You are frustrated and want every one responsible for your situation to go out of Bangalore. If Bangalore crash, what will you do in this place. Will you also not go the way you once came hear in the hope of leading a comfortable life.
san
The housing market: Pop goes the bubble
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anjan11block
- Posts: 3
- Joined: May 27th, 2012, 9:13 pm
Re: The housing market: Pop goes the bubble
Its good to read. But we shouldn't dream at least in the near future that prices will crash/burst. Just Moderation can possible.
As per the writer, 2008 there was a value erosion of Real Estate Index by 80%.
Did that translated into depreciation of the real estate assets value by 80% in 2009-10 ???. NO.
We did not see more than 20% reduction in the prices that time compared to the peak of 2007.
What is the meaning of Bubble Burst ? All we can expect is moderation of prices in the coming quarters by few % similar to 2008-10(if at all happens).
As 2014 Elections are coming, Real estate houses are one of the biggest black money contributors as election funds of all political parties. So politicians and bureaucrats will do their best to safeguard their interest, not for an aam aadmi. As long as this adulterated nexus is there between the builders, bureaucrats, Banks and the politicians, Genuine buyers will not have peace of mind.
As per the writer, 2008 there was a value erosion of Real Estate Index by 80%.
Did that translated into depreciation of the real estate assets value by 80% in 2009-10 ???. NO.
We did not see more than 20% reduction in the prices that time compared to the peak of 2007.
What is the meaning of Bubble Burst ? All we can expect is moderation of prices in the coming quarters by few % similar to 2008-10(if at all happens).
As 2014 Elections are coming, Real estate houses are one of the biggest black money contributors as election funds of all political parties. So politicians and bureaucrats will do their best to safeguard their interest, not for an aam aadmi. As long as this adulterated nexus is there between the builders, bureaucrats, Banks and the politicians, Genuine buyers will not have peace of mind.
Last edited by msn1270 on November 13th, 2013, 8:52 pm, edited 1 time in total.
Re: The housing market: Pop goes the bubble
One point mentioned in the ndtv article is the unsold volumes. I think this is an undisputed fact and there is huge volume of unsold homes/flats. The article also mentions the builders reluctance to reduce price, for the fear of creating 'panic' in the market. Actually this 'panic' could be an unavoidable situation and builders can not 'hold' it for long.
As many members here pointed out, Indian real-estate may not be driven completely by reasoning/fundamentals, but it can not be fully controlled by builders/few groups either. I feel, if at all the 'bubble' bursts we could see around 20% reduction prices and may not be a crash as seen in the bubbles in the US & UK.
As many members here pointed out, Indian real-estate may not be driven completely by reasoning/fundamentals, but it can not be fully controlled by builders/few groups either. I feel, if at all the 'bubble' bursts we could see around 20% reduction prices and may not be a crash as seen in the bubbles in the US & UK.
Re: The housing market: Pop goes the bubble
Check this
http://www.icicihfc.com/property_pdfs/m ... r_2013.pdf
On an overall basis, Bangalore's residential RE market was stagnant; however, there was good momentum
in the INR 50 – 75 Lac/unit segment largely backed by the demand from the end-user segment. Enquiries
from NRIs continued to be robust with an increase in enquiries in the high-end/premium housing segment.
However, home buyers are holding on to their purchases as they anticipate a further correction in residential
RE prices. There were no new key launches during September 2013, mainly on account of the Pitru-paksha
period (for this year from 18 September to 4 October 2013) which is considered as inauspicious by most
individuals. Many developers have started offering increased fees to channel partners.
The Karnataka Government is drawing up a INR 2,100 Cr. project with loan assistance from the Asian
Development Bank, to develop and upgrade eight city clusters around Bangalore to woo investment and
ease the load on the State capital. As per the Urban Development Minister Vinay Kumar Sorake, the city
clusters proposed to be developed are Nelamangala, Magadi, Anekal, Bidadi, Dabaspet, Harohalli,
Devanahalli and Hoskote.
