Hereby I will prove how the realty boomers arguments are false.

What are the boomers arguments?

1.) Buy today, houses always increase in value in the long run.
WRONG. House prices cannot increase more than incomes in the long run. This is obvious if you think about it. If house prices go up more than people can afford to pay, buying stops, like it has stopped now.
Even Warren Buffett have pointed out that houses don't increase in intrinsic value. Unless there's a bubble or a crash, house prices simply reflect current salaries and interest rates. If a house is 100 years old, it's value in sheltering you is exactly the same as it was 100 years ago. Then came the maintenance as the house didn't renovate itself. It also has taxes, and insurance - costs that always increase and never go away. The price of the house went up about as much as salaries went up.
To put this is simple perspective, vegetable were costing Rs.5-6/kg when 5 digit salary was a rarity.
Today, the prices have gone up by about 4 times but so have the salaries. So, sounds very much like the reasoning people use now when they talk about how much their father's house appreciated "in the long run" without considering that salaries rose a proportional amount.

2.) Renting is just wastage of money.
WRONG. As said before renting is now much cheaper per month than owning. If you don't rent, you either:

* Have a mortgage, in which case you are throwing away money on interest, tax, insurance, maintenance, costs that increase forever.
* Own outright, in which case you are throwing away the extra income you could get by converting your house to cash, investing in bonds, and renting a similar place to live for much less money. This extra income is sufficient for emergency expenses,retirement etc.

Either way, owners lose much more money every month than renters and that's assuming prices don't correct to very high level & everything is smooth in the economy.

3.) As a renter, you won't have any money left as you will spend them on vacations,cars & hence won't have equity/savings etc.
WRONG. Equity is just money. Renters are actually in a better position to build equity/savings through investing in anything but housing. Renters can get rich much faster than owners, just by investing in conservative stocks & bonds.

* Owners are losing every month by paying much more for interest than they would pay for rent. The tax deduction does not come close to making owing competitive with renting.
* Owners must pay taxes simply to own a house. That is not true of stocks, bonds, or any other asset that can build equity/savings. Only houses are such a guaranteed drain on cash.
* Owners must insure a house, but not most other investments.
* Owners must pay to repair a house, but not a stock or a bond.
* Owners lose their money as house prices reduce. The EMI's remain constant in spite of reduction in rates. At the end of loan tenure, they would have paid almost twice than that of current renters who will buy at logical rates. Keep interest rates in mind. Most of the EMI is not principal amount but interest.

4.) There are great tax advantages to owning a house.
WRONG. Many people believe you can just reduce your income tax by the amount you pay in interest, but they are wrong. Buyers may not deduct interest from income tax; they deduct interest from taxable income. And even then, the tax advantage is not significant compared to the large monthly loss from owning.

If you don't own a house but want to live in one, your choice is to rent a house or rent money to buy a house. To rent money is to take out a loan. A mortgage is a money-rental agreement. House renters take no risk at all, but money-renting owners take on the huge risk of falling house prices, as well as all the costs of repairs, insurance, property taxes, etc.

5.) RE is based on local factors, it's not a national phenomenon. RE of Delhi-NCR,Bangalore & rest of the cities has nothing to do with Pune RE.
WRONG. Lending rates remain the same throughout the country. ALL loans are harder to get. This will drive prices down everywhere.

6.) A rental house provides good income. So, you can rent if you have purchased as investment.
WRONG. Rental houses provide very poor income in hyped areas and certainly cannot cover mortgage payments. Remember there is almost 300% difference between EMIs & rent for the same house.

It's pointless to do the work of being a landlord if you can make more money with no risk, no work, and no state income tax by investing in assured good returns bond.

7.) If owning is a loss in monthly cash flow, but appreciation will make up for it.
WRONG. Appreciation is negative. Prices are going down. It only adds to the injury of already high EMI's.

8.) As soon as prices drop a little, the number of buyers on the sidelines willing to jump back in increases.
WRONG. There are very few buyers left, and those who do want to buy will be limited by increasing difficulty of borrowing now that many house owners are near bankrupt as they don't save anything at the end of the month due to high EMI's.
No one has to buy, but there will be more and more people who have no choice but to sell as their payments rise. That will keep driving prices downward for a long time.

9.) House prices never fall atleast in Pune.
WRONG. If you see the RE scenario of 1996, prices crashed by 50% & took a whole 7+ years to recover.
Exact 1996 scenario may not be there today but strong correction is inevitable across the city.

