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

    Originally posted by wiseman View Post
    Brother Sim,

    Stock Market as we know it today is one of the worst indicators of economic health. For following reasons ...

    Breadth - No of players who do majority of volume is abysmal. Recent analysis of BSE indicates that more than 50% of its volumes is done by just 1500 or so players (Institutions, HNIs, etc).

    Investment timeframe: Back in the old days one invested for a minimum of a few years or so. And investment was based on next 3-5 years performance outlook for companies. Today, intraday is the most popular timeframe! Won't say more ... This also shows desperation of people who somehow want to beat inflation and there being no other alternative investment vehicles, they enter the adda for 1-2 rupee profits every day based on tips. Really sad! Most get taken to the cleaners bit by bit.

    HFT, algorithmic trading, etc: Again these methods try to extract profits through arbitrage. This is a speculative trading technique and not investment

    Govt and large money influence: When you see sudden large movements in index or price of companies, you know someone somewhere is making a killing. Options are commonly swung this way on expiry day (Dec 5900 Put option went from 3.30 (around 3pm) to 22.50 (around 3.15pm. This was achieved by simply dropping Nifty from 5900 to 5865, just 35 points which is no big deal. But it was a 580% return in 15 minutes with huge volumes.

    As you can see, Stock Market is no indicator of general economic health. Its become a speculative adda.

    cheers
    +1.

    Wiseman,

    Things in bold above and most importantly last one in blue, how true it is for RE in general and for pune in particular ? Isn't it moving away from demand-supply and becoming manipulation ?

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      I disagree because...

      Originally posted by simsagar View Post
      *** Jan 04, 2013 ***
      Gold prices tumbled by Rs 380 to Rs 31,020 per 10 grams today on heavy sell off by stockists in tandem with a steep fall in overseas markets.

      With the general weakening trend, silver also dropped by Rs 2,200 to Rs 56,900 per kg on reduced offtake by industrial units and coin-makers.

      Traders said sentiment turned extremely bearish after Gold tumbled in global markets, as Federal Reserve policy makers said they will probably end asset purchases this year and investors cut holdings by the most since May.

      Well, this could be the start of the economic re-bound and soon economic engine will be puffing slowly towards next wave of growth ...RE prices will see sharp increase in near-future (say 3-6 months from now).

      If dollar gains and gold falls, the foreign funds will start withdraw fast. We will see a crash in share markets which will translated into other markets.

      Remember India is now fully dependent on hot money, as our trade balance is pathetically unfavourable.

      Even if US recovers slowly, we will have our own share of problem which will be accentuated by currency crash due to hot money withdrawal....

      so dollar gaining and gold going down is not that great a news....for RE bulls

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Commercial RE Updates

        Developers defer construction of shopping malls: Study

        More than half of the expected supply of retail space in shopping malls during 2012 has been deferred in the country’s top seven cities as builders feel it would take at least 12-18 months for FDI in multi-brand retail to have a positive impact on demand, a study said. According to a latest report by global property consultant Cushman & Wakefield, top seven cities witnessed a total mall supply of 3.44 million sq ft in 2012. The seven cities which saw deferments are Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune.

        Source:- Indian Express

        Builders waive office space rentals, a la malls

        Tired of waiting for months for occupants to pour in, commercial real estate developers in Mumbai have come up with a new trick to lure potential customers – rent-free period.

        Another real estate expert said the trend is not limited to Mumbai. “We have seen builders offer rent-free period even in Kolkata. And even there, a huge inventory pile-up is the reason for such offers.”

        A Cushman & Wakefield survey points out that the office space absorption across eight cities has fallen 23% in the past one year.
        Analysts believe it will take at least two more years for the demand-supply mismatch to be ironed out. Till then, we are likely to see more such innovative offers from the builders.

        Builders waive office space rentals, a la malls - Money - DNA
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          RE Updates

          Realty majors to invest up to Rs 8,000 crore in housing projects

          Source: Indian Express.

          Link: City Lights: Realty majors to invest up to Rs 8,000 crore in housing projects - Indian Express

          Signalling bounce back of the real estate sector after a prolonged slowdown, developers announced investments of nearly Rs 8,000 crore on projects over the next four years. Realty firm Supertech said it will invest around R5,500 crore in the next 3-4 years to develop residential projects and acquire land. Ansal Properties and Infrastructure announced an investment of about R1,500 crore in 2013-14 as capex on construction of various projects across the country. Mantri Realty said it will invest up to R750 crore to develop three new housing projects in Maharashtra and Karnataka over the next 2-3 years. The country’s largest real estate developer DLF said it will launch 3-4 projects in Gurgaon by March 2013.
          Last edited by AnkitS; January 5 2013, 10:42 PM.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Originally posted by AnkitS View Post
            Realty majors to invest up to Rs 8,000 crore in housing projects

            Source: Indian Express.