Southern conglomerate Shriram Group is poised to sell an 18% stake in its unlisted company Shriram
Properties to a real estate fund of Tata Group for INR 600 Cr. The Tata fund is conducting due diligence ahead
of the proposed investment, which is likely to close in the next 60 days. Shriram Group, which holds a 60%
stake in the real estate developer, will bring its stake down to 42% after the deal. TPG (17%) and Starwood
Capital and Walton Street Capital (together with 23%) own the remaining shares in Shriram Properties,
which has delivered over 8.5 Mn. sq.ft. of built-up space and another 12.5 Mn. sq.ft. to be delivered over the
next 18 months. Shriram, which is planning an initial public offer to provide exits to these investors in the
next 36 months, also has a pipeline of 46 Mn. sq.ft. Shriram is one of the few developers with zero debt and
healthy cash reserves of INR 400 Cr. While the core markets of Shriram Properties are the southern metros, it
also has a large project planned in Kolkata.
Industrial technology major Ingersoll Rand is working on a new 'Nano-like' concept for dwellings which will
be small, affordable and sustainable. The average size of these homes would be around 250 sq.ft. and will be
priced at INR 2 Lac/unit
http://www.icicihfc.com/property_pdfs/m ... r_2013.pdf
On an overall basis, Bangalore's residential RE market was stagnant; however, there was good momentum
in the INR 50 – 75 Lac/unit segment largely backed by the demand from the end-user segment. Enquiries
from NRIs continued to be robust with an increase in enquiries in the high-end/premium housing segment.
However, home buyers are holding on to their purchases as they anticipate a further correction in residential
RE prices. There were no new key launches during September 2013, mainly on account of the Pitru-paksha
period (for this year from 18 September to 4 October 2013) which is considered as inauspicious by most
individuals. Many developers have started offering increased fees to channel partners.
The Karnataka Government is drawing up a INR 2,100 Cr. project with loan assistance from the Asian
Development Bank, to develop and upgrade eight city clusters around Bangalore to woo investment and
ease the load on the State capital. As per the Urban Development Minister Vinay Kumar Sorake, the city
clusters proposed to be developed are Nelamangala, Magadi, Anekal, Bidadi, Dabaspet, Harohalli,
Devanahalli and Hoskote.
Southern conglomerate Shriram Group is poised to sell an 18% stake in its unlisted company Shriram
Properties to a real estate fund of Tata Group for INR 600 Cr. The Tata fund is conducting due diligence ahead
of the proposed investment, which is likely to close in the next 60 days. Shriram Group, which holds a 60%
stake in the real estate developer, will bring its stake down to 42% after the deal. TPG (17%) and Starwood
Capital and Walton Street Capital (together with 23%) own the remaining shares in Shriram Properties,
which has delivered over 8.5 Mn. sq.ft. of built-up space and another 12.5 Mn. sq.ft. to be delivered over the
next 18 months. Shriram, which is planning an initial public offer to provide exits to these investors in the
next 36 months, also has a pipeline of 46 Mn. sq.ft. Shriram is one of the few developers with zero debt and
healthy cash reserves of INR 400 Cr. While the core markets of Shriram Properties are the southern metros, it
also has a large project planned in Kolkata.
Industrial technology major Ingersoll Rand is working on a new 'Nano-like' concept for dwellings which will
be small, affordable and sustainable. The average size of these homes would be around 250 sq.ft. and will be
priced at INR 2 Lac/unit
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sanchitnis
- Posts: 49
- Joined: May 9th, 2011, 1:35 pm
Re: The housing market: Pop goes the bubble
Real Estate: Next Bubble to Burst?
