Stock market is not yet stable, neither the job market is at the high of expectations. Then why real estate prices started increasing ...specially in Pune?
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  • Originally Posted by kulkarnipb
    Stock market is not yet stable, neither the job market is at the high of expectations. Then why real estate prices started increasing ...specially in Pune?

    > Gov should remove all tax benefits on buying houses as soon as possible.
    > Gov should curb all black money flowing into RE space.
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  • Not enough people have learnt lesson yet!

    Originally Posted by kulkarnipb
    Stock market is not yet stable, neither the job market is at the high of expectations. Then why real estate prices started increasing ...specially in Pune?


    Kulkarni,

    When enough people have learnt lessons the hard way, then sense will prevail and things will get back to normal.

    As of today, the habit of easy come, easy go regarding money has not yet been wrung out of enough people for things to get back to normal. Time will take care of it when enough people keep falling for this builder's trick of "buy before prices run away".

    cheers
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  • every builder thinks that his project ( scrap :D) should be sold at the rate of GOLD , I just called few days back to builder of Chandrama in baner, he is quoting 3750/- , :D ... while talking to him I realized that even he felt this is not the current rate for the area where his project is..!!!
    when asking, he said , the project is close to Highway..!! I left with :D laugh, and cut the ( thought - I am wasting my money) .


    True story is , there is no demand in Loans, banks have gone crazy with there credit amount... hence we can see reduced rates. even though builders are raising the prices , there is no deal happning. Seems it will take more than 1 year as still economy is not in verge of improving state. Nobody knows the actual picture....!!!
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  • Agree with you preet. In some of my earlier post, I had posted a thread which mentioned that even so called affordable houses are not getting sold:D. Fact remains, people now are very much aware of real scenario & have understood that RE doesn't always go up!!:)

    Awareness amongst buyers is the sole reason why banks + builders together are unable to fool the buyers as they did using fear element of price hike every other day during boom times.
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  • Originally Posted by deepak.patil
    > Gov should remove all tax benefits on buying houses as soon as possible.
    > Gov should curb all black money flowing into RE space.


    Bang on deepak, these are the central factors that are actual drivers to all BS, curbing entire black money is not feasible but if they systems more transparent this nonsense would not be perpetrated in the name of BUSINESS.
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  • agreed there is lot of supply around the market and may be lot of investors flat.

    but as always theres always a other side too.

    Recently a 2 bhk flat (re sale) in Aditya breeze park is sold at 37 lacs. whatever could be anyone's opinion but its also true that deal with this value has also happened.

    Prices has increased from what it were 6-9 months back, and its reality as of now. it could again fall in coming 6-9 months but that needs to be seen.
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  • Bull run ENDED 2007 itself.

    Originally Posted by hporwal

    Prices has increased from what it were 6-9 months back, and its reality as of now. it could again fall in coming 6-9 months but that needs to be seen.


    Can any one please tell me if prices have gone up from their peak in 2008?
    Just Keeping a short view of 6-9 months, and Ignoring prices are softer than 2008 peak will only hurt you.
    In very simple language bull run started in 2004 ENDED in 2007.
    Last 6-9 moths price hike is a very basic marketing stance, PBAP (or for that matter any builder will do, Even you and I, if were builders trying to sell will do that, wont you?)
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  • :(:o Sad
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  • ET article is prank, only heading is sensational if you read content of that it’s really vague. That article is meant only for creating activities in dull RE market. This news is just stimulus for people who are residing on the fence waiting for booking property.

    If you ask some of the people who are residing outside, do u think people are ready to invest in single property worth 1C by sacrificing 10 years worth savings?
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  • Originally Posted by compuwalah
    One of the reason might be
    ]http://economictimes.indiatimes.com/markets/real-estate/realty-trends/Returning-NRIs-boost-demand-for-residential-property/articleshow/5317267.cms
    Agree with Santosh here. The real fact remains that RE is now out of investors mind as everyone has burnt their fingers irrespective of the location/city in India, cases which are well discussed on this forum too.

    The issue remains that if there are no jobs overseas, why would the NRI invest money in RE? This is such an illiquid asset. Also, when one is not sure of his/her future, the saving component in cash increases rather than RE.

    Second fact is that if RE is indeed looking good for these Gulf buyers, why have exhibitions there at first place? It is more like PBAP exhibis which state 100 flats sold in 2 days:D.

    Though we can't rule out what ET says, ET in this article is more focussing on the interest & not on actual sale numbers, they are trying to mix interest in RE in sale of RE.
    Agree with Santosh here. The real fact remains that RE is now out of investors mind as everyone has burnt their fingers irrespective of the location/city in India, cases which are well discussed on this forum too.

