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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

    that statements concerns me

    that statements concerns me , last time i checked IBM India is a division of IBM US , so guess where the money is going .. you are smart enough to infer

    Originally posted by bhuvang View Post
    Hi,

    Looks like some of our friends are presuming that US/EU only hold future of Indian IT industry.

    Don't forget, if you believe in India's growth story, there would be growth in almost all the sectors. Finance, Banking, Telecom, Retail, Transportation, Logistics, Power, Pharma, Shipping, Airlines etc. These are the very sectors of US/EU that are being served by IT/BPO companies, both Indian (TCS, Wipro, Infy, HCL, Convergys, EXL etc.), and, others (IBM, Accenture, etc.).

    Hence, as our economy, all our banks, companies, government would need to scale up there IT operations (same as done by US/EU companies) to improve efficieny and everything else that IT brings. And don't think of only India. Other emerging markets like China, Russia, Brazil, Malayasia, South Africa, Middle East etc. will see similar transformation. Those of you who are from IT must be pretty much aware how fiercly IT companies are now scouting for these new markets.


    Look at following stats -
    1. As per GARTNER: Our country’s domestic market for business process outsourcing (BPO) is projected to grow over 23 per cent to touch US$ 1.4 billion in 2011. In 2010, the domestic BPO market was worth US$ 1.1 billion. The firm predicts that the domestic BPO market would reach US$ 1.69 billion in 2012 and increase to US$ 2.47 billion by 2014.

    2. Some Facts Indian IT Deals -
    a. In 2004, Bharti Airtel outsourced its entire IT infrastructure needs to International Business Machines (IBM) Corp., in a $ 750-million deal spanning 10 years. Again in 2011, IBM received a 10-year contract from Airtel Ltd. to offer help-desk and other -support services to the telecommunication firm's staff in 16 African countries. Total deal to IBM is now worth $1.7 billion.
    b. In 2007, Idea signed an outsourcing deal with IBM worth $800 million.
    c. Indian Railways is looking to float a tender valued at approximately $1 billion for integrating its functions of finance, logistics and human resources under one application.
    Link - SBI, railways laying ground for billion-dollar outsourcing deals - Technology - livemint.com
    d. Government sector enterprises such as the ministry of finance, Oil and Natural Gas Corp. Ltd, Bharat Sanchar Nigam Ltd and Indian Railways will spend nearly $3 billion this year on buying new , hardware and services.
    e. The Domestic IT services market in India is estimated to grow from $5.7 billion in 2008 to $12.8 billion in 2013, as per Springboard Research.

    And this is just tip of the iceberg. For more, you can always consult our beloved GOOGLE BABA.
    Only important thing is that Indian IN/BPO industry will have lot more projects in the $1 million, $5 million and $10 million club than $100 million range offered by US/EU.

    Hence quite possible, 5 years down the line, your might not be talking to a Business User of some US financial/retail conglomerate, rather some Desi Manager from Corporation Bank or Big Bazaar.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Been in both markets ...

      Originally posted by bhuvang View Post
      Hi,

      Looks like some of our friends are presuming that US/EU only hold future of Indian IT industry.
      Manager from Corporation Bank or Big Bazaar.
      Bhuvan,

      I've been over 20 years in s/w w export market and on and off in the domestic s/w market. Last 5 years exclusively in domestic market.

      Existing s/w exporters have cost structures that don't have a chance in hell if they volumes in Indian market. Only way to make money here is to be a product company (like Tally, etc).

      If, on the other hand, companies want to make money in India, salaries will be cut at least 30-40%, since, out here, companies will pay Tax on income as well. besides being beaten black and vlue on price!!!

      Show me one other domestic industry which has runaway salaries like IT? Thats because IT started with high arbitrage AND zero tax AND tons of business coming theirway without even marketing.

      cheers

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by saprovo View Post
        I simply donot understand one thing...why are the builders constantly pushing up rates? If there is no demand rates are supposed to go down i think!

        Secondly due to too much of black money in real estate the prices will remain high always...cause investors will not sell at a loss. For an end user if he/she gets a nice flat at nice location does 4%-5% price drop here any there, this time and that time really matter? I dont think you can predict when prices will go down. So how long you gonna wait? And I also donot think once you retire you would still like to live in a rented house? If yes I salute you. I cant.

