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Real Estate about to crash by June-July 2010

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Real Estate about to crash by June-July 2010

Last updated: September 9 2014
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  • Real Estate about to crash by June-July 2010

    Folks,

    Have been hearing from market sources, big correction(30-40%) expected in sen and subsequently in RE. Looking at the fallouts in Greece and other EU markets, and even sen is down by close to 800 points already in last 1 week, the news seems to be kinda true.

    Also, looking at the exorbitant prices (3500 psf) being quoted by pune builders in areas like Pimple Saudagar/wakad/Balewadi, a correction seems more than over-due. I think rates there should be in the range of 2500-2800 max, looking at the dirt-cheap prices they hv got the land years ago.

    I visited Pune 4 times last month, and spent all days entirely on flat-hunt and hv concluded it makes all the sense to wait for things to cool down.

    Please share thoughts? thx..
  • #2

    #2

    Re : Real Estate about to crash by June-July 2010

    A correction is due. But i dont think it will happen so quickly. I feel prices will correct by 10 to 20% by May - 11.

    Comment

    • #3

      #3

      Re : Real Estate about to crash by June-July 2010

      I hope it should true so that middle income group buyer can buy flat at least

      Comment

      • #4

        #4

        Re : Real Estate about to crash by June-July 2010

        June to September is generally a good time to close a deal due to the rainy season, and other religious-belief related fundas which ensures people don't close deals during this time.

        It could be a good time because last year around this time in 2009 the market dipped for a bit. Although this applied to Mumbai mostly, and Pune just stood like a rock and didn't budge too much.

        Comment

        • #5

          #5

          Re : Real Estate about to crash by June-July 2010

          Assume in a location like Baner there are 80 projects having an average size of 100 units. Each project has lets say roughly sold 25% and 75% is still remaining. So there are 6000 units still remaining in a place like Baner. by selling 25% to 30% builders have already recovered their basic investment in the project. So for the remaining 6000 units even if they sell 2% per month ie 120 units or 1.5 units per project , they are still making a clear profit of Rs 48,00,000 ( 1.5 units X Rs 3200 per sqft X 1000 Sqft - average size of a unit ) per month. All they have to is place ads & hoardings ( that cost also has been recovered by selling the initial 25% ) regularly. Even if they move at this pace WITHOUT increasing the property prices each builder ends up making a clear profit of 5.76 CR per year. Even if they are 50% effective in doing this they still end up making a profit of 2.88CR per project. So my question is very simple WHERE is the pressure to reduce prices?

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          • #6

            #6

            Re : Real Estate about to crash by June-July 2010

            I think....Builders have earned enough to play waiting games though market dips.SO,Until people moving to pune and buying in pune wouldn't stop or reduce, nothing's going to happen.
            It's related more with stupid buyer and not with arrogant saler...

            Comment

            • #7

              #7

              Re : Real Estate about to crash by June-July 2010

              Topic

              Dil ko behalaaaney ke liye, khayaal accha hai Gaalib

              Comment

              • #8

                #8

                Re : Real Estate about to crash by June-July 2010

                Originally posted by manish22 View Post
                Folks,

                Have been hearing from market sources, big correction(30-40&#37 expected in sen and subsequently in RE. Looking at the fallouts in Greece and other EU markets, and even sen is down by close to 800 points already in last 1 week, the news seems to be kinda true.

                Also, looking at the exorbitant prices (3500 psf) being quoted by pune builders in areas like Pimple Saudagar/wakad/Balewadi, a correction seems more than over-due. I think rates there should be in the range of 2500-2800 max, looking at the dirt-cheap prices they hv got the land years ago.

                I visited Pune 4 times last month, and spent all days entirely on flat-hunt and hv concluded it makes all the sense to wait for things to cool down.

                Please share thoughts? thx..
                Next three years will be more worse for the world ....
                There is lot more Hellish events that can happen in next few years.....
                So even 50% drop .... 60 ....

                Those who can understand are already taking proactive actions...
                Rest pls ignore.....
                as they have to be BAKARAs
                People will be scared to talk about property .....

                Comment

                • #9

                  #9

                  Re : Real Estate about to crash by June-July 2010

                  Originally posted by frugality View Post
                  Next three years will be more worse for the world ....
                  There is lot more Hellish events that can happen in next few years.....
                  So even 50% drop .... 60 ....

                  Those who can understand are already taking proactive actions...
                  Rest pls ignore.....
                  as they have to be BAKARAs
                  People will be scared to talk about property .....

                  Do you really understand what you are saying? If that happens no one of use will be in jobs first thing.
                  check this forum there have been even bigger claims in last 2 years, then do some reality check.
                  First it was diwali, then it was new year, then it was summer.
                  It does not work like that my dear. Dil ko bahlane ki liye khayal accha hai

                  Comment

                  • #10

                    #10

                    Re : Real Estate about to crash by June-July 2010

                    Tooo good

                    Originally posted by puser View Post
                    Topic

                    Dil ko behalaaaney ke liye, khayaal accha hai Gaalib

                    Comment

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