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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  • Originally Posted by neoonline
    I think this guy Akshay is not a Broker, but is a buyer who has bought property at an unreasonable price and is trying to up the price by posting blogs... :D
    else why does he have to be on a realestate site when he has already purchased the flat.

    Mr. Akshay it is is better that you chill out and stop posting blogs, do some other productive work instead.

    Else if you really need to help people out here then post something that will really help buyers.

    AND yes there no need to react sharply to my posts


    Thank you for giving me a character certificate and pyscoanalysing me. Then you can also tell me how to react to it. Any other demands your highness? Nice game lets guess if he is a broker or not. :) Buddy there is something called humanity where you try and help other people.. thats the point of forum and its called a discussion forum. My posting here can increase real estate is a big credit you give me. As i have said i just write what i see in the market. I request you to stop telling me what to do. Please stop playing detective and trying to analyze my mind. You may not need any help but some people appreciate my opinion.
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  • RE Prices are falling.

    Originally Posted by ash7979
    I have applied for a loan with Bank of baroda for 30 lacs, I dont think they have any issue in giving me 30 lacs loan...I dont know whch bank has refused u to give loan more than 20 lacs...even Now PSU banks are coming very aggressively in home loan...

    For ur info...in BoB RoI for loan less then 30 lacs ( I have applied for 29 lcs 50 thousand:) ) 8.75 & they are not charging any processing fees as well fron 15th June to 14 Aug period...this shows that they want ppls take home loan from them....I dont know why ppls have -ve feelings abt PSU banks...


    and now continue with the main topic, why price of property will go up in near future. Any positive criticism welcome....


    1. in next coming months govt will aks to reduce ineterst rates on the Home loan, & they will do in next 2-3 months defiantly.
    Fact:- Govt. can't dictate the interest rates. It is upto the bank to decide.

    2. Govt is also going to increase tax rebate on home loan for interest from 1.5 lacs to 1.5 lacs in this budget that is on 6th july, that indirectly will increase demand.
    Fact:- Do people have money just to get that tax benefit? The total amount of EMI far outstrips the savings. This is beneficial only if the loan amount doesn't exceed INR 15L.

    3. After 6th pay commission many ppls got good amount of arrears, only govt babus though :( those ppls are ready with money to buy property.
    Fact:- The amount is not in cash but also in form of bonds. Govt. has made it clear that it can't afford to increase fiscal deficit further as it has already borrowed over INR 3.5L Cr. Also note that the amount is not going to be disbursed in one stroke.

    4.During diwali season ( I mean from oct to Dec months) anyway Indian ppls buy new things & they will new houses at any cost (I mean at this time prices & even at somewhat higher price as well).
    Fact:- Diwali 2008 was lackluster for builders. Diwali 2009 will be even worse as people think more & more of savings than purchase. The negative inflation/deflation shows this.

    5. At last but not least...here in this forum as well,I have seen many ppls has already booked & in process of booking flats, so why price will go down :)
    Fact:- Over 54% of flats in Pune are vacant. Add to it investors flats too.
    ]http://www.businessworld.in/images/stories/infrastructure/massive_pile_up.gif

    Read the detailed report here:-

    ]http://www.businessworld.in/index.php/Infrastructure/The-Rise-Fall-Of-Realty.html

    RE Prices will have to fall by atleast 50% from its peak.

    RE Prices will have to fall by atleast 50% from its peak.

    RE Prices will have to fall by atleast 50% from its peak.
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  • last post

    Yup agree with neo online....Regarding.....

    I m looking fwd to my last post on real estate, once i buy my house.
    Land i have already bought, the other item is remaining. Thats the natural thing in the world to do.

    However, Aks is different, and has sent me useful info regarding home loans fm LIC. So if he wants to help some one - its his wish, He has bought house for his own use.

    Buying at unreasonable price is subjective.

    Methinks: Buying for own use, the classic profit/loss mindset does not come into play. Its more of availability and savings issue.
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  • Inflation at a 30 year low in India!!

    Originally Posted by realacres
    5. At last but not least...here in this forum as well,I have seen many ppls has already booked & in process of booking flats, so why price will go down :)
    Fact:- Over 54% of flats in Pune are vacant. Add to it investors flats too.
    ]http://www.businessworld.in/images/stories/infrastructure/massive_pile_up.gif

    Read the detailed report here:-

    ]http://www.businessworld.in/index.php/Infrastructure/The-Rise-Fall-Of-Realty.html

    RE Prices will have to fall by atleast 50% from its peak.

    I completely agree with you realacres ...
    whatever you say needs to be backed by facts & figures..
    Just look at the figures.. a total of 53,604,843 Sq Ft. of unsold property in Pune.. that will count for around 50,000 apartments.

    Thats a lot considering that there are no budget homes here.. all expensive luxury apartments starting from 30 lacs.

