Real estate and residential prices are shooting through the roof. Be it big cities or small towns, spiralling real estate prices show little sign of easing off.

Low interest rates on home loans, coupled with huge demand for housing from India's burgeoning middle class, have seen property prices doubling in some cities. Add to this the mad frenzy for developing special economic zones (SEZs) that will gobble up huge tracts of land.

Do you feel that this is a bubble (like the one witnessed in 1995), when real estate prices plummetted?

Do you think high interest rates will lower demand for housing loans? Will you resist the temptation of buying a second home just because interest rates on home loans are increasing?

Should home loan interest rates have been increased? Will the real estate prices drop?

Tell us what you people thinks.
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  • Chennai flat prices still not showing any appreciable down trend?

    The prices are down in Bangalore, Mumbai etc. In Bangalore, one can get a good flat at Rs. 2000-2200/sq. ft. In Ahmedabad also it is in the same range. But in Chennai, it is not coming down though it is also not going up either. What is the unnatural thing that is happening in keeping the rates for so long at Chennai ? Is it that the demand outstrips the supply or none of the builders want to reduce the rates.? Is there a cartel working here? Why is it so unnatural here in Chennai? I heard that in a project, the land cost is 1/3, the construction is 1/3 and the rest 1/3 is the profit margin for the builder? Is this true. If so, there should be substantial reduction in the rates, say upto 15% atleast. But this is not happening. One of my known builder says, the rates will come down for large builders and outer limit projects but not for small peojects in the city limits of say 8 or 12 flats etc. for which the lands have been bought a high prices and the rates may remain. I would like to know the rate in Tambaram East near Sanatorium for a decent new 3 bed flat the current rate per sq. ft. I understand it is about Rs. 3500/sq.ft. Is it a reasonable rate? our frineds in this forum may please advise me. Thanks. K.Sivakumar
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  • Economy growing at 7% and Real State growing at 100%, this is just illusion created by greedy people and inefficient government. everyone including stock exchange and reality should grow natural sustainable rate.
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  • Wrong question

    ... it should be 'When will real estate prices crash finish'.

    The crash began in 2007 when property transactions began to slow down. Now it is more interesting to discuss to predict the bottom. IMHO, that will be in 2012.
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  • As per CNBC there are many Laks SQft commercial property is lying idle in Chennai. Come see in Bangalore too. No home taker. People shut down their business. Rent is falling ... 10000 rent comes to 9000 for flat. 10% discount ... Still it will fall...
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  • What do you plan to do IF ...

    Folks,

    The question is at the end of this post :).

    For a long time now I was wondering why is it that, while people appreciate what I'm saying, they are not really following the meaning of what it can do to them. I finally got it (I'm a bit slow ;)).

    The reason is, while I'm coming from what the Global Economic situation can do to the Indian Economy and therefore the RE market, most people on this forum are mainly focused on the operational issues like location, price, etc. So, let me try once again in another way. Consider the evidence in front of you:

    US
    Just 2 months ago, the US financial system was very near collapse. Then Paulson of Treasury blackmailed Senate and Congress to give him (without any effective oversight) $700 Billion to bring back stability to the system and get credit flowing again. Well, as of yesterday, they have apparently doled out 3 TIMES that amount (without congress knowledge) and still the markets are clogged. Imagine $ 2 Trillion and no effect. AIG, which took $85 Billion to bail themselves out have gone back repeatedly for more and the total is now $150 Billion (20% of the total amount only for one company?). So, its quite safe to assume that the final tally for the bailout will be anywhere upwards of $5 Trillion!!! :D - thats 5 times India's highest annual GDP ever!

    US has lost 1.2 million jobs in the last 12 months (with half of that in the last 3 alone!). GM is nearing collapse (Deutsche Bank has already rated their share at $0, zero) and have threatened that if they too are not bailed out and have to shut down, job losses in the Auto sector will be over 2 million quickly - this can immediately throw the US into depression. Already US uneployment is at 6.5%, expected to go as high as 10% (thats 3 million jobs more to go). The Great Deprerssion saw a 25% unemployment rate in the US.

    US Base Money supply change y-o-y has only been this high 2 times in the past 100 years. The first time, it was just before the Great Depression. The next time it was just before World War II. So, where are we headed?

    EU
    UK is in serious recession. So are Spain, Ireland, Germany, Greece, Romania and a host of other countries. Many are on the verge of recession. It is expected that EU may see a recession/depression worse than the US.

