when the price comes down?
when the price comes down?
When the real esate prices will come down in Benagaluru? Is there any concept of "bubble" in Benagaluru real esate market? Who has the money to pay 3000 to 4000/-? Will it come down in 2012 and 2013? any thougts on this?
Last edited by lakshman on September 12th, 2011, 10:19 pm, edited 1 time in total.
-
santosh_vp
- Posts: 69
- Joined: June 30th, 2011, 3:59 pm
Re: when the price comes down?
Why do you think the price has to come down. In business cycle always there will be ups and downs. The upturn overed, came down a bit and now market is in consolidation phase. The coming days could push the trend up unless there are business impacting events events like war etc. The metro city prices are bit high and that is because of excess demand and I dont think that would come down in coming years looking the number of people migrating to these cities.
Re: when the price comes down?
Dear lakshman
prices will not come down overnight. Indians are more of sentimental on assets than realistic mindset on the market condition. You can experience this when compared with Americans or Japanese who were very aggressive on real estate after 1980's and now they're totally away from the real estate market. The result is there is no attraction for the real estate investments in those countries.
Whereas in India, as of now Job market is in good condition and many people are getting very good job offers. Hence money is rotating easily in spite of step by step necessary ratings increased by RBI. Correction/Bubble happens only when the money rotation stops. At present don't expect such situation immediately. if there is further liquidity tightening happens by RBI( if they raise by another 100-200 points i.e. Upto 2%) then the real impact comes through the banking sector with steep hike in the interest rates. That will affect only for the new borrowers.
Also if the new guidance value comes into effect, there will be lesser transactions in the initial months. Over a period of time it will get adjusted.
you must also keep in mind, There are more people sitting with Black money in india, who always uses Real Estate as a safe heaven to regularise their hidden wealth.
prices will not come down overnight. Indians are more of sentimental on assets than realistic mindset on the market condition. You can experience this when compared with Americans or Japanese who were very aggressive on real estate after 1980's and now they're totally away from the real estate market. The result is there is no attraction for the real estate investments in those countries.
Whereas in India, as of now Job market is in good condition and many people are getting very good job offers. Hence money is rotating easily in spite of step by step necessary ratings increased by RBI. Correction/Bubble happens only when the money rotation stops. At present don't expect such situation immediately. if there is further liquidity tightening happens by RBI( if they raise by another 100-200 points i.e. Upto 2%) then the real impact comes through the banking sector with steep hike in the interest rates. That will affect only for the new borrowers.
Also if the new guidance value comes into effect, there will be lesser transactions in the initial months. Over a period of time it will get adjusted.
you must also keep in mind, There are more people sitting with Black money in india, who always uses Real Estate as a safe heaven to regularise their hidden wealth.
Re: when the price comes down?
Thank you all for the feedback.
What is that "Also if the new guidance value comes into effect" ..... ?
Lakshman
What is that "Also if the new guidance value comes into effect" ..... ?
Lakshman
Re: when the price comes down?
Lakshman
Read the last week newspapers, regarding the revision of Guidance value proposal by the State Government which will comes into effect by next month.
Read the last week newspapers, regarding the revision of Guidance value proposal by the State Government which will comes into effect by next month.