Hi folks,

i have seen many folks here comment that property rates will be down by Diwali, or down in another 6-12 months etc...

I have been looking around last 2 months and have never seen any builder in Pune bringing down the rates, instead its increased by 5-10% in certain projects especially in the western part of Pune. I am looking for ready posession, or projects which can handover homes before March '10.

Is there any specific news someone is certain which can be a trigger to bring the rates down? local elections? Budget - July 09? is bottom still not reached in US/UK/western economies, and are we expecting more bad news which can affect jobs in Pune?

just wanted to know what makes buyers optimistic to wait for a RE downside?

Thanks.
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  • firstly i m all no for high prices n no broker, m also an end user.

    m just curious why do some people here think that pune properties rate r at it's peak?? how do you guys know/assume that it's peak???

    when in mumbai price could be 10-12k (n even 25k) psf, what can't that happen in pune??
    in fact in pune, city area prices (boat club road, bhosle nagar, kp etc) r costing more than 10k?

    --

    my theory is, prices will not fall. however people will still get house in similar budget (it'll be far though)

    builders will keep making new townships/buildings further far from city at low prices, prices accordingly will increase as u move in the city...

    (not considering sudden increase of prices due to some plan like dp or metro etc)

    --

    today hjw is 4500, wakad is 5000, aundh 7000, city 10k
    few years later
    some new area (say pirangut) will be 4000, hjw 6k, wakad 7k, city 13k

    that's what i think will happen... i don't see any reason why people (read strong/capable people) who have bought house for 50l will sell it for 40l...
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  • The bubble existed in 2010 also, and bubble has further grown. How much a bubble grows before it burst can never be predicted. The smart are those who will sell just before the burst. Because once the prices fall down, there will be absolutely no buyer and it will then be a free fall.
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  • Originally Posted by Mulmule
    The bubble existed in 2010 also, and bubble has further grown. How much a bubble grows before it burst can never be predicted. The smart are those who will sell just before the burst. Because once the prices fall down, there will be absolutely no buyer and it will then be a free fall.



    i don't think stock market theory applies to RE.

    there is no bubble. stock prices can be tweaked n hence so much uncertainty...

    in RE, u pay for something real, which costs money to build... with inflation in every damn thing, land prices n construction cost is also high n hence the end product...

    there is no bubble, which will burst...
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  • Originally Posted by garibaadmi
    firstly i m all no for high prices n no broker, m also an end user.

    m just curious why do some people here think that pune properties rate r at it's peak?? how do you guys know/assume that it's peak???

    when in mumbai price could be 10-12k (n even 25k) psf, what can't that happen in pune??
    in fact in pune, city area prices (boat club road, bhosle nagar, kp etc) r costing more than 10k?

    --

    my theory is, prices will not fall. however people will still get house in similar budget (it'll be far though)

    builders will keep making new townships/buildings further far from city at low prices, prices accordingly will increase as u move in the city...

    (not considering sudden increase of prices due to some plan like dp or metro etc)

    --

    today hjw is 4500, wakad is 5000, aundh 7000, city 10k
    few years later
    some new area (say pirangut) will be 4000, hjw 6k, wakad 7k, city 13k

    that's what i think will happen... i don't see any reason why people (read strong/capable people) who have bought house for 50l will sell it for 40l...

    RE prices, in genral over a period of time will continue to rise is more or less given. especially considering that inflation itself is pretty high in our country, if RE does not keep pace, it will no longer be real. But like any other investment entry price plays a big role. I am yet to overcome the shock of being quoted 7200/sqft off NIBM road by the builder. That too when 1/3rd of the property is unsold and RTM.
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  • Originally Posted by OnlyPune
    RE prices, in genral over a period of time will continue to rise is more or less given.


    Nothing can be farther than the truth. Prices are not being set rationally. I wonder if they have anything to do with the actual construction cost to the builder at all. The price has absolutely no relation with the building quality, raw material used and surrounding infrastructure. It seems to me that real buyers are few and far between. They have been priced out of the market long time ago. It is becoming more a case of investor driven bubble. I expect the bubble to burst post election 2014.
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  • There is no buble,only hype.. What does they say..>Buy/invest.. otherwise miss such price now, will increase in next...???

    Heat is on.. prices down bit like 2bhk in 52/56lakh in bavdhan heard after a long time where prices were 70L. 80L,, Registration/stampduty.. vat/sat/LB FREE FREE...

    In conclusion, can see PUNCTURE in the Pune Property bus , if continue then the day is not far to board in it ...
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  • Pune RE scenario

    Predictions on the direction of RE is always difficult to make.There can be many experts arguing their view points.Some say the discounts,huge stock of unsold inventory is an indication that price is going to fall.
    Firstly, As I understand it,Pune's overall fortunes are governed by three industries - healthcare, manufacturing and Information Technology.If these industries do reasonably well.RE will not take a serious hit.
    Secondly our decision makers both political and even administrative are closely involved in RE and they will not let the golden geese to stop laying golden eggs.Decisions will be taken which will benefit the RE sector.No doubt high sounding words of employment ,labor will be used to cover their decision,which is aimed to protect their investments.
    To my mind, buying a flat for self stay even now is a good decision.
    "In conclusion, can see PUNCTURE in the Pune Property bus , if continue then the day is not far to board in it "@Rajesh_gavande:
    If at all punctures develop systematically,more people will board the bus making it like a crowded Swargate bus and prices will rise again.
    Vague signs of price reduction may be seen,but I for one dont believe that RE is going to get burst.Yes a major economic crisis or political crisis ending up in election may shake the RE sector.But both sides of the political spectrum is drawing sustenance from RE in large way.RE therefore is safe sector not withstanding structural faults,organization loop holes etc.
    Buy for self stay,Buy for longer term investment after due diligence.But dont do speculative purchases or rush into pre launches/soft launches.
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  • Originally Posted by rajesh_gavande
    There is no buble,only hype.. What does they say..>Buy/invest.. otherwise miss such price now, will increase in next...???

    Heat is on.. prices down bit like 2bhk in 52/56lakh in bavdhan heard after a long time where prices were 70L. 80L,, Registration/stampduty.. vat/sat/LB FREE FREE...

    In conclusion, can see PUNCTURE in the Pune Property bus , if continue then the day is not far to board in it ...


    with no offense, i think u r concluding something without considering all related parameters...
    is same project costing 52-56l now which was costing 70l before??
    do u know location/construction etc abt both project??

    regarding offers gudi padwa, it's nothing new. they r there every year...
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  • Originally Posted by garibaadmi


    that's what i think will happen... i don't see any reason why people (read strong/capable people) who have bought house for 50l will sell it for 40l...


    :) :)
    obviously given a option no one will do it..
    but property prices fall from 50 lakh to 30 lakh and that same capable person gets a offer for 40 lakh...that would be difficult bargain to refuse...

    i wont take this whole bubble burst that simplistically, it is just not that prices comes down and go up. that is not at least what i meant by bubble..variation in RE market is very normal..

    my understanding of Bubble is the value of entity going down..coming to a mean value..set my market crash.. today infosys share crash by 20% - 600 points..now how much time it would it take for infosys to recover or come to the same point it was yesterday..i dont know..but i can say it would be atleast a year..if they are lucky..

    that is what i meant..losing the value... it will take a organization full year to come back and match the past.. to ragain the value..

    please tell me which valuation is better stock or RE...
    RE valuation is joke
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  • Originally Posted by OptimusPrime
    :) :)
    RE valuation is joke


    After making a round of several Projects in Pune, I agree 1000% with the above statement.

    RE will crash if the Monsoon fails this year or the elections are announced whichever is earlier...
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