    Russia and Satellites
    Russia's Finance Minister boasted in Jan 08 that if at all the US recession was to be blunted, Russia would form the buffer with their oil-assited economic boom. Today they are at the door of the IMF asking for over $ 200 Billion.

    Asia Pacific
    Japan has been in a recession for over 18 years now. The Nikkei is now at a level last seen in 1984! Australia has been very weak for over 2 years now. Singapore is officially in recession. The Asian Tigers have been badly wounded and are now licking their wounds.

    China
    Guangzhou - a major export hub in China has - over the past few days - seen an average of 130000 (1.3 lakh) people leave by train daily for rural areas, mostly one-way. There are many such cities in southern and eastern China which are wirnessing a historic shift in population from Urban back to Rural as thousands of companies close down and millions of people are losing jobs. This is blamed on the Global Recession.

    India
    The latest export figures show a DIP of 15% in exports last month. Much of India's economic boom was shown in the huge Foreign Exchange reserves of $325 Billion we had, which peaked 3 month ago. In just 2 months, we have lost $65 Billion (or 20%). That was not in our control since Foreign Funds were pulling out. But the last 1 month has shown that while Imports has risen from 33% to 43%, exports has crashed from 23% to 10% growth. In the process net outflow was $10 Billion. Here's the equation. With export situation only worsening, India would probably run out of foreign exchange in exactly 2 years (what was built up over 18 years will get wiped out in 2!!!). If that half of happens, there will be chaos and growth will become negative!

    The last bastion of export strength is IT. IT (IMO) has been the backbone of RE buying in India and its the IT guys who are still gung-ho about continuing growth in India. Here is the latest update. Just 2 months ago, growth in global IT spend was said to come down from 6-8 % down to 3-5%. But growth it would definitely be, and so we are all safe said our IT leaders. The latest update? They are predicting now that it will no longer be reduced growth. There is likely to be a 5% negative growth in Global IT spend into 2009/10. Given that Global IT spend is north of $800 Billion and getting closer to $ 1 Trillion, we can safely assume that this global IT haircut will be upward of $65 Billion at least (maybe more). And you can bet on it that a lot of this haircut will come our way. Since we boasted that we dominate outsourcing (80% of global), let us assume that we will share at least 40% of the cut? Assuming outsourcing takes 25% of IT spend, we should see at least $6.5 Billion reduction in outsourcing, which is 15% drop in total exports of around $40 Billion.

    Coming to domestic IT outsourcing, that door too has been shut with yesterday's EcoTimes saying domestic IT is in reduction mode and will continue to be so.

    So, Varun, arun, ks and all the others. Given above situation as the best case what do you think a 15% drop in overall IT exports will do to jobs and salaries? Well, as far I can see, the best Net Margins in the Industry is around 15% - 20%. If we keep costs the same and let revenues fall 15-20%, basically the entire profits of the entire Industry will get wiped out. That cannot be allowed by managements. So, assuming that overheads (which has come down to 50% of total) takes a 10% hit affecting the overall drop by 5%, To compensate for the rest, employee expenses must take the rest of the hit. This gives us a figure of 20% drop in employee costs and this won't be smooth/even across the board.

    Varun, arun, ks, etc. Do you still think that salaries won't go down and jobs won't be lost? I still believe that job losses may even rise to around 10% to 15% of total Industry strength or even higher as global competition snatches away even more of our share of the pie as other countries will be even more hungry than us (we have not even factored this into this calculation). Also, with Obama coming in expect lots of jobs to go back to US. UK has already started shifting jobs back home significantly. Assuming IT employment of around 3 million or more, expect job losses exceeding 3 lakh people maybe even going to 5 lakhs. And the rest will see sharp salary cuts.

    Given the circumstances, do you really believe India will be the only country to see continuing growth through this crash? How? By going to niche markets. I pretty much covered the whole world. Where is this niche area you are talking about which can give India (alone) around $6 Billion in IT exports revenue?


