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.

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  • I also think that Maharashtra assembly elections would be a big trigger for the RE market in the Pune or say in whole Maharashtra, so if can have patience for another 2-3 months then I think we can see another 10-15% off to current RE prices...And I think that would be the LAST & BEST chance to buy property cheap in Pune, as After diwali or after harvest season (if we have good monsoon) ppls will have more money with then & I guess prices surely gonna rise after that period, so I think 0ct & max dec would be good time to buy property...if somebody looking for good ( I mean cheap ) rates in Pune RE market...
  • I also don't understand the mind set of Raviraj Builders in BT Kavade Rd. They have increased the rate of Sicillia, ready possession house from Rs 3200 psf (negotiable) in April to Rs 3600 psf (non negotiable). They are saying that they have started getting customers hence the change of stand.
  • This is just a hype being created by the builders to show RE is booming. The first thing when a thief is caught is to say that he knows nothing. Same case here. :DRemember about 1.5 years ago PBAP had said that they would increase the prices by Rs.400/sq ft. What happened? No one bought despite knowing the rates may be increased. Same is the situation here. Builders are playing mind games.

    Just sit back, relax & hear nonsense of builders & tell them that you would prefer to continue to be on rent & won't purchase at high rates especially when all the cities are experiencing RE crash. Make sure you make this point before leaving. The builder will call you back. I have experienced this personally in 2 cases. (Rest of the builders did not increase the rates.)
  • Originally Posted by shekhar7
    Nice info. RealAcres..
    really enlightning !!!
    But now, I fail to understand, why Builders are quoting more than what they had quoted 1-2 months before..
    May be trying to create false bull-run

    I visited couple of projects in bavdhan & Warje Area..
    Everyone seems to be in buoyant mood w/o any reason it seems :D

    Yes, builders are trying to create an illusion that the RE prices have started moving upwards. And they think people too will buy in hurry, being afraid of missing the bus again.

    But the fact still remains the same - The rates have gone so high that they are not affordable at all. And if at all one needs to buy, he has to become a slave of the builder paying 30k-50k EMI.

    The builders are even trying to create less supply on paper i.e. even if there are 100s of flats available, he will show the availability as only 10s and try to convince the buyer that he is getting lots of customers despite of the hike in rates :D.

    So many new apartments are being constructed in and around Pune with townships like Amanora, Nanded City, MagarPatta, Megapolis... Where are there are going to find the customers ? No new jobs in the city, so no new people are moving in. Investors too are not buying, as buying an appartment in Pune is no more an invesment. Even today, in Pune lots of flats are bought by investors than the genuine buyers and hence rents are too less compared to the cost of the flat.
  • Economic Slowdown a Hindrance in Real Estate Growth.

  • Looking forward to have flat in wakad or baner

    1) According to current scenario which bank would be better where i can get least home finance interest rate.
    2) I am looking for the 2bhk flat preferably in baner and wakad. Please suggest me which build i should refer to.

    Thank you
  • Psu

    Try PSU banks.

    Rates r very attractive, but loan amt is less. After calculation, u will c u can just abt take loan of some meagre amt. In this amt man , u cannot afford a 2 BHK flat in Pune. So u have to turn to HDFC/ private bank. LIC housing is aggressively increasing its home loan portfolio.
  • IT biggies take 40% hit in billing rates.

    IT which was backbone of Pune RE has collapsed. No money, no RE.

  • I was enquiring with a property agent & he was saying that he has some investor flats which has special rates from the builder directly. Now what does it mean by "agent having investor flats"?
  • In many property deals builders offer flats to landowner instead of land price or partof land price. These are normally Investor's flats which they sold through agents. Actual investor has to pay stamp duty and that raised flat cosr while selling. In this case they have not done aggreement so thay can save cost. Also special rates or free from builder.
  • I too visited Laxmi agan and others. They offered 36 L for 2BHK. It is very hingh. Erlier people were projecting by july rate will be 2000. This is all expectations. The prices are very high and I do not know why.
  • Originally Posted by vrmadhu
    I was enquiring with a property agent & he was saying that he has some investor flats which has special rates from the builder directly. Now what does it mean by "agent having investor flats"?