        And as far as IT is concerned the domestic market is still nascent stages and the companies like TCS and infosys are waking up to the internal home demand for IT.
        If I was a builder, I would push up rates, whether sales are happening or not. This is like fishing, you put the line and wait for a fish to hook onto it. Even one fish will fill the stomach to some extent. So is the same for builders finance appetite.

        Now for waiting, I will wait till I know that I can still afford some decent property. Till then invest my money so that it adds value. And IF the market/prices go down, buy something else wait. If I can make atleast 10-15% profit on my investment, then maybe I can wait for another 2-3 years leisurely. Becoz I know I can still afford to buy at current inflated prices.

        Since it is my hard earned money, why should I pay such a high price now, when I know that there is no justification for any hike in RE prices. If it was some necessity item such as food, I wouldn't wait. But for RE, I can wait as long as possible.

        To each his own. I know people who bought at current rates and are happy, without any back thoughts. If you are of the type that doesn't look back and feel bad or guilty, then yes, any price should be fine. Main criteria should be happiness .

        I am of the type "why-I-should-pay-Rs1000-for-an-item-costing-Rs500?". So for me to buy something now will not be V-F-M.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          fear v greed....
          demand v supply.....
          short term v long term...
          SIP v timing.....

          end of...
          When the facts change, I change my mind. What do you do, sir? - John Maynard Keynes

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by bhuvang View Post

            Coming back to India - if i'm not wrong, in 1947 - we used to import virtually everything (even needles). Check this link that states in what deplorable condition we were left into -

            Actually from 1850 to 1947, India was the second fastest growing and productive economy in Asia second only to Japan in GDP and much ahead of China.

            Of course, our peak productivity per capita - highest in the world at the time - was under Moghal (Akbar Jehangir Shahjahan period). Most of the productivity decline happened from 1650 to 1850 under Aurangazeb, lesser Moghals and East India company rule, when India was in turmoil.

            Now we have regressed to insignificance after independence

            Facts to make every Indian Proud
            38% of doctors in USA are Indians
            12% of scientists in USA are Indians
            36% of NASA scientists are Indians
            34% of Microsoft employees are Indians
            28% of IBM employees are Indians
            17% of INTEL scientists are Indians
            13% of XEROX employees are Indians

            All of these are not facts but urban legends perpetrated by internet and email hoaxes. All of these are incorrect

            .
            Comments in red above
            Venky (Please read watch a or before posting)

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Projects Delayed Due to Slump

              July 15, 2011

              Most of the projects launched in the National Capital Region (NCR) between 2005 and 2007 are yet to be completed. These include DLF’s Magnolias and Belaire in Gurgaon, Parsvnath’s Exotica in Gurgaon and Palacia and Privilege at Greater Noida. Unitech has also seen construction delays in two of its projects — Escape and The Close — in Gurgaon. “We are trying to complete the two by the end of this year,” a DLF spokesperson said on the company’s delayed projects.

              Developers blame the delay on the 2008-09 slowdown, among other factors. “During the slowdown, all the projects were impacted. Other factors such as lack of construction workers due to Commonwealth Games last year and the National Rural Employment Guarantee Scheme have also contributed to the delays,” said the DLF spokesperson. The Parsvnath official dittoed: “Almost two years were lost to the recession. Customers defaulted and even the banks that had committed us funds also took a backseat. We were pitted against odds.” The lessons seem to have been learnt well.

              DLF has put in place a system of pre-launch checks and balances. “As a policy, we have decided that launches will be done only after all the required approvals from the concerned agency have been taken,” the spokesperson said. Parsvnath has started taking dedicated loans for projects. Unitech, on its part, has jacked up manpower for speedy implementation. But just as the going appeared to be getting better comes the likelihood of another slowdown, what with interest rates and input costs shooting through the roof.
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                मुंबईत आवाज 'भाडे'करूंचा!

                http://maharashtratimes.indiatimes.c...ow/9308539.cms

                भाड्याच्या घरात राहणे हे नेहमीच कमीपणाचं मानलं जातं. मात्र देशाची आर्थिक राजधानी असलेल्या मुंबईनगरीत निवासी जागांच्या गगनाला भिडलेल्या किंमती लक्षात घेऊन अनेक चाकरमानी मुंबईत मालकीच्या घराच्या स्वप्नावर पाणी सोडून भाड्याने राहणे पसंत करत आहेत. गेल्या काही वर्षांमध्ये मुंबईत भाडे-तत्वावर राहण्याचा ट्रेंड विकसित झाला आहे.

