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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

    Recession and RE pricing

    Originally posted by PuneJoker View Post
    Well, i m not sure on Pune real estate scenario but all i can say demand supply logic does not work well when it comes to Indian Realty. The reason is India has two parallel ecomonies- White economy run by many salaried employees, corporations etc and black economy-the REAL ENGINE of India run by small/medium/big businessmen spread across country.
    We know real estate developers fall in which category!!
    The nexus-political-beurocrats-builder-media has much more sustaining power that we can imagine.Historically this lobby has played major role in policy decision, changing Realty economics by various means in country.
    Even if rates fall- it won't fall beyond 5 to 10% in my opinion. Do you really think one can purchase 2 BHK decent flat in Kalyani Nagar/Deccan even if worst recession comes? I doubt.
    I fully agree with your analysis on Recession and Indian RE scenario.Our parrallel coloured economy is immune to recession upto some extent.
    Dil Jawan Hai To Jahan Hai

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      The indian IT scenario has the most overrated hype ever, we have not till date created a single product of reckoning. It's sole play is labour arbitrage, as wisey quotes we use redundant technology to produce or service the demands of externals !

      There are no value additions or effieciencies,
      generally it's moto "bas gisthe raho" or "bas gisathe raho" !
      Generally run by suits who have no understanding of tech & resultant efficiencies, boy i could go on here for pages !

      anyways w.r.t real estate this is interesting link which people should see the outcomes of leverage

      The Big Squeeze

      Edit
      -----------
      leverage is leverage there is no such thing as affordability on account of leverage, it is a myth which has dangerous ramifications which unfortunately certain posters willfully ignore.
      Last edited by spmohan; August 9 2011, 10:07 AM.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Originally posted by khbarilal View Post
        Out of self-interest, debt trapped builders are trying to mislead buyers. Though the thread started in 2009, the current slowdown alert was flagged in Dec-2010.
        After reading Double deep recession news, the scared builders are now trying last attempt to fool buyers. The current market indicators are pointing to ….. The Pune real estate market activity barometer is pretty much down, inventory piled up, registration trend is down.

        People, who are blaming others for missing 2009 bus, can come forward & show their courage after 2 months.
        Surprisingly, the pride purple has put “Park turquoise” project on hold, 1 month after prelaunch; they are giving some junk excuses to buyers.

        The MSCI Asia Pacific Index slid 1.5 percent at 11:20 a.m. in Tokyo. Standard & Poor’s 500 Index futures lost 1.8 percent, following a two-week rout that dragged the gauge down 11 percent and erased its 2011 gain. The dollar reached an all-time low of 74.85 Swiss centimes before trading at 76.15. Treasury 30-year yields climbed four basis points. Oil sank 2.9 percent in New York, while immediate-delivery gold topped $1,690 an ounce.

        http://www.bloomberg.com/news/2011-08-07/u-s-stock-futures-oil-plunges-on-rating-downgrade-n-z-index-declines.html
        Thanks for the Park Turquoise updates man . This just shows what can happen if people Queue to book in nascent stage from such crook builders.
        Even Mittal builders have delayed their launch of Corona & Prestige projects.
        Paranjape schemes Madhuban 2 is delayed.
        Darode-Jog Oakwood County is in mess.
        Ravirraj Group is unable to sell their project Ozone Villas at Wagholi.
        Kumar Builders, KUL is selling of 30% stakes in his projects to raise some money to repay the debt.

        And the story continues.
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          You may get cheaper homes, thanks to US

          You may get cheaper homes, thanks to US

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Reasons why I think that property prices cannot infinitely appreciate!

            Hello Readers,
            That is a superb post up there. Researched and executed. One big reason for ever increasing real estate prices is rural- urban migration. But as holistic growth touches India, we reckon that this slow down is inevitable. Do read this article.
            Is the real estate slowdown in India inevitable?
            Click the link above.
            It will give you a slightly different angle to things...

