Indian Real Estate prices: How I made fool of myself

Dear Friend, I am leaving in Pune since last 2.5 years on a renten basis and planning to buy 2 bhk flat near & arround in Kothrud area but day by day the price are incresing like any thing 2 years back when I have started to buy a flat in Pune it was arround Rs.4000/- per sq ft in Kothrud & surrounding area now it is reached to 6K to 7k . Property price in Pune never seems to be fall down in Pune or the holding capacity of Builder loby is very strong resulting the property price increse like madely. Kindly advice me in comming few month or in 2012 can see 30 to 40% correction in proeprty price in Pune???

Now I am in market for property for Pune in Wakad for myself to stay in. Although I am not in Pune, I am buying now because I believe I will not be able to buy 2 years from now in 2012 when I move in as it will be too expensive then. Prices in Aundh, Kalyani Nagar and Gurgaon makes me believe prices can go up.

Quick look at launch prices made me rethink about new flat as a 3 BHK is over 60L and beyond my reach. Hence I am going for re-sale flat.

I think a lot of discussion has been around price of new property in Pune. Re-sale property value seems to be 10-15% less than new and I am not sure if the re-sale values are going up as well at same rate.

My perception is that re-sale market will be stunted until new inventory keeps hitting the area. Once area is saturated then it goes up. Further when facilities develop it goes up again. I can definitely see saturation coming in Wakad. I can’t say that about facilities in Pune. That might that 20 years. Saturation can take value upto Rs 5000 psf I think. Good facilities, maybe to 10,000.

Just my thoughts. Would like to know other’s opinion?
And what would be life of a typical Wakad property? You know we look at house rent as retirement income option. I am not sure how long they will survive with basic maintenance.

Very interesting Comments section here and it has helped record the “psyche” of a microcosm of Pune Realty watchers from 2007! Nice – it was helpful.

Some notes on the current scenario:

Positives for builders:

1. A lot of “anxious” wannabe-buyers have balked in the last 6 months to buy up properties for “actual use”. Note that there is a rising tide of 10 lk+ households that “need” to save taxes (Property Loans offer the highest tax-breaks) and also buy their first homes. I have seen people buy what they liked after 15% price-cuts allowing builders to stay put with prices and actually increase them in the last few months of 2009-onwards. This created a mini stampede to buy at least at the existing “low” prices!

2. Many builders shelved projects or slowed them down to the detriment of existing buyers – there have been delays but there are not too many instances of buyers backing out due to this. They have had to bear the delays!

3. A lot of money is sloshing around in the economy waiting to reinvest in property as a big chunk of this money has come from selling older properties the profits of which will attract taxes unless invested in real estate again – there are not too many alternatives but to deploy these funds back into property (at current prices) within a year. Little discussed, this one fact is helping builders and promoters a lot!

4. Lets admit it – people are making a lot more money today – businesses, govt employees, property owners and the salaried class have all had it good (most cases – not all!) for the last few years. They can afford to pay more for good property – so, why would they not?

Positives for buyers:

1. Those who have already “bought” should rest easy – prices are not going to “Crash” unless a major economic disaster hits us again! Expect corrections though… else, its a flat-line all the way for some time.
2. Those who are “looking to buy” will be able to find a few deals if they look hard but don’t expect 2004-05 prices anymore! The cost of construction today is more than the prices in those years.
3. There is still a possibility for some over-stretched builders to go under and this could lead to some good properties hitting the market at decent prices or “bad” properties come up as distress-sale deals. Sharp investors will grab them quickly.

Overall:

I see that the sharp price rise trends of circa 2003 to 2007 have all but disappeared. While there was a dip post 2007 this is fast being caught up to. Looks like we are heading to a 2007-price flattening out. Do not expect stupendous gains in property over the next 3-5 years unless you are predicting a particular area to gain increased economic value due to infrastructural developments (would love to hear about this localities!).

Positives for renters:

Rentals are “extremely” low by investment standards for an investor to expect any decent returns on this front. I personally know of cases where property owners in “posh” localities of Pune get sub-2% returns on their property. Pathetic for investment but good for renters who can enjoy living in a property that costs in the 8-figures but is down-right affordable for even the salaried class! Expect this trend to only increase as more households “invest” in second homes and these houses hit the rental-market.

All the views above are mine and while I belong to the investor community, I have tried to be as neutral as possible. Happy to catch up on a cup of coffee with anyone who would like to discuss in greater detail! :)

Warm regards,
Raj
[email protected]

It is always good to invest in real estate & the information provided is also very useful hence nowadays i am looking for luxurious homes pune

Hi Ranjeet,

I am back after a long time to this thread. I believe this thread has been since last two years (at least). I don’t know how many guys have been waiting waiting specially after your commnets to buy the house. I don’t see anyone from this thread has bought the house and said that your comments saved xx amount of money. However I am not in touch with the current siutation of Real Estate in Pune but whatever I heard from my friends in Pune nothing has been changed drastically.

As always I have been telling if anyone wants a house to live any time is the right time.

–DAC

GODDDDDDDDDDDDD!!!!!!!!!!! ONE MUST GO THROUGH THIS LINK – UNDERSTAND IN DEBTH THE INTER-LINKS, HOW WALL STREET CALLS THE SHOTS ON THE GLOBAL ECONOMY, GLOBAL MONEY FLOW ORIGINS AND HOW THESE ARE MANIPULATED AT THE “VERY FIRST STEP” –

http://www.trendsresearch.com/forecast.html

ALSO, FOLLOW “PETER SCHIFF” WHO SPEAKS ON THE SAME LINES. DO A GOOGLE SEARCH AND YOU HAVE IT ALL.

REMEMBER “” THEY ARE ECONOMISTS AND NOT ASTROLOGERS SO THEY SPEAK ON THE BASIS OF HARDCORE FIGURES “”

US – COLLAPSES COMPLETELY – A CASCADING EFFECT EUROPE – A CASCADING EFFECT GLOBAL ECONOMY – THEM A GLOBAL “” NEW WORLD ORDER – A NEW FINANCIAL SYSTEM TAKES SHAPE PAST 2014 AND LEADING WILL BE INDIA-CHINA CENTRIC GLOBAL ECONOMY AND NOT US CENTRIC””

GO TO THE BOTTOM OF THESE FORECASTS – READ ALL THE THINGS RELATED TO THESE FORECASTS TO UNDERSTAND FROM WHERE THEY CONCLUDE ON THESE FORECASTS.

SEARCH FOR “” BUILDERBERG GROUP “” UNDERSTAND HOW IT WORKS AND WHAT IMPACT IT HAS ON GLOBAL AFFAIRS.

Prakash.

Hello, i have beengoing thru the comments on this blog – well i have ended up very confused i need to invest in a 2 bhk but my budget is only 25 lacs i really liked magarpatta city but its going beyond – can somebody pls. comment on how is dsk as an investment – will the price go up or i should wait for magarpatta to come down

GLOBAL FINANCIAL THINKERS & MAJOR PLAYERS ALSO TALK OF “”BUBBLE”” ERUPTING WITH DEVELOPING WORLD INCLUDING THAT OF ASIA – INDIA & CHINA.

INDIA PER SAY HAS EXACTLY FOLLOWED THE SAME PATTERN ANALYSED HERE – A CLEAR 70%+ GROWTH OF STOCKS WHERE ACTUAL VALUATIONS ARE DIFFICULT TO JUSTIFY EACH DAY —

READ THIS ARTICLE ALL 3 PAGES IN DETAIL –
http://in.reuters.com/article/businessNews/idINIndia-43429420091026?pageNumber=1&virtualBrandChannel=0

YOU HAVE MY EARLIER POST WHERE “”RBI”” WARNS OF “”ASSET BUBBLE””

ONE HAS TO UNDERSTAND FROM THIS TREND AND BE SMART NOT TO BUY HOME NOW — PROPERTY PRICES WILL “”CRASH”” WAIT FOR ANOTHER 2-3 MONTHS.

Anyone know whats the current flat rates @bapat road?

DEAR ALL,

IT IS ABSOLUTELY NECESSARY TO READ THIS AND SAY TO ALL “JAAGO INDIA JAAGO – MORE SPECIFIC – JAAGO PUNE JAAGO”

ARE YOU ALL GETTING IT – THINKING OF BUYING NOW IS LIKE FALLING IN TO THE TRAP – ONCE YOU FALL IN TO THE TRAP – BUILDERS GET A BOOST – AT YOUR STAKE THEY TRY TO PLAY AROUND WITH ENTIRE PUBLIC AT LARGE –

JUST THINK FOR A MOMENT – IF YOU BUY A PROPERTY NOW – YOU END UP PAYING AN EMI OF Rs.30 – 40K PER MONTH – SAME PROPERTY IF YOU LEASE IT FETCHES YOU MEAGER Rs.10-12K PER MONTH – THE BALANCE IS WAY OUT OF YOUR POCKET –

WHY IS THIS HAPPENING – STOCK MARKET IS A SHEAR SPECULATION & MANIPULATION – HAS ANYTHING ELSE GROWN IN YOUR LIFE COMPARED TO THE RISE IN STOCK MARKET & RELATED RISE IN GOLD PRICES & FOOD & ESSENTIAL COMMODITY PRICES – FOR YOU IT HAS REMAINED SAME WITH ADDED RISKS OF JOB LOSS – CURTAILING OF BONUS/VARIABLE PAY/AUSTERITY MEASURES TAKEN AT ALL LEVELS –

READ MY PREVIOUS POSTS ABOVE WHICH EXPLAIN IN DETAIL –

SAVE YOURSELF – SAVE OTHERS – DON’T FALL PREY TO BUILDERS & GIMMICKS –

http://economictimes.indiatimes.com/Markets/Real-Estate/News-/Realty-developers-tall-claims-fail-to-impress-buyers/articleshow/5095684.cms?curpg=1

I can very well tell you the right time to buy property in Pune, wait for another 6 months :)

Well Said Ranjeet.Can you please tell me when is the right time to buy property in pune? this year end or next year?Can you please give us some specific time frame.

Hi,
The builders in Pimple saudagar have incresed theie rate again. In jan 2009 the prevailing rates were 2100~2700. Now they have increased it to 2500~2900.
In one of the projects that the older rate was 2500 and now as of today they are quoting 2850 :). The NSE & BSE are showing a positive trend. It seems that the builders are not going to bow down due to their large profits made, and its the buyer who is going to suffer.People have been advising me to hold the decision from Jan and to wait for 6 more monts (every month I get the same advice.). I dont see any price correction. Some of my friends who struck the deal in early this year seem to quite lucky and sensible to me now :( as their properties have appreciated in just 6 months of time.

@Satya: Very Good Story. While some of it is hypothetical it still delivers the message good enough. We always thought that there is a land scarcity in India due to population. If that was the case, why there are so many empty flats, why builders are struggling to sell real estate, why the monthly rents are much cheaper than the actual EMI + Maintenance paid, these are all signs of the bubble. This reminds me of 1992 era… I was still in Std. XII but my dad had booked flats because the prices were going up every 2 weeks. In 2000, when we tried to sell those, prices were slashed down at least by 30%.
I think wise men here will wait until the real estate correction happens.

Buyers beware of the Broker-Builder nexus of under-writing of projects…

Brokers are increasingly underwriting properties in new projects being launched by developers—blocking a large number of apartments during so-called soft-launches, hoping to offload them at a premium to end-buyers after the formal launch.

This will help builders claim huge sales immediately and create an artificial scarcity in the market.

Check the article below that talks about it

http://economictimes.indiatimes.com/Market-News/NCR-brokers-do-a-realty-check-again/articleshow/4926417.cms

VK

Hi.

I’m planning to invest in a 2/3 BHK apartment in Project Acolade,Kharadi Pune. It looked appealing and cost-effective comparitevly..Close to 2850 / Sft. I’ve checked with the A slot of residents staying in the last 2 yrs and no one complained on water issues as PMC is providing well. It’s a hard rumour that Kharadi still suffers with Water Issues.

If anyone thinks of Acolade as a bad idea please advice.

Hi,

The rates r dropped, but there is ample scope of further drop. Inspite of huge Ads flats r not selling due to no buyers ihn mkt.

Pl read prvious posts. With the new Tax code, the investors will start to dump further flats in mkt. Estimate abt 3-4 k Flats in Kharadi and dependent on Tanker water and no roads, waiting for buyers or rentals.

One of the reason why we as buyers should form a group and not buy underconstruction apartments.

1000 psf or 9000 psf; if u r not going to get the flat no use to discuss property rates.

We as buyers in combination should make sure that we buy only completed housing… then the builders would have no choice but to sell flats that have been completed…… but alas i know this will not happen…

http://www.mumbaimirror.com/article/2/2009072720090727021437812dbe1e3b2/Paying-rents-and-EMIs.html

Hi man,

There is a duplex in Maurya society 2bhk for 75 Lakhs. Paper Ad

The society is very quit on Naylor road. Good for own stay. House has its own garden, parking etc. Atur park is right in front.

Brahma Suncity has quoted rate 4500 psf for phase- II if u r ready to pay in atleast half cash. However this is upfront offer by salesman, and i suspect it would be much lower when u will actually negotiate.

By the way resale flats r available in Phase – I at 2900-3200 psf.
The project is Huge with all amenities already available so the construction will continue for quit some time. The rates are on downward spiral, suggest wait for the effect of budget to further depress the sentiments and market. Also the election r round the corner the prices r sure to come down to finance the political parties.

Rates r the costliest in Koregaon park area,

sansei

I was in Pune last week and had checked out Fortleza and Brahma Suncity.
Forteliza 2nd phase is complete and the new building has excellent location and view of swimming pool, club house, kids play area. However I was quoted a price of 1 crore 9 lk (@ 6,000 per sq ft) which is a little over my budget.

I then went to see Brahma Suncity. The sales person showed me phase 2 sample flat of 1700+ sqft @ 5,000 rs+ per sq ft. negotiable.

You mentioned why not buy in Koregaon park.. Actually I am new to Pune, I live in mumbai but hardly got a chance to go to Pune. This was first time I went there. Can you tell me good locations in Koregaon park and/or kalyani nagar, or any other posh localities that could fit my budget? and if possible also tell me what society I should go and check out?

There is one sunshine court opp to Forteliza there rawhouse of 2000 sqft is quoting 90 lk, how is that deal?

Are prices really going to go down? Should I wait?

Many thanks all…

History of official support:

10 yrs back, PMC started the concept of TDR’s – transfer of development

rights. bldrs received additional 40% built up permission. However, due to

Scams and blame game on officials, these became stricter and finally

uneconomical.

The bldrs started using Slum rehab projects to garner greater FSI to

increase their profits. Their sole aim was profit and profits – leave aside

the houses for poor. They r the loyal followers of the netas.

Bldrs started to exploit the loop holes in bldg laws. They used the

premiums to close open galleries for flats, they charged the free FSI for

staircase and open parkings to their customers and reaped more and

more profits.

Then the special town ship projects came into being. But the bldrs had to

comply stricter rules on water, waste management, etc etc etc… The

responsibilty seems an everlasting commitment. So it did not find many

takers…. So the new FSI gimmick

Another aspect, they r planning to give State transport corporation

land on 3 FSI to private bldrs for commercial use on 2/3 of total prop.

This move is ostensibly to provide revenue to STC. Poor STC was

running on losses all these yrs, nobody bothered. Now it has started

showing revival – the vultures r out to finance the election on their lands

Hi,, i want ot invest in some property in chakan,can anyone tell me how this area is for good incvestment..or plz advise where can i buy a house with the best value… my budget is 15 lacs

Hi,

Nautanki, fortezela or slice of paradise had very bad vibes two yrs back. Was in headlines for variety of reasons. Poor residents had hell instead of paradise. Rates r exhorbitant, present situation u go and c for urself.

Nyati meadows and Brahma Sun-city are good. U might like to visit their lounge and c Katrina promos. No connectivity at present. A long narrow winding road thro’ Wad gaon sheri, where even if a bus passes u, u get stuck for some mins with 2 wheelers/cycles crawling over u.

Brahma has 101 amenities and huge front gate in constrast of Nyati. Beware u have a 750 pm maintenance charge and some amenities are chargeable per person per usage like club house rs100 per person etc. The quoted rates are 3100 psf for resale/investor flats and nego. The bldr rep had quoted 4500 psf nego. for the new Phase -II booking.

The ph-II has centralised AC, e-facilities etc etc etc…..

Abt connectivity, only a single plot separates these bldgs from the two lane road coming fm Adlabs , Kalyaninagar. Another road is planned along the riverside in DP joining near bridge on Bypass road. There is Cerebrum two bldgs, Nyati Tech park in this area under construction.

if u have 80 lk, why not buy in Maurya society duplex on naylor road going at 75 lk for quite some time. or in Koregaon Park itself.

sansei,
I have enjoyed ur posts on other forum.
I would suggest you post your recomendation on the areas that you have seen. like kharadi, hadapsar etc

Hi Guys,

I think i have missed the real discussions these past year.

