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Hi friends

Greetings and best wishes and a very happy and prosperous new year 2010

Just thought of starting a topic about real estate scenario in 2010

Your opinions w.r.t real estate scenariow.r.t bengalure will be greatly appreciated

i feel that real estate scenarion will be + ve

Regards
PC

if AP is going to divide, then definitely its added advantage to Bangalore real estate.

#2. Possibly...

If Hyd is going to be a Union Territory, then it is it will be more advantageous than BLR too.

I feel that , if AP is Split then most of the major companies including IT will be shifted to Bangalore, so chances of demand in Real estate can be seen once this is confirmed(about seperate state) for which the centre has called all the parties on 5th Jan 2010.

So if any of us are planning for investments, may be this is the right time or else there are chances of RE prices going up soon.

I think people invested in Hyderabad because of the congenial environment for investment and good infrastructure and not because of any specific political affiliation. So as long as that environment remains, things are going to be okay there, though some apprehension, confusion and speculation will prevail in the short term.

Real estate in general will pick up in the later part of 2010, after all symptoms of recession are blown off the US market which will allow companies to invest in people and facilities in their India operations and Bangalore in specific. But, in any case, I dont foresee things going to the crazy levels of before where a lot of salaried class people were over-leveraging themselves taking loans to invest in multiple properties and investments simultaneously in the greed of making a fast buck.

Obama outsourcing taxes will hit IT companies starting from Jan 2010, my guess is american companies won't bite this tax by themselves and will ask Indian IT firms to take their share by reducing their cost. This will be promptly passed on to employees in 2010 in terms of less bonus, salary reduction etc. I don't see any improvement in real estate sector for another 7-10 years. Let's face it, the bubble has just burst and it takes a while to reverse the course.

There is still a lot to fizzle out of the US market in terms of facts vs reality. There is still lots of interest rate resets due to happen in 2010 timeframe which could lead to a lot of pressure on the economy, worldwide. So better to wait and watch for some more time.

in my opinion, Real estate scenario will go one more round of dip as the market situation is again moving towards southwards. Bangalore real estate field doesn't have any dependency on Andra Pradesh Separation. Couple of Reasons are,

1) AP Govt/hydrabad has given more incentives and rebates than Karnataka Govt, so no companies have guts to come out of such a heavenly place.

2) In case of AP Split also, in order to avoid the conflict between the two separate states, Centre prefers to make Hydrabad as a Union territory. Simple reason is without hydrabad, both states will be of equal status and doesn't have any other rapidly revenue generating locations other than Draught, Flood, Agriculture and mining. So all pro-tellangana and united AP political party knows, Hydrabad is the bread and butter of their part in the current scenario.

3) Even in case of AP Split also, Companies have more attractive locations in india than Bangalore. As per the FICCI survey karnataka is in 13th place out of 14 states in terms of Investor Friendly states survey. So no companies will come into bangalore when there is political instability is there in karnataka since 2004 onwards.

4)As the inflation rate is going upwards and some economists have already warned that, with the current pace, it may touch double figures by April-May2010. So economic tightining is unavoidable and hence all banks and NBFC's will have to hike their interest rates.

5) Most importantly, all Real estate developers/investors have taken a dirty step of increasing their prices in the last one quarter claiming real estate sector is going to be boom or finding huge interests from the investors/buyers. So this is again hurting the sentiments of the genuine buyers. Atleast they should have waited for another 1-2 quarters to see a consistency in the market demand. definitely this will weaken the Real Estate sentiments and the current artificial demand will not sustain for more than another quarter.

6) Inspite of signals from the Media that, hiring in corproates is going to be zoom in 2010, it doesn't give any guarantee on the package value. Most of the projected job creations are in the pharma, FMCG and banking sector, which are not as attractive as the IT and other allied business fields. Moreover already salary class have got a solid experience in the risky sector, so they may not tray immediately for another round of risk taking exercise.

7) the only segment which is secured and potential buyers are Central/State Government employees, who are expected to receive the arrears of their 6th pay commission and UGC pay scales. Again they don't have the courage to move into the gated community enclaves, Highly priced apartments or luxury apartments or in the amenities like club house, swimming pool, todlers park...etc.

8) Already the real estate IPO's which are recently launched in the share market have not received a decent subscriptions also. So the remaining 13-14 companies are internally facing huge threat in going forward with the launching their IPO's.

Overall summary is, the Real estate scenario may not improve even in 2010 also.

Hi,

Real estate sector in bangalore will see more consolidation this year. Supply is more in commercial and residential space. there is no fresh demand i.e. no new mega projects in different sectors. investor confidence is low. no new jobs getting created in big way. i dont see any upsurge in real estate this year.

regards,
Ravindra Kumar hg

Sellers are ready to wait for some more time since they want the prices existing in 07 or 08.
Buyers are not ready to risk buying property at such rates since it looks like rates would not move further up in coming days.
Since sellers have enough cash flow, they are holding on to the property; buyers are not ready to invest so much money into market. Therefore its a kind of status quo phase.
Unless, sellers make mind to sell at lower prices or buyers get confidence to invest in current prices. RE is set to be in dull phase.
Gated community, reputed developers, gazzy hi-fi projects etc are all marketing gimmicks.
My 2 cents : Take out your bike/car on weekends,roam around the places, make your research and get the best property.