    So many properties are under construction in Baner where most of the 2BHKs starts above 40lacs.

    considering the fact EMI's will be 40K per month, how many middle class/ upper middle class people can afford it is a BIG question. as they will need a monthly salary almost double of the EMI.

    What is the average salary of a professional with 3-4yrs of experience 5-6 lacs, who end up having not more than 35-40K in hand per month so the loan can only be approved if a couple applies for it... and if one of them looses the job?

    Major firms have not hiked salaries this year, instead there is a cut for all the top management people.

    so practically speaking the pricing is still very HIGH .

    And the Headlines in Times Of India Today says it all...
    Inflation at a 30 year low in India!!
    soon the country will go in a deflation phase.. I am really worried about the GDP growth rate this year...

    Remember, The Real Estate sector is not Independent of the Economy.
    All Bubbles Burst!
    soon the country will go in a deflation phase.. I am really worried about the GDP growth rate this year...

    Remember, The Real Estate sector is not Independent of the Economy.
    All Bubbles Burst!
    soon the country will go in a deflation phase.. I am really worried about the GDP growth rate this year...

    Remember, The Real Estate sector is not Independent of the Economy.
    All Bubbles Burst!
    soon the country will go in a deflation phase.. I am really worried about the GDP growth rate this year...

    Remember, The Real Estate sector is not Independent of the Economy.
    All Bubbles Burst!
    soon the country will go in a deflation phase.. I am really worried about the GDP growth rate this year...

    Remember, The Real Estate sector is not Independent of the Economy.
    All Bubbles Burst!
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  • 1. in next coming months govt will aks to reduce ineterst rates on the Home loan, & they will do in next 2-3 months defiantly.
    Fact:- Govt. can't dictate the interest rates. It is upto the bank to decide.

    Reality:- Govt can & did asked banks (at least PSU Banks) to increase & decrease interest rate to control the inflation rates,around 6 months back all the banks has increased their interest rates (even SBI was giving loan at around 12% annum)to control Inflation, so govt will do the reverse to control the deflation (that is more dangerous than inflation)...Govt do this with the help of RBI & RBI has tools to do this like CRR & Repo rate...So I can rest assure u guys that in 2-3 months u will see interest rates of 2004-05 era i.e 7.5-8% for ess than 30 lacs loan.

    2. Govt is also going to increase tax rebate on home loan for interest from 1.5 lacs to 1.5 lacs in this budget that is on 6th july, that indirectly will increase demand.
    Fact:- Do people have money just to get that tax benefit? The total amount of EMI far outstrips the savings. This is beneficial only if the loan amount doesn't exceed INR 15L.

    Reality:- There was typo in my earlier post it was from 1.5 lacs to 2.5 lacs on interest part...what u say ppls dont have money to buy flats???? In NCR almost 50% of the Real estate property is touching almost to 1 cr & still ppls are buying..so this increase in interest rate rebate certainly help those ppls who are gonna take laon for more than 50 lacs ( and its true in NCR ppls are buying property at those rates)


    3. After 6th pay commission many ppls got good amount of arrears, only govt babus though :( those ppls are ready with money to buy property.
    Fact:- The amount is not in cash but also in form of bonds. Govt. has made it clear that it can't afford to increase fiscal deficit further as it has already borrowed over INR 3.5L Cr. Also note that the amount is not going to be disbursed in one stroke.

    Reality:- you are half true...govt has offered half of the money as arrears & rest half they have put in their GPF account etc... but Govt babu can withdraw money from their GPF to purchase home for them...

    4.During diwali season ( I mean from oct to Dec months) anyway Indian ppls buy new things & they will new houses at any cost (I mean at this time prices & even at somewhat higher price as well).
    Fact:- Diwali 2008 was lackluster for builders. Diwali 2009 will be even worse as people think more & more of savings than purchase. The negative inflation/deflation shows this.

    Reality:- I Agree Deflation shows that less buying by the Indian, that means ppls are holding their money with them for some purpose..And plls can not wait indefinably for those purpose...so this diwali would be good for RE..maybe builder will offer some freebies over reducing prices further like we have seen last year as well like 1-2 lacs item (Cars, ACs, Modular Kitchen) free on 25-30 lacs price property that is not even 10% of total cost
    that way they can get the same price...

    5. At last but not least...here in this forum as well,I have seen many ppls has already booked & in process of booking flats, so why price will go down :)
    Fact:- Over 54% of flats in Pune are vacant. Add to it investors flats too.
    ]http://www.businessworld.in/images/stories/infrastructure/massive_pile_up.gif

    Read the detailed report here:-

    ]http://www.businessworld.in/index.php/Infrastructure/The-Rise-Fall-Of-Realty.html

    RE Prices will have to fall by atleast 50% from its peak.