    The issue remains that if there are no jobs overseas, why would the NRI invest money in RE? This is such an illiquid asset. Also, when one is not sure of his/her future, the saving component in cash increases rather than RE.

    Second fact is that if RE is indeed looking good for these Gulf buyers, why have exhibitions there at first place? It is more like PBAP exhibis which state 100 flats sold in 2 days:D.

    Though we can't rule out what ET says, ET in this article is more focussing on the interest & not on actual sale numbers, they are trying to mix interest in RE in sale of RE.
    Agree with Santosh here. The real fact remains that RE is now out of investors mind as everyone has burnt their fingers irrespective of the location/city in India, cases which are well discussed on this forum too.

    The issue remains that if there are no jobs overseas, why would the NRI invest money in RE? This is such an illiquid asset. Also, when one is not sure of his/her future, the saving component in cash increases rather than RE.

    Second fact is that if RE is indeed looking good for these Gulf buyers, why have exhibitions there at first place? It is more like PBAP exhibis which state 100 flats sold in 2 days:D.

    Though we can't rule out what ET says, ET in this article is more focussing on the interest & not on actual sale numbers, they are trying to mix interest in RE in sale of RE.
    Agree with Santosh here. The real fact remains that RE is now out of investors mind as everyone has burnt their fingers irrespective of the location/city in India, cases which are well discussed on this forum too.

    The issue remains that if there are no jobs overseas, why would the NRI invest money in RE? This is such an illiquid asset. Also, when one is not sure of his/her future, the saving component in cash increases rather than RE.

    Second fact is that if RE is indeed looking good for these Gulf buyers, why have exhibitions there at first place? It is more like PBAP exhibis which state 100 flats sold in 2 days:D.

    Though we can't rule out what ET says, ET in this article is more focussing on the interest & not on actual sale numbers, they are trying to mix interest in RE in sale of RE.
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  • I think nobody really knows what is going to happen in future. Overall, India really didn't have to face the problems of a recessionary environment till now luckily (as compared to our counterparts in the Western world). There was lot of noise made by the business houses and govt acted in whatever way it could. Being the election year, they couldn't have afforded any inaction. Also, people are trying to think that we are out of the woods as hikes have started happening, job markets are improving, car sales have gone through the roof, stock market has improved etc etc etc... But overall people on the ground are still scared. And one major difference in buying the house and any other item is the big ticket price for a house. The next big ticket item is a car which is about 3-4 lakhs only for majority. So, realty guys may be thinking that since everyone is having growth and prices are set to rise, so why not join the bandwagon.

    No one knows for sure whats going to happen in future and for now, sovereign defaults (which is a HUGE risk) has been wished away. The real trouble will start when a big country defaults (I hope this doesn't happen). But as I said earlier, nobody knows for sure what is going to happen in future. So, no point in timing the market, and if one finds a good property at an affordable price, go ahead and buy it (strictly for one's own usage only - Absolutely no investments into realty for now). If you don't get a good deal, don't buy. Another option is to look for deals in other cities (like Bangalore, Noida etc). I am sure Bangalore will offer better deals right now. Ofcourse owning a property in another city has its own challenges. But it sure can be thought of.
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  • Originally Posted by pjain2
    I think nobody really knows what is going to happen in future. Overall, India really didn't have to face the problems of a recessionary environment till now luckily (as compared to our counterparts in the Western world). There was lot of noise made by the business houses and govt acted in whatever way it could. Being the election year, they couldn't have afforded any inaction. Also, people are trying to think that we are out of the woods as hikes have started happening, job markets are improving, car sales have gone through the roof, stock market has improved etc etc etc... But overall people on the ground are still scared. And one major difference in buying the house and any other item is the big ticket price for a house. The next big ticket item is a car which is about 3-4 lakhs only for majority. So, realty guys may be thinking that since everyone is having growth and prices are set to rise, so why not join the bandwagon.

    No one knows for sure whats going to happen in future and for now, sovereign defaults (which is a HUGE risk) has been wished away. The real trouble will start when a big country defaults (I hope this doesn't happen). But as I said earlier, nobody knows for sure what is going to happen in future. So, no point in timing the market, and if one finds a good property at an affordable price, go ahead and buy it (strictly for one's own usage only - Absolutely no investments into realty for now). If you don't get a good deal, don't buy. Another option is to look for deals in other cities (like Bangalore, Noida etc). I am sure Bangalore will offer better deals right now. Ofcourse owning a property in another city has its own challenges. But it sure can be thought of.


