read todays TOI- navi mumbai the prices are shoot up like anything without any fundamentals...if you go to a builder , they say flats are not available. a 2 bhk cost u 50-100 lacs in a decent area...how a middle lass working class man can offord this...but strangely eventhough they flats are not available registration of flats done in navi mumbai for sale/purchase ( including commercial) for entire 2007 is just around 8000( toi news today).this is just a investment deed between builder n politicians...it has to burst
Realty is bubble,is it really right.....i am not agree 100 %, definately real estate sector shown a good appreciation in last 3 years..but from last 3-6 months it is on the downward trend..this is absolutely right...bit to drill down the things are definately required...lets tale exmaple of Delhi and NCR....Dyanamics are changed location to location..Indirapuram, Gr Noida and Gurgaon has shown a Correction But South Delhi is still appreciating...it depends what you are buying and where you are buying..in early days whether it is delhi, whether it is dehradun, wheteher it is any city .just everybodie was waiting to get doubled his money and invested on illogical properties...Deman supply is a srong factor for Property pricng regulation ...so where population is not present people are wating for returns in even those areas also...it is right property become too costly now its again showing trading in the market..we have done a good job in Fridabad..like BPTP,OMAXE, etc..Bptp is not on the downwards slope...NH2 Commercial or indutrial invetsment still appreciating....so realt is not bubble its a application of logical invetsments..KAMAL WADHWA 9873922626
One thing I cannot understand with the economics regarding Housing Properties is whether an EMI of Rs.25000/-affordable to anybody. This is assuming that a person is buying a property worth 25L and taking a loan of RS.20L for 20 years. I am of the thinking that IT boom has indirectly encouraged the real-estate boom. But still 25000 per month is a long shot even for a guy working in IT industry (Including Double income families), with Inflation also in Double figures and commodity prices rising...Is realty in correct shape. The tone of the author suggests that this is the right time to invest in property, is it so? Give me a break!!! Even though a drastic reduction cannot be expected a correction is definitely on the wings.
Sir In Delhi almost 90 sq km of land is scarcely occupied in central and south delhi by politicians,their chamchas an doffices of parties and sarkari babus aping their British masters who departed 60 years back.But these desi lords ape still their white skinned masters thougnb brown and black in color.No laws have been changed as it empowers them like British tyrants.I dont understand how a judge or a minister is honourable and has to be addressed so?is a honest rickshawpuller not honorable?Or we have to remind them daily to remain honorable in their conduct? These guys don't deserve in an egalisatarian and democratic society, like USA, huge bunglows and empty spaces and servants.So of we throw out all these ministers and babus from central and south delhi and shift them to multi storeyed flats in say Dwarka in , from 2 to 4 bed room houses from clerks to ministers, we can unblock huge amount of land in Delhi itself.This area then can be converted into pollution free SEZ, IT park and other entreprises and lot of pollution and fuel will also be saved if we build multi storeyed housing like in Shangai , in this area say 25 %of the total. No economist(psuedo-of course-in India) can challenge my this proposal which is rock solid and will immensely benefit Indian economy unlocking almost Rs 50,000 crores of land mass right in centre of Delhi and also put ministers, politicians and babus in their deserved and right place.Just compare how babus and ministers(senators and secreta
RE:A brilliant idea to start from Delhi
by Tarun Arora on Jun 20, 2007 08:25 AM Permalink
Former Urban Dev Minister talked about these points but the plan for obvious reason was scuttled!
I do not agree with the author. Anything that grows overnight without fundamentals, is bound to fall down. I've returned back to Hyderabad from US in this Jan after 3 years. Before that I lived in Hyderabad for more than 4 years. After 3 years, I did not see much development, but the reality prices were sky rocketted. Reality prices were jacked up the brokers without real worth in them. Here in Hyd, Govt is the big villain and it's politicians. It's became a joke now that if any shit politician wants to jack up prices near his lands, he/she just makes the govt/govt body to annouce a fictious project/integrated township/SEZ, u can name any other shit here. Now in Hyderabd, common man cannot afford to have a house/flat and it's done by the Govt. Totally artificial prices without any real development.. And the BAKRAs in this entire episode are the NRIs/IT/ITES people.
