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

    Salaried real estate investors in mess as loan cost pinches

    MUMBAI: The deepening economic slowdown, rising cost of living and low wage revisions, coupled with higher interest rares, are forcing salaried professionals who had earlier invested in properties to put them up for sale, say industry experts.

    According to a survey, resale inventory has increased nearly 30 per cent over the last six months.

    "Economic slowdown has hit the real estate industry. Salaried professionals who had invested in properties five-six years ago to cash in on the boom, are now looking to sell them as they are finding it difficult to cope with the high cost of living," property portal Housing.co.in co-founder and marketing head Advitiya Sharma told PTI.


    Salaried real estate investors in mess as loan cost pinches - The Times of India
    If you are happy, you are successful.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      Piling inventory, poor sales may force builders to slash rates, say experts

      With real estate inventory at an all-time high, severe liquidity crunch and decelerating sales, experts feel that developers will be forced to slash residential property rates in the coming months.

      With the real estate companies in poor financial health, experts predict softening of prices owing to lack of options to augment liquidity. The 'stress level' of these companies — reflected in their low operating cash flows and huge debt — is at its highest in the past five years, according to real estate consulting firm Knight Frank.

      "The developers have been caught in a trap of ambitious expansion, decelerating sale, hardening interest rate, and weakening cash flow. With few options to obtain money from either banks or private equity funding, these companies do not have much choice but to soften prices," said Samantak Das, chief economist & director (research), Knight Frank.

      Real estate research and rating firm Liases Foras says unsold inventory in six major cities adds up to about 5.39 lakh units — an all time high. "The city's inventory will take up to 40 months to clear at the current pace of absorption, while a healthy market does not maintain more than 10 months' inventory," said Pankaj Kapoor from Liases Foras.

      Piling inventory, poor sales may force builders to slash rates, say experts - Indian Express

      Coming to some Pune RE news,

      Bramha Suncity, Vadgaonsheri, Rohan Mithila, Lohegaon & Ivy Estate, Wagholi are being pushed hard by RE agents these days. They also say they can offer good deal on 'Investors' flat. In reality though, they are working for builders only.

      Nirman developers is now offering free taxes, which means a net discount of around 12% & this is official discount. Builder is open for negotiation further of price/sq ft as well.
      Last edited by realacres; September 22 2013, 11:50 PM.
      If you are happy, you are successful.

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Home buyers up against a brick wall as realtors fail to deliver | Business Standard

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          CEO Interview

          ''Housing loan market penetration still relatively nascent so opportunity is huge''

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            Some downside on real estate sector

            The increase in repo rate is going to have some downside on the real estate sector in a stressed environment that is already plagued by slowdown in sales, increasing input costs, liquidity issues and high costs of capital, Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, said.

            “Today’s review of monetary policy would have disappointed most people as many were looking at the new RBI Governor to make radical economic changes. However, high expectations from the new RBI Governor Raghuram Rajan to provide all the solutions to the ailing Indian economy are grossly misplaced and unrealistic,” he said.

            http://www.thehindubusinessline.com/...cle5150001.ece
            If you are happy, you are successful.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              House prices tumble as buyers delay purchases

              As stricter RBI guidelines, rising inventory and the slowing economy leave developers reeling, buyers are bargaining harder to strike a deal

              Drop in residential property prices may have been a buyer's dream till recently, but now it is as real as it can get.

              But there are enough pointers to the answer. Sanjay Sharma, managing director, Qubrex, a real estate consultancy, draws attention to two kinds of prices - asking price and transaction price. The asking price or the published rate may be holding on, while the amount at which a transaction is completed could be much lower, according to Sharma. "Nobody is paying the asking price. And only those developers compromising on price are selling now," he says in a telling admission of the state of affairs in the sector. The secondary market has experienced a very definite fall in prices, Sharma points out.

              "There is room for some more price correction," says NHB's Verma. "We have seen a price decline across cities - it was due for some time.