    You said in your post that dont look for investment in property now & at the same time you are saying that one can buy property in Bangalore or in Noida
    If one is staying in Pune & he is not looking for investment then why the Hell anybody will buy in Bangalore or Noida??? You see to be too confused here...
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  • If you consider Balewadi area: Rates have surely increased by at least 10 % in last 6 months. Same time there were many ready possesion flats were available 6 months back now almost all of them are sold off. it's difficult to find ready possesion 2 bhk (New) flat
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  • Originally Posted by ash7979
    You said in your post that dont look for investment in property now & at the same time you are saying that one can buy property in Bangalore or in Noida
    If one is staying in Pune & he is not looking for investment then why the Hell anybody will buy in Bangalore or Noida??? You see to be too confused here...


    Hi Ashish,

    Sorry for not being clear in my message. As you pointed out, I am definitely confused. The main reason being inability to predict future with 100% accuracy. No one can really say for sure what is going to happen 3 years from now. All three possibilities are there... Rates going North, South or nowhere depending on how world economy shapes. All along people have been betting on a US recovery. And if US recovery is not as per the expectations (as is happening now), there would be continued outlfow of dollar to EM and when that happens, this will give rise to bubble in all EMs which means higher prices in the next 2-3 years in EMs including India (demand still continues to be strong, if only priced correctly). On the other hand, if US indeed recovers, there could be temporarly outflow of money from EMs which will probably shake up short term asset classes, like equities, commodities; But it would be too short a term to impact realty prices. Moreover, with US recovery on track (if it happens), EM economies will also stabilise and realty prices will stay at current levels (if not rise). The third scenario is eveyrthing fails to prop up the economy and no one buys realty till the prices come down to realistic levels (not sure if this would happen ever coz people do have money and at some point of time, the emotional side of buying a home takes over and one gives in.). The whole equation is muc more complex then what has been summarized in above statements and rules out lot of other possibilities.

    Amidst all this confusion, I am sure of at least one aspect ; and that is buying a property in suburban Pune at rates of 3200+ is definitely not a good idea, especially in those areas where the basic infra also is not in place. But someone who has the power (money) to buy a house now will run the risk of parking his money in FDs which are paying a paultry 5-6% these days (retail is still afraid of equities and at current sen levels, investing into equities is definitely not a good idea).

    So, one will end up parking money into FDs and run the risk of spending it on other trivial things like a holiday, buying/upgrading a car which may not be necessary etc (remember it takes a lot of patience and self-discipline in not spending as well).

    COming back to my thought of buying a property in Bangalore/Noida (especially Bangalore); I have personally seen quite a few deals in Bangalore which are happening at about 2600 psf (e.g., total package for a 3 BHK apmt 3 KM from IIM Bangalore was about 52 Lakhs for a 1800 sq ft apartment - basic apartment with standard amenities and good quality construction). This was in an area where roads are fully developed (no DP roads), no water problems, and the area is completely developed - schools, malls, groceries, hospitals available within 4 km radius. The builder also has a penalty clause in place where a fixed amount per month will be paid on delays and I have seen people benefitting from this clause as well. So, it is getting implemented also. So, if one has spare money and is able to find a good deal in those cities, then one can buy in those places and rent those properties (and rent one for him/her self in Pune as the effect would be the same). The rentals are at least at par if not more then Pune these days. If the prices rise further in Pune, then the same will happen in other cities as well (again an assumption); if the prices stay flat, then no harm done; one still owns a property in a pretty good locality to live in and not loosing out on anything. If prices fall - not really sure what will happen in that scenario. But there is a potential loss in this case.

    So, the option of looking out for property in other cities is only for those who are not sure of future trends and have the power to buy a flat now and most important have contacts/friends in other cities who can help in situations when you are out of country etc. However those who have the ability to predict the future and are sure of a fall in realty prices in the near future, it is definitely worth the wait for that elusive correction. But considering the trends in Pune, the value for money for realty, the behaviour of the builder community, the builder lobby and the so called correction that happened in Pune as compared to other cities - unless something drastic happens in Pune (some govt regulation, group of builders going bankrupt - so that the associations ability to finance the builders is not there etc), it is unlikely that the rates will come down significantly (at best they will be flat)... and I would definitely not buy a property in areas where the aptmts are sold on the basis of Dream Plans (a.k.a DPs).

    Hope I am better in terms of clarity as compared to my last post...
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