We are not even completely out of recession, and greedy builders have started playing their games once again. They have already started jacking up the prices of their properties !
Will this greediness spell doom for Indian Real Estate?
Honestly, if you think we are completely out of woods, just wait for one bad news and see how the pack of card collapses – Not that I want it to happen – but we need to (especially the builders) need to put aside their greediness a bit and tread cautiously.
Let me tell you, the greediness is not on the part of builders alone – its also the people who are wanting to make a quick buck on the volatile Real Estate Market. They buy residential / commercial properties and sell it in less than couple of years cashing in on higher property prices. The people who suffer are actually the ones who want to buy their dream home to live in.
In Pune, the general feeling is that property rates have gone up by around 15% – 20% over last couple of months. Whats more, country’s largest home developer, DLF, sold close to 1,400 units in one day alone; while in Mumbai, another company sold 90 percent of its premium apartments in less than four months, a surprising achievement in the times of recession.
More often than not, majority of these buyers are real estate traders (not even investors) – The poor home buyer – who was hopeful that property cost would come down further is left hanging again.
Readers would love to read this story – which depicts very well how the property price bubble builds up !
In 2007, I had written a post on how I had made a fool of myself, giving advice to my cousin on property prices (which incidentally has close to 500 comments), but this time around I think if the property prices show a sharp surge – it will spell disaster.
In my view, the current property prices will have to stabilize for next 12-18 months, and only then probably start moving upwards.
Who do readers think? Are we seeing another bubble in making or do you think this price trend is here to stay?
What would be your advice to the prospective buyer? should he jump in or hold on for a bit? Would love to hear your thoughts.