    So, here are the questions:

    Given that at least some of this is true :), (I have always been conservative in my estimates and reality always overshoots them)

    1. What would you now do with respect to real estate?

    2. How would this outlook now change your perception (if you accept it) and thereby, your actions going forward.

    cheers
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  • well, i jus said i havent see salaries being cut down.. but doesnt mean i believe it wont.. well it is the first bear market i am following .. seems like there would be a lot i will learn from this.

    as for real estate.. i did have plans to invest in RE.. but with the recent events from 2 months .. i was obliged to get second opinions and learnt more about this. I am pretty sure my plans are postponed for 2 years. Doesnt make sense to buy anything in the near future.

    now what i am curious about is the market that would make a diffence. Since stocks and RE are going downhill .. it is pulling down everything else with it too.... so what next is the best place to invest.. during such a bear market?

    if someone says that this is temporary and the economy is going to improve.. i dont believe it.. cause the bailouts are just to sustain the situation and not immediately crash the economy.. towards the end .. how long will it survive... ?

    Companies like AIG has an employee strength of 120000.. if it would have been bankrupt the world economy would have crashed big time.. bailout money is to survive enough to break down the company .. sell it in scrap value to other companies and return the earned money back to the gov. so that the employees survive and jobs arent lost.
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  • -- strange.. i posted a message .. it was there a moment and then disappeared..

    well, i jus said i havent see salaries being cut down.. but doesnt mean i believe it wont.. well it is the first bear market i am following .. seems like there would be a lot i will learn from this.

    as for real estate.. i did have plans to invest in RE.. but with the recent events from 2 months .. i was obliged to get second opinions and learnt more about this. I am pretty sure my plans are postponed for 2 years. Doesnt make sense to buy anything in the near future.

    now what i am curious about is the market that would make a diffence. Since stocks and RE are going downhill .. it is pulling down everything else with it too.... so what next is the best place to invest.. during such a bear market?

    if someone says that this is temporary and the economy is going to improve.. i dont believe it.. cause the bailouts are just to sustain the situation and not immediately crash the economy.. towards the end .. how long will it survive... ?

    Companies like AIG has an employee strength of 120000.. if it would have been bankrupt the world economy would have crashed big time.. bailout money is to survive enough to break down the company .. sell it in scrap value to other companies and return the earned money back to the gov. so that the employees survive and jobs arent lost.
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  • Basically the market has been inflated so much that people dont wanna look back or wanna satisfy with small pie. In US/UK the increment of salary comes as 3-8% where as in India we expect min of 10%. It variesed between 10-50%. And as you know there is always 2 kind of graph.
    1. V shaped - fall-grow fast.
    2. U shaped - fall-grow slow.
    we are in 1 st catgory so as we grow fast we also will fall fast.
    People can't leave with less salary now as we are used to get high income. Our spending style has been changed. People still expecting a 20-50% of margin in the business. Do you think this will be possible ? Developer dont wanna loose the margin.
    This situation will again increase the Gap between Poor and Rich people. It will lead to a higher rate of crime.
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  • I was stunned by the data ...

    Originally Posted by arin_12
    Basically the market has been inflated so much that people dont wanna look back or wanna satisfy with small pie. In US/UK the increment of salary comes as 3-8% where as in India we expect min of 10%. It variesed between 10-50%. And as you know there is always 2 kind of graph.
    1. V shaped - fall-grow fast.
    2. U shaped - fall-grow slow.
    we are in 1 st catgory so as we grow fast we also will fall fast.
    People can't leave with less salary now as we are used to get high income. Our spending style has been changed. People still expecting a 20-50% of margin in the business. Do you think this will be possible ? Developer dont wanna loose the margin.
    This situation will again increase the Gap between Poor and Rich people. It will lead to a higher rate of crime.



    Folks,

    I thought it would be the IT sector that would bring down the house of cards. Then, because of loss of the last support for buying (even if the volumes were down), Real Estate companies would come crumbling down.

    But on Todays Big Fight, there was a very interesting piece of news I heard. Apparently the estimated strength of people employed by the organised and direct RE business is 1 Crore! That itself is much, much bigger than the IT industry. But the real kicker is the peripheral and support industry (Realtors, etc). This is estimated to be 3 times that - or 3 crores!!!

    And remember, all these people were feeling rich when the market was booming. I assume many of these people have sunk in much of their money back into this industry itself.

    If 3 - 5 lakh people will go into some kind of unemployment or under-employment (part-time, etc) in the IT export business (my estimate) and that will cause a major quake in the economy, imagine what would happen if say even 15% of people in the RE business go out of employment (that would be around 45 lakh people). Assuming that each earning member supports around 3 others, this would amount to mearly 2 crore people seeing drastic reduction in their lifestyles. And people will have to see much lower income as well as redefine their spending styles. There will be no choice.