    If you think that RE price will fall by atleast 50 % then I may say you are dreaming those rates..those rates never will come, as at that rate builder will not be having any reason to be in business,as at that rate hardly any builder will make any profit with same quality...you may get those 50% less rate in new projects & you will see the quality of those finished products :)

    IMHO, reduction of 30-33% ( 1/3 of the peak Price) is enough to increase the sales , that means a property which is available at 3000 rate can be brought now or maybe in next 2-3 months at 2000 not below than that & I think most ppls will agree with me who has done some research/market survey in last 4-6 months...

    Any comments guys !!!

    If you think that RE price will fall by atleast 50 % then I may say you are dreaming those rates..those rates never will come, as at that rate builder will not be having any reason to be in business,as at that rate hardly any builder will make any profit with same quality...you may get those 50% less rate in new projects & you will see the quality of those finished products :)

    IMHO, reduction of 30-33% ( 1/3 of the peak Price) is enough to increase the sales , that means a property which is available at 3000 rate can be brought now or maybe in next 2-3 months at 2000 not below than that & I think most ppls will agree with me who has done some research/market survey in last 4-6 months...

    Any comments guys !!!

    If you think that RE price will fall by atleast 50 % then I may say you are dreaming those rates..those rates never will come, as at that rate builder will not be having any reason to be in business,as at that rate hardly any builder will make any profit with same quality...you may get those 50% less rate in new projects & you will see the quality of those finished products :)

    IMHO, reduction of 30-33% ( 1/3 of the peak Price) is enough to increase the sales , that means a property which is available at 3000 rate can be brought now or maybe in next 2-3 months at 2000 not below than that & I think most ppls will agree with me who has done some research/market survey in last 4-6 months...

    Any comments guys !!!

    If you think that RE price will fall by atleast 50 % then I may say you are dreaming those rates..those rates never will come, as at that rate builder will not be having any reason to be in business,as at that rate hardly any builder will make any profit with same quality...you may get those 50% less rate in new projects & you will see the quality of those finished products :)

    IMHO, reduction of 30-33% ( 1/3 of the peak Price) is enough to increase the sales , that means a property which is available at 3000 rate can be brought now or maybe in next 2-3 months at 2000 not below than that & I think most ppls will agree with me who has done some research/market survey in last 4-6 months...

    Any comments guys !!!
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  • Realty companies resorting to discounts.

    ]http://economictimes.indiatimes.com/Markets/Real-Estate/Realty-Trends/Realty-companies-resorting-to-discounts/articleshow/4633546.cms

    Resale home market fails to attract buyers:-

    ]http://economictimes.indiatimes.com/Markets/Real-Estate/News-/Resale-home-market-fails-to-attract-buyers/articleshow/4664787.cms
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  • Layoff survivor syndrome hits India Inc.

    ]http://economictimes.indiatimes.com/articleshow/4673678.cms
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  • Salary cuts, no money to pay for EMIs.

    ]http://economictimes.indiatimes.com/Features/Satyam-gets-new-owner/After-virtual-pool-its-salary-cuts-for-Satyamites/articleshow/4679478.cms
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  • Originally Posted by realacres
    ]http://economictimes.indiatimes.com/Features/Satyam-gets-new-owner/After-virtual-pool-its-salary-cuts-for-Satyamites/articleshow/4679478.cms

    Useful links and Very true.

    I see people arguing about how long one can wait for the prices to fall. But for many its not a choice but a compulsion because of salary cuts. Earlier every year, the company used to raise salaries by 10-30%, but now a new trend of cutting the salaries has started. A prominent MNC(Emp strength around 4000) in Kalyani nagar has cut salaries by upto 40%.

    Layoff Syndrome:-
    Also, when lots of people around you are getting laid off even, for people who are capable people are thinking twice before going for a home loan of 30-40L.

    Useful links and Very true.

    I see people arguing about how long one can wait for the prices to fall. But for many its not a choice but a compulsion because of salary cuts. Earlier every year, the company used to raise salaries by 10-30%, but now a new trend of cutting the salaries has started. A prominent MNC(Emp strength around 4000) in Kalyani nagar has cut salaries by upto 40%.

    Layoff Syndrome:-
    Also, when lots of people around you are getting laid off even, for people who are capable people are thinking twice before going for a home loan of 30-40L.

    Useful links and Very true.

    I see people arguing about how long one can wait for the prices to fall. But for many its not a choice but a compulsion because of salary cuts. Earlier every year, the company used to raise salaries by 10-30%, but now a new trend of cutting the salaries has started. A prominent MNC(Emp strength around 4000) in Kalyani nagar has cut salaries by upto 40%.

    Layoff Syndrome:-
    Also, when lots of people around you are getting laid off even, for people who are capable people are thinking twice before going for a home loan of 30-40L.