I am of the opinion that the realestate prices may not crash as is being widely expected. The reasons are, Prime land is in the hands of biggies.. they r in no hurry to dispose it off. All this land ceiling act ... is only for common man & not for these biggies. Even people with small land / plot holdings are not disposing it off right now for reasons hard to understand. Interest rates are probably at their peak. They r bound to come down globally. Once that happens we can witness renewed interest in realestate. Our economy is growing at a very healthy pace. Given the tendency of industrialists preferring to put up industries in & around metros (for reasons of connectivity & better infrastructure) , a price crash at these places seems unlikely.
If at all there is a correction , it is going to be in the commercial space( malls,IT parks etc.).
RE:Artificial scarcity of land
by on Jun 18, 2007 08:54 PM Permalink
The solution is very simple.Increase supply and stop giving loans for land.(1970s to 1990 situation has to be restored).What all these bloody State develpment authorities and HUDCO are doing?.They are also part of looting.They acquire land and sell at auction prices.Were they set up for this? Why they are not releasing land and schemes en- masse? May be around 10 million sq meteres in the country at diffrent places, 60% of which can be commercial and price it at 1/3rd the current prices which is reasonable looking at mutation prices 4 years back. The whole market will come down and government should set off revenue spies after biggies to hound them out and fix them. Give me the charge and I will show you how prices are brought down in next 90 days.They just don't want to do it.It is a big scam.India has scams every third year. This is current scam.Lacs of crores have changed hands from poor to rich in last 4 years by low interest rates and now jrough property bull run.Let us stop kidding and face reality which is very serious. We are slowly moving to civil war conditions.Are we blind not to see it is already there in many states though at precipitating level? Do you people understand what happens when commercial property goes so high?Rents and risk increaes and so the business cost and prices go up.It is vicious circle.Get going before common man comes out and hits rich and corrupt. Have you not seen what happened in Rajasthan recently? Dump all these experts in sea.
Rediff has been stooping to new depths with every passing day. Essentially, it come out with opinions of those whose interests conflict with wider audience of Rediff....e.g. well-known naxalites reporr on democratic elections of civilised society, or notorious (bearded) marxist vent their spleen on a state government which arrests one anarchist masquarading as civil liberty activist. Now, it is getting more brazen, with business leaders supporting an already high property bubble.
What next for rediff ! Some Austraalian brothel head (who has shares in the busines) will justify and encourage prositution ??
I really just feel bad for you guys...and your IQ / intelligence... You think that by a few hundred readers reading this article on rediff, the "bubble" which otherwise would burst would not burst?
And do you think the CEO of Jones Lang La Salle makes his paycheque just because a few hundred guys like you read this article and buy property when you otherwise would not?
I have worked with several consulting firms (including Jones Lang) - Retail business is a very small portion of the pie; the major source of revenue is business from corporates, project management & supply of loan staff / maintenance staff at commercial establishments.
I suggest people do not shoot off their mouths when they have no clue on the business or capability to even write a comment here let alone critique an article.
I complete agree with Mr Anuj. A bubble doesnt last for 2 years. Those who think it is a bubble are only waiting for prices to come down one fine day. But the reality is something different guys. Its true that a 2 BHK is now out of reach of commom man as the term "flat" has now been put in the category of Luxury.
RE:its not a bubble
by Sanjeev Sharma on Jun 18, 2007 08:32 PM Permalink
A bubble can last for more than 2 years. Don't believe me...see around the world. It is the excess supply of money that is sustaining it.
RE:its not a bubble
by cool on Jun 18, 2007 08:46 PM Permalink
Ok lets agree a bubble would last for more than 2 years but you still cant expect prices to come down by 60%, or do you? So in this case prices have risen by more than 100% and it may come down by 30%, net effect is prices have risen by 70%. I suppose you may agree with me or you may post your opinion as well.
