and was mostly driven due to highly paid IT guys.

    But today the driving factor is not just IT people but cash reserves with builders which is quite huge as of now. But that should not last long unless IT boom again reaches to those high levels .

    It is quite possible that RE rates might fluctuate little low, little high till 1 year. But eventually it has to crash down!!

    This is strictly my personal opinion.
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