The housing market: Pop goes the bubble

[Ganesha]

2months back it was Rs.6090
http://homznspace.homznspace.netdna-cdn ... -Aug13.pdf

Rs.400 per sqft increase in 2 months; I dont understand ... may be Bangalore really has lot of demand and lot of 'rich' people
Agree there is no decline in real estate .. there will never be I guess

[PlotGuy]

There has been no tangible reduction in RE prices in Bangalore in the last 15 years. Anything else is mere speculation.
Now is it possible that RE can come crashing down ? Sure, anything is possible but it is not probable. Just look at the population growth of Bangalore in Wiki pedia. http://en.wikipedia.org/wiki/Bangalore.
5 Mil to 8 Mil in 10 years and growing drastically

[msn1270]

Have a look at the attached news about Bangalore real estate from another newspaper published yesterday.
They claim Bangalore saw a very good volume of buying in the first half of 2013.

Whom to believe ? all medias publishes whoever pays them. Not the real facts.

[msn1270]

Here is another paid news in the leading daily.

[PlotGuy]

It is best to ignore newspapers, bloggers etc. The ideal way to find out about prices is to talk to all the developers about their new projects, and get quotes. It is also good to keep track of sale ads in mybdatesites.com, Sulekha, quikr etc . Many of you have quoted such examples here itself. i.e Brigade going from Rs 6000 to Rs 6500 in a short span. I can quote a few more.

In December 2011, Adarsh was quoting about Rs 4000 for their Palm Retreat apartments. Here is a thread from mybdasites.com from the same time period. http://mybdasites.com/viewtopic.php?p=7595
The prices were from Rs 1700 to Rs 2000.

Now, you can make up your own mind whether the prices have popped or not.

[JillMill]

@msn1270 - I understood the ad you pasted is a news/ad by Upkar developers who have their key projects in E-city/Hosur road area. I think the news/ad says how south bangalore has developed / is developing. But in my experience, in the whole of bangalore & adjoining suburbs, the real estate rates are stagnant (or not risen as witnessed in other areas of Bangalore) only in E-city/Hosur Road area. For example, this is the only area where people can aim to buy plot around 1500-2000, whereas in other equivalent areas the rates are around 3000-4000 (for example, whitefield, kadugodi,BIAL area etc). If you observed, the rates were same in E-city/Hosur road area & other areas like whitefield/kadugodi/bial around 3-4 years back (which was around 1000 psqft) but they are vastly different.

One reason could be the BIAL itself (for areas around BIAL/Hebbal etc) and other reasons could be lack of residential areas in E-city. With the development of KHB Surya city, this could change in future. I heard the rates close to KHB surya city is comparable (around 2500-3000) to other high cost areas in Bangalore.

But this article in Kannada is surely misleading.....

[JillMill]

Another article in ET today... 'Home buyers in no hurry, expect real estate prices to fall by up to 10%'

http://economictimes.indiatimes.com/mar ... 621078.cms

Interestingly, the basis for the above article is a study done by IIM Bangalore & Magicbricks. Does that give credence to the conclusions made in the article? not sure

Basically the article says that the house prices could fall by 10% across India in the next 6 months.

[PlotGuy]

"Basically the article says that the house prices could fall by 10% across India in the next 6 months."

No, that is not what it says. Please read it again. A few things

1) The study tracks only buyer sentiments and not actual depreciation in prices.
2) Buyers expect it to fall 10% in the next months.
3) Buyers in Bangalore are bullish and expect the prices to go higher !

Bangalore real estate prices are very reasonable compared to Chennai or Cochin.

[mybdaprop]

When you look at the house and land prices in USA its 10 times cheaper than Bangalore..

You could get a 5 bhk Villa, with private garden in magnificent gated community in reputed USA Cities for 80 to 90 Lakhs..., still i dont know why these junk bloody NRI's are buying low cost, low quality construction apartments at hefty prices, its only because of NRI's prices is rocketing...

Have you ever checked the quality of construction of the apartment u are buying, they dont do curing of water for not even one day for the building..

APARTMENT prices are rocketing because of NRI's, North Indians, and some south Indian Dowry cases..

Until all these three catogories of people are thrown out of bangalore..price will not come down..

Mother earth has decided to throwe these junk people out of bangalore, by not providing water to them... All water resouces in blore will dry up in two years..,

next even if you pay 5000 rupees for a water tanker for your junk apartments u will not get water in very near future... so face the music..

People already abrubtly selling thr apartments in blore due to no water...

WE all came to blore to earn and lead a comfortable life... now the practical situation is u are thr in blore to only spend... 15 times thn wht u earn here.. and loose ur precious one time life...

[PlotGuy]

" NRI's, North Indians, and some south Indian Dowry cases."

Is there any other group of people you hate or is this just it ? The prices in USA is cheaper because it is 3 times bigger and has 1/4th of the population. Okay ?
I am not sure how you would justify the prices in Chennai, which runs from Rs 15000 to Rs 20000, or Bhopal, which has experienced an unprecedented boom.