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by realacres View Post
              Thanks for the Park Turquoise updates man . This just shows what can happen if people Queue to book in nascent stage from such crook builders.
              Even Mittal builders have delayed their launch of Corona & Prestige projects.
              Paranjape schemes Madhuban 2 is delayed.
              Darode-Jog Oakwood County is in mess.
              Ravirraj Group is unable to sell their project Ozone Villas at Wagholi.
              Kumar Builders, KUL is selling of 30% stakes in his projects to raise some money to repay the debt.

              And the story continues.
              Found this link about water-issue reported by residents of Ozone Villas, Wagholi:
              amu.shindes Diary - Ozone Villas, Wagholi - Water Problem - MouthShut.com

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                good

                Good article but looks too optimistic.If we see real estate prices in second tier cities, situation is not so good. Take the example of Kolhapur which is ofcourse city but not as big as Pune.Descent 2 BHK there won't cost less than 25L for sure. In Southern India too, situation is same.Visakhapattanam, city on east coast of AP, 2 BHK is around 30L.Both these cities are neither business districts nor known for heavy investments.
                State and Central Govts have always focused on cities for ages mainly for tax,revenue. New Bombay was formed in mid 70s to reduce cogestion of Mumbai.People thought prices might go down in Mumbai but that never happened.Instead now, prices in Navi Mumbai are almostsame level as Mumbai subarbs.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by PuneJoker View Post
                  Good article but looks too optimistic.If we see real estate prices in second tier cities, situation is not so good. Take the example of Kolhapur which is ofcourse city but not as big as Pune.Descent 2 BHK there won't cost less than 25L for sure. In Southern India too, situation is same.Visakhapattanam, city on east coast of AP, 2 BHK is around 30L.Both these cities are neither business districts nor known for heavy investments.
                  State and Central Govts have always focused on cities for ages mainly for tax,revenue. New Bombay was formed in mid 70s to reduce cogestion of Mumbai.People thought prices might go down in Mumbai but that never happened.Instead now, prices in Navi Mumbai are almostsame level as Mumbai subarbs.
                  Fully agree with you chap. Same is the story for NCR. Satellite towns like Gurgaon, Noida, Ghaziabad, Sahibabad, and, Faridabad along with sub-urbs like Dwarka, Raj Nagar Extn etc. were given huge impetus for residential & commercial activities during last decade to reduce congestion in Delhi. Result, today out of entire NCR's population (approx 22 million as per 2011 census), almost 16 million reside in Delhi itself. You can think of what would've happened to property prices.

                  Such neighbouring towns do help in reducing burden on main cities like Delhi or Mumbai, but by the time they get developed, huge immigration from small towns & villages make up for the loss.
                  The knowledge of what to do in a Recession or Boom is more important than predicting a Recession or Boom.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    But how can these town and village ppl afford in cities when they come to earn better wages.


                    Originally posted by bhuvang View Post
                    Such neighbouring towns do help in reducing burden on main cities like Delhi or Mumbai, but by the time they get developed, huge immigration from small towns & villages make up for the loss.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by Manoos View Post
                      But how can these town and village ppl afford in cities when they come to earn better wages.
                      Dude, not all these people from towns/villages are labourers. There are people who come to study in colleges/universities, then land on a good job in city (which they can't get in there native place), and, gradually settles down with there family. You must be knowing so many in your circle itself - there are whole lot of doctors, engineers, professionals, small businessmen, traders who initially come to establish their career and then settle down in cities.

                      Besides, there are rickshaw walas, sabji walas etc. who are daily wage earners, don't think they earn any less. Thousands of them even earn more than a 1000 per day, that too in hard cash. Just talk to some rickshawala in person in Delhi, and you will find many of them even holding multiple janta flats and even single BHK flats.

                      These people come in different income brackets, some earn upto 5-10K pm, some upto 20-25K, and, some even 50K & beyond. That's why cities have houses with various price ranges, to cater their demand.
                      The knowledge of what to do in a Recession or Boom is more important than predicting a Recession or Boom.

                      Comment

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