No worry! Will pull some more bloggers into this site for more meaningful info for u folk.

Personally, have dealt in Property and now looking for apartmant in east Pune for self use.

If any one wants to exchange notes do so. Have seen some in Kharadi,Wagholi,Dhanori, Wadgaonsheri and little in Vimannagar.

The rates do seem to hardening a little bit. But where r the genuine buyers???

Election round the corner, the monies of the bldrs, cronies,proxies have to come out for funding. With NCP in dire straits the fund requirements due to free bies in election would be HUGE. I expect property prices to be under pressure atleast till election for sure.

How do i subcribe to the new post. and lively discussion.

but what if the market picks up by then my dear… ?

Guys, what do you think, if I have to make a choice between Park Street and Magarpatta City Township, which one is better? Magarpatta has rates slightly higher than Park street. On phone, I was quoted psf rate for Magarpatta = 3330 while the Park street = 2850. When I was searching internet to find reviews about park street, I found grieviance slides about Five Gardens, which is also Pride & Purple’s construction. If there is anyone already living in Park street, your suggestions would definitely help. Thanks!!

How is Magarpatta city township, Can anyone tell me the pluses and minuses… I am getting a rate of 3300 psf.

Hi David,

I don’t think I am able to make a right prediction and none really! Otherwise, we wouldn’t be reading this blog, would we? :-)

I think, we are at the bottom price and it will rise in choppy trend.

KK

Guys,

One more point of caution. There are few realtors in Pune. They claim to help you in finding good property, getting a best deal, etc. But they are no different than agents, they are white collar real estate agents. Please be careful.

Realtor is US concept and Realtor has lot of responsbilities and legal bindings. They have to help you in your interest and not in theirs.

There is one very well known realtor in Pune. I don’t want to name is here .. but be careful. I have dealt with them as well and I know how they work.

Be careful – everyone is after your hard earned money.

Cheers!
KK.

Hi Keshav,

What is the name of your estate agency ? Are you working for any builder ?
If yes then its nice to consult with you before purchasing the flat.

hmmm…. interesting.

Dear All,

Before purchasing any flat/open plot (NA) (or rather any residential property), can any body let me know what all documents/formalities should be exchanged/completed between both the parties (Buyer and Seller)?

Pointers to any useful links would be glad to receive.

Thanks in advance!

I had visited few projects this weekend in Kharadi.. What surprised me was the confidence (or should i say over-confidence) of these buliders that made them believe that realty prices are again going to soar up once the cabinet is declared and stable govt starts functioning.. This so-called slowdown in realty acc to them is just a matter of a month now… ! What are your views guys?

Thanks Keshav..

What do you think about Kharadi?? The areas you mentioned are currently out of our budget… :(

I wouldn’t go for Dhanori even at Rs. 1500/- in a palace like structure.

According to me, Dhanori is a village and has no significance on Pune map. During such crucial situation, don’t ever think of anything other than Magarpatta, Satara Road, Kalyaninagar, Central Pune like model colony (which is too costly), Koregaon Park, Aundh, max max Wakad.

If I were you, I would put money into fixed account and enjoy the “warmth” of the cash. Dont enjoy cash! :-) Just enjoy that feeling. It’s peaceful and pleasure to see your cash growing fast.

Thanks,
KK.

Anything in Kalyaninagar should not exceed Rs. 3, 500/-.

Rohan Mithila is the one near airport? I enquired with Rohan’s once day about this and they mentioned that the flats will be made sound-proof to keep the flight nuisance away. Also Boeing has some testing center there? I will not go for Rohan Mithila as airport will cause hell lot of nuisance.

PLEASE GO FOR READY POSSESSION FLAT ONLY. where u know what’s pros and cons.

Try Brahma, seems they have good projects. Also, you can think of Gera builders.

KK.

Not sure Park Street has got any ready posseision being sold by the builder. You can go to their office and check. They also have Rhythm neighbourhood. Mahindra woods is more beautiful. but seems the maintainace cost is Rs. 3/- psf. not sure.. !

i’m not in touch with latest updates. but u should get a ready possession flat in park street at Rs. 2800/- (i believe it’s reasonable price) – and with total stuff –

2800 * 1100 = around 30 lacs + regn, st. duty, parking, transfer (say max 4 lacs) = 33-34 lacs.

@Dheeraj –
I have plot in Amar Shrushti, Hadapasar. Recently I have received the offer for Rs. 1400/- psf. WantToInvest is right – I said before I’m investor. But I’ve realised that having plot is worth than having a flat. So not planning to sell, probably will build a house or sell later.
But there are no good plots around, I have really hunted for worth properties. Do not buy flats. I would recommend to buy in Magarpatta , if you get ready possesion @2800 + Magarpatta charges , etc. So if you get 1100 sq ft flat in say in less than 35 lacs then worth deal. Try Jasmenium – it’s good. however not all flats are good. one good point about the used flats is – u know leakage, society, ambiance, view, etc. so go for second hand flats these days. Don’t go for under construction.

@RS-
I did not like DSK Sunderban’s flats, construction and architecture. it’s more like hostel, police quarters. check with Amar Ornate, Flora (next to mgpatta). Be very careful about the sopanbaug area, u will hear trains noise. they will say it’s just 2-3 trains but why to invest? try magarpatta at @2500 (READY CONSTRUCTION) – but again very carfeul abt location. because the front road of magpaata is noisy during midnight due to trucks, etc. it’s the nagar bypass road.

if u really ask me – i prefer the western side of pune. Wakad, Pimple Saudagar. I liked Park Street flats a lot. and also the ambience. Akashganga is also goodm but they are sold out. dont go to proper wakad side – like palash, etc. they are good but then surrounded by slums..

So have a look at park street, mahindra woods, u will like them. and they are on the main road – v close to mumbai, uni, hospital.. try negotiating..

once again – i’m not builder and not real investor. i have few assets in pune but don’t want to sell them .. i’m abroad now and doing v well (touch wood) – so money problem is resolved over last 6 months. :-)

hope this helps someone..

u may end up paying little extra for a premium flat – take my word. cheap flats will be affordable, but waste. and for some reasons, my taste of residence is little different. i found 75% flats not worth staying. i like calm, beautiful and spcaious flats and still affordable. i bought flat in Wakad with lot of hardships and had trouble in money managmeent. but within 2 years, i’m happy abt my decision.

happy exploring…

Cheers!
KK.

Thanks Guys, I appreciate you both for good understandings.
Well Keshav just like you I am also out of India and I am still looking for good opportunity to buy some land in Hadapsar my requirement is at least 3000 sq ft., but I couldn’t find anything still in my budget, in fact there is no land nearby, so decided to look around somewhere close to Hadapsar, But coz’ of the volatility I decided to wait, and i think it is a fair decision.
I have seen the Rates falling down in that area, all the construction going on in sasane nagar has slashed down the rates, indraprstha society :- rates has also slow down, Amanora :- No booking, Magarpatta :- rates are going down slowly,
few of my builder friends from Nagpur, Amravati and Akola all are suggesting not to go for any land or flat purchase till Budget, after budget, picture will be clear and Rates may go down more. It will depend upon the policy of new government. where as builders are looking for some boost up for them according to Times Of India.

Coming back to the rescission point if there is not much business for IT and BPO’s in india or if some companies windup from Pune that will create threat in employees of other companies and those people will stop investing in properties, either way it has already came down to 1 to 2%. Regarding NRI investment, those are also not so much interested in buying properties except in there home towns, Everybody wants to hold cash , RBI said that last year NRI deposits ware $300+ M USD and this year it has gone $3000+ M USD, it means everybody have faith on Indian banks, most of NRI’s have transferred there savings to India as also Rupee value have gone down they are all in profit now, so if thay can earn money by simply transfering there money from US account to NRE account why would they invest in property which is not reliable right now. it is simple and logical too.

I will still like to wait, and for investors they have to wait for long.
again I wish if we could form HBA as soon as possible there are lot of things that we can do by means of HBA it would be an advantage for all.

Hey Guys,

I was just teasing you folks. Extremely sorry and I apologize for the same. I’m not builder, nor investor. I have bought my assets in Wakad and Hadapsar (which I’ve done long back and I haven’t seen any change in prices from Diwali’ 2007). I belong to Pune and know how the growth is happening.

Formation of HBA will give a good start. However, it would unnecessary get into complications where builder will be forced to reduce the rates. Which ultimately will impact quantity. I really wonder why anyone of you haven’t thought of forming a group of say 25 home buyers? With 25*20 lacs = 5 Crore – you can buy a land in good location, build specious flats and have a complete township / society of like minded people. We all need just one good home , right? Banks will give discounts on loans for bulk deals, cements, steel , interiors, all will be discounted.

I’ll love to be part of such a nice group with 20 lacs in. Unformtunately, I’m not in India – but if at all we form a society and anyone agrees to plan – i will certainly use my contacts to get best homes for ourselves.

Cheers!
KK.

Hi All,
Darshit is right guys, There may be some people who like to take this blog off the track.
I far as I think everybody is welcome to read and put there thoughts on this blog, But some filtration system is necessary to save the blogs reputation I would like to suggest Arun instead of blocking anybody we can filter out the ‘bad words’ and ‘discriminating words/sentences’.

@ WantToInvest
it is but obvious your reply to Keshav, but why.. because of others you are abusing the words, don’t you think that when we give our valuable suggestions to others what impression it creates in front of them, if we started talking cheap, how can we gain trust.

@ Keshav
You should also think about it, and if you think that you are so Knowledgeable Person in realty field, then you should share your knowledge with others and guide them in a right way, and as you said PM and WantToInvest are good in calculation, similarly, you can also give some proof for what you say is truth, coz’ when you say something you should have some base to it, so it can be proven to the readers of this blogs. By writing all that you are not only discriminating others but also spoiling the blogs, FOR ME IT SOUNDS LIKE YOU ARE A BUILDER AND DOING ALL THIS TO MISGUIDE OTHERS now you only knows what is the truth.

And as far as the question of HBA it may or it may not form, it has nothing to do with this blogs till it exist. If you all show interest in it, I believe we can do it. If any body has any question Regarding HBA they can mail Arun and show there interest.

Knowledgeable person will never do loose talk and has a better understanding.
it has been said guys ” Talk less then thou you Knowden, Have more then thou you Showden”

Guys don’t be discriminating.

I hope you all will share your good knowledge with everybody. Help others, Do not let Builders to make fool of house buyers. I hope you all agree with this.

What is this childishness going on , I have subscribed to this blog to view healthy debates about Real Estate and not to hear personal ego tantrums / between couple of folks.

Its a blog , all will try and be an expert , but there are ample comments for the viewers to have a better understanding. But lets keep the basic premise of RE awareness alive , rather than childish comments..

It is helping no one here…

Hope you all understand.

@Arun –

Can you please start a new blog where the blogs can be written by some knowledgeable persons? We can avoid PM, WantToInvest like immature folks who are fooling around?

They both seems are good at mathematics. But they need fundamental real estate knowledge as well. They can be good matematics teachers in primary school. I request the bloggers to find a good job for them so that they can stop wasting our time on this blog.

KK.

Hi Shipra,

Along with Pimple Saudagar, there are many such areas where you could get a flat at your mentioned price, like, Phursungi, Kharadi etc. I mean the suburbs. Please do a research on the ‘psf’ rates in various locales. You can seek help from leading realty websites like for 99acres.com or magicbricks.com and create an inventory of rates in respective areas. With the help of such web locations, you’ll be able to do a self-survey. Additionally you’ll get inputs from this thread. Both these things will collectively help you get closer to a firm decision. Don’t fall prey to fancy ads in the newspapers or any other media.

According to many of the property analysts, it would be wise to wait for some time. The deadlock between sellers and buyers is definitely gonna benefit the buyers, since, to resolve this deadlock, the sellers will be forced to cut down their rates.

Regards.

So cheap of you to talk like that @Keshav.

I have considered an average rate of 400-600 psf and that INCLUDES everything and all rises/increases, etc.

Since you asked, let me provide you some data.

Cost of steel in 2003 per MT (metric tonne) was ~ 25K (what did flats cost 700psf?)
Cost of steel in 2009 per MT (metric tonne) is ~ 30K (what do flats cost 3000psf!!!)
<>

20% up in 6 years, which a very very crude conservative calc shows to be ~3% per annum which is less than inflation! How can this meagre inflationary increase contribute to absurd property rates!

A 1200 sq.feet built up area 2BHK is fairly priced at 20 Lakhs today. psf rate should be around 1300 psf. Anything over this is naked loot by the builder as I have demonstrated. It is no doubt that people are still buying at higher rates and will buy at these absurd rates with gullible folks like @Keshav around :) and then justify their ‘intelligent’ purchase :)

BEWARE, builders in Pune today are selling 2BHKs like 700-800sq feet in 20 lakhs. This again is a marketing tactic. DO NOT FALL FOR IT. This sized flats should cost like 12 lakhs in good locality (A fair value).

Defining FAIR – Good business for builder and good prices for home buyers.

@Dheeraj, I am in for HBA.

@Keshav,

By the Way….Are you Arun’s father-in-law? I don’t understand the stupid reason why are you so concerned about our discussion…

Arun replied back to me in a decent way and even I did it the same way the second time. So, the matter was solved and he’s trying to get back my post (which was thoughtfully written…not as rogue as yours…)

Don’t get excited, over-react un-necessarily and burn your ass…Neither Arun did it nor I (in my second reply)…

so shut your mouth and let things take their way…

happy blogging :)

Can anyone deny what I am saying. If you plan to build a bungalow for yourself, 400 – 600 psf is what should be budgeted as cost of construction (Consultation, Labour & Material). The variation is for what quality you go for. 600 => Premium construction.

Here is something I did to tickle myself – Builder purchases 100 gunthas of land for a project of 2 buildings, 100 flats each. A society is built on 100 gunthas (1 guntha = 1000 sq feet) of land having 200 flats. The land was purchased for 10 lakhs a guntha (1000 rupees per sq feet with registration)! => 10 crores. Builder divides the cost of land among 200 flats, so each flat owner pays 5 lakhs as part of cost of land in this NICE AREA. Each 2 BHK (of 1200 sq feet) here premium construction costs builder 600 psf. So cost of construction = 1200 * 600 = 7.2 lakhs.

Total cost for 2 BHK of size 1200 sq feet = 13.2 lakhs

Money spent on approvals and amenities by builder on this project happens to be 4 crores. He splits and adds this up in the flat’s price (2 lakh per head). So cost of flat = 15.2 lakhs (~ 15 lakhs). Good location and and premium construction. Now builder is doing business, so he obviously wants atleast 30% profit (10% to bank deta hai yaar. Equities give 15-20% averaged). So cost of flat that builder is selling comes to 20 lakhs. Premium construction with all amenities.

With a 100% profit margin he would sell it for 30 lakhs and that is exactly what is happening today. 1200 sq feet sized flats cost somewhere around this price if sold for @2200 psf (Advertized as low price!!! – 100% profit margin is low price in Pune!). If builder is charging even more then imagine what kind of profit he is making!

Going by regular trend that you pay around 3-4 lakhs more than psf price of flat, this flat should be FAIRLY advertized at 16 lakhs/1200 = 1300 rupees psf with decent profit to builder. Things actually sold for 900-1100 psf few years back in this city and 1300-1500 today sounds reasonable to me considering rising land prices and inflation and other bullshit.

The fact is that it is really not the RAW COST of making a flat that has gone up (Although all builders keep saying that), it is the profit margin the builders are making. More than 150-200% in some instances. This is what needs to come down.

Some more facts to tickle you:
Cement was
130 per 50 kgs in 2006 (Approx)
210 per 50 kg in 2008 (Approx)
Price rise = 50%

Cement cost is less that 5% of the total construction cost, so this increase should only have an increase in 2.5% of the cost of a flat!

Hi Arun,

Thanks for your revert.

FYI…even the comment of user “PM” has got deleted.

I wasn’t aware of the maintenance activity out here.

Anyways, please try and restore it, as I solicit some more replies on my comment.

Thanks!

@PM,

Even I had replied back to you with a detailed post!
Who the hell deleted my post????????????
If the job of this website’s administrator here is only to sit and delete the posts, then why the shit has he opened the blog for all???? Let him alone have the discussion. I want my post back….this is a non-sense blog…..

@WanttoInvest.