            Limitless capital to satisfy limitless demand.....combine that with..........progressively better execution... ..and.....limitless holding capacity!

            These guys rule !

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by AnkitS
              Realty majors to invest up to Rs 8,000 crore in housing projects
              There is a difference between launching & executing the project.
              DLF is selling off it's assets, it sold its major land parcel in Worli, Mumbai to Lodha builders for mere INR 5,000/sq ft, Aman resorts at Delhi was sold out to it's partner in hospitality sector. Supertech's project in NCR are plagued by delays & many customers have filed cases against the builder. For a layman like me, please explain from where builders like DLF are going to raise 8000 Cr when their existing assets are up for sale ??
              Man, such launch news are given out to maintain their stock prices, which have crumbled in past 15 months. As said before, launching is different than executing.
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                IT news

                The global economic crises have now hit Indian IT cos

                BANGALORE: Infosys has begun sacking employees at the bottom of the performance pile, returning to a practice it adopted during the peak of the global economic crisis in 2008 and 2009, according to people familiar with the development.

                The renewed lack of tolerance for poor performance, which will affect up to 5,000 employees, is indicative of the pressure the software company faces to curtail costs while pivoting towards a more aggressive sales strategy.

                Among Indian IT companies, Infosys and Wipro have the lowest efficiency levels, with about 30% of employees sitting idle.

                "We believe cleaning out employees at the bottom of the pyramid will become the new norm across all IT companies and will stay for this year," said Sangeeta Lala, co-founder of TeamLease.

                Infosys trimming up to 5,000 staff to scissor costs; eyeing riskier deals - Economic Times



                Mid-tier IT companies may cut pay hikes, hiring on US, Europe woes

                BANGALORE/HYDERABAD: Faced with continuing uncertainty in their largest markets, US and Europe, mid-sized technology outsourcing companies will give out tepid pay hikes and cut down on their campus hiring in 2013.

                Hyderabad-based Mahindra Satyam, for instance, said it plans to cut down on its campus hiring by 50% in the coming year due to the unpredictable business environment.
                Last year, the country's second-largest IT exporter Infosys had delayed joining dates of over 20,000 freshers and did not give pay hikes to its over 150,000 employees during the normal schedule, citing volatility in business environment.

                Mid-tier IT companies may cut pay hikes, hiring on US, Europe woes - Economic Times



                Muted Q4 earnings likely for Indian IT cos: analysts

                Slower growth in discretionary spending and delays in decision making of clients may continue to hurt Indian IT companies' revenue growth in the December quarter, analysts today said.

                Muted Q4 earnings likely for Indian IT cos: analysts
                Last edited by realacres; January 6 2013, 11:17 PM.
                If you are happy, you are successful.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Latest is, education loans have taken a hit

                  The demand for education loans is likely to be subdued in the year ahead as a weak economy is forcing students to defer their plans for higher studies till the time the job market in India and abroad sees a major improvement.

                  “Going by present indicators, I don’t see any improvement in 2013. Looking at the job market situation in the US, Europe, and to some extent India, the education loan market will be somewhat subdued,” says RK Bansal, executive director of IDBI Bank.

                  Varghese KI, additional general manager of Federal Bank, says they foresee stagnation of growth in the foreign education loan segment.

                  Kris Lakshmikanth, CEO of HeadHunters India, agrees, saying companies also want people with work experience who can join immediately, and 2013 is going to be a tough year for freshers.

                  The aversion to higher studies is not limited to students just out of college. Experienced professionals are also not willing to take on debt and risk quitting a job. “People are always averse to quitting or jumping jobs in a sluggish economy,” says Yogesh Saigal, head, business development, Talisman Advisors. “Why will one quit a stable job and take a loan of Rs12 lakh to go for higher studies? S/he may not even get the same job after completing the degree in a few years.”

                  Latest is, education loans have taken a hit - India - DNA
                  If you are happy, you are successful.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    80% students don’t earn enough to repay loans

                    As many as eight out of ten students taking an education loan are defaulting on loan payments as a grim job scenario cripples their ability to repay. Defaults have risen to 70-80% this year from 25-30% in the last, say banks. “There are more defaulters for education loans compared with earlier years. Also, repayments of education loans that were availed 2-3 years back are accumulating at banks,” said a senior official from a public sector bank.

                    According to the Reserve Bank of India data, total outstanding eduction loans stood at Rs54,300 crore as on November 30, 2012.

                    “People's capacity to service bigger loans is less these days as they do not get the expected income due to the slump in the job market,” said Satish Mehta, a credit expert and founder director at credexpert.com.

                    80% students don’t earn enough to repay loans - Mumbai - DNA
                    If you are happy, you are successful.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      economic slump often leads to multifold jump in incomes of select few especially in software as there is lack of quality people there. have seen in some cases salaries have more than doubled since 2009 for well performing people even as new openings slowed down.

                      Comment

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