Hi,
I am writing this regarding Real estate prices in India.Its getting very very hot so just thought I will warn folks here as I think its going to crash.
Below are some links of properties where you will see rates.
http://www.rgvillas.com/floorplans.php?index=11
http://www.rediff.com/money/2005/may/09spec.htm
Above are luxury villas but other residential flats are also very expensive.
Once you get into such expensive property then I guess it will take atleast 10 -15 years to get some profit.
I contacted a pune builder 6 months back and that time he quoted me 45 lakhs for Twin bungalow and now he is asking 70 lakhs.
Real estate definitely headed south worldwide.
Above is my personal opinion and I invite member,real estate agents to discuss this.
Ram
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Desi Lion
I too agree with ramrao. The real estate prices are escalating as if there is no tomorrow. It needs to settle down abit for a healthy market.
Hi zubs,
It should go down by 25 to 35 %.After all there is question of affordibility.
How many people afford a flat or rowhouse worth 70 lakhs?
Most of the middle class people still make 25000 rs per months or so.I may be wrong about monthly income as I have not visited India from last 5 years.
Ram
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Desi Lion
Location: God's own country
Posted on: 18-04-06 11:52:30
Hello CD members,
The healthy sensex is driven by fundamentals. The software industry is booming with no visible end for bust. The prices will cool down but not crash. Fr. eg. in B'lore, prices are expected to go up for atleast the next 10-20 years. It all depends on the place and the factors associated with the place.
Also, there was a news article that Relaiance was building a new city known as maha mumbai , the first phase of which was expected to be ready in 2010 or so. So prices elsewhere in mumbai may cool down a bit.
In TN villages/small town, there will be no bust. prices will continue to climb up but slowly.
TK
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I am a Gents and not a Ladies.
TK is right.
RE market in India, as TK said, the boom will continue. More and more jobs are moving to India. The EU market is not properly tapped by Indian firms. That would result in more BPO work. Banks in India are slush with funds. U can get housing loans at 7%. A friend of ours in Toronto sold their house for Rs. 1 crore in B'lore (they had built back in late 80's). It took them abt 5-6 months to sell. Mind u, B'lore can expand in 360 degree direction whereas Chennai has sea on one side. Now smaller cities like Mysore and Mangalrore are expanding and the RE market has gone up there.
DIO
The prices of Gurgoan is going so high people who bought the land or the apts are receiving ,a huge amount of money on selling...people are investing on apts and selling then at a huge amount ....
Quote:
Originally posted by desi in ottawa
TK is right.
RE market in India, as TK said, the boom will continue. More and more jobs are moving to India. The EU market is not properly tapped by Indian firms. That would result in more BPO work. Banks in India are slush with funds. U can get housing loans at 7%. A friend of ours in Toronto sold their house for Rs. 1 crore in B'lore (they had built back in late 80's). It took them abt 5-6 months to sell. Mind u, B'lore can expand in 360 degree direction whereas Chennai has sea on one side. Now smaller cities like Mysore and Mangalrore are expanding and the RE market has gone up there.
DIO
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Truly Indian
Guys,
It is at its peak and heading south in 1 year or so and I will tell you why.
1)
Eventhough there are lots of jobs salaries are not going to up because if people demand more then outsourcing companies will loose interest(now itself its happening).
2)
Inflation in India.
3)
Banks increasing mortgage interest rates.
4)
Over suppy in cities like Pune,Mumbai.
5)
NRI's have limitations as they invest in real estate for investment purpose and not as primary residence so they can not purchase house something for 50-70 lakhs.
6)
Electricity and water problems everywhere.
7)
We have a billion plus people and out of that few work in IT area,Call centers etc where they get good salary. Other professionals makes good money but they are very few.
8)
There is no transperency in real estate so many people are avoiding it.(Most of the sellers,builders insists on black money)
9)
Lot of people will try to sell and get profit so there will be huge inventory.
10)
It takes long time to complete transaction (1 to 2 years).
11)
Historically real estate prices dropped. There was depression in Pune Real estate in year 2001 and I bought a nice 2 bed room flat just for 9 lakhs.
So All I am saying is that you get bad deal if you purchase now as it is at its peak.
Ram
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Desi Lion