    No Arin. It is no longer about builders not wanting to cut down their margins and therefore they will not cut price. I believe that many builders will go entirely out of business and become bankrupt. Some of the bigger builders even may go bankrupt due to their high leverage.

    The latest news is the transaction by StanChart Bank buying property in BKC in Bombay at 30000 / SFt. This is 33% lower than the last transaction a few months ago at 45000 / SFt. I expect that here too prices will go down at least double of this decline, maybe more!

    This will definitely NOT be a V-shaped recovery. This will be a fairly long L-shaped recovery and estimates by conservative economists is that it may take anywhere from 3 or 4 to as long as 8 years for full recovery. This is assuming the rest of the world also recovers fast.

    Someone posted that in Vellachery (or somewhere like that) 4000 - 4200 is a good price as it will not go down too much, maybe 10% or so (you are talking 96 lakhs for a 2400 SFt? Maybe, like the consultant from US said if you said that mich for a sq. yard!!! :)). Please do this before anything else. Research the prices all the way back to 2001-2002 in any of the areas you plan to buy. Prices will at least go down to 2003-2004 levels and maybe all the way to 2002 levels. If things really get bad and depression sets in in the West, all bets are off and you may even see mid-90s prices.

    Remember, it will take only 2 years for our Foreign Exchange reserves to go down to very dangerous levels at the rate at which it is getting depleted. That is a whole new ball-game as then, imports will get severely hit and the ability of the economy to grow will sharply come down. We will become a basket case again like in the early 1990s.

    cheers
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  • Originally Posted by wiseman
    Folks,

    The question is at the end of this post :).

    For a long time now I was wondering why is it that, while people appreciate what I'm saying, they are not really following the meaning of what it can do to them. I finally got it (I'm a bit slow ;)).


    US
    Just 2 months ago, the US financial system was very near collapse. Then Paulson of Treasury blackmailed Senate and Congress to give him (without any effective oversight) $700 Billion to bring back stability to the system and get credit flowing again. Well, as of yesterday, they have apparently doled out 3 TIMES that amount (without congress knowledge) and still the markets are clogged. Imagine $ 2 Trillion and no effect. AIG, which took $85 Billion to bail themselves out have gone back repeatedly for more and the total is now $150 Billion (20% of the total amount only for one company?). So, its quite safe to assume that the final tally for the bailout will be anywhere upwards of $5 Trillion!!! :D - thats 5 times India's highest annual GDP ever!

    US has lost 1.2 million jobs in the last 12 months (with half of that in the last 3 alone!). GM is nearing collapse (Deutsche Bank has already rated their share at $0, zero) and have threatened that if they too are not bailed out and have to shut down, job losses in the Auto sector will be over 2 million quickly - this can immediately throw the US into depression. Already US uneployment is at 6.5%, expected to go as high as 10% (thats 3 million jobs more to go). The Great Deprerssion saw a 25% unemployment rate in the US.
    cheers


    Hello Wiseman. I am slowly becoming your fan. If you are starting a member club, then let me be your first member.:D

    Anyway, regarding the latest news on this $700 billion bail out, looks like Paulson has backed out from buying the toxic mortgage bundles. Also if the US Auto industry is not bailed out, then we may shed another 1 millions jobs within a very short period of time.
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  • Real estate is challenged?

    Recent election of US gave a majority win for OBAMA! Indians have a softcorner for OBAMA comapared to MACCAIN. But the truth is United States is hanging on cliff! Yes it needs a stubborn leader like Mccain to atleast postponed the death for America,OBAMA has soft skills which results in PETRODOLLAR CONFLICT.So how does PETRODOLLAR CRISIS affect Indians and its Realty.Obama speaks of saving USA by giving taxbreaks ,good medicare conditions,but America is in Jeopardy ,its dipomatic ties has worsen.
    Venezeula ,Iran and Russia has empowered together to open an oilexchange and sell them in Euros.Ultimately US can invade Iran or Venezeula ,do you think can it do with Russia?Not at any cost.At the present global financial crisis major economies like India,China and Japan are in trouble (NOT AMERICA).Because much of these economies has TRADE DEFICIT with America.If America starts to sink these economies dollar reserve and their past 5 decades wealth will be wiped away!!!.
    When there is weak dollar or any of the Proven oil reserves wealth country starts to sell oil in other than Dollar ,many small countries statrs to dump thier dollar reserve and follow EURO ,resulting in major economic crash in india ,china and japan.This is what GLOBALISATION has helped us to achieve.
    I assure even if Petro dollar crisis doesnt occur ,there are other major challenges still facing the American Government.They cant keep on lowering their interest rate,foreign currency will be restricted .Since its heavy consuming economy it affects the exports of china and Indian software exporters. Where massive number of job losses in the next 2 years.There is no speech of softening in real estate prices-YES,No softening but hard crash ,there seems to be uncertainity in world politics along with Petrodollar crisis.Good time guys,if you have any property sell them in few weeks-ofcourse who is going to be the buyer?Lets wait and watch!
    Cheers
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  • Chennai realty not coming down?