Interview with Professor Venkatesh Panchapagesan, who heads the IIMB-Century Real Estate Research Initiative, discusses the impact of black money, upcoming elections
http://www.iimb.ernet.in/node/3863
Interview with Professor Venkatesh Panchapagesan, who heads the IIMB-Century Real Estate Research Initiative, discusses the impact of black money, upcoming elections
http://www.iimb.ernet.in/node/3863
Re: The housing market: Pop goes the bubble
As Prof. Venkatesh Says, Still they are in Kindergarten stage and they don't have any statistics/Data to prove anything(even price correction),
which is absolute correct. So far No one is able to prove the logic behind Indian Real Estate Sector valuation/transaction value. There is no
doubt that, there is huge demand for Housing due to the high Population, Increase in migration to Urban Area, increasing Mid aged- Good earning
percentage, aspirations...etc. But the prices are not affordable to majority Middle class(which constitutes more than 50% of Indian population)
unless a household has multiple salaries or Undisclosed source of Income.
Secondly, this initiative is funded by Century Real Estate firm which is one of the corrupt business group in the city which is already
facing lot of legal issues in the various Courts for cheating the NCD investors in their firm, for not returning the money as agreed to pay after the
maturity period. So what exactly the intention of this fraud developer ??
As per another survey news(IIMB and Magic Bricks) in todays Financial Times, The same professor says people are expecting a correction of up to 10% over a year, and they are ready to buy for that price. is that Up to 10% is all a buyer is expecting ?? the so called up to 10% are more can be directly negotiated with the Developer in some cases or can get better price in the resale markets which is always less than the Developer's price.
Many of the Professors from IISC/IIMB work for these initiatives to earn extra income by way of Consultancy charges. Finally what we can expect
out of these research which is funded by a business group?. They've to make some justice for what they get. Probably after few weeks or months,
this research should not try to influence young people like TOI, saying This is the Right time to Buy/Invest in XYZ corners of Bangalore/this road is
getting widened - invest here/ This part is getting Metro Connectivity - Invest here/ This Road is getting Elevated Highway - Invest Here/This corner
is getting proposed Tech Park - Invest here....etc.,
which is absolute correct. So far No one is able to prove the logic behind Indian Real Estate Sector valuation/transaction value. There is no
doubt that, there is huge demand for Housing due to the high Population, Increase in migration to Urban Area, increasing Mid aged- Good earning
percentage, aspirations...etc. But the prices are not affordable to majority Middle class(which constitutes more than 50% of Indian population)
unless a household has multiple salaries or Undisclosed source of Income.
Secondly, this initiative is funded by Century Real Estate firm which is one of the corrupt business group in the city which is already
facing lot of legal issues in the various Courts for cheating the NCD investors in their firm, for not returning the money as agreed to pay after the
maturity period. So what exactly the intention of this fraud developer ??
As per another survey news(IIMB and Magic Bricks) in todays Financial Times, The same professor says people are expecting a correction of up to 10% over a year, and they are ready to buy for that price. is that Up to 10% is all a buyer is expecting ?? the so called up to 10% are more can be directly negotiated with the Developer in some cases or can get better price in the resale markets which is always less than the Developer's price.
Many of the Professors from IISC/IIMB work for these initiatives to earn extra income by way of Consultancy charges. Finally what we can expect
out of these research which is funded by a business group?. They've to make some justice for what they get. Probably after few weeks or months,
this research should not try to influence young people like TOI, saying This is the Right time to Buy/Invest in XYZ corners of Bangalore/this road is
getting widened - invest here/ This part is getting Metro Connectivity - Invest here/ This Road is getting Elevated Highway - Invest Here/This corner
is getting proposed Tech Park - Invest here....etc.,
Re: The housing market: Pop goes the bubble
Another article in ET yesterday, indicating that the prices have infact fallen by 10% in Mumbai and possibility of 25% reduction in premier segment. This according to Knight Frank, a real estate consultancy firm. But I could not see any supporting data for the 10% fall...
http://economictimes.indiatimes.com/mar ... 435107.cms
http://economictimes.indiatimes.com/mar ... 435107.cms
Re: The housing market: Pop goes the bubble
Thanks for the post. I am looking for Luxury Arizona Real Estate agents who can provide me best but affordable home in Arizona. Can you please tell me about the market value of Arizona property. Is it beneficial to take agent's help?
Re: The housing market: Pop goes the bubble
Arizona ?? I can help you if you want the market value in Attibele 