10.) House prices don't fall to zero like stock prices, so it's safer to invest in real estate.
WRONG. House prices won't be zero, but the equity or the principal amount you paid can be zero or even negative. What you will pay as EMIs later in actual terms is not for the principal amount but only the interest as house prices dip. So, you will be only serving the bank.

11.) Prices will soften gradually, won't crash immediately.
WRONG. Prices are falling off a cliff. No one knows exactly what will happen, but it looks like prices will continue to fall for long time. These are just more manipulation of buyer emotions, to get them to buy even while prices are falling.

12.) The bubble prices were driven by supply and demand alone.
WRONG. Prices were driven by low interest rates and risky loans & good returns for investors in initial phases of boom in 2004-05.
Prices went up, interest rates went up & buyers savings went down. So prices are violating the most basic assumptions about supply and demand.

13.) There is lack of land.
WRONG. Ample of land is available & continue to be even in future in Pune. Sales volume are down. Even in Japan (small country with less land), prices went down. Current prices here are the same as that of 23 years ago. If we really had a housing shortage, there would not be so many vacant rentals.

14.) If you don't own, you'll live in a cheap neighborhood later.
WRONG. For the any given monthly payment, you can rent a much better house than you can buy. Renters live better, not worse. There are downsides to renting, such as being told to move at the end of your lease, or having your rent raised, but since there are thousands of vacant rentals, you can take your pick and be quite happy renting during the crash. There are similar but worse problems for owners anyway, such as being fired and losing your house, or having your interest rate and property taxes adjust upward. Remember, property taxes are forever.

15.) There's always someone predicting a real estate crash.
TRUE, yet irrelevant. There are very real crashes every decade or so. Even a broken clock is right twice a day.

16.) Local incomes justify the high prices.
WRONG. The mortgage should be more than your 3 years earning. It is much higher today. Most are already in danger/red zone.

17.) You have to live somewhere.
CORRECT. But that doesn't mean you should waste your life savings on a bad investment. You can live in a better house for much less money by renting during the down slide in RE.

18.) It's not a house, it's a home.
WRONG. Wherever one lives in it is home, be it apartment, condo, bungalow , mansion or house. Calling a house a "home" is a manipulation of your emotions for profit.

19.) If you don't buy now, you'll never get another chance.
WRONG. History proves otherwise.
Here's a beautiful quote from a analyst:-
"The real issue isn't whether you will be stuck being a renter all your life, she says. Its whether you'll get so scared about being shut out that you'll buy at the market's peak and be stuck in a property you can't afford or sell."

20.) It would take major economic recession or a major earthquake that wipes out this area in order for the price to fall by over 50%.
WRONG. Even today, if the prices fall by 50%, there will still be very few people who can buy at this levels due to uncertainty in jobs & most importantly high EMIs. Also, look at the rental rates for equivalent houses. Which loss per month is larger? EMI or rent?

contd....
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  • RBI cautious about banks’ rising exposure to real estate

    The Reserve Bank today said bank credit to the sensitive sectors almost doubled to Rs 10,20,600 crore in 2012-13, primarily due to credit to the real estate sector. Sensitive sectors, which include real estate, capital markets and commodities, generally follow a pattern similar to the growth in overall credit, RBI said.

    “This expansion needs to be seen in light of the steep rise in housing prices in all tier I cities and several tier II cities in 2012-13,” the RBI said in its annual ‘Trends and progress of banking in 2012-13′ report.

    http://www.firstpost.com/politics/rbi-cautious-about-banks-rising-exposure-to-real-estate-1243295.html
    CommentQuote
  • Originally Posted by herohiralal
    Lack of new supply is going to cause a massive squeeze in the RE market in the next 1 yr.

    Another wrong bullish claims. If you see the facts in articles posted few pages back, the inventory levels already is of 2.5 years, which means even for current stock to get sold out, if at all it does, it will need 2.5 years at current absorption rate. If you add investor flats in this, the time can easily exceed 3+ years. This means, even if not a single new flat comes in market, it won't have any effect for atleast next 2.5 years.
    So chill.
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  • Originally Posted by realacres
    Another wrong bullish claims. If you see the facts in articles posted few pages back, the inventory levels already is of 2.5 years, which means even for current stock to get sold out, if at all it does, it will need 2.5 years at current absorption rate. If you add investor flats in this, the time can easily exceed 3+ years. This means, even if not a single new flat comes in market, it won't have any effect for atleast next 2.5 years.
    So chill.


