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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 realacres View Post
    In all this, the key aspect which you ignore is slump in sales which are happening not due to interest rates alone but lack of buyers.
    Real & all senior folks on this forum,
    We all appreciate your comments and suggestions, and hope you won't mind with the question I am going to ask -
    Lot of folks on this forum talks abt slumps in sales -
    where is it?? I don't see it at all. e.g. last week I visited DSK Gandhkosh, all 3 BHK sold out, pre launch offer was 4500 or 4600, next day they increased it to 4700 or something like that. Grand stand in the morning were quoting 3851, in the evening it went upto 4200 and just for single bldg. (rest 2 will be of course sold at much higher rates) irrescpecitve of pathetic location, on either side of highway whether its so called kothrud or bavdhan or baner, WHY and how come ppl are buying at such higher rates? And if they keep doing so, why would builder reduce the rates??
    Everyday new reports comes out (latest Indiabulls report - why they don't invest in reality in Pune) abt slump in rates in Mumbai or other parts of country whereas its not affected to Pune at all!!!!!!! Just count how many projects were launched in last 3-6 months; and all are sold out >50%.
    Isn't builders proving our analysis wrong??

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Check Registrations. More precise data

      Originally posted by punekiune View Post
      Real & all senior folks on this forum,
      We all appreciate your comments and suggestions, and hope you won't mind with the question I am going to ask -
      Lot of folks on this forum talks abt slumps in sales -
      where is it?? I don't see it at all. e.g. last week I visited DSK Gandhkosh, all 3 BHK sold out, pre launch offer was 4500 or 4600, next day they increased it to 4700 or something like that. Grand stand in the morning were quoting 3851, in the evening it went upto 4200 and just for single bldg. (rest 2 will be of course sold at much higher rates) irrescpecitve of pathetic location, on either side of highway whether its so called kothrud or bavdhan or baner, WHY and how come ppl are buying at such higher rates? And if they keep doing so, why would builder reduce the rates??
      Everyday new reports comes out (latest Indiabulls report - why they don't invest in reality in Pune) abt slump in rates in Mumbai or other parts of country whereas its not affected to Pune at all!!!!!!! Just count how many projects were launched in last 3-6 months; and all are sold out >50%.
      Isn't builders proving our analysis wrong??

      All you have to do is to check out registrations and compare to appropriate relevant period (last year same time, last Qtr, last month, whatever).

      cheers

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Grand Theft Auto

        Mohan Mishra (30), an executive of a real estate company, has been arrested on Monday for his weird "habit" of lifting cars and motorbikes. He stole vehicles to enjoy the ride and create impression of being a rich man in front of his clients. The police caught him after he stole a small car of a DSP-ranked officer of the vigilance department.


        Car lifting hobby', executive nabbed - Times Of India

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          RBI Worries on realty Loans

          The Reserve Bank of India has expressed concern over the rise in loans to real estate in its pre-monetary policy meeting with bankers on Tuesday.

          In response, banks said that there was nothing unusual about the increase in bank credit as the overall share of bank credit in bank loans have not risen. Banks said that credit to real estate has grown slower than overall non-food credit which has grown 22%. According to latest RBI data, credit offtake by the commercial real estate (CRE) sector at 17.8% y-o-y in February 2011 was higher than the growth of 0.9 % during the corresponding period of the previous year. On a financial year basis, credit to the CRE sector grew by 17.1% as against a decline of 0.9% during the corresponding period of the previous year.

          Surge in realty loans worries RBI - The Times of India

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            No Gudi Padwa for builders

            Analysts say a decline in sales is the primary reason behind fewer launches. “There was a supply glut last year, but several new projects were launched during March-April,” Abhishek Gupta, head of research and real estate intelligence service, Jones Lang LaSalle, said. “Lower sales because of high property prices could be the main reason.”

            No Gudi Padwa for builders - Mumbai - DNA

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Why prices will Correct?

              Just a transfer of loan from one lender to another will not resolve the problem. Yes, NBFC will lend money but the cost is very high 18 to 22%. PE is another form of capital source where funds demand 30 to 40% returns. If you will go to conventional black market, monthly rate is 2 to 3% per month. Overall, bank source of capital is cheapest one. Capital will be always available but only at what cost is the question. This kind of capital borrowing is not sustainable.

              On the other hand current price level does not have any support.

              Interest rates are going up. Definitely interest rates are not going to cool down in next 2years. In fact till year end it will go up by at least 50bps.

              NRI are not doing well. Middle east is facing crisis. US & UK have tightened the visa norms. Australia is rejecting visas. Due to European debt crisis, there are restrictions on non-European immigrants.

