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Builders & Real Estate Bulls Theory Proved Wrong

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Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
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  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    Originally posted by Sansei View Post
    As per report of money control Pune has an inventory overhang of 18 months and increasing
    And this is just from builders. With investors flats added, the number shoots up drastically even further.

    Some recent updates about Pune RE :-

    > Some NRI investor put 10 flats in Magarpatta for 'DISTRESS SALE'. These flats are in multiple projects like Trillium, Roystonnea, Sylvania, Laburnum Lane, Jasminium & some more.
    Now this agent who is now selling these flats got some abusive calls from other agents since some buyers are asking the other agents to lower prices even below this NRI investors' asking rate.

    > Sakal Vaastu exhibi was super flop. On some stalls, saleschaps were not even present.
    On Sunday evening, couple of builders' salesguys called up their colleagues to come & sit in front of them & act as 'Prospective Buyers'.

    Haven't got details about Times Prop Expo at Le Meridian which was held during last weekend. If anyone had attended it, please update.
    If you are happy, you are successful.

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    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by Sansei View Post
      As per report of money control Pune has an inventory overhang of 18 months and increasing
      The situation in Mumbai too is no different :-

      As costs skyrocket, few takers for plush new flats in South Mumbai


      The economic slowdown over the past few years has also been a dampener, as wary buyers prefer to wait on the sidelines to see if the economy rebounds next fiscal.

      At the current rate of off-take, it will take nothing less than 105 months (about 9 years) for the existing stock to be absorbed in the market according to data collated by real estate research agency Liases Foras.


      As costs skyrocket, few takers for plush new flats in South Mumbai | The Indian Express
      If you are happy, you are successful.

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      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        In other unrelated news - unrelated cause it does not impact pune RE prices

        Lodha Sells Rs 500 Crore Worth Flats in 9 Days at Mumbai High Rise - NDTVProfit.com

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        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by Sachin79 View Post
          I am really wondering.. how would pune look like after 10-15 years with all these rampant and illegal and unplanned structures come around.. quality of life is going to suffer..
          Pune needs a strong political will and leadership to drive the infra and development changes.. Honestly I do see some hope in new government, but only time will tell. Citizens need to come and voice their opinions on development plans and illegal structures..
          f

          How does Pune look today? it will look similar in the future as even today there are many illegal residential areas in and around pune. There is nothing dramatic about unplanned and illegal construction.

          Govt makes stupid rules and regulations that prevent people from building houses so people take matters in the own hands or the politicans themselves encourage such activities in hope of earning massive amount of money or to gain votes.

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          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Allow PSU banks to raise captial - upto $26 billion - so that they can continue to roll over bad loans and make new loans to crazy schemes. Will the market buy this lie without the government putting in more money or like most of the disinvestments LIC is supposed to buy the new shares from the PSU banks?

            And people hope that credit will dry down and starve RE projects

            Government Agrees to Cut Stakes in State Banks; Could Raise $26 Billion - NDTVProfit.com

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            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Auto sales are up so does that mean RE prices are also going to go up? Used to see a lot of posts suggesting that when auto sales are down how can people afford to buy a house and so if people cant afford to buy a house then how can RE prices be so high.

              Never understood that weird logic but need help to understand the latest figure. Are we to conclude that rising sales are also now bad for RE?

              Lower Fuel Cost, Excise Duty Relief Propel Car Sales in November - NDTVProfit.com

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              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by realacres View Post
                > Sakal Vaastu exhibi was super flop. On some stalls, saleschaps were not even present.
                On Sunday evening, couple of builders' salesguys called up their colleagues to come & sit in front of them & act as 'Prospective Buyers'.

                Haven't got details about Times Prop Expo at Le Meridian which was held during last weekend. If anyone had attended it, please update.
                I had gone there on Saturday. I got the same experience. Mostly the stalls were empty. Regarding one project 'Sanskruti' from Wakad. I have the price sheet of this project from last 3 exhibi. In the first one prices were 5300-5500 p/sqft, then 4900 and now 4700

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                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  The impact of overall economic slowdown is catching up with the Pune real estate scene, too. Though, the real estate market has expanded to 22 per cent in the year 2013 - 2014, the growth is about 10 percent less than the previous year., where it had grown up by 31.9 percent.
                  Inventories also rose from 200944 unsold units to 245674 by the end of March 2014, acording to the annual report published by GERA Foundation this year.
                  Commenting on the key findings of the Gera Pune realty report, Rohit Gera, Managing Director of Gera Developments said, "We have studied and evaluated the Pune realty market to realize that on the surface there seems to be a slowdown in the rate of increase of realty prices. However, the quantum of slow down needs to be viewed with total cost of purchase rather than the traditional rate per sq. ft. model that has been used to value property. The loading of the common areas onto the carpet area is in the region of 33% to 35% for the common areas. This has had an impact of 8% - 10% on the carpet area or 5% - 7% on the saleable areas. The increase in the extra costs like club house charges, infrastructure etc. has risen more than the rates themselves, thereby having a positive impact on the overall cost that the consumer pays for the home."
                  Adding that the rising rates of construction material and labour has been the major reason for increase in costs of house, the report indicates that costs have seen an increase of 2.2 per cent in the first quarter and in the later quarter added by 10 to 14 per cent. The study also revealed that increase in inventories has also continued with unsold inventories at an all-time high – the unsold inventory that was at 39238 units 24 months ago increased by 30.9% to 51363 units 12 months ago and currently stands at 66279 units, an increase of 29% over the past year.
                  The study was divided according to the budget, value, premium and luxury. "It is the luxury segment (costing more than Rs 7500 per square feet) affecting the most as 61 per cent of the stock remained unsold this year." added Gera.
                  "Houses of average Rs4500 - 5000 per square feet are being preferred by middle class and upper middle class segment. Currently, we have increased budget homes to cater to the demands of the same," added Shankar Seth Jagtap of Chandrarang Developers.
                  Highlights of the study
                  -The half yearly price increase has been at the lowest in years at 2.2%
                  - Pune realty market has expanded by only 22% in the calendar year June 2013 – 2014 as compared to 31.9% in the corresponding period of June 2012 - 2013
                  - The average price across the city is pegged at Rs. 4910/- per square foot
                  - Inventory has reached an all-time high of 66,279 units which translated into 29% increase over the past year

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                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    As per money control its 18 month overhang

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      GOSF: Developers go as low as Rs 299 to sell homes

                      http://content.magicbricks. com/indu...mes/79702.html

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