    These posts says in Pune the inventory level is 14 months - below the acceptable level.

    http://www.firstpost.com/economy/realty-inventories-near-record-high-its-time-for-buyers-to-drive-hard-bargains-1111471.html


    Real estate inventories close to record high | Business Standard

    So demand goes up but new supply is quite low. The price range of apartments is also key. New supply will come more quickly in newer areas as compared to luxury projects in already developed areas.

    So when i say that the RE market is going to experience a squeeze in the next 12 months I am expecting a increase in absorption rate coupled with very little new supply coming to the market. Now this is an prediction not a fact so dont call it wrong yet :)

    I was thinking whether to write the following few lines but then decided to go ahead and put it anyways. Forum wont be fun without some heated arguments :)

    "If this does not happen I will be man enough to accept that my prediction was wrong unlike some folks who have been wrong for more than 4 yrs and still havent accepted that they were wrong :) Bhai pls be very cautious when using external reference and data and dont twist the facts :) "
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  • very funny!

    Facts and predictions

    So the opinions or conclusions drawn on statistics (past record) by ANALyst are facts. That is intelligent.

    And the opinions or conclusions drawn on distant (or near) future based on common sense combined with intelligence and experience by "unqualified" analyst are only predictions. Now that is unintelligent. Why only because they cant provide numbers? For numbers you need to wait till future becomes history sir and predictions become facts.Proven facts.

    Till then there is no need for admission to anything.

    Large amount of money has been made by builders and investors over last few years. So when RA said that the bubble would burst 4 years ago, all the brilliant ANALyst for lack of such statistics pounced on him for making such prediction. Well they had numbers saying otherwise. Their intelligence was limited to these numbers. Limited Intelligence. LIQ.

    Now after 4 years and fresh numbers proving RA is right in predicting a fact beyond the grasp of LIQ ANALysts, they try to divert the attention by traveling in past by 4 yrs. Look you said that 4 years ago!!!

    With a cushion of 100 to 200% profits (say a flat construction cost of rs.2000/sqft and sold at Rs.5000 to 6000/sqft) coupled with generous banks and black investors, 4 years is a very short period to resist any kind of bubble bursting. IMHO they can sustain additional couple of years samething that even herolal has said. Something I have not learned overnight.

    And only for these reasons the bubble has not burst overnight and the bears can be questioned but only those who predicted it overnight!

    But it sure is losing the steam now, what say?:D

    Disclaimer:Heated arguments are meant for fun only!






    Originally Posted by herohiralal
    These posts says in Pune the inventory level is 14 months - below the acceptable level.

    Realty inventories near record high: Buyers should drive hard bargains | Firstpost


    Real estate inventories close to record high | Business Standard

    So demand goes up but new supply is quite low. The price range of apartments is also key. New supply will come more quickly in newer areas as compared to luxury projects in already developed areas.

    So when i say that the RE market is going to experience a squeeze in the next 12 months I am expecting a increase in absorption rate coupled with very little new supply coming to the market. Now this is an prediction not a fact so dont call it wrong yet :)

    I was thinking whether to write the following few lines but then decided to go ahead and put it anyways. Forum wont be fun without some heated arguments :)

    "If this does not happen I will be man enough to accept that my prediction was wrong unlike some folks who have been wrong for more than 4 yrs and still havent accepted that they were wrong :) Bhai pls be very cautious when using external reference and data and dont twist the facts :) "
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  • How to evaluate a real estate developer – A checklist

