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- Below is article from DNA News paper of 22nd June 08
It’s slowdown, say developers
Anisha Ashokan. Vashi
With inflation hovering around 11.08 per cent and the general slowdown in market, even the most optimists in the city now proclaim that the realty market is in for a slowdown. The enquiries and sales have been affected tremendously in the last few days, claim developers and real estate agents in the city.
Managing Director of Prajapati Group, Rajesh Prajapati agreed that there is a 30 to 40 per cent fall in enquiries and 50 to 60 per cent in sales. Agreeing to him, Devang Trivedi of Progressive Developers said that the market has slowed considerably.
Trustee of Navi Mumbai Chamber of Housing (NMCH), Manohar Shroff also agreed that there is a considerable slowdown in the property market which can be attributed to various reasons varying from inflation to fall in share market. “There is a negative feeling about investments itself as everything is running in to losses. Also, there is a considerable fall in housing loan applications as well,” Shroff said.
Another developer added that in a recent exhibition at Mumbai, there had been insecurity among developers in general as most of them are facing financial crunch.
Trivedi further said that apart from enquiries and sales, the rates in majority of Navi Mumbai areas have also seen a downward shift. “Projects in areas like CBD-Belapur and Palm Beach are still going strong while in areas like Kharghar and Kalamboli there is a fall in the rates as well,” Trivedi said adding, there is a seven to eight per cent fall in property rates in these areas. Shroff added that areas that have excess supply are reducing their rates as the developers are facing a crunch after launching many projects while in areas like Vashi and Nerul there are not many projects under construction.
Another developer said that it is the residential projects that have seen a major impact. “Recently, one of the developers in Sector 13, Kharghar sold a flat for Rs 2400 per sq ft and deals have slowed down considerably,” he said adding, most are expecting correction in the market in next few weeks. “There is a lukewarm response from people since last two weeks but this is the best time to buy for personal use,” Prajapati added.CommentQuote0Flag
- Few updates on real estate.
No person from this Business will tell that Real Estate sector is going down. Becos as much as hype/boom that much profit they can make. See this URL for some updation.
- new housing
Town Planning consultancy is based within the heart city, providing an extensive range of planning services, development potential, site appraisals, new housing, rural diversification, town planning to professionals.
if any one want know about it can relpy me or send me private massege...CommentQuote0Flag
- Originally Posted by prat12Please give me one example where the prices of property have fallen from what they were 5 years ago?
Prat12, not so fast. First of all RE cycles are 30-year cycles, not your "last-few-years" cycles. They are much longer than Stock Market cycles. So a few years' experience is like a 5-year old kid's experience. It makes one (NOT you) terribly overconfident and arrogant and entices them to make the biggest mistake of their life at precisely the wrong time. See my post under "the coming crash" ...
Here is an example as a reply to your question (your experience is very short indeed!!!)
The most prime property on MG Road in Bangalore (which was the ONLY boom IT city in 1995) crashed from around Rs.12,500 per SFt at the peak in 1995 to around Rs.2,500 at the bottom in 1998 thats a FULL 80%). At the bottom, you couldn't find a buyer for love or money - it was that bad! MG Road regained the original peak only in early-2005, a FULL 10 YEARS LATER. Whitefield (in those days outside Bangalore) crashed from 60 lakhs to 10 lakhs an acre in the same period and no buyers at the bottom. Why? I remember even Prestige Builders had a VERY HARD time selling their "Laughing Waters" property in Whitefield till a couple of years ago. It was lying in such disrepair for such a long time with no one interested since the rumor was that theey had a water problem there - in those days people asked pertinent questions about the propery they were buying - not madly rushing into buying junk, just because the Realtors were scaring them that prices will run away never to return again :).
So, don't be so cock-sure about land prices not coming down ever - what goes up too fast WILL come down even faster! :). Like our stock market in recent months. And I'm NOT BULLSHITTING here. Go back and check the data if you care.
The Airlines Industry is already started seeing a negative growth. GMR Infrustruct the deleloper of Bangalore and HJyderabad Airport is Cry to over come their losses. Very few passenger in the Airport. Price of the Flight Charges has gone up crazyli. People are started going Back to Old Sweet Train for travelling.
Dont you think so this is a slowdown ???CommentQuote0Flag
- Slow Down
please have your facts right . GMR is not the developer of Bangalore airportCommentQuote0Flag
- GMR must be thanking their lucky stars :)Originally Posted by shettyspsplease have your facts right . GMR is not the developer of Bangalore airport
You are right Shetty. And GMR must be tanking their lucky stars that they did not build both the Airports - else, in future they may be facing double the losses? :D
Just kidding! But there is news that Airlines are facing a huge amount of losses and that many smaller, low-cost airlines will soon go bankrupt (since, now there is absolutely no way to raise additional funds - no bank credit, no investor love, no private funds!!).
Soon, with a sharp decline in pasenger traffic it just might make sense to revert to the old airports (at least in Bangalore) since, now-a-days, the cost of going to/coming from the new Airport from city is so high that it not only covers a comfortable A/C trip by Shatabdi to say Chennai (with a lot of refreshments thrown in which the Airlines don't do :)) but also leaves you some money in pocket as well as does the trip nearly in the time it takes you to fly.
- KF and Jet is planning to operate jointly. Are you still think about property value crash then you are fool.
See in Bangalore, 4000/sqft you are getting 2000-2500. You will see more downtrend as the IT job is under threat again....CommentQuote0Flag
- ICICI Bank the country's second largest lender, has raised its home loan rates by 1 per cent for new borrowers. The bank raised it floating rates from 12 per cent to 13 per cent, with the fixed rate being raised to 16.5 per cent from October 10. Despite the slew measures taken by the central bank to ease the liquidity condition, the private lender has hiked its home loan rates in response to high cost of funds.CommentQuote0Flag
- Recently, one of the developers in Sector 13, Kharghar sold a flat for Rs 2400 per sq ft and deals have slowed down considerably,” he said adding, most are expecting correction in the market in next few weeks. “There is a lukewarm response from people since last two weeks but this is the best time to buy for personal use,” Prajapati added.CommentQuote0Flag
- I suppose there are more than 1 example given. So Mr prat12, what next..................
R u there or bhaag geyeCommentQuote0Flag
- no offense meant but wiseman are u a perenial bear ??:bab (4):CommentQuote0Flag