    Useful links and Very true.

    I see people arguing about how long one can wait for the prices to fall. But for many its not a choice but a compulsion because of salary cuts. Earlier every year, the company used to raise salaries by 10-30%, but now a new trend of cutting the salaries has started. A prominent MNC(Emp strength around 4000) in Kalyani nagar has cut salaries by upto 40%.

    Layoff Syndrome:-
    Also, when lots of people around you are getting laid off even, for people who are capable people are thinking twice before going for a home loan of 30-40L.
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  • ]http://business.rediff.com/report/2009/jun/22/buying-a-home-may-become-more-expensive.htm

    Now, who will you trust? Times Group (who've said before that best time to buy was Jan-Mar) or rediff?:p

    Now, who will you trust? Times Group (who've said before that best time to buy was Jan-Mar) or rediff?:p
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  • Parsvnath Q4 net drops 89.13 pc at Rs 11.61 crore

    ]http://economictimes.indiatimes.com/stocks-in-news-home/Parsvnath-Q4-net-drops-to-Rs-1161-cr/articleshow/4687334.cms
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  • Nice articals but none of these articals refer to Pune Real estate. DLF , Unitech , nirmal lifestyle or Parshvanath were selling flats in NCR or mumbai at 6000/- to 8000/- sq feet. Unitech launch their scheme at NCR for 7500/- when others in that area were selling at 5500/-. So huge correction was always on card. We can see such correction with overhiped big projects like Nanded City , megapolis , amanora or Blue ridge. Articals abt Pune Real estate will be more useful on this forum.
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  • Originally Posted by mahesh pune
    Nice articals but none of these articals refer to Pune Real estate. DLF , Unitech , nirmal lifestyle or Parshvanath were selling flats in NCR or mumbai at 6000/- to 8000/- sq feet. Unitech launch their scheme at NCR for 7500/- when others in that area were selling at 5500/-. So huge correction was always on card. We can see such correction with overhiped big projects like Nanded City , megapolis , amanora or Blue ridge. Articals abt Pune Real estate will be more useful on this forum.


    The articles mentioned above by realacres speak about current IT job scenario which propelled the RE market in Pune. With IT job market getting worse will have the impact on Pune RE now. We are discussing the reaons why will rates may fall further. Hence, i find the articles very much reelvant.

    During 2004-2005:-


      IT job market grew multifold and many were getting early hikes of even 30%.
      New job creation in IT job market: This lead to lots of people to migrate from other cities to Pune. This acted as a propeller and spurred the growth in RE. The migration by so many and so fast was unexpected, which lead to less supply and more demand, finally resulting into multifold rise in RE prices.
      Home loans: The banks were more than happy to offer huge home loans of 30-40L to 'rich IT fellows'. The rates of RE were justified then. Many, even bought the flats for investment as the returns they were getting by renting the flats were quite good, compared to the amount they invest.


      Now ?:-


        Instead of hike, the salaries are being cut by upto even 40%. People feel lucky, if their salaries are not cut. Forget about the hike in wages :D
        No new jobs, no new migrants: Almost no new jobs. In fact the existing jobs itslef are being cut down. So, not many takers. One of the artciles above, mention a few laid off employees packing their bags and returing to their home town. The applications for PF withdrwal at Pune office have raised by whopping 30%.The equation changes => Less demand, more supply.
        Home loans: Its getting tougher to get the home loans more than 20L approved. Someone, who was eligible for a home laon for 30L eariler, may now be eligible for only 15L due to salary cut and cautious approach by the banks.
        More downpayment:- Due to increase in RE prices + lesser home loans, one has to furnish more for down payment. A 3 BHK which was costing around 15L, one was required to have 2L in hard cash. Now, for the same flat which costs 45L, on needs to have at least 9L in cash. And this at the time, when people are preferring to have liquid cash in their hands to survive on a rainy day.
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  • ]http://www.dnaindia.com/money/report_is-sobha-s-qip-going-the-gmr-infra-way_1267543

    In Pune RE,
    Prism has reduced prices from INR 4800/sq ft to INR 4300/sq ft nego.
    Kumar Infinia is down from INR 2600/sq ft to INR 2200/sq ft nego.
    Karan Celista is down from INR 3500/sq ft to INR 2700/sq ft nego.
    The list goes on.
    It is only a matter of time when builders give reduced rates in ads.

    Btw, many builders quote high prices in office & then an agent calls you up & offers this flat for cheaper rate. I have experience this myself. It is just a back door selling gimmick of builders.

    Pune economic scenario:-

    http://www.expressindia.com/latest-news/negative-inflation-but-no-positive-effect-on-city/479903/

    India's weak outlook of economy:-

    http://www.expressindia.com/latest-news/Indias-growth-will-be-slowest-in-6-yrs-WB/479848/
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