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RE in India is a dead horse / dead golden goose

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RE in India is a dead horse / dead golden goose

Last updated: March 18 2012
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  • RE in India is a dead horse / dead golden goose

    Real estate in India is a DEAD HORSE. People are desperately beating it to gallop. But the fact is , it is dead.

    Once upon a time it was a good investment option. Used to yield handsome returns on investment in about 5 years time. This was in late 90s and early 2000. But the golden goose was killed by greedy people ( typical greedy indian mentality).

    To wake up the DEAD horse , all types of tricks are used :

    (a) Scaring people : The Maharastra RE devp president said one year ago that if you dont buy now, next year the rates will be doubles. Well, the inventory in this guy's company is doubling if any thing.

    (b) Rumors and misinformation : From bank loans to IT. IT boom is happening in RE advertizements only. Infact IT is going through a very tough phase and perhaps going through a correction itself.

    (c) Artificial demand : Any new project you call, they say, all booked . Just one unit ( that too on the top floor) is left. lol. And two years down the road, the same project readvertizes.

    But , if the horse is sick, there are chances of it recuperating. The horse is dead. So long RE.

    On hind sight people should not have killed the goose. It was laying golden eggs. Enjoy the eggs and should have let the goose live.
  • #2

    #2

    Re : RE in India is a dead horse / dead golden goose

    Originally posted by sjain123 View Post
    Real estate in India is a DEAD HORSE. People are desperately beating it to gallop. But the fact is , it is dead.

    Once upon a time it was a good investment option. Used to yield handsome returns on investment in about 5 years time. This was in late 90s and early 2000. But the golden goose was killed by greedy people ( typical greedy indian mentality).

    To wake up the DEAD horse , all types of tricks are used :

    (a) Scaring people : The Maharastra RE devp president said one year ago that if you dont buy now, next year the rates will be doubles. Well, the inventory in this guy's company is doubling if any thing.

    (b) Rumors and misinformation : From bank loans to IT. IT boom is happening in RE advertizements only. Infact IT is going through a very tough phase and perhaps going through a correction itself.

    (c) Artificial demand : Any new project you call, they say, all booked . Just one unit ( that too on the top floor) is left. lol. And two years down the road, the same project readvertizes.

    But , if the horse is sick, there are chances of it recuperating. The horse is dead. So long RE.

    On hind sight people should not have killed the goose. It was laying golden eggs. Enjoy the eggs and should have let the goose live.

    Fully agree. But it is not the builders alone. Its builders, brokers, politicians and even buyers. All are accomplices in this theater of absurd.

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    • #3

      #3

      Re : RE in India is a dead horse / dead golden goose

      Reviving is a myth.

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      • #4

        #4

        Re : RE in India is a dead horse / dead golden goose

        May be the bust in RE will give rise to another sunshine sector like agriculture. Who knows. When manufacturing industry reached dead end, IT took over. Likewise who knows what will take over RE. But whatever happens, I wish only well informed and educated individuals like in IT should be able manage and drive it ( unlike in RE ).

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        • #5

          #5

          Re : RE in India is a dead horse / dead golden goose

          Originally posted by raviteja2699
          Well . Give it a five year incubation. For any other industry to come up , it will take a minimum of 5 years. Many people on this forum will retire
          Wat is ur take ? Agri business again ? Khe baadi jay ho..lol.

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          • #6

            #6

            Re : RE in India is a dead horse / dead golden goose

            It should not bother

            Originally posted by raviteja2699
            See how companies are moving their assets to countries like AFRICA. They are buying huge tracts of agri land. So next wave is agri.

            If my guestimate is correct, within one year, more than half the RE businesses will shutter down and look for ways to liquidate their assets.
            It should not bother you really if you are not an investor or a buyer in RE. Isnt it ?

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            • #7

              #7

              Re : RE in India is a dead horse / dead golden goose

              Dont think so

              Originally posted by murari1
              Well. It will have an overall bad effect on the economy.
              Dont think so . RE is less than 10%. Its pegged at 6% this year of the GDP.

              So I believe resources will flow out of RE to some other field.

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              • #8

                #8

                Re : RE in India is a dead horse / dead golden goose

                Agri will be king

                Originally posted by monkatheart1 View Post
                Wat is ur take ? Agri business again ? Khe baadi jay ho..lol.


                With all the concretization, we will run out of farms to grow food. So agri business will revive. The farmer will be king.

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