    Originally Posted by ks2071746
    The prices are down in Bangalore, Mumbai etc. In Bangalore, one can get a good flat at Rs. 2000-2200/sq. ft. In Ahmedabad also it is in the same range. But in Chennai, it is not coming down though it is also not going up either. What is the unnatural thing that is happening in keeping the rates for so long at Chennai ? Is it that the demand outstrips the supply or none of the builders want to reduce the rates.? Is there a cartel working here? Why is it so unnatural here in Chennai? I heard that in a project, the land cost is 1/3, the construction is 1/3 and the rest 1/3 is the profit margin for the builder? Is this true. If so, there should be substantial reduction in the rates, say upto 15% atleast. But this is not happening. One of my known builder says, the rates will come down for large builders and outer limit projects but not for small peojects in the city limits of say 8 or 12 flats etc. for which the lands have been bought at high prices and the rates may remain. I would like to know the rate in Tambaram East near Sanatorium for a decent new 3 bed flat the current rate per sq. ft. I understand it is about Rs. 3500/sq.ft. Is it a reasonable rate? our friends in this forum may please advise me. Thanks. K.Sivakumar


    Kindly do respond to the prevalent flat prices at Tambaram Sanatorium East area-is Rs. 3500/sq.ft. reasonable?
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  • Originally Posted by ks2071746
    Kindly do respond to the prevalent flat prices at Tambaram Sanatorium East area-is Rs. 3500/sq.ft. reasonable?


    Anything above Rs 3000 per sqft in chennai outer area is high in the present market.

    Steel prices are down by 30%. Labout cost also coming down due to no demand.
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  • Originally Posted by wiseman
    Folks,

    The question is at the end of this post :).

    For a long time now I was wondering why is it that, while people appreciate what I'm saying, they are not really following the meaning of what it can do to them. I finally got it (I'm a bit slow ;)).

    The reason is, while I'm coming from what the Global Economic situation can do to the Indian Economy and therefore the RE market, most people on this forum are mainly focused on the operational issues like location, price, etc. So, let me try once again in another way. Consider the evidence in front of you:

    US
    Just 2 months ago, the US financial system was very near collapse. Then Paulson of Treasury blackmailed Senate and Congress to give him (without any effective oversight) $700 Billion to bring back stability to the system and get credit flowing again. Well, as of yesterday, they have apparently doled out 3 TIMES that amount (without congress knowledge) and still the markets are clogged. Imagine $ 2 Trillion and no effect. AIG, which took $85 Billion to bail themselves out have gone back repeatedly for more and the total is now $150 Billion (20% of the total amount only for one company?). So, its quite safe to assume that the final tally for the bailout will be anywhere upwards of $5 Trillion!!! :D - thats 5 times India's highest annual GDP ever!

    US has lost 1.2 million jobs in the last 12 months (with half of that in the last 3 alone!). GM is nearing collapse (Deutsche Bank has already rated their share at $0, zero) and have threatened that if they too are not bailed out and have to shut down, job losses in the Auto sector will be over 2 million quickly - this can immediately throw the US into depression. Already US uneployment is at 6.5%, expected to go as high as 10% (thats 3 million jobs more to go). The Great Deprerssion saw a 25% unemployment rate in the US.

    US Base Money supply change y-o-y has only been this high 2 times in the past 100 years. The first time, it was just before the Great Depression. The next time it was just before World War II. So, where are we headed?

    EU
    UK is in serious recession. So are Spain, Ireland, Germany, Greece, Romania and a host of other countries. Many are on the verge of recession. It is expected that EU may see a recession/depression worse than the US.

    Russia and Satellites
    Russia's Finance Minister boasted in Jan 08 that if at all the US recession was to be blunted, Russia would form the buffer with their oil-assited economic boom. Today they are at the door of the IMF asking for over $ 200 Billion.