    Buying a home is an important decision and there are a lot of things that you should know about before investing your hard-earned money. While researching for your home, you must have realised that there are a lot of developers building various kinds of housing projects. So, how to pick a developer and select a project that is value for money? Though, it is critical to evaluate a developer but a checklist helps in taking a fair decision.
    After you have selected a few developers in your area, check for –
    Background check
    Checking the background of a developer is very crucial. As a customer, you should be able to identify the name of the developer. The developer should be stable and must be in the market for some time. A trusted developer is someone who has satisfactorily delivered at least one project. “You need to consider the delivery record of the builder. The time, when the developer delivers the project and people start moving in, is crucial for a developer,” says Sandeep Sahni of Soultrean Building Technologies Ltd.
    However, this does not mean that one must stay away from the new developers in the market. Though there is some risk involved in trusting a new developer, a thorough background check really helps here. “With new developers, trust is the only medium. A customer, who trusts a new developer, gets benefitted in the future with comparatively low property rates,” says Dujendra Bhardwaj of JMD Real Vision.
    Legal opinion
    Take the services of a legal expert to check that the project in which you are aspiring to invest have all the necessary approvals in place. Check all the documents related to the project, such as papers related to land acquisition, bank loan, building approvals etc. “The customer should check that the land on which the project is being developed or is already developed should be owned by the developer independently or jointly. It should be approved by the authorities so that no legal complication arises in the future,” says Bhardwaj.
    Finances
    The customer should check about the financial standing of the developer before investing. “The developer should have his own funds’ source independent from the market. It should not be directly affected by the market sentiment,” emphasises Sahni. “In a market, good times last lesser than the bad times. The success of a developer is in the management of finances he has. The builder should push for project completion as when project is delivered, the rates of the unsold inventory go up and depleted funds can be recovered,” he adds.
    Quality
    The quality of construction and development holds a lot of significance for a home buyer. The property should indeed be durable enough to last for generations to come. “The prices of flats available for sale in an area can differ as per their quality. A developer who is using branded building materials and is following all the rules of construction will naturally keep the rates of the flats a little higher than the market price,” says Abhay Kumar of Grihapravesh developers.
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  • How to prevent being a victim of property fraud

    Like any other sector, real estate is the sector where as a consumer you may find yourself in a troublesome situation. Whether it is an intentional fraud or unintentional laxity on a developer’s part, at the end, you may have put your lifetime savings at stake. Litigation takes years and should be taken as the last resort. Here is the quick check on how you must prevent unwarranted situations in property transactions.
    When buying or booking an under-construction property
    Commencement certificate: Always ask the developer for the Commencement Certificate issued by the local authority. This certificate proves that the developer has complied with all the byelaws and there is no dispute over the title of the land. In other words, the document certifies that the developer can start with the construction as the required permissions are duly provided.
    There are several projects which are launched in full-swing but later on it is found that these projects are cancelled in absence of permission for construction.
    By that time, several people have booked properties in such projects.
    Some may have asked for documents such as land registration papers and layouts but this research remains incomplete unless you ask for the Commencement Certificate.
    Take the instance of the Camp Cola Society in Worli, Mumbai. If the buyers would have asked for the Commencement Certificate, the seller could not have produced it. Why: this certificate also specifies the number of permitted floors and if the developer goes beyond the permissible limit this certificate cannot not be issued.
    “It is necessary that a buyer is fully-aware of all the legalities before buying a home. Buyers must always ask for the required documents from the developers before investing,” says Abhay Kumar, CMD, GrihaPravesh Buildteck.
    When buying a fully-constructed or resale property
    Occupation Certificate: This document is also issued by the local governing body certifying that the building is in compliance with all the local rules and byelaws. It further certifies that the building is fit for occupation by people at large.
    Never buy a property for which you are not getting the Occupation Certificate. There are times, when you will find several other people living in the same building without any clue on the Occupation Certificate. But one fine morning, you may receive a notice to vacate your home, which may be due for demolition.
    Imtiyaz Panjwani, chairman, Seer Realty, calls for extra precaution, “Hire a lawyer to check authenticity of these certificates.”
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  • A very near term prediction that I can think of:

    1) If BJP wins maximum seats, then rest assured a "package" for the troubled Real Estate sector is in the offing. After all..what better than throwing our tax money to fund businesses that in turn fund the political classes & create a general cheer? I wouldn't be surprised if they announce "free housing" & introduce some "surcharge" on the existing surcharge...which is already some kind of surcharge on the original amount!

    2) In case Congress takes maximum seats, it'll be status quo with a bit of noise here & there about some "package" for the RE sector. Some meetings between bankers & our ministry officials to devise ways & means of doing a rescue act...in lip service. The final outcome will once again be: introduction of some "surcharge" on the existing surcharge...which is already some kind of surcharge on the original amount...albeit in slightly lesser % than option 1 above. Money thus collected will be used to enforce NREGA - II (in some other form & name)

    Call me a pessimist if you will..cheers!
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  • Originally Posted by Karan Dheer
    A very near term prediction that I can think of:

    1) If BJP wins maximum seats, then rest assured a "package" for the troubled Real Estate sector is in the offing. After all..what better than throwing our tax money to fund businesses that in turn fund the political classes & create a general cheer? I wouldn't be surprised if they announce "free housing" & introduce some "surcharge" on the existing surcharge...which is already some kind of surcharge on the original amount!

