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

    many people jumping in glee at the prospects of discounts are nothing but dumb traps....how can a 10% discount on 20-30% price hike can be called potential slump

    For them - "it is not important how much an item costs, it's more important how much you can save when you buy it."
    Last edited by Baruch; November 10 2013, 02:40 AM.

    Comment


    • Re : Builders & Real Estate Bulls Theory Proved Wrong

      >>> Echoing this reading of the market another realty agent, Vishal Gokhale, CMD Gokhle Constructions, who deals in properties in Model Colony, Kothrud and Shivajinagar, said, “There has been no purchases here. Buyers have been turned off by the insanity of the price rise witnessed last year.”


      That is something. Builder himself saying this !!

      Comment


      • Re : Builders & Real Estate Bulls Theory Proved Wrong

        Slowdown hits real estate, homes sale on decline

        A good video showing drastic fall in sales & rising inventory amongst builders across the country. It says that Pune & Bangalore are worst performing market.

        Slowdown hits real estate, homes sale on decline | The Economic Times Video | ET Now
        If you are happy, you are successful.

        Comment


        • Re : Builders & Real Estate Bulls Theory Proved Wrong

          Harsh realty for builders as banks tighten lending rules

          The real estate sector, accounting for the maximum number of new projects — 53 of 173, each above Rs 250 crore, in April-September this fiscal — is facing difficulties in achieving financial closure for these projects.

          This is because banks are asking builders to bring in more equity before loans can be disbursed.

          Subdued demand and lesser cash flow are the main problems affecting the sector, he said. "We have asked them to either bring in more equity upfront or reduce the prices of units," he added.
          "Bankers are seeking greater control in the way the sale happens. They also want money to be put in an escrow account and expect the completion of the projects without delay," a private sector banker said.

          "Besides, in many cases, banks themselves are also facing liquidity crunch because of which they have put a lot of sanctions on the back burner. Banks have also started checking the stress on a particular company, which means they are going slow on disbursals to promoters who have many projects in the pipeline and are facing troubles in servicing debt or delaying construction."

          Anuj Puri, chairman and country head, Jones Lang LaSalle India, said, "Banks are reluctant to disburse loans to the retail real estate sector given the poor future projections of the sector. The imbalance of demand and supply in the retail real estate sector is making them (banks) think twice on their debt sanctions."

          There is also an enormous pressure on the developers to reduce prices/ offer discounts even as they are holding on to unsold units at a huge cost hoping against hope to sell it to elite buyers.

          Harsh realty for builders as banks tighten lending rules - Financial Express
          If you are happy, you are successful.

          Comment


          • Re : Builders & Real Estate Bulls Theory Proved Wrong

            For slowdown news of realty. Inspite of such news being repeted in once a month, prices are increasing.

            Not all builders are in cash crunch. They have been earning enormous money since 2009, can hold on long.

            The sales are not good but wont result in 20-30% drop in price, Unless economy is seriously down (like 2009).

            There are many buyers in market having lots of money.

            Logically, due to non affordable rates, prices shoud be down.
            But logic doesnt work always. Builders Power (politicaly assisted) works.

            This is what I feel.

            Comment


            • Re : Builders & Real Estate Bulls Theory Proved Wrong

              Originally posted by manojsti View Post
              For slowdown news of realty. Inspite of such news being repeted in once a month, prices are increasing.

              Not all builders are in cash crunch. They have been earning enormous money since 2009, can hold on long.

              The sales are not good but wont result in 20-30% drop in price, Unless economy is seriously down (like 2009).

              There are many buyers in market having lots of money.

              Logically, due to non affordable rates, prices shoud be down.
              But logic doesnt work always. Builders Power (politicaly assisted) works.

              This is what I feel.
              Agree all of them are not in a financial crunch, but most of them are and how long they can hold on unsold inventory will be deciding factor for start of the show.
              Just wait and watch Circus will start soon.
              Last edited by Apacheindian; November 12 2013, 09:11 PM.

              Comment


              • Re : Builders & Real Estate Bulls Theory Proved Wrong

                Nashik CREDAI spilling the beans !!!

                The recession in the real estate sector has badly affected the revenue of the Nashik Municipal Corporation (NMC) - a decline of 28.01% in the revenue in the first half (April 1 to Sept 30) of the current financial year as compared to the corresponding period in 2012-13, due to poor tax collections by the town planning department.

                Speaking to TOI, president of the Confederation of Real Estate Developers' Association (CREDAI), Nashik, Kiran Chavan said, "The real estate market is still facing a slowdown, thereby affecting sale of flats and other properties to a large extent.

                http://articles.timesofindia.indiatimes.com/2013-11-03/nashik/43627880_1_corresponding-period-nashik-municipal-corporation-real-estate-sector.

                NOTE: Many of Pune builders are running big projects in Nashik.

                Comment


                • Re : Builders & Real Estate Bulls Theory Proved Wrong

                  Buyers boycott property

                  Property developers have been trying to woo customers by offering freebies and discounts in the past few months. From gold coins, flat discounts, free parking, and waivers of stamp duty and registration charges, home buyers were being flooded with incentives by developers. What they didn’t get was lower base prices. Buyers, it seems, have seen through this effort by a cartel of builders to hold prices even when there are few buyers. According to a research report by real estate consultancy firm Liases Foras, property sales in the Mumbai Metropolitan Region have hit a record low in 23 months and builders are sitting on unsold inventory equal to 58 months.

                  As many as 1.40 lakh housing units measuring 1,000 square feet remained unsold in Mumbai and the Mumbai Metropolitan Region (MMR) in the second quarter of the current fiscal.

                  However, new launches are already being launched at prices lower than existing stocks, so a time correction is bound to happen sooner or later. And since buyers will not buy at current levels, sales are down to a two-year low, he added.



                  Not just Mumbai, but other cities like Chennai, Bangalore, NCR, Hyderabad and Pune have also witnessed a fall in sales sequentially. The wt avg all India price for new supplies is 14% lower than existing rates, which already shows fall in RE prices, which shall continue further.

                  Pune is worst affected with a 24 percent drop in property sales this quarter, down 52 percent year on year.



                  http://www.firstpost.com/economy/buy...w-1222199.html

                  >> If you see above in table, the inventory levels (unsold stock) in Pune is whopping atleast 10 times the sales, very, very huge bubble.
                  Last edited by realacres; November 12 2013, 10:29 PM. Reason: added points, links
                  If you are happy, you are successful.

                  Comment


                  • Re : Builders & Real Estate Bulls Theory Proved Wrong

                    All these charts
                    .Recently I read somewhere else that Luxury projects are on strong wicket,but here the chart shows for Pune something else.

                    Comment


                    • Re : Builders & Real Estate Bulls Theory Proved Wrong

                      Originally posted by vaibav123 View Post
                      All these charts
                      .Recently I read somewhere else that Luxury projects are on strong wicket,but here the chart shows for Pune something else.
                      Good point. But then why are so many luxury projects being launched?

                      Comment

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