Had written a detailed post earlier. It did not make through for some reason :(

Anyway, Things like the airport, etc. is all bullshit. This has been going on since over 6-7 years now for Chakan. Even if the airport is made which carriers are going to come and who is going to fly from there? Does Mumbai’s International airport which is not very far off have any issues? Can it not handle the ‘International’ traffic at present that we need another International airport within 150 kms! Proposed airport at Chakan makes no sense to me other than having a political agenda.

About these manufacturing companies being around, they would have loads of workers and workers do not get the obscene salaries that IT professionals have seen in the past. I agree with the fact stated earlier that new levels would be set for IT industries also because of reduced billing rates, over availability of graduates, China & Latin America competition and recession.

Pune too is not going to grow as it did in the past. It may see negative growth with companies opting out because of increased operational costs.

I do not see an iota of increase in your investment today in Chakan over 5 years. This is my personal opinion. Please feel free to research before plunging into the deal.

According to Freddie Mac, “U.S. home prices have climbed 6.2% a year over the past 30 years. ”

Numbers are similar if data is seen for the Indian market – however no single index is available in India to make such a confident statement in Indian conditions.

Right. @Keshav talk of what you pay back. The property will never be worth that much so its a lose scenario. Also what is the guarantee that Pune will keep growing and all these fancy IT companies will stick around for long with increasing operating costs! We are buying flats to stay in them, not to let. Does Pune or your job guarantee that you would be here the next year?

What is the urgency to buy now? Are we short of cheap rental places in and all around Pune? Hold on to your cash. You never know what is coming up tomorrow. The market is very dynamic. Governments are saying things but companies are still collapsing. Stock market is all satte-baazi (gambling). Its 300 points up and then 300 points down. Think like this, the builder makes profit because of the 300 points up and since you invested at that high level, you lose 300 points the next day because things were all made up by this smart lot.

Also its not the absolute amount here, it is what you are getting for the money. There was this 2 BHK furnished Ad in TOI for 12 lakhs. Well it is in Chakan! I tell you, you can get a Bungalow for around 11 lakhs in Bhopal. Would you like to do that?

Also see how these builders are playing smart and building these new 2 BHKs as small as 600 square feet and proudly announcing it at lower rates :( I have a feeling that again they will be in shit because no one wants a 2BHK less than 850 sq feet. Which sensible person is going to buy pygmy 2 BHKs. The rooms won’t even fit a folding cot let alone a queen size bed :(

And they are going all around saying that people PREFER COMPACT HOMES these days! Who the f*** said that? I don’t want to live in a Servant quarter!

Instead of all this, why not rent a good spacious 3BHK very cheap and live like a king. There are tons of such flats on rent in any area you name in Pune.

Hold on till you really find something where your heart says – This is value for money.

Till then happy timepass reading all those hoardings and newspaper ads by the builders :) day after day and feeling good.

@Yogesh –

My observation –
the 6 flats are odd flats and none buying them. Even builder reduces the price, none would like to buy nonsense construction. For premium flats, you need to pay reasonably good cost even in today’s market. This blog is good but lot of people have wrong perspection. Builders are not fool. You can’t buy good flat below 2500 in an under construction building. So 1000 sq ft = 25 lacs + other charges. So for a 2 BHK decent qukaity flat, 35 lacs is the right prices. Best luck. let me know which flat u have seen. Try park street – they have goot nice flats.

hi guys …

I am reading this blog from last few days.
I am tryind to buy a 2BHK in Pune from last 1 year but property rates are too high.and we cant even think of buying a flat in city.
we have to look 20 / 30 km out of city and that means daily travel of 20 / 30 KM oneway in pune’s traffic.

these builders are not ready to bring property rates down .. the difference noticed is the rates r down by 200/300 PSF only… and now builders are ready to negiociate… but how much can one even negiociate for 2 BHK of 45 / 48L ???????????? we cant bring it 25/28L …………………

i agree that same adds are displayed in paper from last 6 months (only 6 falts are available) this add from last 6 months .. means they have not sold even 6 flats in 6 months ………but still not ready to reduce prices ??????????????????????

EXCELLENT ARTICLE & TAKES IT TO THE DEPTH OF THE PROBLEM –

A MUST READ –

REINSTATES THE FACT THAT WHATEVER RECOVERY IS BEING MUCH TOUTED IS INFACT A HOAX & GAMBLING BY SOME HUNGRY INVESTORS – DON’T FOLLOW IT IF ONE NEEDS TO STAY SAFE & REAP BENEFIT OF LOWEST PRICES THAT ARE ACTUALLY THE “” REAL PRICES “” –

http://economictimes.indiatimes.com/articleshow/4465822.cms

Lets also make sure not to invite unncessary people like, so called ‘great real estate blogger’ of the great pune city who does nothing but to misguide people by praising all and any builders and projects in city and in surrounding villages…

I am also NOT interested in HBA. Sorry! I don’t want to attract unnecessary trouble.

Best Luck.!

Hello! You have learned the most important lesson about giving an advice. You have also told it very well. Now, i have become wise. I will not give an advice and make a fool of myself. Kidding. Good post. Thanks!

Hi Guys,

Yeah you are right, they are desperate and a lot needs to be unturned….. What I rightly call it as “”DISTRESS SALE””. This will happen in next 3-4 months. We all have to just HANG ON, that’s all.

Yeah again you are right, if BJP comes to power at the least there is hope of revival else, its already in dumps and No Not At All the Commie 3rd Front……please save us all from this joke.
Cong has looted India until date and will do so…. there’s no end to it….. HA! HA! HA! HA!

CONG calls BJP Communal Party – come on JOKE OF THE MILLENIUM !!!!
Its this CONG which started the MAJORITY & MINORITY FUNDA which itself is SO MUCH COMMUNAL then further it started the RESERVATION FUNDA which is clearly based on COMMUNAL AGENDA – What more one need.

At the least BJP is talks of Hindutva which is mass of all hindu casts & creed. It talks of Uniform Civil Code to neutralize the Hazardous CONG creation of Muslim Vote Bank etc…. etc….

Property up in 10 years is again pure speculation. There are plots of lands and built up deteriorating properties (not in Pune) offered at less than what they costed 7 years back! If a politician decides to make an International School close-by then things may change, but that again is wishful thinking.

To what I know, many village properties (like the ones in Pune – the most recent being Dhanori) are sold with this mis-information. Who the F*** is going to stay there? And why are we all ASSUMING that Pune will only grow? Can’t it shrink? Pune is a damn expensive place today. More expensive that the capital on India! Why would companies want to come here when other cities offer much less operational costs.

Reducing operational costs is point number zero on all organizations list. They are doing this by layoffs, removing perks, reducing salaries and shifting offices. Focus on >>Shifting Offices<<. I know of even small offices being shifted from city centers to Pune outskirts. Not much time when they would not be anywhere near Pune. All this just needs a smart chief minister of a state to click. Gujarat is close by and I think it would witness a lot of exodus chiefly from Maharashtra.

Anyone disagrees?

Addition to Point No. 2 :
[1] Movies – at decent theaters costed only Rs.40-50 now with MUCH LESS SPACE it costs Rs.150-200
[2] Restaurants – earlier cost was Rs.70-80 for 2 persons now its Rs.120-140 for 2.
[3] Monthly home expences earlier was Rs.4000 now its Rs.7000

HEY HERE MORE INFO TO SUPPORT MY 13th APRIL POST POINT NO. 1 –
Reproduced below –
1. Global surprises are still hidden. US problems will resurface afresh with new artifacts which our normal eyes fail to see. This is Fiscal Deficit of over US $ 1.1 Trillion and each passing day is just adding to this deficit. US will not be able to come out of it as it has been perceived. Unemployment is at its peak and we will soon see new peaks being attained. Europe is lackluster for entire FY’09 & FY’10. Thus there is very little chance that economy will be robust anytime before FY’11.

Read this Link for more Hidden Surprises from US –

http://economictimes.indiatimes.com/News/International-Business/3-more-US-banks-fail-lifting-this-years-tally-to-28/articleshow/4446882.cms

IN TOTALITY NO. OF BANKS FAILED WORKS OUT TO : 56

Yet there is no bottom, with Huge Deficit of US and equally Growing Fiscal Deficit of India which is of GREAT CONCERN the situation will grow grim.

Darshit/Prakash/All, Nice discussion. @HK, TOI acronym was nice. @David, I can write an article. Not a problem. I first want this HBA to be setup. Arun bhai, where are you and what happened to our meet? Since I do not read this everyday, please schedule something not before 2 weeks which gives me ample time to come back to this article.

I have put my thoughts for some of Darshit’s questions/reasoning below:

Why were people still buying in 05/06/07?
>> Because of the greater fools theory :)

Why have they stopped buying now?
>> Because we have found the biggest fool :) … You can still find them if the greatest fool is ready to sell at 20% or 40% or 60% of their purchase price or else this biggest fool keeps the crown.

Why did people not crib when rates were increasing in past years?
[1] The flats still seemed affordable to them
[2] Because they felt that the amenities provided were for real :) which they do not now :)
[3] Because they thought their ceilings would not leak and their walls would not crack which they still do.
[4] Because they thought, it’s different this time :)

Does a fresher join at 2004 level or 2008 level?
>> They do join at 2008 level but 2008 level is 30-40% higher than 2004 level attributed to inflation and industry (IT) growth. So we are not talking 300% rise in their pay package to afford a house at present rates!

Onsite folks lost jobs or jobs shifted to India will create more demand
>> Possibly these people will stay in ONE OF THE flats they already possess. I do not know any Pune person staying abroad not having a flat in Pune. So no fresh buying because of this.

More people in Mumbai taken to cars
>> The public transport is expensive! In Pune, traveling by auto-rikshaw is 3 times as expensive as traveling in a luxury petrol car giving an average of 10 kms/liter.

Fine dining not in 2004
>> Another place to spend EASY money. Also attributed to the fact that every person dining there pays for their own food – Like working couples or would be working couples. Still un-affordable for single earning folks. The bigger social change because of this (working couples) is yet to be seen in India.

Desire for a 25 year old ..
>> Will die soon. Attributed to EASY money. 15K for a 12th grader who can’t add 2+2! BPO salaries to reduce by 50% in the coming year. So possibly one now needs 3-4 girlfriends or wives to buy this crap from PBAP. “Crap from PBAP”, it sounds like poetry :)

Can’t compare India to US/Europe …
>> You cannot, they are much more advanced/mature than us. About consumer spending, they have created a market to sell outdated technology in India. The LCD TVs you buy today in India use technology used and thrown away 5-8 years back in these countries.

30% below market level … 60% sold out …
>> People bought shares at 21K, 18K, 16K, 14K, 12K, 10K, 8K … They always sell. We should be smart to differentiate between, who bought at 14K (and why?) and who bought at 8K. Who remembers ‘analysts’ speaking it cannot go below 10K? Simply not possible sir :) Today nobody want’s to predict the bottom :)

So … things may not really crash in 4 months, but I see a downtrend with no bottom. This is something to do with sentiment .. the DESIRE Darshit mentioned. These hard times have made me think more for my and my children’s future than a house that is un-affordable, no value for money and for which I have no dire need today.

Thank you all for reading through this.

Guys,
think about it… the cash is dear… and the builders are already tight… if any of you or me buys something now there is every probability that the construction quality will be worse than ever. So even if the prices are down, and the builder as we know, sucks, they will definitely compromise on the quality of the product… some of you might be enticed to see lower prices but for sure lot will be compromised for now atleast, until they realize it as a fact of life and the thouhgt sinks in and all the fuss stabilizes… I would say hang tight on this… and let the prices be dragged down as much as possible… atleast some compensation for the quality you will buy…

Akhil Sharma

Thanks Dheeraj & Prakash both for sharing your view points and special thanks to Prakash for thinking that i am a rep of PBAP.. well sadly though but i am another professional like you all and trying to understand the scenario for my personal benefit..

well i must say a well written & explained and i agree to most of it but
i wont reply in length here but i the bubble had to burst and it did burst and i am also of the same view point.
Please read my article above , who is responsible in the first place for creating this kind of bubble in the first place.

was 2008 real estate prices the only one that was bloated , was not 2006 /2007 also bloated and why all just blindly kept on buying.

why didnt people like you and others come together and stop this from happening, that the day 5 of bubble and 2008 – day 9/10 of this bubble. This is not a blame but am wondering why then noone came strong defying the buying , many professionals like us would have been saved then…This number is huge , very huge who would be currently underwater.

Well all my focus here would be on price level drop in coming months in continuing with my previous post ,

Yes i havent done my homework but still i have some theories…
1)Ask a family to compare talk about their Family Budget (2004/08)
2)Ask a family to compare talk about Tourism Budget (2004/08)
3)similary salary
4)A simple day – Movies / Dinner
5)How many people own car Now as of earlier…
6)If one is hired , does a fresher join @ 2004 level or 2008 level and if i am not mistaken around 3L is the starting salary and infosys still honoring 28k employeed for this fiscal year … and similarly with other companies , they did have an impact but has impacted hiring , it has definitely impacted paying unrealistic salaries to professionals. in other words some sanity has returned to IT sector but overall it still stands firm and stable and i see this trend to continue as this economy is different from year 2000 , where IT was responsible for the crash and here it has an after effect.

you are right with regards to US Market , but they always lived in debt and for them its just another figure… well even if the economy shows receovery signs , jobs will be lost well into next year , but are we talking here about USA…
To tell you , this is benefitting , i have many onsite collegues and their onsite contacts have been terminated and more offshore positions being created .. so more Jobs back home , money coming in and then fuelling demand..This is the common case with almost all projects , push work offshore….

I am from Mumbai and you would be surprised , with so much professionals now commuting to work in a car , the employers were forced to charge Rs 4000 PM from the employees for parking if they needed a fixed place. i am sure not all would avail of this , but definitely some did and hence this practise by employers.(nothing changed since 2004)
i would talk pure basic here , In pune do you see the new concept of “Fine Dining Restaurants”.. did you see them in 2004….

I agree nothing has changed except property , think about it , major change has occured with the way we live and see life of tomorrow …

Desire and not need of a 25 Year Old professional of buying a house and Car created demand. Never before did a professional desire to own so early in his career and this desire still remains and hence the

You cant compare US / Europre with India , India had never seen such consumer spending and all sectors benefitted , agreed it went a overboard and hence the bubble burst but to say that we will continue to fall to 2004 levels means a disaster. dont get me wrong i am not worried abt real esate PBAP prices here but i am meaning relative here , for prices to fall the entire Job Market of India / related Growth and GDP will have to crash and i dont see that at all happening.

I am being positive here and i am trying to differentiate here with bloated prices with real prices and all in this discussion i am trying to reach the real prices figure.

Moreover , if i am not mistaken we had slump in real estate from 1995 onwards till 2002 and it started to stabilize / gain strength only 01/02..
well in places like Pune not before 03/2004….all we want is the real estate prices to stabilize to more realistic terms & even if the markets turn +ve , a more conservative and restrained approach is needed to buy.

You shared an article this Morning about Mumbai Andheri and Kurla , HDIL — These projects launched and got a good response(60%) from the buyers … why??

they were below the market level @ Launch — Yes (30%) (This is just launch and such projects take time to get completed and in such scenario who knows whether they will @ what pace)
but nowhere close to 2004 levels — (still 100% of 2004 & still they got 60% sold out)
This is Mumbai i am talking about and things could be a bit different for Pune but expecting to go to 2004 levels triggers a collapse and i dont see that happening or rather i wish that doesnt happen.

anyways i will continue to read this blog and follow your comments and hope for the best for rest of 2009 / 10, 4 Months not too far …

Thanks
Darshit

Thanks Dheeraj for taking up the point.

Darshit, the fact that my posting is in context to my previous analysis posted above in this chain. Enough of reasoning stated earlier. But my main doubt is do you really belong to IT Sector or you are a representative of PBAP trying to gauge the market feel by posing such irrational questions to people of Pune. Thus, you want to know what is happening in their minds, give a feedback to PBAP thereby they can strategise and stay connected to see that How Prices Can be Kept Constant – high as JAN-2008 etc… etc… I mean I can sense something fishy easily.

Let it be. Lets take a review afresh –
1. Global surprises are still hidden. US problems will resurface afresh with new artifacts which our normal eyes fail to see. This is Fiscal Deficit of over US $ 1.1 Trillion and each passing day is just adding to this deficit. US will not be able to come out of it as it has been perceived. Unemployment is at its peak and we will soon see new peaks being attained. Europe is lackluster for entire FY’09 & FY’10. Thus there is very little chance that economy will be robust anytime before FY’11.

2. Asian economies are stable only due to Exports to US & European markets. Thus, stimulus plans of China & Japan will just dry off in couple of months and will not assist in reviving the economy. Gone are the days where domestic growth supported the GDP. This view held by many analysts is actually vague since they fail to realise that domestic growth was in a way trigered by Free Flow of Credits and economy boost posed by their respective exports. This money was getting circulated within the country making it to feel as if the economy was growing internally. If this was the case then Indian & China should have retained respective growth rates of 9% & 12% irrespective of collapse of global economy. What I mean to say is – When the root dries, the tree normally dry a bit later & that’s the ground reality.