              IT sector can not support the exorbitant prices.
              IT bids adieu to big hikes >> Watch Video



              Oil is trading 121, last time when it had reached 140+ we have seen global crash.



              If at all, there is any bull case people can share it. Market is already reflecting it’s view, through sales.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Originally posted by punekiune View Post
                Real & all senior folks on this forum,
                We all appreciate your comments and suggestions, and hope you won't mind with the question I am going to ask -
                Lot of folks on this forum talks abt slumps in sales -
                where is it?? I don't see it at all. e.g. last week I visited DSK Gandhkosh, all 3 BHK sold out, pre launch offer was 4500 or 4600, next day they increased it to 4700 or something like that. Grand stand in the morning were quoting 3851, in the evening it went upto 4200 and just for single bldg. (rest 2 will be of course sold at much higher rates) irrescpecitve of pathetic location, on either side of highway whether its so called kothrud or bavdhan or baner, WHY and how come ppl are buying at such higher rates? And if they keep doing so, why would builder reduce the rates??
                Everyday new reports comes out (latest Indiabulls report - why they don't invest in reality in Pune) abt slump in rates in Mumbai or other parts of country whereas its not affected to Pune at all!!!!!!! Just count how many projects were launched in last 3-6 months; and all are sold out >50%.
                Isn't builders proving our analysis wrong??
                Lets take the latest eg. of Darode-Jog. They launched a new project (some county as usual) at Dhayari, sinhagad rd at pre-launch offer of 3500/sq ft. One week later, the price was 3000/sq ft. This news is of about 1.5-2 months ago.

                Similarly, crosswinds by Mittal at Baner-Balewadi said SOLD OUT & now they have relaunched the same flats as 'Vogue Residences'.

                Same was the case with other project at Baner (it was either Vyankatesh Mirabel or Felicita) where launching rates were more than booking rates!!!

                You gave the eg. of DSK....DSK Frangipani, Sadhu Vaswani chowk had couple of flats left......& these were left for over an year. Same is the case with it's new buildings in DSK Vishwa.

                Another recent eg. is Paranjape's schemes Yuthika, Baner. Majority of the flats got sold on first day & project got over-whelming response. Then, the news came out that the land on which this project is to be built is itself in litigation. Now, when the banks themselves are not giving loan for this project, how did it got over-whelming response?? The builder has now stopped the bookings.

                Look man, the fact of the matter is DON'T TRUST THE BUILDERS WORDS. Even Blueridge's flat were sold out in first 4 days, same was the case with Magnolia & Crystal Garden but flats were available later too.

                The figs. which are posted here by various members which indicate slump are based on registrations & not what builder claims.

                * PS:- Bajaj had introduced a bike with mileage of 80km/l....did any one get that?? On road conditions are different, same is the case with RE.
                If you are happy, you are successful.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  http://maharashtratimes.indiatimes.c...ow/7888458.cms

                  No Gudhi pawda... Link from Maharashtra times

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    PE Funds Exiting RE

                    India's private equity firms' exits, while profitable in general, also saw more losses in 2010 than in the previous two years primarily due to poor bets on real estate and retail companies.

                    Losses, Low, But Rising as Private Equity Firms Exit - WSJ.com

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      One more news on this...

                      Indian Express :

                      Property in Dubai cheaper than Mumbai

                      A growing number of investors from India are showing interest in Dubai as they look to capitalise on 60 per cent savings per square foot in the Dubai property market, a Dubai-based real estate company has said.
                      DAMAC Properties said in addition to the price disparity, Dubai's property market is becoming increasingly attractive to foreign investors due to the implementation of a raft of new regulations, such as the new Strata law, which favours home owners.
                      "As these new tougher and more stringent regulations take hold, Indian investors are looking to take advantage of the plethora of investment opportunities that exist within the emirate's real estate market," it said in a statement.
                      At an average price per square foot of USD 264 in Dubai, according to Colliers International, property is now 60 per cent less expensive than in central Mumbai, where the price per square foot is USD 664 according to Jones Lang LaSalle.



                      DAMAC Properties Senior Vice-President Niall McLoughlin said: "At DAMAC Properties, we have seen a marked rise in interest across our Dubai portfolio from Indian investors; in January 2011 we had double-digit growth in enquiries on the same period last year.
                      "Not only are we seeing a surge of interest from potential Investors from India but also from other emerging markets such as sub Sahara Africa and China who are looking for quality assets, at competitive prices.”
                      According to McLoughlin, even though confidence was shaken following the global slowdown, the introduction of new regulations in Dubai gives property buyers more security over their investments. DAMAC Properties has also welcomed the return of liquidity into the mortgage market, which it cites as another major factor in the revival of the emirate's real estate sector.

                      Comment

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