RE boom, slowdown, stagnant?
Posted: February 16th, 2015, 11:26 am
http://www.thehindu.com/news/cities/ban ... 354362.ece
http://www.thehindu.com/features/homes- ... 249131.ece
A snapshot survey of the Bangalore real estate scene by realty practitioners L.J. Hooker reveals that the city sits on over 76,000 units of stock with an oversupply of 10,726 units, or 35 per cent, for the period.
According to Alexander Moore, CEO, Jones Lang LaSalle, prices have risen by nearly 7 per cent in the past 18 months but sales velocity has halved in the last 12 months.
The survey assesses the prices of the average apartment at Rs. 79 lakh, which is 58-75 per cent higher than the affordability of the average buyer.
The survey concludes that a significant build-up of inventory is putting pressure on builders to shift stock and simply too much stock is being delivered, and in the wrong segments. It suggests that the northern corridor of the city should come up with employment hubs to stimulate demand. It also suggests that the sector is going to rely on the new government quickly introducing a policy that increases liquidity and stimulates growth
http://timesofindia.indiatimes.com/busi ... 052062.cms
This shows that there is lot of unsold units and builders are holding on to their prices! why are they holding or how are they able to hold?
its bcoz of unauthorized/black money which has been pumped into this sector.
Survey talks more of apartments. Even today, there are so many empty sites in Bengaluru where investors/owners have no interest to construct homes
All these factors have lead to artifical inflation of prices.
Already, IT junta is feeling the heat of pink slips, forced resignations. Today, we need to think if we can enter the market at such high prices and can still sustain the costs.
Your thoughts?
http://www.thehindu.com/features/homes- ... 249131.ece
A snapshot survey of the Bangalore real estate scene by realty practitioners L.J. Hooker reveals that the city sits on over 76,000 units of stock with an oversupply of 10,726 units, or 35 per cent, for the period.
According to Alexander Moore, CEO, Jones Lang LaSalle, prices have risen by nearly 7 per cent in the past 18 months but sales velocity has halved in the last 12 months.
The survey assesses the prices of the average apartment at Rs. 79 lakh, which is 58-75 per cent higher than the affordability of the average buyer.
The survey concludes that a significant build-up of inventory is putting pressure on builders to shift stock and simply too much stock is being delivered, and in the wrong segments. It suggests that the northern corridor of the city should come up with employment hubs to stimulate demand. It also suggests that the sector is going to rely on the new government quickly introducing a policy that increases liquidity and stimulates growth
http://timesofindia.indiatimes.com/busi ... 052062.cms
This shows that there is lot of unsold units and builders are holding on to their prices! why are they holding or how are they able to hold?
its bcoz of unauthorized/black money which has been pumped into this sector.
Survey talks more of apartments. Even today, there are so many empty sites in Bengaluru where investors/owners have no interest to construct homes
All these factors have lead to artifical inflation of prices.
Already, IT junta is feeling the heat of pink slips, forced resignations. Today, we need to think if we can enter the market at such high prices and can still sustain the costs.
Your thoughts?