3. IT boom which was the nerve of this so called growth is again dependant on US & Europe markets flourishing in their sunny days. Once this aspect dries it will impact directly on the IT industry forcing it to face the heat may be a bit later in the chain of actions & reactions. This has already resulted in Infosys, TCS and other majors anouncing lay-offs, few anouncing pay-cuts, few anouncing no growth in salaries. Overall triggering uncertainty for IT Industry. This will have direct impact on investment plans.

4. Banks are reluctant to lend to Construction Companies and wherever the bigges are successful in getting loans re-scheduled, they get it at a price…. i.e. higher interest rates and reduction in the total re-payment period, restrictions on so many fronts….

5. Change in Government anticipated thus has a negative effect on the overall scenario.

6. The inflated prices of property is such a big blown ballon that with a meager 20-30% correction is NOT AT ALL going to trigger buying passion in this country. People of India have understood the game plan of these greedy builders.

7. Its a hard fact that this GDP Growth of India & China had its roots in US & Europe economies. Now if these economies have corrected to Price LEvels of YEAR-2000, and the India boom history started at the beginning of YEAR-2004 then to HELL with these LUSTY GREEDY BUILDERS they must correct Prices to YEAR-2004 levels mandatorily. I say this is the bare minimum requirement. They should infact go beyond by dropping to YEAR-2002 Price Levels. If they dont they will pay for it, if they do, then they will come out of the mess which they have created and no one else is responsible for it.

8. Share Market has no doubt gone up from 8K to 10K+ in last 1 months but this is not attributed to any kind of strong base either of domestic growth or global growth. This is pure speculation and manipulation by existing government and normally happens prior to any election in India. Please go back and trace the history you will notice this surge and sudden downfall soon after the results declared or during the government formation phase. 10K-11K will sustain only if Congress forms the government which is unlikely to happen under all given circumstances. So we again come back to square 1. okay.

9. Sorry to say, I feel you haven’t done the homework. The increase in cost of living, increase in salaries, increase in other amenities etc…. stated by you are the artifacts of this artifical boom created on basis of Free Flowing Credits. This is clear artificial growth. Just tell me what exactly has gone up 400%-500%, whether its your annual income, standard of living – nothing, I say NOTHING except for Property Prices. India is where it was in YEAR-2004 except for few groups who have made enough money out of this artifically created boom. So the BURST has to happen & has taken place. What builders are doing is trying to resist it as long as they can withstand on the basis of money they have milked during the last 3-4 years. This won’t carry them too far may be they can drag a bit more for next 3 – 4 months. Hence period of 4-6 months they will fall flat. If they don’t, then PEOPLE OF INDIA WILL STILL CONTINUE THIS STRUGGLE OF NOT BUYING EVEN A SINGLE HOUSE FOR ANOTHER 3 MONTHS TILL THEY COME TO YEAR-2004 PRICE LEVELS. How long will it last finally. There has to be an END and END will be with YEAR-2004 Prices of Rs.1100-1250 psf Rates and maintaining it for another 2 – 3 years.

10. Bank Interest rates are near YEAR-2004 LEVELS and will touch in the next correction anticipated on 21st April RBI Meet. Oil has fallen immediately to YEAR-2002 LEVEL. You name it and it has corrected to YEAR-2002 & YEAR-2004 LEVELS then WHY NOT PROPERTY????

11. HELL MAN….. YEAR-2002 YEAR-2004 Parking was available at meager Rs.25K – 35K. MSEB, Society, Maintenance etc…. was meager Rs.20K-30K. Now these GREEDY LOT have increased it to Rs.1.5 Lacs – 2 Lacs Parking, MSEB etc…. to Rs. 80K…… BAAP KA MAAL SAMAJ KE RAKKHA HAI KYA…. FOKAT NAHI AATA PAISA SAAALO…..

12. So wake-up, and awaken others. Show them these facts, make them understand. Make them understand that these Builders are riding on emotions of innocent people of India, People of Pune. 80% of home buyers are salaried people with a dream of owning a good house in decent locality. Dream of giving a good life to their parents, wife, children. BUT these GREEDY, LUSTY BUILDERS are trying to sqeeze them. Its our HARD EARNED MONEY which we have to pay for next 15 – 20 Years in EMI’s. If we save now, by not buying single flat and in fact buying at YEAR-2003 YEAR-2004 PRICE LEVELS we will save on an average Rs. 10K – 15K PER MONTH OF EMI. This is awesome money man for any salaried person.

There are many more reasons & analysis. I prefer to stop here and suggest read previous posts where you will get few additonal points.

SUMMARY –
== DON’T BUY EVEN A SINGLE HOUSE TILL THEY REACH YEAR-2004 LEVELS==
== HELP YOURSELVE, HELP OTHERS ==
== MAKE A BETTER LIFE WITH YOUR OWN HANDS &
GIVE A BETTER LIFE TO YOUR FAMILY & CHILDREN ==
== FLOG THESE LUSTY GREEDY BUILDERS ==

Hi guys,
Darshit, I appreciate ur views, I also agree with Prakash, well if we think smart at this point we can wait for at least 4 months that much time we all have with us, now think in this way, property prices are gone down already, lots of people lost there jobs or salary are being reduced, in such a situation no company are going to suddenly raise salaries at least for 1 or 2 years.
As now the companies wants to make trends of low salary in India and all over the world, so they can gain more profit or make recovery, so in this case even though the share market goes up only companies will be in profit not the employees and employees are the one who gives the business to builders, so if the prices are not affordable no body is going to buy or invest in properties.
so ultimately builders will not have much business for this period and if they want to do business then they will not raise the prices again they will not take any kind of risk, and if builders wants to hold there projects for 2 years or so, again they will be in loss as they also took loans from banks and all and the rate of interest on big amounts are not bearable, So now the overall thing is that they can’t take risk to raise up the cost of property and neither can just hold up the progressing projects as also the old pending construction will cost at depreciation value and people will also try to avoid it. so we can now expect more fall in properties and wait for more 4 months we’ll still gain before increasing the rates of the properties they will have to stabilize the rates first then make a continues trends and as the salary trends increase the rates of property will again increase.
Don’t forget that the major factor for up going property rates is salary hikes in BPO’s & IT industries. so as far as these industries are struggling we can hope +ve with Prakash.

well I would love to agree with Prakash in what he is saying but i dont see any analysis provided by him to support this .
I am also a IT professional like you most guys and have interest to understand real estate trends & followed this blog and several other blogs since long but i am unable to follow the recent comments.
When i read the comments that this from Prakash, i feel that he desires and wants(speculations and predictions) but no supporting analysis.

See there is no harm in predicting for prices to fall to 2004 but on what basis?
world has changed tremendously since 2004 , agreed the economy is not doing great yet but India had a minimal impact.

Are we ready to take the salaries to 2004 Levels(people had 100-200% rise in this time period)
Cost of Living has increased?
Overall Stock Market had 6k – 19k(Back to 10k & moving up)(((follow this sign for real estate signs)
Crash in real estate is mainly due to over bloated prices but it doesnt mean that 2004 levels a logical price.

All i am saying here is , waiting too long might hamper al of us as we may never know when this takes a UTurn and we may no longer be able to benefit from current low prices and believe me current low prices are interesting atleast the ones with ready possession. Under contruction has a genine financial problem i believe.

Real estate was the last to be impacted when other thngs were effected and it will also show +ve signs when other things move out and believe me when these symptoms come again , the PBAP will not sell any inventory till they see the boom again and jack up all prices again…so we loose the chance to save money?

Again i said this is still speculation from my end too , but we all know this quarter and results will decide which way economy headed.

Its all related , so if
Earlier there was a very healthy conversation between dutt & Ranjeeth and Ranjeeth came with very nice analysis and supporting data that made us believe him. Prakash if you have some data and not articles by others that are used to keep the print medium working , might help myself and lot of other folks.

Folks,

Its largely agreed that DLF and Unitech primarily set the trend for realty in India.

Lets see whats the fate of these guys –
DLF Offered 20% Discount over and above the Low Price they had offered, yet People who bought flats paid booking amounts, are now demanding EXIT OPTION altogether (i.e. rejecting 20% further discount offered by DLF). This is the same report published by so called PBAP Cartel Partner News Papers of Pune that Property is staging return with 2% – 3% rise in bookings in the Jan-Mar quarter. DLF has SCUMED to Pressure & agreed to give EXIT OPTION.

Day is not too far when PBAP of Pune will also come to terms with Reality of Realty and offer YEAR-2004 PRICE LEVELS of Rs.1100-1250 psf Rates. Just wait for another 4-6 months. Better to stay with minimum liabilities of a rented place and enjoy the downfall of ego of these builders.

This is a BIG BOOST to our ongoing fight with PBAP to come to YEAR-2004 PRICE LEVELS. IT WILL HAPPEN IF WE STAND UNITED & DONT GO FOR EVEN A SINGLE BUY IN NEXT 4-6 MONTHS.

READ THIS REPORT – AWAKEN YOURSELF AND OTHERS – DON’T GO FOT A BUY-

http://www.indianrealtynews.com/real-estate-india/dlf-offers-exit-option-to-irate-customers-of-new-town-heights-project.html#more-2467

== PLEASE INFORM ALL YOUR PEERS, RELATIVES, FRIENDS, UNKNOWN PEOPLE WHO TALK OF BUYING NOW == STOP NOW TO EARN BETTER DEALS FOR TOMORROW ==

== THINK OF YOUR HARD EARNED MONEY == THINK OF YOU GIVING A BETTER LIFE, AMINITIES, LUXURY TO YOUR CHILDREN FROM THE BIG SAVINGS OF NEARLY Rs.10K – 15K PER MONTH FROM EMI’s TO BANKS ==

Folks,

Get this bullshit from POORVA HEIGHTS, PASHAN-SUS ROAD Project.

I had enquired with this fellow in August-2008. The rates quoted were Rs.3300 psf. I said okay, they will come to reality in few months and skipped it.

I called them yesterday i.e. 12th April 2009 and to my surprise the fellow quotes Rs.3600 psf claiming quality construction, access road, water etc…. and says come to site we will negotiate.
==== MAN CLEAR BULL SHIT ====

PBAP is trying all means to screw people of Pune. Now let People of Pune screw the PBAP and all its branches.

DON’T GO FOR EVEN A SINGLE BUY FOR NEXT 6 MONTHS, YOU WILL BE SURPRISED TO SEE BUILDERS ON THEIR KNEES YELLING FOR YEAR-2004 PRICES AND WE WILL THEN QUOTE THEM YEAR-2003 PRICES AND GET POSSESSION OF FLATS.

Take it or Leave it. This must be the fate of PBAP and all its branches else we the People of Pune will suffer.

Why only TOI, please read SAKAL or DNA or Maharashtra Times or Indian Express or any other News Paper, PBAP has entered into Cartel and News Papers have Sold themselves to PBAP like Prostitutes, Keeps…… Bull Shit Man.

Even all Internet dot.com fellows show crab figures of January-2008 and upon question does not agree to drop down prises.
SCREW THEM ALL. DONT BUY EVEN A SINGLE FLAT.

Those who bought flats & was reported by bullshit papers in big way, that hopeless consultant JLLM some Meghraj too made it big of return of realty etc…. are the same people now asking for RETURN OF BOOKING AMOUNT, stagging Dharnas, screwing builders to pay back money. THIS IS THE REALITY and NOT THAT IS SHOWN TO US THROUGH VARIOUS REPORTS –

READ THIS –
http://www.indianrealtynews.com/real-estate-india/35-fall-is-expected-in-residential-property-rates.html#more-2460

READ THIS –
http://www.indianrealtynews.com/real-estate-india/retailers-shut-shop-at-dlf-south-delhi-malls.html

YOU MUST READ THIS –
http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=HomePage&id=b70d8ce2-51ed-48d8-813e-60e1ced91078&Headline=Buyers+fight+back%2c+exit+stalled+housing+project

WE MUST START WRITING TO ALL NEWS PAPERS OF PUNE AND BUILD PRESSURE TO REPORT THE LATEST PRICES AREAWISE ELSE WE WILL START NEGATIVE PROPOGANDA OF YOUR NEWS PAPER IN CITY.

==== DEKHO BHAI ACHHAI KA JAMANA NAHI RAHA, JISKE HAAT LATHI USKI BHEIS. DHAMKAO TO SIDHE RASTE CHALENGE YE LOG. ====

I HAVE THOUGHT OF IT….. NOW ITS YOUR TURN TO TURN OUT AND MAKE IT HAPPEN IN YOUR INDIVIDUAL CAPACITY….

WHAT ABOUT HBA (HOUSE BUYERS ASSOCIATION)?

Welcome to Times of India (TOI) Saturday Property bullshit supplement.

As per TOI corrrespondent (believe she is reporting from New York :)), new projects have been launched in the past 2 months and have REPORTEDLY been sold out :) Builders (read PBAP) as always say its the bank’s fault of higher interest rates :) Madam, please see in today’s supplement even MAGARPATTA has advertized! These folks believed till now that they need no advertisement! Very arrogant folks – you could know that when they launched the now doomed Nanded City project. What clues does this give you?

Week after week benchmark rates reported by this sleepy organization (Some Italian and Desi company mix – Something Meghraj) do not change. Believe they have been the same since I have started reading this supplement 2 years back (I think instead of doing their research these guys go to the PBAP office and ask, Sir, kitna likh doon:)). TOI and this benchmark brother company all make money from PBAP. And you the house buyer pays for all this crap in terms on increased psf rates. See the irony, your money is used AGAINST you!

As per this week’s article, everybody is happy. The builders are happy and buyers are happy. Do you sense bullshit going on … and that too in a newspaper like TOI. Well lots of bullshitting happens but this one is so glaring that I could not resist. To dismiss benchmarks, office sales folks who sit in the Sales office of projects in Kharadi are quoting 2400-2800 NEGOTIABLE (Depending on which project you personally visit). This Benchmark tells you KHARADI 3000 – 3500

All text, no mention of specific projects, no mention of rates, no mention of trend with stats. Only statements made by the lion (read PBAP members) – I have turned vegetarian :)

So as Prakash guides us above, guys where is the NEED to buy your own house? Is there a shortage of good rentals in the city today – There is in-fact an OVERSUPPLY of them? Save your hard earned money, it will help you and your family in times of need. There will always be a right time and global clues would tell you that.

REALLY MAN……………. NOW A DAYS CAR IS NOT A LUXURY BUT A PARKING IS !

Folks,

Builders are badly hit …I spoke to one of receptionist at Pimple Saudagar area (since I stay at that place)she said that the conversion ratio of enquiry to booking has come down from 4:1 to 25:1 :):) Thhose project which are in construction phase the work is going on very slowly…builders are in helpless state.
The upcoming projects are on hold.

@PM
One of the instance where the builder boasts of “different theme flats ” is Rajaveer palace by GK builders…in which the flats are bult on palace themes.Rates at 3300 psf,project would still take another year for completeion.Crazy loot …

Similarly my neighbour who owns flat enquired about covered parking …rate 1.75 L !!! This is too much …Still I do not understand the concept of open & closed parking.Common yar its the free space which builder could not utilize so he’s started selling it…& we people mindlessly purchase it.

Hey Keshav. So you are an investor. Good to know that. Well investment in property was good around 3 years back when it was like all sanity. Not anymore today. Investing in land, I completely agree with you about all issues that can be and is best for regular guys to stay out. It’s very very tricky.

Today even equities is screwed up. Job market is bad :( So what to do? The gurus say that in such times CASH IS KING. Let us do some calculations with assumptions in your favor, like you have a tenant all thru 36 months without your flat lying idle for even a month. You do not pay maintenance for the flat you bought (which may be 2-3K per month). You do not spend on internal maintenance, like leaks in bathroom (Quite common because of excellent construction quality by reputed PBAP builder in Pune). You yourself do not change flats because your lease agreement got over, etc. So … all in your favor. You lucky guy.

Let’s assume you had 40 lakhs cash lying idle in your bank account.You INVESTED this in Park street flat. You are earning 12K per month from rent for a 2BHK (Which is really really high. You lucky guy). Let me assume you have no other income so you do not pay tax on this. In 1 year you make 1.44 lakhs from rent. In 3 years you make 4.32 lakhs as rent. Assuming in 3 years time your property is worth 20% more (pure speculation) which you sell. So that is 48 lakhs. Capital gains Tax (20%) on 8 lakhs (after taking a realistic Cost Inflation Index of 1.12 over 3 years) would be close to 70K (Here I have exercised the previous assumption that you did not spend anything for maintenance of your flat in 3 years). Nett profit in 3 years = 7.1+4.32 = 11.42 lakhs.