                मालकीच्या घरासाठी येणारा प्रचंड खर्च आणि त्यापुढे ओघाने येणारे मेन्टेनन्ससारखे पुढील खर्च या सगळ्या कटकटीपेक्षा डिपॉझिट आणि महिन्याला ठराविक भाडे भरून अनेकजण मुंबईत स्थिरसावर होताना दिसत आहेत.

                आकडेवारीवर नजर टाकली तर डिसेंबर २०१० ते आतापर्यंत लीजवर घरे देण्याच्या करारांमध्ये थोडीथोडकी नव्हे तर तब्बल २० टक्यांनी वाढ झाली आहे. जून २००९ मध्ये ७ , ५९२ घरे भाडेतत्वाने देण्यासाठी आवश्यक करारपत्रांची सरकारदप्तरी नोंद करण्यात आली. हे प्रमाण वाढून जून २०१० मध्ये ९ , १९५ एवढे झाले आहे. फेब्रुवारी २०११ मध्ये मुंबईत ८ , ०५५ करारांची नोंदणी झाली आहे , गेल्यावर्षीच्या ६ , ७०४ करारांच्या तुलनेत हे प्रमाण झपाट्याने वाढल्याचे प्रभुदास लिलाधर यांनी सांगितले.

                भाडेतत्वावर राहण्याचं प्रमाण वाढलं याचं द्योतक म्हणजे रजिस्ट्रेशन कार्यालयात घरांच्या विक्रीच्या करारात झालेली घट. जून २०१० मध्ये ६ , ००० घरांच्या विक्रीकरता करार नोंदणी झाली होती. हे प्रमाण कमी होऊन जून २०११ मध्ये ४ , ७२१ वर आले आहे.

                जागांचे दर सातत्याने वाढत असल्याने मुंबईत स्वतःचं घर घेणे हे सामान्यांसाठी दिवास्वप्नच ठरत आहे. मालकीच्या घरासाठी कर्ज काढा , ते फेडण्यासाठी प्रचंड रकमेचा हप्ता पगारातून जाणार , त्यामुळे कष्टप्रद होणार रोजचं जीणं , या सगळ्या प्रकारापेक्षा भाड्याचं घर घेण्याकडे मुंबईकर चाकरमान्यांचा कल वाढत आहे. प्रॉपर्टी एजंट्सनीही भाड्याने राहण्याचा ट्रेंड वाढत असल्याचं सांगितलं. गृहकर्जावरील व्याजदर जादा असल्याने अधिकाअधिक लोक या ट्रेंडकडे वळत आहेत.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Godrej Properties Q1 net falls 55%

                  Godrej Properties Q1 net falls 55% - Indian Express

                  Eye opener....about Real Estate scenario...

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    Wht builders are pushing rates?

                    Originally posted by saprovo View Post
                    I simply donot understand one thing...why are the builders constantly pushing up rates? If there is no demand rates are supposed to go down i think!

                    Secondly due to too much of black money in real estate the prices will remain high always...cause investors will not sell at a loss. For an end user if he/she gets a nice flat at nice location does 4%-5% price drop here any there, this time and that time really matter? I dont think you can predict when prices will go down. So how long you gonna wait? And I also donot think once you retire you would still like to live in a rented house? If yes I salute you. I cant.

                    And as far as IT is concerned the domestic market is still nascent stages and the companies like TCS and infosys are waking up to the internal home demand for IT.
                    Hi

                    We are seeing evidence of it. Generally rental property returns are very low. So black money invested flats are yielding lower than bank FD returns.

                    So black money holders are happy with lower returns so does bulders investing black money.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Godrej and Tata whole cash deals

                      Originally posted by patilbha View Post
                      Godrej Properties Q1 net falls 55% - Indian Express

                      Eye opener....about Real Estate scenario...
                      Hi

                      Can we say Godrej and Tata are whole Check deals? If so then they are good indicators of Market environment otherwise note?

                      Regards,
                      Amit
                      Last edited by amitshah; July 23 2011, 02:37 AM.

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