    Some builders are selling through backdoor channels just to show that rates are not crashing at his office! I too got calls from broker who informed me about some investors flat which were the same as that of the builder!:D
  • Thin pay packets? It's the EMI culture.

    Take-home salaries fall by 30% in 10 years
    Jul 02, 2009,Thu

    Nilanjana Ghosh Choudhury
    The average pay packet of most salaried employees across all sectors has increased over the years, but not the take-home pay.
    A study carried out by the Associated Chambers of Commerce and Industry of India (Assocham) has revealed that due to the equated monthly instalments (EMIs), the take-home salary of an average salaried person in Pune has dropped by almost 30% in the last decade.
    A salaried individual who almost carried 70% of his salary back home in 1999, is today only able to save up to 40% as his take-home pay.
    The findings were released after a nationwide survey by Assocham last week. The survey was conducted for three months from March to May 2009 in Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun.
    In Pune, around 900 people were surveyed and asked to respond to a formatted questionnaire.
    "The massive real estate development in Pune over the past six to seven years has resulted in this huge drop in the take-home salary," said director (public relations) at Assocham Koteshwar Prasad Dobhal.
    In Pune, the study revealed that almost 30% of most people's salary is earmarked for the EMI for the home loan and another 15% as EMIs for other variables such as auto loans, education loans and consumer durables, he added.
    Dobhal said an interesting finding of the survey is that earlier, the only burden on the salary was to pay insurance premiums. "But the changing demographic structure in the city has given rise to an enormous demand in the real estate," he said.
    On a pan-India level, the take home salary of the average employee in metros and large townships too has gone down by 30% in the last 10 years from around 70% in 1999 due to the increasing burden of EMIs on home, auto loans and buying luxurious items besides paying the life insurance premium.
    "In an average monthly salary structure of Rs25,000, the take-home part is not over Rs10,000 as an average employee shells out over Rs6,000 on the home loan, Rs5,000 on repaying the auto loan, and another Rs1,500 on luxury items," the survey findings stated.
    "The share of the insurance premium every month is over Rs2,500 as most people feel secure taking a comprehensive insurance coverage," Dobhal said. The survey also highlighted that over 30% of employees surveyed by Assocham said they pay between Rs4,000 and Rs5,000 in honouring office loan advances on construction, education and marriage, he added.
    Around 50% of the respondents said their current take-home salary is not more than 40% of their total package.
    People employed in the private sector are the major obligators of monthly instalments. "In the last nine years, the average salary of the common employee has gone up by 30%, but on the other side, the take-home has come down by many percentage points," he said. The median household income has increased from Rs10,000 in 2000 to Rs25,000 in 2009, he added.
    Around 8% of the respondents stated that prices of homes in the metropolitan areas has increased by 100%, as a result of which the owner would need to earn double the prices of homes to afford it. However, the increase in home prices has not been matched by a proportionate increase in the salaries," the survey revealed.
    As many as 42% of the respondents said they borrow within their means to maintain the expenses. For many others, after paying the EMI, they have no choice but to cut down on expenses like eating out, reduced bills, avoiding impulsive shopping and fewer vacations.

    * No money, No RE. As simple as that.

    ICICI puts Rs 200 cr realty on sale:-

  • Looks like builders are hiking the prices yet again. I had couple of experiences over the weekend.... Went to Sicillia - Raviraj builders in BT Kavede Rd & their ready posssession homes (an year to 2 years old) are selling at Rs 3600psf & they are not willing to negotiate. They are saying that customers are coming in & buying. Secondly. I went to Rohan Mitilla in Vimannager & there the scene was they have finished booking for phase 1 & begun booking for phase 2 due to demand & they have infact increased the rate in phase 2 from Rs3550 to Rs3700 psf.

    Are we missing somethig here by saying that wait & things the rates would further improve?
  • Firstly I gone to Sicillia a Raviraj project in BT Kavede rd & there the prise that they are quoting for ready possession house is Rs 3600psf (NON NEGOTIABLE). This is a good Rs 400 increase psf. They are quite adament that there will not be any further negotiation.

    Secondly Rohan Mithila has also increased its price from Rs 3550 to Rs 3700psf for their Phase II project as Phase I is competely sold out.

    Now what does these trends imply whem we talk about "market is down", "prices would still reduce", etc, etc??