The FD interest you get today is 9% (was 11.5% 4 months back possibly when you bought your flat). Assuming you have no other income other than this interest, you would be paying approx 10% of this as tax, your nett profit/earnings come to 8.1% only. 8.1% of 40 lakhs compounded semi-annually for 3 years is 10.75 lakhs.

So one has to choose between a no guarantee, all hassle, discountly calculated, nightmarish 11.42 lakhs vs a safe guaranteed 10.75 lakhs LIQUID CASH available the next day you want it. What would you choose? Hey you already choose to buy a flat at a crazy price. You lucky guy. Earning a speculative 70K more that others who did not go for the kill.

These calculations do not hold true if you have taken a loan to buy a house because then one is completely at loss. Also a person who FD-ed his money at 11.5% would have made close to 13 lakhs tax paid interest money in 3 years using above calculations with tax adjusted to 15% instead of 10% for higher income. But that is history, so let us forget it.

Buying a flat TODAY is more for emotional reasons than for investment purpose … and one needs to do that very sensibly.

I’ll not talk about Wakad and all. Let some one else who is more familiar than me comment on Wakad being in the city. Hint: Please use Google Earth to do distance calculations :)

Not talking of property, this will give you a fair idea on what to expect as companies announce their books in the days to come. PBAP builders however would surely announce a profit. Thanks to all the gullibles they could still milk in the past financial year :)

28 billion Euros loss!
http://timesofindia.indiatimes.com/Business/Fortis-bank-announces-28bn-loss/articleshow/4338787.cms

Sensex to break 8000 – Only a matter of time
http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=391076&special=mkt_topnews

I understand Keshav. Till it is not in the newspapers and announced by builders/PBAP, people feel that the rates have not come down and they don’t even feel like making an enquiry even though they have loads of cash. It’s the value problem I say. I see no value for my hard earned money. I completely agree with you on your HOLDING policy, but unfortunately not everyone can hold, especially those on credit. Also with all your cash, what is the point if you get 20% (speculative) more for your property in 3 years time from today? It wiser to sell now, put the money in bank and get more than 20% (assured) in return. I have ignored all taxation rules here for simplicity.

Also today, there are more chances that you get laid off and are forced to take a new job. There is no single IT park in Pune. Its all spread across, so if your work happens to move away from your existing house, it may be like 25-30 kms one way travelling everyday! It may also be that you look for opportunities in another city. Stay on cheap rentals close to your workplace till the times of stability and sanity and back.

It will take not less than 2 years for the markets to revive. The point I wish to make is – What is the reason for desparation for home buyers if they are happy staying in a rented acco of their choice! and believe me there are plenty everywhere in Pune at good rates. Its only the sellers who are desparate today for reasons of the property bubble coupled with PBAP attitude that only applies to the city of Pune.

Another point – Investors today are investing in land and no one wants to buy shit property in far off locations ar crazy prices. This is the general opinion of the group here.

Lastly this is not a seller’s forum and we are all well researched folks.

Mr Gera is not in sync with Mr Jain. Gera claims in Pune mirror today (Mar 31, 09) that property prices have drpped 30% and in some places are to the rates that existed 2 years back. Jain (ROCK-BOTTOM guy) says prices cannot go down further :)

Over all, every week TOI keeps on publishing absurd benchmark proerty rates for various areas in Pune.

No one is in sync. TOI needs to do a lot more to build confidence in teir property news. Presently its all bullshitting and publishing what they get paid for by PBAP.

Hi Guys,

Check these links WORTH IT –
http://www.livemint.com/2009/03/19214909/DLF-begins-refunds-to-some-buy.html

http://www.dnaindia.com/report.asp?newsid=1241110

Hi!

Pls tell me for how much would i get a 2bhk flat in pune?

I mean how much EMI? And is it worth Taking on Loan and Paying Part of EMI by rent you get?

Sonki

Arun, What is happning insted of real estate i m getting mail updates of IT companies and Banking, is it possible for u to block it nad i can get only real estate updates.
Anyways guys what is happning with HBA, how many ppl are intrested and how many are going for meeting, it is my bad i can’t come as i m out of India, but i would like to know about it and join u all.
and also from last few days u all are so quite

Guys I agree with u all, I am also waiting for the fall till 60%, But all my other point is that we should not delay to form HBA, even after all the facts, we can’t ignore the posibilities, we can’t underestimate PABA These ppl have all kind of sources to make a fake picture in front of general house buyers, as a result of it where the sale of flats ware 0% in december 08, now it is like 2 to 3% so we neet to stop this too, if we keep the rate as low as 0% definetely prices can fall upto 60% to 80%, we need to make some efforts to bring that prices level to get the real flat at real price. We have to think from all the sides to get the correct picture so we can act on it effictively,
Guys it is very simple, already the global economic slow down has put the opposit force to the high speed running train and the train has started pulling back, By forming ORG. Like HBA we can add some more opposit force to pull that train back as fast as we can. Coz this chance we are not going to get again. Remember that the train is still trying with it’s full force to break this slow down.

Over all I mean to say the Let us not waste time and act effectively Kick these PBAP to there ground level and expose them to the real world ppl. Let ppl know that how these real eastate ppl blaff in reality, Let us make everybody understand that they should get real estate at the real price and when ever thay want.

Rally Nice Thread to know, Is Real Estate Offering a Real Cost to Buy a Real Home ? from 2007 to till date .

Hi Dhreeraj,

PLEASE REFER BELOW LINK BY INDUSTRY EXPERTS – http://business.rediff.com/money/2009/mar/16/personal-finance-buying-a-home-wait-for-mid-2009.htm OR if this link does not open just add ‘l’ to .htm and connect.

BUILDERS WILL REDUCE DOWN TO 60% – 80% BY OR JUST AFTER JUNE-2009 AS I STATED IN MY PREVIOUS POST.

LET US ALL STAND UNITED TO SEE THIS ELSE WE ALL WOULD SUFFER.

ALL THIS GOVERNMENT EMPLOYEE STORY IS OK BUT WILL NOT MATERIALIZE AS THEY TOO ARE WAITING FOR THE BEST BUY.

RE-THINK ON IT, I HAVE ALREADY WRITTEN TO ROYAL PRIDE PURPLE GIVING THE STORY AND ASKING THEM TO REVISE RATES TO MATCH YEAR-2004 LEVELS AND UNLESS THEY DO NOT MATCH THE REQUIREMENT, PEOPLE OF PUNE WILL NOT TURN-ON. THEY REPLY I GOT IS – PLEASE GIVE A CALL BEFORE YOU REACH OUT SITE FOR DISCUSSIONS.

THIS MEANS THEY ARE GETTING THE PINCH AND FORCED BY PBAP NOT TO REDUCE. ROYAL PARK-PRIDE AND PURPLE WILL SOON FALL IN LINE AND DESERT PBAP TO SURVIVE.

YOU SHOULD ALSO REFER TO BELOW LINK –
http://economictimes.indiatimes.com/Real-Estate/Realty-cos-scale-down-prices-by-40/articleshow/4273994.cms

BUT EVEN AFTER CUTTING TO 40% SALES ARE NOT PICKING UP. THIS MEANS ALL INDIAN BUYERS ARE WAITING FOR THAT CLASSIC 60% – 80% RATE CUTS SUPPORTED BY YEAR-2004 INTEREST RATES AND ONLY THEN THERE IS POSSIBILITY OF PEOPLE GOING FOR A BUY.

THIS HAS TO HAPPEN AND WILL DEFINITELY HAPPEN AS ALL MAJOR REALTY COMPANIES ARE FACING THE BLUES FROM RBI – READ THIS LINK –
http://www.indianrealtynews.com/banking-and-finance/rbi-examines-the-books-of-10-real-estate-companies.html

THE HIDDEN WROT OF THESE COMPANIES WILL SOON UNFOLD. JUST IMAGINE WHY BIGGIES ARE GOING DOWN BY 50% AND NOT PBAP – THE REAL REASON THEY KNOW THE WROT WILL OPEN SOON AFTER Q-4 RESULTS AND THEY WILL NOT MAKE MONEY THEY WANTED LATER. SO GO FOR THE BUCK NOW.

PLEASE LET US UNDERSTAND THE HIDDEN AGENDA – HIDDEN THINGS – THEN WE WILL GET THE REAL MEANING OUT OF IT.

– JAGO HINDUSTAN JAGO – JAGO PUNE JAGO –

Friends,

Forming HBA is a wonderful idea. I suggest – we should have a separate website of HBA. Hope, all legal proceedings are going well, unfortunately I can’t contribute much as I am based out of india but surely add value by spreading a word with as many people as possible.
We need to be more careful in terms of disclosing our identities, because the guys we are protesting against are notorious and money powered and not to mention have tremendous political support.

IF THE BUYERS REMAIN PATIENT FOR ANOTHER 1.5 YEARS, THINGS WILL AUTOMATICALLY CHANGE. YOU KNOW WHAT, IT’S ELECTION TIME. THIS IS THE ONLY REASON WHY WE DON’T FEEL THE REAL SLOW-DOWN, RULING GOVERNMENT ALWAYS TRY TO MAKE FEEL PEOPLE GOOD GOOD
ONCE THE ELECTIONS ARE OVER, BY SEPTEMBER 09 WE SHOULD SEE CHANGE COMING SLOWLY.

THE THINGS WILL BE UP-SIDE-DOWN BY MID 2010, NOT EARLY, BECAUSE BUILDER LOBBY HAS ENOUGH MONEY TO HOLD AS OF TODAY. WE NEED TO GIVE ENOUGH TIME TO BUILD ADEQUATE PRESSURE :)

LET’S BE UNITED AND MAKE A BETTER WORLD FOR US
UNITY IS STRENGTH

KEEP POSTING GOOD AND POSITIVE INPUTS AND HAVE A HAVE A WONDERFUL “VASANTA” OUT THERE IN PUNE…. HAPPY GUDI-PADWA..!!!

Dear all, I got this from one site, now PBAP wants to blame everything on Government and Bank intrest rates, which is not true at all they are just playing another game. At the end of this Jain said that price falling is not possible if there is a demand gap, Now is it really true, i think it’s just another game. Read the following.

Severe cash crunch and falling sales have brought more than 450 real estate projects in Pune to a standstill. This has led to around 5,000 construction workers and many others losing jobs. By December 2009, only 16,000 new apartments would be unsold in Pune while the demand is more than 50,000. These numbers were revealed by a detailed survey undertaken by Promoters and Builders Association of Pune (PBAP), a body that represents a large number of real estate developers in Pune and surrounding regions. “Construction of cheaper flats is impossible for builders at a stage when there is severe credit crunch and the buying power of Pune residents has got stagnated due to higher home loan interest rates. This has formulated into a ‘deadlock’ which seems difficult to get resolved without active steps by the government of Maharashtra and Pune Municipal Corporation,” PBAP president and Kumar Builders chairman Lalitkumar Jain told Business Standard.

A large number of real estate analysts have been projecting Pune as country’s top destination for real estate investment as the city has seen extensive growth in sectors of information technology, automobile, manufacturing, education and services. All this resulted into a sudden price hike across all locations in Pune and real estate properties saw an appreciation of more than 200 per cent within three years. However, the PBAP over the last four months has experienced a sudden fall in sales mainly due to higer interest rates. “We have come to a situation where we have asked all our members to sell flats at the lowest possible rates because banks are not keen on financing our new projects and unless our present flats are sold, we cannot start new projects,” Jain stated.

Rohit Gera, another prominent developer from Pune said, the steps taken by the Reserve Bank of India (RBI) have helped bring down interest rates but the state government and local municipal corporation are adamant over taking any new measures to facilitate real estate growth. Gera stated, around 450 real estate projects in Pune and surrounding localities were at a standstill since developers do not have cash in hand. “Since projects are held up, more than 5,000 workers have lost jobs and a number of engineers, architects and allied workforce too have received pink slips. And still, the government has continued the readreckoner rates while the stamp duty for land development has been increased from one per cent to five per cent,” he added.

The PBAP also blamed PMC for severe increase in various premium and development charges, which the builders have no option but to pass on to the end buyer. “Our survey show that by December 2009, there would be only 16,000 ready-to-sell flats available in Pune while the demand is of more than 50,000 units. If the demand-supply gap continues, there are no chances of prices falling,” Jain added.

Most interesting thread. Thanks for the link from India housing bubble blog.

What is cost of construction for big builders like DLF? Is it also around 900 psf? Or more?

What about the green area and other open spaces from builders like DLF – how much should that contribute to price psf?

The big daddy – land price, how much psf? I am specifically interested in Gurgaon prices. How is 3070 psf by a top tier builder (Vatika)(including underground parking and all except stamp duty) sound to you?

Hi Guys,

WAKE UP CALL AGAINNNNNNNNNN. SEE THIS LINK BELOW –
http://economictimes.indiatimes.com/Markets/Real-Estate/Do-not-expect-property-rates-to-fall-further-Hiranandani/articleshow/4240975.cms

ITS A CLEAR CASE OF USING MUSCLE POWER TO MANIPULATE MARKETS, MANIPULATE PEOPLE OF THIS COUNTRY BY GIVING GUIDING STATEMENTS AT HIGH PROFILE MEETINGS.

HIRANANDANI NO DOUBT HAS SUFFICIENT POWER TO USE ITS STANDING TO MANIPULATE MARKET BY GIVING STATEMENTS SUCH AS –

” DO NOT EXPECT PROPERTY PRICES TO FALL”

THIS SIGNALS LARGE SO CALLED CORPORATE BUILDERS TO FORM A CARTEL AND NOT TO REDUCE PRICES, HAVE A RIDE ON GOVERNMENT INTEREST RATE CUTS, MANIPULATE MARKETS BY GIVING HOAX SCHEMES TO BUYERS SUCH AS FREE CAR, REDUCING PRICES BY MEAGER 10-15%, GIVING FREE GIFTS OR SOME WHITE WASH REDUCTION IN STAMP DUTY-REGISTRATION CHARGES ETC….

COME ON – NO WAY ITS GOING TO PLAY WITH PEOPLE OF PUNE……

PROPERTY PRICES MUST COME DOWN TO REALISTIC –
“” YEAR-2004 LEVELS “”

WITHOUT WHICH PEOPLE / ALL BUYERS WILL END UP PAYING HIGHHHHHHHH EMI FOR THEIR 50% OF PROFESSIONAL LIFE SACRIFICING THEIR FAMILY’S NEEDS AND REQUIREMENTS AND LUXURY……..

ITS OUR HARD EARNED MONEY AND NOT THEIRS – GET IT STRAIGHT PBAP, OTHER LARGE BUILDERS SUCH AS HIRANANDANI ETC……

LETS GIVE SUCH STUNTS A BLUNT – STRAIGHT ON FACE – REPLY –

To,
All friends,
Please give the information about a temple in your neighbourhood area,where at least 50 people can accomadate.This will help us to conduct our first meeting.We will get more choice of locations and decide the ideal one for all suitably.If you have any suggestions and ideas,please mail at: [email protected]

To,
ALL,
Please share your thoughts and ideas on [email protected]

I have been reading this thread for long time and it had really helped me for not making a biggest mistake in my life. One day I went to see flat around Dec 2007, I saw the flat it really attracted me with the amenities provided by the builder. Builder quoted me 3300 psf and total went to 48lk-51lk, I had 1 lk with me and on the next day I was about to make payment. I was thinking that flat is too costly but at that time people were rushing to buy flat at what ever the price builder quoted that made me panic and I felt that after few month if you buy the figure will go to 60-65 lk, on the same night I came across this thread as if God had sent this thread to save my hard earned money.
Now this thread is really taking a shape by forming Home Buyers Association. I am looking forward to Join this Association and all the best to all the People who are reading this thread and to all who had given their analysis, Ideas, Views etc.
Jayesh Shah
9421002345

Hi Makarand and Arun,

Its a good counter strategy to form a House Buyers Association. I would suggest a slight change. Gudi Padwa no doubt is a auspicious day for the occassion however it is reality that few will turn up for obvious reasons. Its better we schedule such a meeting on Saturday evening 28th March after office hrs say 6.30pm or 7.00pm or same timing on Sunday 29th March. We meet for an hr or so to put up a formal structure to this entity HBA. Unless HBA is registered it will not capture legal, valid response from Media, Authorities and even PBAP. Especially PBAP may try to use muscle power to give negative publicity about HBA illlegal existance etc….

I mean, if we are thinking of HBA we need to look in to all aspects and form a proper structured entity.

Friends, colleagues, peers will try to join in after the first meeting I think so….