    2) In case Congress takes maximum seats, it'll be status quo with a bit of noise here & there about some "package" for the RE sector. Some meetings between bankers & our ministry officials to devise ways & means of doing a rescue act...in lip service. The final outcome will once again be: introduction of some "surcharge" on the existing surcharge...which is already some kind of surcharge on the original amount...albeit in slightly lesser % than option 1 above. Money thus collected will be used to enforce NREGA - II (in some other form & name)

    Call me a pessimist if you will..cheers!



    PESSIMIST! :) You asked, I delivered!

    Well, people still are not getting it.

    Back in 2009 I had mentioned that the BEST time for unloading RE inventory was then, when big stimulus spending by Govt had improved mood and people were ready to jump back into RE.

    Builders did exactly the opposite and, though they saw prices rise, their financial and inventory position is many times WORSE than if they had cleared inventory back then!

    So, more they delay and kick can down the road, worse will be the BACKLASH!

    This time around, maybe a "package" will come and bail them out. But rest assured. Buyers will NOT be buying in large numbers, already precarious debt will rise out of whack and the next time bad part of the cycle returns, many builders may very well go bankrupt with RE prices falling even further than this time around (and remaining in deep losses for much longer, perhaps a decade ot more).

    We are not the USA - where money printing delays situation much longer (and makes the fall that much bigger). Any stimulus will kick can only for short distance, raise deficits much higher and trash rupee so badly that we will be in much worse depression with all-round loss of wealth and much deeper dip in RE prices.

    Bring it on. Only makes it a bigger bargain for the one waiting for Blue skies to appear before buying!

    cheers
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  • Originally Posted by Karan Dheer
    A very near term prediction that I can think of:

    1) If BJP wins maximum seats, then rest assured a "package" for the troubled Real Estate sector is in the offing. After all..what better than throwing our tax money to fund businesses that in turn fund the political classes & create a general cheer? I wouldn't be surprised if they announce "free housing" & introduce some "surcharge" on the existing surcharge...which is already some kind of surcharge on the original amount!

    2) In case Congress takes maximum seats, it'll be status quo with a bit of noise here & there about some "package" for the RE sector. Some meetings between bankers & our ministry officials to devise ways & means of doing a rescue act...in lip service. The final outcome will once again be: introduction of some "surcharge" on the existing surcharge...which is already some kind of surcharge on the original amount...albeit in slightly lesser % than option 1 above. Money thus collected will be used to enforce NREGA - II (in some other form & name)

    Call me a pessimist if you will..cheers!


    Whoever wins in Delhi or other states is kinds irrelevant as far a bailout package is concerned. Sale of PSU stock by govt and telecom license auction will be used as an excuse to tell markets that govt can afford a bailout of industry.

    Watch out for decisions allowing power companies to pass on cost of coal onto customers. If you are under too much debt u should get in line. The govt will open up the money tap to stay in contention for 2014 win.

    Developed nation some say. Feels more like a undeveloping nation. Was looking at the AAP manifesto and its all about more regulation and free stuff for everyone. So Delhi voters have a choice between 3 parties all offering free stuff :) what could go wrong?
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  • """ Was looking at the AAP manifesto and its all about more regulation and free stuff for everyone. So Delhi voters have a choice between 3 parties all offering free stuff what could go wrong?""
    For the two major parties,manifesto is just a pice of paper.I really dont know whether they ever read it,forget about implementation.One needs to spend time(?) on reading INC manifesto 2009 and for academic purpose check what has been promised and what is the action.
    India has been unlucky in getting leadership of a nature which is uninspiring and shortsighted in this dynamic and fast moving world.
    We are wedded to old ideas and lack appreciation of how fast the advanced nations have moved and where we are.
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  • whichever party comes to power it will come out with some sort of package as RE is too big a monster to neglect.
    The consequence will be some taxes on us in another form of cess.
    This time it will be RE compensation cess.
    I will call it RECOMPENSE cess.
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  • Originally Posted by vaibav123
    """ Was looking at the AAP manifesto and its all about more regulation and free stuff for everyone. So Delhi voters have a choice between 3 parties all offering free stuff what could go wrong?""
    For the two major parties,manifesto is just a pice of paper.I really dont know whether they ever read it,forget about implementation.One needs to spend time(?) on reading INC manifesto 2009 and for academic purpose check what has been promised and what is the action.
    India has been unlucky in getting leadership of a nature which is uninspiring and shortsighted in this dynamic and fast moving world.
    We are wedded to old ideas and lack appreciation of how fast the advanced nations have moved and where we are.



