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Read this interesting article below about a real estate slump in the market:
http://economictimes.indiatimes.com/mar ... 856588.cms
same newspaper reported a boom 2 months ago. Looking at the prices in the market, looks like buyers are looking for atleast 20% more than the reasonable prices and buyers want something in the range of 10% less than reasonable price. On the one hand there are rate hikes, global unstability, large number of vacant sites other hand price quoted is going up each month.
Just wanted to bring this up for discussion with respect to the scenario in Bangalore.

In Bangalore, I dont see any such situaton.
I was just watching the rates in AECS layout. It was 2200/- some months back (very good location). now at the same location the rates are 2700/-.
But at the same time i saw that plots are not selling at the same rate. Most of the plots which were available about 3 months back were available still.

However one trend i am seeing is that people especially software engineers are not hesitating from buying plots as investment.That is the same reason, why so many gated communities are flourishing on sarjapur road. I dont know about apartments.

one thing i see is that the number of actual registrations done are very less. prices are being increased because sellers hear that there is a boom and try to get the highest possible rate. but with so many plots coming up near north bangalore and even in south bangalore it would only seem prices need to stabilize at some point in time. also with interest rates almost reaching 12% dont know what impact that will have.

What I hear from bank official is the interest rate will settle at 14% and not beyond that. Last month I approached hdfc bank for loan and process of getting loan is now very strict now. Earlier i use to get loan in 2-3 days for BDA sites. But, now it is very difficult. So, finally went for mortgage loan at fixed 13.25% for a smaller amount.

I think, for properties within 40L range still there will be sales but sales of apartments may come down.

-Venky

Probably wat ppl like me who are still looking for a plot will say is that there is a slump and ppl who have already bought will say there is a boom

Agree with the above comment, it depends on upon which side you are in
Anyway TOI is always in favor of real estate .....

I feel the real estate market is one that is running on pure greed. When the market bottomed out and then started to consolidate again, we witnessed a rush of projects being announced and everyone trying to cash in on delayed projects and land banks. Surely this will result in a supply demand gap and will lead to the market bottoming out again.
I already see signs of this in the way the major builders are holding payments of contractors and vendors who are in turn faced with a liquidity crunch. What this will result in is predictable. The contractors cant deliver, the projects dont prrogess, in turn clients dont make further payments, and in turn there is no cash flow to the developer who again stops payment to the contractors. FULL CIRCLE! This is my reading of the way our disorganized realty market works from my considerable experience. any comments?
regards
Mohan VK

i think we should hang on to our money for some more time.
evrybody is expecting a big fall in the prices.
if we all wait for some more time, there wont be much money to circulate in the market and the prices will definitely fall.
i would suggest ppl to hold on ot the money for sometime.i am sure we can strike gold if we get lucky

I do agree with the opinion of "mithun" (posted above).

Will see a fall in real estate prices very soon.

There is uncertainty in US markets coupled with crisis in Europe, which affects Indian IT industry or at least in Bangalore which is flooded with IT companies.
With these happening around there will a sharp fall in real estate prices in coming months. So i see a slump ahead. Be careful with your heard earned money before you make move.