Arun, it is possible for you to convey to all a suitable meeting place and would appreciate if my suggestions on day & time are considered. This will be easy for all as most of them would belong to salaried class and obvious office work constraints.

Do post us all….

Prakash

Hi Makrand,

Excellent!! we can start work from HBA ..

I already sent mail to admin :)

Dear Mr.Arun,
Please arrange at least one get together meeting in Pune as soon as possible.So that we can start our association.

Hey Darshit, you are absolutely right. I have writtten multiple times before that a property gets sold for a price WHAT OTHERS ARE READY TO PAY. The problem primarily happened because of NRI folks who put in money at absurd prices for investment sake and by pushy spouses, family members, peers who caused quite a sane lot to make a bad decision of buying at absurd rates.

Earlier the prices started rising with builders putting in better construction and little extras like more open space, etc etc. Later it was all whitewashing. Magarpattta – Although a very nice concept – has the worst construction quality. Inflation got the builders increase prices by 10 times the inflation.

Then when everyone agrees across the globe that property rates hasve been inflated and will come down to the previous 5 year figure, this infamous PBAP cartel talks crap. I mean how can the chairman or whatever fancy position my LKJ has talk crap like prices in Pune are Rock Bottom! The lone statement itself summarizes this cartel’s thinking. Pune folks are morons. Just fool them and they will fall in the trap.

It’s pathetic and things and statements like this only tend to sentiment of the public. Confidence in real estate is in shambles in this city. Its now like buying stuff from Fashion street or Palika Bazar in Delhi. No matter how much you bargain, at the end if you buy it, you would always feel cheated. Hard to see value at any rates now. Why? because again PBAP cartel is saying if we reduce prices quality will suffer. This is just a stunt as the quality is always shit, but what impact do open statements like these have on a buyer. Immediately I see that a rate of 1500psf is not a deal but may be crap construction that would have the building collapse in coming monsoon rains (Check out previous comments where people equate lost cost = crap construction).

It is shit everywhere in Pune, and this time (after crash) it is solely PBAP to blame. May be if PBAP acted smartly, we could have seen some bounce after 30-40% correction but definitely not now. Its a free fall as you rightly said.

Thanks Arun for the stats and Yeah it is very important to for all people who want to pick-n-post comments to give a LINK BANK to this page else there is every possibility of readers getting biased views or getting distracted from the main course.

The real picture of Pune Property is here on this blog-page.

For popularity, we can always get the stats from Arun. Arun, please post.

BTW I second Prakash’s point that no one is even going for bookings at sub 200 rates because as we say – the sentiment is not good. We, the people of Pune feel cheated by this PBAP cartel. So all of the sound minded folks now are staying away from properties. On top of this rentals are crashing so there is absolutely no need to buy. Go for multiple year contracts and if possible directly with landlords. Avoid the middleman.

How is this post too popular?

I WROTE THIS ON 27th FEB, I CHECKED IT AGAIN –

THIS GUY PUNE PROPERTIES HAS STILL NOT REVISED RATES AND MAINTAINING HIGHHHHHHHHH RATESSSSSSSSS OF JAN-2008

====== WE SHOULD BOMBARD HIMMMMMMMMMMM AND MAKE HIM REVISED RATES==

JUST CHECK BELOW LINK YOU WILL REALIZE –
http://www.puneproperties.com/real-estate-price-updates.php

YOU ALL SHOULD CALL THIS GUY & JUST THRASH HIM TO REVISE
RATES ON HIS PORTAL (I HAVE ALREADY THRASHED HIM TWICE IN
LAST 2 MONTHS) –
PRITESH KAYAL +91-9860882558 E-mail: [email protected]

PBAP needs to look into this: http://www.allcheckdeals.com/project-dlf-newtown-btmextension-bangalore.php

You want to know what their response will be? Can;t provide ameneties, construction quality will suffer, they are not using gold bars for extra strength :) as we do.

Ha ha ha. Wake up PBAP.

There is a huge round of cancellations going in various cities where prices were bloated. Pune seems to top the chart in terms of price bloat. Folks who have already booked should get your bookings cancelled. There is to be a 50%+ drop in present rates. DLF has already shown us that. 1850 = 3700/2

Our discussion should be notice by maximum peoples.It doesn’t mean only some people know and discuss the facts.So find out the way that how we can reach this messages in Pune city.

Great Work Arun !!
I have been following this thread for quite some time.

This is a classic case of the bubble being built and then beginning to go bust and people’s reaction to it! I write at the indiahousingbubble blog (http://indiahousingbubble.blogpspot.com). I will begin posting all your concerns on that blog which will mirror your discussions … Please note that blogger will scan these comments as Google owns Blogger. So if Arun Agrees, I will being quoting comments from here on to indiahousingbubble.

For starters read that blog too – it has more than 140 articles written over the last few years …

Hi! Kiran, This link should be preserved because it contains valuable information. We need to publicize this more. Moreover there should be a structured way to have all this information like true property rates and trends, etc.

How do we do this? A casual search does not list out this thread and so many people miss it out.

Dear Friends,

The discussions happening here in this chain are enough for others to know the reality about PBAP and Real Estate in Pune.

Instead of creating any new group lets forward the link of this chain to everyone. That will keep our old discussions safe and in addition we will have new friends to keep us posted/updated.

What u people say?

Kiran More

Hey Guys read this article I came across just now it says GDP will be below 5% for Q-4 :

http://economictimes.indiatimes.com/Economy/Growth-will-be-below-5-pc-in-first-half/articleshow/4200110.cms

Why we should give our hard earn money to these greedy builders. Who knows only to suck customers by charging hingh amount for anything they build like parking, mseb etc.
Pune builders are creep!

Guys, forget buying a flat all together! If a company like TCS can announce layoffs, then guess what firangi companies like IBM, Accenture, EDS (HP), AMDOCS, etc will do!

Check this out. Fresh evening news:
http://timesofindia.indiatimes.com/Business/No-salary-hike-job-cuts-possible-TCS/articleshow/4195710.cms

Is anyone scared over here with this news or you feel confident that your company will still pay you obscene amounts for managing a team of 10 people or writing code that a 10th grader can? If x then y else z :) Really, what is so special about us IT guys or for the sake MBAs these days that commands a premium? Along similar lines … coming back to property discussion … what is so special about Pune properties :)

Guys,

This weekend I went around Pimple Saudagar area to gauge the prevailing rates.To my surprise they are still quoting 2700-3000.
Roseland Residency 3BHK ready possession 3000,came down to 2800 :(
Dint liked Wadhwani’s project so dint enquired much.
Also saw a couple of resale row houses in Shubh Shree woods @ 2700 psf.

Man! who says Pune’s realty is going downside,these sky high prices atleast do not suggest anything.
Anybody who has purchsed a flat in same area pls enlighten about the rates.

3000 psf for this bullshit !!!

I have read the blog from early 2007 onwards. I would like to appreaciate few guys who really have a foresight and feel sorry for others who lacked it and above all questioned the foresight with negative sentiment. It’s a shear loss for you and no one else. Hope, time has told you this answer by now.

It all started with a bull run of 2004-2005, GDP growing, Realty Prices inflated to by 400-500%, Inflation up 12-13%, Domestic products expensive by nearly 40-50%, Oil touched $127 & beyond etc… etc…

Simple answer to all market gimicks is –
If everything else is falling to 2004-2005 levels where it all started then WHY THE HELL PROPERTY PRICES Sticking up HIGH.
USA where it all started has come to terms and is at 2000 level infact, but PUNE Builders still at 2006 levels…. NOT ACCEPTABLE.

It GREED of Pune Builders coupled with lack of common sense with our people. We the people of Pune are to blame equally. We take pride in telling our friends-relatives to have booked a house at 50L-60L-75L etc….

At least now, OPEN YOUR EYES, if you are unable to analyze at the least listen to people who are capable of analyzing the market conditions.

Its simple you will benefit and benefit people at large by NOT TAKING A DECISION TO GO FOR PROPERTY AT THIS MOMENT. If you fall prey to the gimmicks of Builders, Banks, Government the GOD HELP YOU, no one else.

AVIOD MAKING DECISION !!!! Let Builders burn all the FAT they gathered during the bull run, they will come to terms in next 4-6 months and WE THE PEOPLE OF PUNE WILL GET 2004 PRICE LEVELS EASILY.
ALL ARE BENEFITED since 80-90% of them are salaried professionals and it makes SENSE to avoid paying a heafty EMI for 20 years (half of your professional life almost). Instead you can utilize these savings to give your Children, Wife, Parents a decent life & security.

At Bibwewadi February 2004 Prices were just Rs.750 psf, February 2006 it was still Rs.1150 psf for a decent 2 BHK & 3 BHK apartment with all necessary amenities however February 2007 it shot up to Rs.2800 psf and December 2008 it was quoted Rs.3500 psf. Just imagine people who were still buying were HELPING DEVILS SQUEEZE them down the bottom and making life of entire Pune people miserable.

STOP BUYING, DO BLANK ENQUIRIES, ASK FOR RATES, SAY VERY HIGH, ASK FOR YEAR-2004 RATES AND THRASH THE PHONE…. DO IT FOR ANOTHER 3 MONTHS AND SEE FOR YOURSELF PRICES COMING DOWN TO BY 60% NEARLY TO BENEFIT ALL.

REMEMBER BANK INTEREST RATES WILL ALSO COME DOWN TO YEAR-2004 LEVELS BY MARCH-2009. THEN WHY NOT PROPERTY RATES???? LOGICAL.

To support this, you have downsizing in IT Industry, Job insecurity, Industrial growth slowed down, Elections and New Governments Budget may come up by End-May or Mid-June, Stock Market would be trading BELOW 7000 MARK (5500-7000 range BSE)

REMEMBER WHAT USA IS DOING TODAY BY PUMPING BILLIONS OF AID MONEY IN TO THE SYSTEM, THIS OVER DOING WILL PULL USA INTO POOR ECONOMIC STABILITY ZONE AND INDIA-CHINA WILL GAIN FROM SHIFT OF MONEY POWER BY 2010-11

HELP YOURSELF, HELP PEOPLE OF PUNE ==== DON’T BUY PROPERTY TILL AT LEAST SEPT-OCT 2009

Regards,

Prakash

Hey Dheeraj, Completely agree with you. I too don’t like flats. Bungalows are great. My well wishers in the past suggested me to buy land and get a house built on that. Believe me it would turn out to be cheaper. Construction cost is not that high. It should be around 600psf to 700 psf today for quality construction.

The only challenge to stay in an independent house in cities like Pune is security. Unless you can afford personal security to your future bungalow, it would be a bit risky. Another problem comes dealing with the corporations if you face issues with electricity/water, etc. In a society its kind of a bunch of people and things tend to get settled sooner. With a bungalow you are all alone.

You need to have contacts (other than money) to enjoy this luxury.

Hey Sagar, I do not stay in that part of Pune, but as of today I or anyone can definitely tell you that 3800 psf is just not selling anymore. People are not even going for projects quoting 2500 psf.

Why are you concerned now that you have already bought the flat? If it is an investment only, I would recommend to exit at your cost price and invest all your money in a bank for a couple of years till you can find sanity return to the market. Today money locked in flats for investment is dead money. On top of that add the fact that 1 rupee today is 90 paise tomorrow if not properly invested and you are set for a huge loss.

If the flat is for your own, then don’t bother too much. Stay happily.

Dear Dheeraj,,

wait for little time…
after coming june u will see 40% rate cuts as compared with today’s rates.

Ranjeet

Guys my question is still there, i want to know what is going to happen with residential plots, do u all expect that rates will come down or it will stay constant at an avarage level, and what do u think after the US economy Stimulus package $800 bl. will it also boost up Indian overseas business and ppl will have there jobs back. and the priceses of real estated will again go up. and what abt our government are they going to do something or going to take some positive steps so the general ppl can also afford to have there own house? i think u got me what i mean to say. Personaly i do not like flats i want my own independant house which i can built according to my own design, and can have my own space and freedom can it happen in pune?

See my earlier comment in Dec 2008 about gold…

Ranjeet wrote,

100 % guranted analysis….

Gold is the best option to invest…..

As soon as crude will increase gold will boost again….

Ranjeetsinh

Link | December 30th, 2008 at 11:59 pm

See What it now?
100 % Correct One…

Ranjeet

@Amit, what is the name of the building or society. Is it a re-sale flat? The biggest issue we have in Kharadi is WATER. If that is not an issue in the building (which I doubt) you are going for then it seems to a nice little outskirt to stay at. I quoted earlier that Kharadi prices will come down to 2000psf pretty soon. Do not know it could happen this soon!

For the deal, you seem to be impressed by the rate but not the house. All I can say is that if you do not have your heart into what you are buying, forget it. 2100 is not a bargain to just go for it. Something along 1500-1600 psf lines would be considered a bargain in this area. 2100 is OK if you really like the place.

Very interesting discussion. I am holding myself for last 2 years and also asking my friend to do so.

I bought a home in 2004 and its current value is 2 1/2 times (After slow down). But I don’t believe that even this is real.

BTW this is the longest discussion, I ever read, Started in Aug 07 and still going on.. isn’t that cool..

The discussion is pretty informative and valuable. Mention of real price is great, especially in this slow down. It helps finding trends and if the price quoted by builder is reasonable. Thanks to contributors.

Right said Amit. Mr LKJ thinks he is smart enough to fool Puneites with his tactics. I actually saw another news item that said that these PBAP thugs have come up with another novel idea (other than reducing their profit margins of course). If you have lost your job, PBAP will pay your EMI upto 3 months :) Now let us THINK and analyze this:

Why are they so generous to us? Have I married their daughter? No dear, they are desparate. They have no takers. They know people are no longer seeing value in the property rates offered and are also now cautious of taking hefty loans. There was a time in Pune when people used to talk of taking a 40 lakhs loan as buying kotmir from the sabzi mandi. Recent recession has shown that people may end up without jobs in less than a month.

The job market is really bad and mark my word if you do not see a cut in salaries in the coming year. No promotions for a couple of years. Fear of job loss. Small IT companies going belly up. MNCs wrapping up and saying bye bye. Who the hell will take loans in this time?

Pune builders are the greediest of the lot I believe, although they project as if they are giving you a bargain and are only slogging to build for you having hair thin margins :) Times of India (which defintely pockets in a lot of money to publishing things in the favor of these builders) quotes rates in pune areas much higher than what they are actually. TOI only publishes but the source is another pro-builder agency. Can be compared to PWC/Satyam relation ship.

For all those who have question sabout going for the kill now or later, here is a suggestion:
[1] You see value and and afford it, so go for it.
[2] Want to get a fair price, then wait till you see Kharadi rates advertized as going for 2000 psf. This would act as an indicator that prices have really dropped. All those who believe this can’t happen, why did you believe it when it went from 900psf to 2800psf? that’s a 300 percent increase for what? 30% rise in construction and related costs?

Do not get fooled by these builder marketing tactics:
[1] Our construction is Lajawab – All Pune constructions are shit. Show me a falt whch does not huge cracks in it. Show me flat that do not have leakage problems or a society having insufficient parking space. Visitors being treated like shit – asked to park outside the society on the road without security.
[2] We provide you xyz amenities. Evaluate what you need and what you do not. What these builders generally promise are an apple that costs 100 rupees and deliver you one that they got it for 5 rupees. It’s still an apples isn’t it :) I promised and apple and here you go.
[3] Prime location sir, 5 star aa raha hai, IT park aa raha hai. Mall aa raha hai, 40 feet wide road sir. How may 5 stars, malls, IT parks does a city need? Not all can be a success and Pune roads and PMC. Let’s not talk about them.

In all, anyone who does not buy a flat at this time really helps us all get these builders by the balls. After all what is the need to buy a flat now? There is already a surplus of brand new flats available in Pune that you can get for cheap rentals. Just save and save and you’ll get your dream house at half the rates sometime by EOY 2010.

Guys,
Ask this chairman of ‘Kumar Properties’ itself, how much rates has he reduced in his projects? Just call any Kumar office.. u will get to hear same line… ‘Our rates were always competetive , its just media hype in the market , we are not going to reduce anything!!!’

Hello,
I got a deal with PRISM homes near Aundh Bridge (adjacent to Rohan Niley) for Rs 3800/- per square feet. I have heard that property rates are going down in Pune.
Can anybody provide his/her comments if the flat I brought in PRISM has been at a higher price or is as per market rate.
I would just like to know if I have lost money in the deal or it is worth it’s value.

Also the Brookside project by Pinnacle group in Bavdhan near Chandani Chowk on the Mumbai-banglaore highway was purchased at 2800/- per square feet by my friend. How good is the deal.

