Announcement

Collapse
No announcement yet.

Builders & Real Estate Bulls Theory Proved Wrong

Collapse
X
Collapse

Builders & Real Estate Bulls Theory Proved Wrong

Last updated: November 1 2016
12768 | Posts
  • Time
  • Show
Clear All
new posts

  • Re : Builders & Real Estate Bulls Theory Proved Wrong

    Toothless Credai fails to redress complaint

    Jan 02, 2011,Sun

    Ritu Goyal Harish
    Source:- 3dsyndication

    The Pune chapter of the Confederation of Real Estate Developers Association of India (Credai-Pune) has reimbursed the complaint processing fee of Rs2,000 collected from an aggrieved flat purchaser instead of looking into his complaint against a builder, who is a Credai member.
    Baban L Gaikwad, a resident of Legend Prestige Co-operative Housing Society, Hadapsar, had complained to Credai on September 13, 2010 seeking redressal of the grievances of his society against builder Pankaj Shah, a member of Credai.

    Gaikwad paid Rs2,000 towards 'processing fee' as demanded by the Credai.
    His complaint was forwarded to the grievance cell of Credai and one month later he was called for a meeting with Credai officials.
    After a detailed meeting and discussion with Credai committee members on October 25, 2010, the organisation representing a group of prominent city builders went silent for more than a month.

    "I did not hear anything from them about their proposed action or action plan or even comments after the meeting. We had heard about Credai (formerly Promoters and Builders Association of Pune) from a very senior member, who is a renowned builder from Pune, and so we wrote to them. Our problems are very serious but so far no action has been taken by them," said Gaikwad.
    When asked by DNA, Credai's vice-president (public relations) Rohit Gera revealed that the committee was in the process of addressing the consumer's complaint, but since it was a very complex issue, it would require a much wider level solution including a site visit and interaction with the other residents of the building.

    "Also, the customer has filed cases in numerous courts and the matter is subjudice. Credai does not entertain such cases but in this case, the builder is also willing to co-operate and sort the matter out. We are trying to resolve the issue and find a solution that works for all."
    He said the solution will take time and that Credai cannot commit to a time frame.

    However, on December 18, Gaikwad received a letter from Credai stating that the organisation will not be able to redress his complaint since he has approached the consumer court and the matter was subjudice. A cheque dated October 16, 2010 of Rs2,000 was also enclosed with the letter.
    "It is pertinent to note that the object of setting up of the grievance cell by the association is to redress the complaints of the customers amicably and the role is restricted to act as a mediator, which shall have no legal force," wrote DK Abhyankar, director general of Credai's grievance cell in his email.
    Unhappy with the response from the city builders' lobby, Gaikwad told DNA, "I expected Credai to at least verify the gravity and genuineness of our problems by sending experts to the site, force the builder to resolve at least those issues certified by the said expert, to cancel the builder's membership if he is faulty on Credai's scale and to force the builder to carry out Conveyance Deed, which is overdue and any way mandatory by law itself."
    But none of it happened and Credai simply closed the case. He said it was clear that Credai did not want to go in depth "and punish their own family member for pleasing a single flat owner."

    In an email to DNA, Abhyankar admitted that this was the lone case where a refund was made by the organisation for the matter being subjudice, which was revealed to them during the personal hearing on October 25. Yet the organisation took 45 days to dispose of the complaint as untenable.
    Gaikwad said that Credai-Pune's action raises serious questions on the credibility of this all-India organisation that claims to work towards the protection of buyers' interests while addressing issues relating to the builder/developer community.
    If you are happy, you are successful.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Originally posted by realacres View Post
      Jan 02, 2011,Sun
      Gaikwad said that Credai-Pune's action raises serious questions on the credibility of this all-India organisation that claims to work towards the protection of buyers' interests while addressing issues relating to the builder/developer community.
      Isnt Credai run by builders themselves?? wonder how would they address complaints against themselves...looks useless org..

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Home loan rates to rise, says SBI

        Bloomberg / Mumbai January 5, 2011, 0:13 IST

        Shortage of cash may prompt move, says CFO.

        State Bank of India (SBI), the nation’s largest lender, may raise home loan rates further, Chief Financial Officer S S Ranjan has said. A shortage of cash in the banking system might lead to higher interest rates, he said.

        Read complete news here:-

        Home loan rates to rise, says SBI
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Originally posted by realacres View Post
          Bloomberg / Mumbai January 5, 2011, 0:13 IST

          Shortage of cash may prompt move, says CFO.

          State Bank of India (SBI), the nation’s largest lender, may raise home loan rates further, Chief Financial Officer S S Ranjan has said. A shortage of cash in the banking system might lead to higher interest rates, he said.

          Read complete news here:-

          Home loan rates to rise, says SBI
          Hmmm.... sometimes i wonder why Banks are so desperate to lend to home owners....
          Does anyone here know if home loans come under the "Priority Sector lending".
          For those of you who dont know about Priority Sector Lending... it is basically that As per the Reserve Bank of India directives both private and public domestic banks need to invest 40% of their ANBC (adjusted net bank credit) in the priority sector. And i think Priority sector has agriculture Small scale Industries etc. Not sure if Home loans come under the same bracket.

          VK


          VK

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Investors selling flats at discounts

            RE prices are going to fall drastically, its official now & coming even from horse's mouth.

            Expecting realty rates to fall soon, individual investors have started selling their properties at discounted rates. Property brokers are being flooded with calls from investors offering rebates of 10 to 30% on their properties. “We have advised our investors to exit at the earliest and book maximum profits because prices will come down anytime,” said Ram Prasad Padhi, chief executive officer, mumbaiproperties.com, a brokerage firm.