    Asia Pacific
    Japan has been in a recession for over 18 years now. The Nikkei is now at a level last seen in 1984! Australia has been very weak for over 2 years now. Singapore is officially in recession. The Asian Tigers have been badly wounded and are now licking their wounds.

    China
    Guangzhou - a major export hub in China has - over the past few days - seen an average of 130000 (1.3 lakh) people leave by train daily for rural areas, mostly one-way. There are many such cities in southern and eastern China which are wirnessing a historic shift in population from Urban back to Rural as thousands of companies close down and millions of people are losing jobs. This is blamed on the Global Recession.

    India
    The latest export figures show a DIP of 15% in exports last month. Much of India's economic boom was shown in the huge Foreign Exchange reserves of $325 Billion we had, which peaked 3 month ago. In just 2 months, we have lost $65 Billion (or 20%). That was not in our control since Foreign Funds were pulling out. But the last 1 month has shown that while Imports has risen from 33% to 43%, exports has crashed from 23% to 10% growth. In the process net outflow was $10 Billion. Here's the equation. With export situation only worsening, India would probably run out of foreign exchange in exactly 2 years (what was built up over 18 years will get wiped out in 2!!!). If that half of happens, there will be chaos and growth will become negative!

    The last bastion of export strength is IT. IT (IMO) has been the backbone of RE buying in India and its the IT guys who are still gung-ho about continuing growth in India. Here is the latest update. Just 2 months ago, growth in global IT spend was said to come down from 6-8 % down to 3-5%. But growth it would definitely be, and so we are all safe said our IT leaders. The latest update? They are predicting now that it will no longer be reduced growth. There is likely to be a 5% negative growth in Global IT spend into 2009/10. Given that Global IT spend is north of $800 Billion and getting closer to $ 1 Trillion, we can safely assume that this global IT haircut will be upward of $65 Billion at least (maybe more). And you can bet on it that a lot of this haircut will come our way. Since we boasted that we dominate outsourcing (80% of global), let us assume that we will share at least 40% of the cut? Assuming outsourcing takes 25% of IT spend, we should see at least $6.5 Billion reduction in outsourcing, which is 15% drop in total exports of around $40 Billion.

    Coming to domestic IT outsourcing, that door too has been shut with yesterday's EcoTimes saying domestic IT is in reduction mode and will continue to be so.

    So, Varun, arun, ks and all the others. Given above situation as the best case what do you think a 15% drop in overall IT exports will do to jobs and salaries? Well, as far I can see, the best Net Margins in the Industry is around 15% - 20%. If we keep costs the same and let revenues fall 15-20%, basically the entire profits of the entire Industry will get wiped out. That cannot be allowed by managements. So, assuming that overheads (which has come down to 50% of total) takes a 10% hit affecting the overall drop by 5%, To compensate for the rest, employee expenses must take the rest of the hit. This gives us a figure of 20% drop in employee costs and this won't be smooth/even across the board.

    Varun, arun, ks, etc. Do you still think that salaries won't go down and jobs won't be lost? I still believe that job losses may even rise to around 10% to 15% of total Industry strength or even higher as global competition snatches away even more of our share of the pie as other countries will be even more hungry than us (we have not even factored this into this calculation). Also, with Obama coming in expect lots of jobs to go back to US. UK has already started shifting jobs back home significantly. Assuming IT employment of around 3 million or more, expect job losses exceeding 3 lakh people maybe even going to 5 lakhs. And the rest will see sharp salary cuts.

    Given the circumstances, do you really believe India will be the only country to see continuing growth through this crash? How? By going to niche markets. I pretty much covered the whole world. Where is this niche area you are talking about which can give India (alone) around $6 Billion in IT exports revenue?


    So, here are the questions:

    Given that at least some of this is true :), (I have always been conservative in my estimates and reality always overshoots them)

    1. What would you now do with respect to real estate?

    2. How would this outlook now change your perception (if you accept it) and thereby, your actions going forward.

    cheers


    Excellent post!!!!!!!!!!! :)
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  • Why Free Bees

    Why RE developer are offering free Bees without cutting the rate. The reason is they can free up the excess land that they have invested. And at the same time they can keep the price intact. If they try to reduce the rate then whole rate will start falling.
    Assume that Instead of giving a 2Laks Car as free they can reduce the per SQFT rate. Again if the developer buy car from a dealer in Bulk Auto Dealer will give much less compare to the Individual. Its just a way of luring the Customer. End of the day Developer expect you to pay the same.
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