Renting strategy for the day to some in these areas: Hadapsar, Magarpatta, Amanora, Kharadi & Mundhwa villages. Apologies, Amanora and Magarpatta are townships within these villages. So they are a teeny-weeny city within a village :)

Please add more facts from your areas for everybody’s benefit so we cover all surrounding pune villages. If you happen to live in Pune, please add details of your areas as well.

Come Feb end. More than 1000 new flat possessions would be given in Magarpatta! More so when Amanora will stick to its schedule :) and deliver those high rise buildings with loads of flats. Presently flats are still lying vacant in these areas. Guess what would anyone pay for a 2BHK in this situation? 6000?

Last year people signed 2BHK lease agreements for 8-9K in these areas for a 800psf-1000psf 2 BHK houses. Guess what would they pay now? Will they pay the same or more? A couple of 2BHKs are lying vacant in my society. No idea why nobody is moving in. Is the landlord asking more than the prevailing 8K or he is not interested? Can you guess?

So dear, rentals are also crashing. If you are going for a new rental contracts in these areas, cap it at 8000 if you have got your dream rental home, get a good deal at 7000 and be lucky at 6000 for 2 BHK. Do not pay any brokerage to the estate agent. Ask him to take it from the land lord as you are doing him/her a favor renting out the flat. As I say, these are present rates. We may have new rates depending on how many of us still have jobs.

Good Luck.

A good article from Rediff : Layoff story…

Name: Anuj Patel (name changed on request)
Age: 26
Company/Sector: Oil & gas
Educational qualification: BE (Electronics)
Work experience: 2 years and 5 months
Background check:

I finished my engineering in electronics in May 2006. While I was not selected during the campus interview held at my college I succeeded in getting a job two months later.

In these two months I did a crash course in advanced computing and .NET. In fact that helped as most of the questions asked to me during my interview at this oil & gas company were related to what I learnt in this crash course.

How I lost my job

India in 2006 was a good place to find a job and my first job got me a salary of Rs 26,000 (in hand) per month which later increased by 8 per cent in April 2007.

I was very gung-ho and things were moving pretty smoothly. Until November 2008… the stock markets were crashing across the globe as bank after bank went under in the USA leading to global turmoil.

My company bore the brunt of this crash and to cut costs they began downsizing staff strength.

In December I along with 70 other members of my division were asked to leave. We received a severance package as per company rules. Only 22 co-workers were retained to handle our core technology operations.

No liabilities

Personally speaking, fortunately, I had not borrowed any money for buying a house in mid 2007. My elder brother was planning to get married and as we live in a one-bedroom apartment I wanted to purchase my own flat. I thank my stars that it didn’t happen though my brother got married the same year.

Now that I am without a job — I am searching desperately; I have sent applications to at least 7 IT companies — I find myself in a very miserable position. I don’t go out and meet my friends; I often have tiffs with my girlfriend and get annoyed at minor things; I have stopped visiting my relatives.

The social stigma of not having a job in a conservative family like ours is unbearable as people start questioning your ability.

Family support

It is indeed my fortune, again, that my parents and my brother support me through this tough time. My elder brother works for the technology division of a private bank and helps me with my financial difficulties. He has promised to pay my life insurance premiums if my savings deplete with each passing day and if I fail to find a job in the next 6 to 12 months.

Who can I trust?

Though two companies have offered me verbal commitments of a job offer and asked me to join mid February I don’t trust them as they have not yet given me an offer letter. A few friends have also got the same verbal commitments but no concrete offers.

My company too, till December, gave us hope that there will not be mass layoffs but it did happen. I can hardly trust people anymore now after this experience.

Lessons learnt:

Always have an alternative source of income

Never think that bad times will not visit you

It helps to save money in good times; you understand its value in times like these

Never trust a company’s verbal promise that you have been selected; only trust the offer letter and your abilities to scale difficult times

Understand the importance of having a supporting family

Don’t borrow money from banks for whatever reasons if you are not sure if you will have your job or not

Dear Friends,

Two points to remember,

1. I came to know from my friend, his jijaji is working with P…….. Schemes, Pune. The big b’s are having many meetings regarding the pricing structures and soon they are going to reduce the rates. The news is, They are planning to start 1BHK @ 10 Lacs only. If it happens, local/small builders will again lower their prices below 10L.

2. US and Saudi are going to cut down jobs of many Indians… Ab toh log darenge. Due to this I am quite sure no one will dare to buy flats. Even if rate for 1BHK goes near or below 10L, no one will buy flat due to this uncertainity of job.

Kiran More

Strange Amanora comaring themselves with Rolex, Mercedes, These brands took 100 plus years to build brand names & they are not telling themselves how they big are. Amanora just two year old & 1400 per sq. feet extra is nowhere justified in these days where people are struggling to cope daily life & Amonora is talking about park & garden…..

Do you really think people have buying capaity left? I think we are heading for bad to worse. Even if price goes to half, I m afraid if many people will dare to enter property market. Fear of loosing job will keep them at bay.

Dear All

Very good news…
Govt is going to reduce the property rates in ready reckoner

Who says rates are not coming down…?
The story of bubble is going to end soon…

I am getting a deal in Chakan area @ rate of 2000 psf, in Eiffel,City,project. Should I go for it.They are quoting rate not less then 2000.
I have been holding my decision for last 6 months, hoping the prices to come down but does not seem so. Please advise.

Hey Saurabh, If you want to:

[1] live in the flat you wish to buy
[2] can afford it easily, and
[3] are getting your dream home
[4] close to office

then there is no point waiting for it. In one of my posts I have written, if you feel that you are getting VALUE for your money, then go for it.

Regarding builder repo, that is all crap. Ultimately you’ll have leakages, cracks, etc. etc. in any house you go. Construction quality, all flats look like shit after 10+ years. Ameneties, is again a farce – Gym with cheap desi equipment, Clubhouse that you need to _hire_ when you need to party, piped gas that brings its own expenses and headaches.

Since you are going for your dream home, let us know if this discussion group is invited in the house warming :) What da ya say guys?

Yes thats absoluletly right.If search for good looking homes with good amenities, the builders will not reduce the prices.For e.g. GK builders in pliple saudagar area have accumulated lot of money in past 3/4 years deals, and now they surplus money and holding power so they are not ready to decrease their prices.I feel that builders have bribed govt thats y the govt is daily giving some housing packages by reducing interest, reducing stamp dupy etc but they are not asking the builders to make their rates realistic.It will take another 6-8 months before the builders lobby will settle down againg and will start increasing their rates again and ultimately its us who are going to be screwed up!!!

hi thanks for your comments.. but i have decided to go with this deal.
i have searched a lot of properties by now. i can not get best of both the worlds in every deal. if the location is good prices are high…. if the cost is ok vastu is not good… and so on. i think i have found most of the things i need in my house in the current deal and leaving it may leave in a position to start looking a perfect home again and may take lot of time by the end of which the prices will rise again. saying that a perticular area is offering you a rate of 1600 or so may not get you your dream home. From my perpective locality and builder repo also matters.

Hey Ritesh, Regarding pure investing in property, I was just watching CNBC awaaz ‘Hot property destinations for 2009’. For most of the ‘hot’ properties the so-called ‘experts’ gave a prediction of 25-50% returns in a 3-5 year period.

I DON’T KNOW WHAT TO MAKE OF THIS! Believe the real estate folks have come to look at us regular IT/non-IT folks as morons based on the trend they have been seeing :) They ask for 3000, they get 3000.They ask for 4000 they get 4000. 2 lakhs for a car parking, here you go :) And that too on credit! Remember the mantra – A thing gets sold for whatever someone is ready to pay for it. We guys set the trend and now we are to blame for this.

Here’s my perspective on debt savings schemes in comparison to investing in real-estate at this time. In a 3 year period @ 10% deposit rate, banks provide a a return of 33% in 3 years and 61% in 5 years (Interest compounded annually). If you go for 5 year NSCs or KVPs, the interest earning in tax-free. This money is also liquid as you can have it whenever you need it. Over this, property gets difficult to sell the property if you wish. You need to also consider brokers fees, registration costs for the buyer, any arcane rules if your property/flat is in a township, etc. On top of all any gains you get from your property sale are taxable unless you re-invest them back in property. With all this, the supposedly 50% returns (speculated) should not be more than 30% if you are not evading tax. At all this is NO GUARANTEE sir, only expert advice from the Experts/Gurus.

Investing in property at this time … not a good move as above calculations show. Buying for yourself to stay in, wait as others are advising. As mentioned in an earlier post, I have seen 1650 psf in Mundhwa (Can say Kharadi Annexe ;)) lately.

My personal advise: Hold on to your cash, you can get more in the same after 2-3 years. Banks and industries really need cash, bail them out and become lend them some and earn some interest. FD rates are coming down because of all these RBI moves. ICICI is giving the max of 10.5% on special deposits. Go for it now! FMPs are another option but there is a slight risk involved.

Those industries which are having trade in dolloar $ will face lots of trouble in the year 2009-10.

Those having trade in Pound will play great….

Those having trade in Euro will play at neutral….

Play in forex in streling Pound Only…..

regards,

Ranjeetsinh

Jayesh Bhai

Wait for 3-5 months,you will this offer in 1700/1800 psf. Don’t be exiciting….

One of good builders Sales Manager told me this.They have internal meetings and very less builders have holding capicity now.Just wait and watch for this builders for next 3-5 months.

Hi Saurabh,
When you will get the possession of the above said flat?

I am getting a deal in pimple saudagar area @ rate of 2100 psf, in wadhwani project. Should I go for it. I have checked all most all the builders in this area, and they are quoting rate not less then 2500.
I have been holding my decision for last 6 months, hoping the prices to come down but does not seem so. Please advise.

I have heard a confirmed news that MOFA (Maharashtra Ownership Flats Act) has been revised and here after it is mandatory for builders to charge on carpet area and not on built up. What will be the implications of this ? Will this reduce the prices drastically?

Hi PM,

An excellent comments ……

Cheers!!!!

Hmmm… 2300/sq ft seems to be costly at this time in my view. you should have booked it after some time and definately would have got best deal of life. :(
kiran more

This is the thread where i regularly visit and check what others think, Recently I visited one of the Builder nr. Kondhwa where he quoted me 2600/sq feet and was still ready for negotiation if you have cash in hand, According to me I feel one should pay not more than 20lac. for 2bhk and 27 lac for 3bhk having atleast 900 sq ft and 1200 sq ft respectively.
One of my friend who is working with of the Reputed builder in pune said that they are facing severe crisis and are not able to re-pay loans furthur they are taking additional funds from private party at higher interest rates for completing the project. Now what if there is no sale. Builder is losing at an average of Rs. 65/- sq feet monthly only on interest keeping aside other overheads. I guess Before 2009 Diwali would be an appropriate time to buy flat.

Dont buy atleast for next two – three months. Even if the price is not coming down , its not moving up either. All the real buyers are in safest position and should be sitting at fence. Pune can not stand isolated from the rest of the world. Its just testing ur patience. and individual with great patience will be rewarded with great price!!! Its our market.. buyers market!! Enjoy!!

I have been an occasional visitor to this forum and first visited a few months back when I was considering to buy some flat in either pune or bangalore. The prices were high and this forum and others were anticipating a decline… Ranjit did give a correct analysis… I was just wondering lot of people would have booked the flats already in these areas and they should be paying already fat EMIs every month… aren’t they being fools to pay higher EMIs for a flat which has got its price reduced already… if they buy it now probably they would get much cheaper… in recent times, as I see here in US, the economy is in turmoil… must be having a lot of negative effect in indian job market also… how and why would people keeping big fat emis in such conditions for a flat which is no longer worth what they are paying… shouldn’t they try to to sell it cheaper to somebody rather than being fooled… my I not correct?

Pune was having property exhibition in meridian on 22nd nov and after reading Pune Times Property , I called up leading developers one in Viman nagar and the other in Wakad for a 2BHK. The one in wakad was giving appliances and boasting abt LCD. The viman nagar quote for 2bhk was 55L and wakad 41L and these are under construction flats with delivery 2 years away. I did not find any correction in the prices but Yes I asked for negotiation and they asked me to come down and talk. So the rates ae Still Holding on in pune and Amit Sinha is correct to let the prices fall.

Does anybody knows about Atul Enterprises (Kothrud) who have started a project in Pimple Saudagar (Alcove)?
About their construction quality? Customer service? and commitment toward project completion?

Hi David,
It sounds good :)
Will you please post the Wikimapia link for the same to get exact location details.

Have prices dropped in pune? News channel say based on the pressure from FM and banks , most builders agree to bring down prices by up to 35%.
I was looking for a 1 BR in Konark Campus in viman nagar , last one year price has remained steady at INR 27 Lacs , and even if it is nego. it is like 25K – 50k INR.

FM asks airlines, auto & realty firms to cut rates.

Real estate prices has to come down. !!!! :-)

Hi everyone…

Construction houses facing difficulty for short term capital.

See newspapers of last few weeks..

Some companies have published advertisments in order to collect funds from public stating attaractive rate of returns…

Very difficult position…

But one thing we must admire that construction houses are having very good holding power…

otherwise they cant strech their stance upto this level…

but don’t worry at all…
They couldn’t hold more now…

Reduction in interest rates will not boost real estate in near time unless there is a big fall in interest rates say upto 3-4%

Ranjeet

Hi Guys,

We will dispaly our findings here….if you got the rates in good area, then please update here…

Save your community to spend more money

Can anybody please answer my above question?

Indian Real Estate is going to go up for sometime atleast. Private Equity firms have stepped into it and they are definitely going to take it at a higher price.

Correction : Pashant : Pashan**

Hello DIGRASKAR ,

I am not mentally sick and I am talking about the fact.For how long TCS or Infosys can afford to pay the salary with out project.These two companies may not go for lay offs but they go for a huge pay cut (up to 60%).Then think about the other IT companies.As far as I can see , the financial crisis will hit the bottom in mid of 2009.we haven’t seen the worst yet.We can expect 30% to 50% correction in real estate prices in starting of 2010.I would suggest every one to keep the cash as much as you can.

Wait and See….

Hopegully IT companies will do huge lay off / pay cut in another 3 to 6 months.Every one wants to buy a home in Metros or sub metros.But People need a solid job with fat salary to invest huge amount on homes.

the real estate prices will crash like never before please wait until march 2009-dont buy anything now the developers have already enjoyed .and earned enough.dont make any wrong decision at present

Dear all,

I am not having much experience/exosure to real estate.

I have got 3 plots in Andhra Pradesh which have appreciated by 200% in the last 3 years. I do not know the change in the last 3 months.

I am a financial/stock market analyst. I will give my views on real estate.

Plot prices my rise due to following reasons.
Rupee depreciated upto 50Rs. in the last 3 months.
Inflation is maintaining around 10% for the lat 6 months.
Food articles like rice, vegetable, pulses, edibile oils are increasing day by day indicating in real terms rupee value is coming down. people will try to keep their assets in forms other than cash, stock market. Which leave only real estate and gold. Gold is already rising in the lat 6 months. People will/should be scared of keep their assets in the form of cash.When the liquidity goes up due to RBI actions, inflation will go up but economic growth will be maintained. Economic growth means increase in the real estate prices.

Flat prices also may rise due to above reasons. But there is one weak point. i.e. steek prices are coming down. I am not watching cement prices. If labour cost also comes down, the new flats may quote at slightly increased prices. In the coming months stock market may recover and real estate prices my be puhsed up.

Consiering above points buying plot is advisable and instead of postponing/buying flats it is better to buy plot at far away area and build the house, then total cost will come down. I feel buying flat at these prices by a salaried employee is not advisable.

News & Events
Exclusive Offer !

Wadhwani Construction offers Free Indica Car with a 3BHK Flat.

Sai Vaibhav, a scheme of 1 BHK Luxurious Flats has been newly launched on popular demand.

More…

I believe everybody was against the raising rates from the time when it started touching the sky. Only fear everybody had was that if prices shoots to the level which they could not afford how will they build their dream home.

Now as prices stared coming down everybody seems to be happy and ready to wait till more correction happen in near future.

Ranjeet ,

is this price fall for flats only or applicable to land.

I have read so many comments here saying prices has come down. It would be better if every one will be specific about the builder and the rates. Without these all the comments are only looks good to read and which is pointless.

Yaar Kiran, Can you please provide the builder name where your friend has visited to buy a house?? I have waited so long to buy the house in pune. I have been to park street but still they are not ready to come down by much and I do not want to believe any unreputed builder even if he is ready to come down by 500+. If you provide me the information I would be greatly appreicated.

Dear Friends,
Buying a flat/individual house in Pune is really dream of everyone. Buy important things is “at what rate?”.

Are you interested to pay whole earning in EMI for life long? and how long our IT jobs are secure these days? US recession and Indian Share Markets major fall is going on. I guess we should wait and watch for the flat rates to fall down more. The actual construction cost for any flat is around 900 INR and it varies depending upon locality.