            Padhi said investors have been advised to reinvest in property after markets come down.

            Investors have played a major role in the realty market in the last three years because they have cornered more than 50% of the properties booked during the period.

            Unlike end users, who pay in installments, investors book flats in the pre-launch stage by paying 50 to 100% of the cost thus providing capital to builders. Their aim is to resell the property and make profits.

            These days, investors are trying to sell their properties so that they can make profits while the rates are still high even if they sell at rates lower than the market price.

            In Bandra, investors who have booked flats in a project by a leading infrastructure group are quoting Rs18,000 a square foot when the prevailing rate is Rs23,000.

            Another leading builder in Oshiwara, who is quoting Rs12,000 a sq ft, has his investors selling at Rs8,600. Investors in Borivli are ready to sell for Rs7,500 a sq ft where the rates are above Rs8,500 while properties in Malad are being sold at Rs7,000 a sq ft when the prevailing rates are upwards of Rs8,500.


            “This indicates that prices are set to drop,” said Pankaj Kapoor, chief executive officer of real estate research group Liasas Foras. Anuj Puri, chairman and country head, Jones Lang LaSalle India, a real estate consultancy firm, said prices have now reached the peak.

            Builders agree that a correction in realty rates is expected. “Only projects in which prices are inflated will reduce rates. Investors will exit from these first,” said Abis Rizvi, director, Rizvi Builders.

            Sukhraj Nahar, director, Nahar Group, said investors are selling now because prices will reduce from March.

            See the link here:-

            Investors selling flats at discounts - Hindustan Times
            If you are happy, you are successful.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by realacres View Post
              RE prices are going to fall drastically, its official now & coming even from horse's mouth.

              Investors in Borivli are ready to sell for Rs7,500 a sq ft where the rates are above Rs8,500.
              POLARIS Ltd. is selling flats (earlier rented to employees) for 7000 psf at Lokhandwala, Kandivali (E).
              Its hefty discount, since you pay NO extra charges for electricity meter/wiring etc

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by hitmady View Post
                POLARIS Ltd. is selling flats (earlier rented to employees) for 7000 psf at Lokhandwala, Kandivali (E).
                Its hefty discount, since you pay NO extra charges for electricity meter/wiring etc
                Is it confirmed news? Any ready deal available ? and what is the min flat size ? Please post some details

                Rohit

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by rohit_warren View Post
                  Is it confirmed news? Any ready deal available ? and what is the min flat size ? Please post some details

                  Rohit
                  This is confirmed news. A colleague bought 1BHK (I guess 500-600 sqf) at 7K psf. Try to get in touch via POLARIS employee.
                  Last edited by hitmady; January 10 2011, 01:36 AM.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Huge Only Supply

                    Pune city have the largest supply of real estate. This is just the glance of big township projects.

                    Total Township Proposals = 34

                    Pune West
                    Blue Ridge Township acre=138, In progress
                    Megapolis acre=150, capacity=5,800+ , In progress
                    Vornado -VHTPL Not yet started
                    Kolte Patil IVEN acre=421, Not yet started
                    Tirth Builder acre=150,Not yet started
                    HCC acre=500, Not yet started
                    Kumar Builder Hinjewadi-Mahalunge Celbrum=125 + 120, capacity=4,000+,Not yet started
                    Oxford propertis + Knowledge city Lavale acre=550,In progress

                    East Pune
                    MagarPatta acre=400, capacity=20,000,On completion way
                    Amonara acre=470, capacity=16,000,In progress
                    Kumar Builder Kharadi -Manjari acre=110, capacity=4,000+,Not yet started
                    Goel Ganga Wagholi acre=100, Not yet started

                    South Pune
                    Nanded City acre=700,In progress

                    In addition there are hundreds of mid size projects & lot of small size projects. In many cases builders are not revealing the complete size of project but keep coming up with phase1, 2 …etc [like Rohan Leher phase 1,2,3 … ] . You may be aware of standard answers from Builders & agent that land is not available, but satellite view is full of empty land.

                    Today, looking at the project locations, city will take decades to cross the limit.[in real terms not on paper] . The distance from Deccan to Baner border is around 9km, & Deccan to Hinjewadi is 19 km. It means around 10km radius supply will come in future. If some one will do simple geometric calculation, it tells us that when we consider Hinjewadi we are talking about more than doubling the city capacity.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Govt. Bankruptcy & Real Estate Crash




                      In 2008-09 recessions Indian govt. did a backdoor bailout for builders & as usual the news never came out as the central news in media. People attentions were diverted to US banks bailouts & some nonsense news. This time govt. themselves has spend so much that India is facing highest deficit & inflation. So there is no wonder Govt/RBI forced to tighten monetary policy & non performing loans.

                      As US economy is improving there will be a reversal of foreign flows in future.
                      In emerging markets, India is the costliest market.
                      N11 countries are offering much higher returns than India.
                      After so many scandals, foreign buyers are afraid of FDI. Private equities, which were the source of funding to RE are now demanding more returns to compensate for fraud risks.

                      NOTE: The property registration data for 2010 is misleading, because majority of the booking happened in late 2009 & early 2010 in pre-launch & launch offers, for which the registration got executed in 2010, hence there was a surge in registration.

                      A V Rajwade: India's deficit disorder

                      Comment

                      Tags: None
                      Have any questions or thoughts about this?
                      Working...
                      X