              House prices tumble as buyers delay purchases | Business Standard
              If you are happy, you are successful.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                South Delhi, Mumbai high-end property is headed south

                Distress sales are crimping the luxury real estate market in South Bombay and South Delhi as a slowing economy has pushed out not only end-users but also investors. Not only have property prices in prime locations of South Mumbai and South Delhi fallen by over 15 percent, even rental yields are at an all-time low. Take, for instance, the upmarket Panchsheel Park in South Delhi, where rental for a 7,000 square feet bungalow was around Rs 7 lakh a month. It is now down by more than 25 percent to just Rs 4 lakh. The same is true even when you buy a property. A 5,000 sq ft property in the same area was commanding at least Rs 90 crore. Today, the valuation is down to Rs 70 crore.

                “With elections round the corner, there is a major liquidity crunch. Buyers are staying away due to instability at the Centre and will continue to do so till the polls are over,” a South Delhi architect told Firstpost on condition of anonymity.

                South Mumbai is even worse. Rental yields have fallen by more than half. From 3-5 percent in 2008-11, yields are now down to 1-2 percent, while capital appreciation has dropped to 10 percent from 30 percent a year earlier, an Economic Times report said today (10 September). “According to property consultants, sale of a new property has dropped 30 percent in the past eight to 12 months, with fewer investors and end-users willing to buy expensive homes. For every 100 homes available for sale in a quarter, only six are getting sold,” the report said.

                “Real estate developers have been caught in a trap of ambitious expansion, decelerating sales, hardening interest rates, and weakening cash flows. Unlike earlier occasions, the sector now has no bailout package and alternate funding options have also dried-up,” said Dr Samantak Das, Chief Economist & Director, Research, Knight Frank. Chances of a revival in their financial health during the current year seem bleak as banks, one of the largest lenders to the real estate sector, are shying away from lending as they are troubled in their own backyard with increased non-performing assets, tightened monetary policy, currency depreciation and volatile debt markets. Private equity funds, the all-time white knights for the real estate sector, have also been seen exiting Indian markets.

                “The aftermath of the dried-up funds scenario is also apparent in the market; some real estate companies have defaulted on their debt repayments. This seems to be just the beginning of doom for highly leveraged realty firms,” adds Das.

                South Delhi, Mumbai high-end property is headed south | Firstpost
                If you are happy, you are successful.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Originally posted by realacres View Post
                  As stricter RBI guidelines, rising inventory and the slowing economy leave developers reeling, buyers are bargaining harder to strike a deal

                  Drop in residential property prices may have been a buyer's dream till recently, but now it is as real as it can get.

                  But there are enough pointers to the answer. Sanjay Sharma, managing director, Qubrex, a real estate consultancy, draws attention to two kinds of prices - asking price and transaction price. The asking price or the published rate may be holding on, while the amount at which a transaction is completed could be much lower, according to Sharma. "Nobody is paying the asking price. And only those developers compromising on price are selling now," he says in a telling admission of the state of affairs in the sector. The secondary market has experienced a very definite fall in prices, Sharma points out.

                  "There is room for some more price correction," says NHB's Verma. "We have seen a price decline across cities - it was due for some time.

                  House prices tumble as buyers delay purchases | Business Standard
                  Thanks RealAcres.

                  I would assume that resale market will have even more discounts. Two years of inventory with builders and many projects underway. I dont know why people are irrationally exuberant, but it was obvious that 1.1 Cr + for cramped 3BHK flats with no signs of roads, regular electricity, social infrastructure,etc is out of reach of even people who earn 20L+ pa.
                  Blindly following Mumbai in property rates isnt logical for smaller cities like Pune, Hyd, Bangalore, Ahmedabad, Indore, Jaipur, etc. Mumbai RE prices are much higher, but then, it has some of the richest janata of the country, who dont mind paying sky high prices for a good property. Mumbai has better infrastructure, Pune just doesnt.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    I don't think there's any real estate bubble: Keki Mistry | Business Standard

                    If prices stabilise it’s a good thing. Prices are not coming down by 30-40 per cent anywhere. When you compare prices even in one particular pocket, you need to look at the projects and the amenities

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      I almost fell out of my chair laughing....

                      Reading this might give some insight...

                      http://www.indianrealestateforum.com...tml#post985656

                      Comment

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