My advice would be “WAIT AND WATCH” as Ranjit has told since beginning.

There are many cases where people are fooled by builders. My co-worker is planning to buy flat as his wife is also drawing huge salary. But the flat rates are too high and he post-poned his decision to by flat. Now those builders to whom he visited couple of months ago, are ready to cut down the flat prices atleast by 500 INR per SQ. FT.

I really agree to the statements made by Ranjit and Rajit you are the man of this blog. DAC please do some survey in the market and come up with real rates of RE.

I guess no one would love to pay huge EMI’s life long and in the situation where jobs are unstable.

Be Wise, Dont Buy Flats anywhere at the moment, but save money to buy flats in next 8 – 10 months.

Kiran More

STORY OF PUNE REAL ESTATE

Once there was a little island country. The land of this country was the tiny island itself. The total money in circulation was 2 dollars as there were only two pieces of 1 dollar coins circulating around.

1) There were 3 citizens living on this island country. A owned the land. B and C each owned 1 dollar.

2) B decided to purchase the land from A for 1 dollar. So, now A and C own 1 dollar each while B owned a piece of land that is worth 1 dollar.

* The net asset of the country now = 3 dollars.

3) Now C thought that since there is only one piece of land in the country, and land is non producible asset, its value must definitely go up. So, he borrowed 1 dollar from A, and together with his own 1 dollar, he bought the land from B for 2 dollars.

*A has a loan to C of 1 dollar, so his net asset is 1 dollar.
* B sold his land and got 2 dollars, so his net asset is 2 dollars.
* C owned the piece of land worth 2 dollars but with his 1 dollar debt to A, his net residual asset is 1 dollar.
* Thus, the net asset of the country = 4 dollars.

4) A saw that the land he once owned has risen in value. He regretted having sold it. Luckily, he has a 1 dollar loan to C. He then borrowed 2 dollars from B and acquired the land back from C for 3 dollars. The payment is by 2 dollars cash (which he borrowed) and cancellation of the 1 dollar loan to C. As a result, A now owned a piece of land that is worth 3 dollars. But since he owed B 2 dollars, his net asset is 1 dollar.

* B loaned 2 dollars to A. So his net asset is 2 dollars.
* C now has the 2 coins. His net asset is also 2 dollars.
* The net asset of the country = 5 dollars. A bubble is building up.

(5) B saw that the value of land kept rising. He also wanted to own the land. So he bought the land from A for 4 dollars. The payment is by borrowing 2 dollars from C, and cancellation of his 2 dollars loan to A.

* As a result, A has got his debt cleared and he got the 2 coins. His net asset is 2 dollars.
* B owned a piece of land that is worth 4 dollars, but since he has a debt of 2 dollars with C, his net Asset is 2 dollars.
* C loaned 2 dollars to B, so his net asset is 2 dollars.

* The net asset of the country = 6 dollars; even though, the country has only one piece of land and 2 Dollars in circulation.

(6) Everybody has made money and everybody felt happy and prosperous.

(7) One day an evil wind blew, and an evil thought came to C’s mind. “Hey, what if the land price stop going up, how could B repay my loan. There is only 2 dollars in circulation, and, I think after all the land that B owns is worth at most only 1 dollar, and no more.”

(8) A also thought the same way.

(9) Nobody wanted to buy land anymore.

* So, in the end, A owns the 2 dollar coins, his net asset is 2 dollars.
* B owed C 2 dollars and the land he owned which he thought worth 4 dollars is now 1 dollar. So his net asset is only 1 dollar.
* C has a loan of 2 dollars to B. But it is a bad debt. Although his net asset is still 2 dollars, his Heart is palpitating.
* The net asset of the country = 3 dollars again.

(10) So, who has stolen the 3 dollars from the country ? Of course, before the bubble burst B thought his land was worth 4 dollars. Actually, right before the collapse, the net asset of the country was 6 dollars on paper. B’s net asset is still 2 dollars, his heart is palpitating.

(11) B had no choice but to declare bankruptcy. C as to relinquish his 2 dollars bad debt to B, but in return he acquired the land which is worth 1 dollar now.

* A owns the 2 coins, his net asset is 2 dollars.
* B is bankrupt, his net asset is 0 dollar. ( he lost everything )
* C got no choice but end up with a land worth only 1 dollar

* The net asset of the country = 3 dollars.

************ **End of the story; BUT ************ ********* ******

There is however a redistribution of wealth.
A is the winner, B is the loser, C is lucky that he is spared.
A few points worth noting –

(1) When a bubble is building up, the debt of individuals to one another in a country is also building up.
(2) This story of the island is a closed system whereby there is no other country and hence no foreign debt. The worth of the asset can only be calculated using the island’s own currency. Hence, there is no net loss.
(3) An over-damped system is assumed when the bubble burst, meaning the land’s value did not go down to below 1 dollar.
(4) When the bubble burst, the fellow with cash is the winner. The fellows having the land or extending loan to others are the losers. The asset could shrink or in worst case, they go bankrupt.
(5) If there is another citizen D either holding a dollar or another piece of land but refrains from taking part in the game, he will neither win nor lose. But he will see the value of his money or land go up and down like a see saw.
(6) When the bubble was in the growing phase, everybody made money.
(7) If you are smart and know that you are living in a growing bubble, it is worthwhile to borrow money (like A ) and take part in the game. But you must know when you should change everything back to cash.
(8) As in the case of land, the above phenomenon applies to stocks as well.
(9) The actual worth of land or stocks depend largely on psychology

Folks,
This is going to be an era of wealth destruction. Forget prices coming down which it will dramatically..there will be very high level of unemployment and businesses folding up. The IT sector and Banking and Insurance industry..which were hitherto the prime pay masters..will have to re-engineer and will witness significant job cuts and salary cuts. Its not just about houses anymore!!

Its almost there with REALITY Index crashing by 75.68% in a year.
SENSEX 10,194.79 -614.33 -5.68

Still dont buy flats since the rates are bound to go down now.

The prices should come down almost in all areas.

Dear David….

I am agreed with ur statement 100%….

Hi Dheeraj,

Its best to wait for minimum 6 months.After this period you have a lot’s of chioce in your budget.
Reason is that already economic is down and the builders earn lots of money in last 2 years.They can hold there flats for some period because they have sufficient capitol with them. But by some time intrest is more on this capitol and they can’t afford. So you will get a best deal.I am doing same.
Let me know your thoughts……

Think before booking your flat.

As many as 159,000 jobs were cut in the U.S. in September, the worst ever retrenchment in a month for five years, the government has reported, heightening fears that the economic downturn was worsening and could persist well into next year.

http://www.siliconindia.com/shownews/47374/1

As predicted share market is declining towards 10K.
SENSEX 11,821.26 -705.06 -5.63 (as on 6 Oct 3:30 pm)

Hello,

Anybody having any idea about the rate in Mhatre bridge area.

AMP

Dear Dont_buy_flats_in_pune,

I think we dont have right to list the rates with respect to individual builders…

It will be better if we share the offered rate & Cutoff rate as per locality….

e.g. in Wakad one builder quote me rate of Rs.3500 but he is ready to cut down the rate upto 2900 after two sittings.

i am planinng to wait until best….

Dear R K

Even if 60 lakh house goes down to 45 lakh do you dare to buy a house??

US wall street companies are getting closed, no where in the world economy doing good, there are no jobs, companies are kicking of the employees…bla………bla…….I am just thinking now would bank have money to give loan to the customers?? I heard that ICICI bank is not doing good. Not sure how true it is…

Hey Dear Ranjeet,

You are the “MAN OF THE BLOG”. You are ablolutely right……

Before 2 months back my friends purchase a flat at Pimple Saudagar @2750 Rs per sq. feet. They negotate the rates from 3100 :)
I was planning to purchase a flat ar same rate but due to high prices I don’t. The Sales Manager has my contact details and lase sunday. Date 28 Sept, He called me and told that he is ready to buy a flat at 2200 Rs per sq. feet.
One builder at Dyhari, when I call him for enquiry, he came at my home , I mean to say I got PICKUP and DROP facility from him…:) He is ready to sell a flat at 25 Lacks with free parking….whats this signs of ?
Thanks Ranjeet to aware of facts to others….

DEAR ALL…….

BE READY TO BUT YOUR DREAM HOMES AT AFFORDABLE PRICES SOON………

It’s my promise to all……

read any newspaper……

Dear DAC,

Why stock market is declining?

where is the growth which u r claiming?

Why people are kicking out from industries?

Why financial institutions suffering a lot?

Why overall world is fearing abour big recession?

Why? Why? Why?

You must have to give answers for that??

The Global credit crisis is getting murkier and tougher. Everytime experts see an end to it, it just re-emerges clarifying how even experts know very less of it.
From a simplistic perspective, 10 years back credit was not so easily available anywhere in the world. The financial insruments created during the late 90s acted as levers and made credit available to a larger % of population around the world.  Financial institutions in the West are taking the brunt of the current credit meltdown and have deep holes in their bottom lines due to asset write downs. Construction boom is not esoteric..it has happened around the globe and has been leveraged by easy  availability of credit.
If this availability is getting choked in the west…it is bound to be global too. No rocket science in understanding its implications on businesses which depend on "borrowed money"
Gents watch out for great cash deals in the near future ( six months)..unfortunately, somebody’s joy will be somebody’s sorrow!!

Hi,

We all are really waiting for the downfall. Let us see what happens.

again who told u that in US prices went down by mere 5 % in good areas….
r u comparing NY with Pune?

Dear Ranjeet,

I never said that the market is not down. I have been saying since from the day I wrote to this thread is  that how much do you think it will go down? 10-15 or max 20% (again varies depends on location). I have been reading the news that there is a real estate boom in india since from last two to three years but the fact the it never went down except the last two months which is exception because of the other issues bla….bla….bla. But if you compare todays price (20% less) with the 2 year’s back price still you have a better margin. To tell you more US market is the worst in the history of their market but still prices went down by 5% in good areas and don’t forget US is a developed country and inida is a developing country. So I believe …………..

Anyways BTW : If you are a genuine user any time is a good time to buy a house that is what i have been saying. Don’t expect prices will go down by 50%.

–DAC

Dear Dac,

If it is not possible to make correct analysis/prediction for u then do one simple thing…

Just see newspapers from 14-08-2008 to till date….

See all advertisments published therein regarding real estates….

Just note down how many builders are offering discounts and other free amenities… Is it not the sign of dawnfall??

Again some builders published an advertisment stating that they are going to save your 5 to 6 lacs…. what is the reason behind this GRACE & MERCY??

Just note down the fact that more than 90% builders are displaying the rate per sq feet….

Do u see it b4??

DAC…. Now u have to agree with the fact that rates are showing downtrends…….And I was not wrong……

And if you are not agree with my words then ur motive is suspectius..
Sorry.. I couldn’t do anything for that one!!

Dear Ranjeet,

I don’t believe on any comments unless he/she buys a house for himself/herself and come up with the numbers. And how the heck anyone can predict what builder is going to do in future. (I am talking of big builders).  I think all the people in this thread are the one who is looking to buy a house and peanuts with compare to builder. So don’t proove your point by providing some baseless comments. OK…

DAC

Vision : Curbing Speculation in Real estate
Mission : New land usage rules to be implemented
Guiding principles :
Currently there exists 60-70% speculation in RE and most plots are still not utilized but still new layouts are coming up.
For residential plots : Plots within city corporation limits should be utilized with 3 years of purchase. Failing so,should attract atleast 5% of guidance value per year. If selling before 3 yrs, seller will have to pay 10% of guidance value during registration.
Industry plots ( SEZ ) : If allocated land for specific project is not used as per the project plan within stipulated timeframe, land should be repossessed and allocated to other projects, also penalty to be imposed. Industries, shouldnot be allowed to use this as landbank investment.

New Land acquisition norms : Compensation should be given to the real farmers, being displaced by a project. Real farmer should be determined based on longevity of ownership of the land.
A speculator buying a land just to sell at a higher price at a later stage should be given only the registered price of land and maybe bank interest for the holding period. ( 80% of land is owned by speculators around the airport and not the real farmers. Also most land purchased in and around bangalore / mysore is not cultivated for last 2-3 years, if this continous no doubt food prices will go up even higher )
Why we need this :
– To reduce Speculation from existing 70% to managable percent. It is known , more the speculation, more the volatiliy and more the cost of doing business for the real end user.
– Cost of infrastructure projects will come down , paving way for faster implementation.
– With increasing costs, any social program announced by the govt will not see the end. With huge population , we cannot afford to have pure market driven economy. These days, even US is thinking of regulating speculators and for the a good reason.
– Cost of housing is reduced and is affordable to common man
– Especially with no controls on agri land, in long term cost of cultivating will increase and along with that food prices.

Hi Friends,

This is really a good discussion, I have also booked flat at baner and was worried weather my decision is correct or not, after reading all comments and feedback from market, I agree with the point that for a genuin buyer any time is good time and looking at the rate of growth of Pune city, inflation rates will not drasically reduce theough there will not be much appriciation for investor.

For genuin buyer ther is no point in waiting if they have their calculation and long term plan then go for it, only decide your requirements, study about project and area, negotiate well with buider, compare rates and take decision

In my opinion rates will be steady for some time and will go up slowly as per infaltion. 

http://indianeconomy.org/2008/04/18/the-indian-real-estate-bubble-circa-2008/

Dear DAC,
I was talking about Sukhwani’s Kingston Avenue, exactly near Wadhwani construction. If your friend want to really buy a flat, ask him to visit Sukhwani now coz his amenities are more than what Wadhwani is offering. I am telling this coz recently (4 months back) one of my friend has booked flat from Wadhwani @ 2450 / sq ft. 

Last Sunday I visited to some of the sites in Pimple Saudagar.
1. Price/sq ft - 3000-3200 (If I would have bargain, surely the price/sq ft might have been setteled between 2800-3000 which are the same rates which were before 6 months)

2. I asked how long these prices (3000-3200) will remain. Answer was atleast 2 months. Six months back the answer was the price may change tomorrow itself and it may increase 100/200 per sq.ft.

3. No roads. I stuck twice in the mud.

Dear Pankaj,

Do you think people will join pune’s company if the rent  in pune for a 2bhk is 20k . Freshers are not even paid 20k per month these days.
Look boss if the rent is 20k than the avg sal should be minimum 50k.
Is it possible?  think twice :)

regards

You know what….Prices for resedntial area will go down bt not much and it will be for very short duration. Reason why I am saying this is that… there are more than 1 Lac young people are working in Pune are staying in shared accomadation with age range of 24-28. And sometime in future they will seperate out and look for their individual accomadation(for their personal reason such as getting married or wahtever). How will they get the house… either they have to rent it out or buy… Who will rent out? So someone will buy house either to rent or for self. In addition to this there will be new recruits joining IT & ITES companies. Plus auto insudtry and other industry.
Do u really think that demand will go down? Its a necessasity yaar… Will u pay rent of 20K after two year for 2BHK? That time u will buy house …

Dear chinawal,

Can you please tell me the location where the prices in Pune has been reduced as compare to last year. I know some of the good areas in Pune where rates were in the range of 2000-2500 rs per sq. ft which are now in the range of 3200-3500 rs per sq. ft. so even if it comes to 25% (which is the max one can expect ) people are still in profit. Don’t you understand the simple math?

I don’t understand why you guys are taking anyones comments negatively. That itself tells your frustation that you are desperate to buy a house and can not afford it. I can understand you guys. But sorry this is the fact.

And I am not the builder but I have  bought a house for myself in pune in FEB 2007 and to tell you the fact if the price went down even by 25%, I will have a profit of well margin.

So it’s upto you guys……..to clear you all if you are a genuine buyer and find a house at a location where you think that demand and supply will be the constatnt in future, the chances of price reduction is very very less.

So it’s up to you.

–DAC

Dear Dac…

Are you the filthy greedy builder? Do you how many shops are under to-let in koramangala Bangalore? Do you owners are proposing new lease deals to attract people? Do you know more than the builder the AGENTS are profiting and becoming rich? Do you know how many house constructions are halted because people are thinking twice before asking for the second installment from the bank?  A owner had come to me and requested me to take his 2 bedroom (under construction) house for lease for a period of three years. The lease amount is 5 lacs which is fully refundable after three years. People want money without interest. So do people wants to buy house and pay for the house not the banks.

Better not buy any house at this time.

 

Dear DAC…

I made my comment on Last Dec. b4 6 months back…. not b4 one year….
And understand the thing that I commented first on mkt bubble, @ the time when nobody was thinking abt decline in real estate rates…

Increase ur analytical skills or keep patience….

Dont play with genuine buyer’s money….though u may have vested interests….