    Exit polls are predicting a BJP win across 4 states - Delhi, Raj, MP and Chhattisgarh

    Let the bailout games begin. Keep and eye on those regional parties like NCP, SP, BSP and RJD. Their value has gone up even more after this result.

    Looks out for major infra announcements in the next few months. Money is going to be spent like crazy.

    Here are the links to the 3 manifestos

    AAP - Aam Aadmi Party Manifesto for Delhi

    Congress - http://www.aicc.org.in/press/manifesto%20delhi%202013-eng.pdf

    BJP - Manifesto Election 2013 New Delhi BJP Delhi, Assembaly Election 2013
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  • Originally Posted by StraightDriv
    Facts and predictions

    So the opinions or conclusions drawn on statistics (past record) by ANALyst are facts. That is intelligent.

    And the opinions or conclusions drawn on distant (or near) future based on common sense combined with intelligence and experience by "unqualified" analyst are only predictions. Now that is unintelligent. Why only because they cant provide numbers? For numbers you need to wait till future becomes history sir and predictions become facts.Proven facts.

    Till then there is no need for admission to anything.

    Large amount of money has been made by builders and investors over last few years. So when RA said that the bubble would burst 4 years ago, all the brilliant ANALyst for lack of such statistics pounced on him for making such prediction. Well they had numbers saying otherwise. Their intelligence was limited to these numbers. Limited Intelligence. LIQ.

    Now after 4 years and fresh numbers proving RA is right in predicting a fact beyond the grasp of LIQ ANALysts, they try to divert the attention by traveling in past by 4 yrs. Look you said that 4 years ago!!!

    With a cushion of 100 to 200% profits (say a flat construction cost of rs.2000/sqft and sold at Rs.5000 to 6000/sqft) coupled with generous banks and black investors, 4 years is a very short period to resist any kind of bubble bursting. IMHO they can sustain additional couple of years samething that even herolal has said. Something I have not learned overnight.

    And only for these reasons the bubble has not burst overnight and the bears can be questioned but only those who predicted it overnight!

    But it sure is losing the steam now, what say?:D

    Disclaimer:Heated arguments are meant for fun only!

    Prices have already falling in Pune RE. Now one can't do anything if you can't see the same.
    And please first know the concept of 'Money from Thin Air'. Issue is no matter what, bulls paint bullish picture only.

    Now give me atleast 5 reasons with proof that RE prices will only increase. Kindly enlighten us.
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  • Originally Posted by StraightDriv
    With a cushion of 100 to 200% profits (say a flat construction cost of rs.2000/sqft and sold at Rs.5000 to 6000/sqft) coupled with generous banks and black investors, 4 years is a very short period to resist any kind of bubble bursting. IMHO they can sustain additional couple of years samething that even herolal has said. Something I have not learned overnight.

    One thing which you forget is that these profits are not in builders pocket but have been invested to buy land & start new projects which are stuck. Cash flows are not happening. Had this been not the case, why are builders defaulting ?

    There is difference between making money & having money. Builders made money in RE boom but don't have it in their pocket. And forget debts, builders are not even paying their contractors, including labor. The supervisors strength has been reduced. This is the actual fact for 7/10 builders in the city.
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  • As Indian property market slows, developers entice buyers

    Anuj Puri, the chairman and country head of Jones Lang LaSalle India, says residential markets in many cities are slow, and they “are reaching a stage where only hard discounts will achieve any significant extra momentum”.

    Many developers use incentives and innovative financial schemes as their last resort, or they would have to reduce their property prices, Mr Puri says.

    To market its projects in Mumbai, the developer HDIL is offering incentives including a cash discount of 350,000 rupees (Dh21,000) and a four-day holiday in Malaysia for the first 100 bookings.

    The firm is also offering buyers the opportunity to win a Mercedes-Benz.

    Hariprakash Pandey, HDIL’s vice president of finance and investor relations, says it has received “good interest” from non-resident Indian buyers and investors from the Arabian Gulf.

    Meanwhile, Puranik Builders is giving away holidays to Spain and Bali to buyers of its apartments in Pune and Thane.

    As Indian property market slows, developers entice buyers | The National
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