No one will believe but look at any article in well known print media TOI, all articles are ridiculaously written to to create fear among buyrs and in support of builders-cum-politicians lobby. IN all articles, you will find so-and-so of prominant builders contribute to trends like Kumar builders, Aditya builders etc commenting on current demand and the future of realty...
Even todays paper publishes very well sponsored article and ads all around of same builders who have commented in article...and no facts about actually how many are buying and commn man feels abt current prices...shame on respected media group...
Re: Role of media especially print media..
by Nikhil Taunk on Sep 18, 2008 12:42 PM Permalink
"create fear" thats the right word. I have been trying to buy a house for my mother and almost every builder I approached sounded like "Buy now or you will repent later."
What costed 24 lacs merely two years ago now cost 50 lacs and above. Does any builder realize it takes half a lifetime to earn that kind of money.
The media should be active more in getting to the bottom of this ridiculously artificial rise, instead of carrying mundane talk shows on realty.
Re: Role of media especially print media..
by Nikhil Taunk on Sep 18, 2008 12:39 PM Permalink
"create fear" thats the right word. I have been trying to buy a house for my mother and almost every builder I approached sounded like "Buy now or you will repent later."
What costed 24 lacs merely two years ago now cost 50 lacs and above. Does any builder realize it takes half a lifetime to earn that kind of money.
The media should be active more in getting to the bottom of this ridiculously artificial rise, instead of carrying mundane talk shows on realty.
I am sure none of the guys blasting at the nefarious politician-realtor nexus as reason for the high prices, own a residence in a metro. Lets agree that the price rise was due to: 1.New generation of techno-rich-urbane class 2.Foreign private earnings and investments..taking confidence in Indian success story. Both are good reasons....
Real Estate market by Guest on Jul 31, 2008 08:44 PM Permalink | Hide replies
will have its up and downs. But if u consider long term scenario it will beat all other investments like gold, shares and FDs. Keep note of following 1)Atleast 3 years view. 2)Buy plot instead of flat 3)Check all documents before investing. 4) Buy little away from already developed city area. You will be very happy in 2011 onwards. No expert can predict markets. But remember land is limited. It cannot be manufactured. So, remain invested in land.
RE:Real Estate market
by albert mendonca on Aug 06, 2008 02:37 AM Permalink
"You will be very happy in 2011 onwards. No expert can predict markets. But remember land is limited. It cannot be manufactured. So, remain invested in land." Avoid making such sweeping statements and selling your concept.... It may invite trouble to others.. and don't be so over confident!!!
RE:Real Estate market
by Shirish Bhosale on Aug 19, 2008 01:07 PM Permalink
There is difference in our approach. I am aggressive whereas u are conservative. U should be positive if u want to invest. Otherwise nationalised bank FD is the only answer, which is not sufficient to beat the inflation. Choice is yours!
will have its up and downs. But if u consider long term scenario it will beat all other investments like gold, shares and FDs. Keep note of following 1)Atleast 3 years view. 2)Buy plot instead of flat 3)Check all documents before investing. 4) Buy little away from already developed city area. You will be very happy in 2011 onwards.
distress market need to be redefined as temporary slump in real estate market which is lekely to pick up shortly. after all pople have to go in for houses and land has to be made available. we have experience in petrol hikes which did not reduce the vehicles , but in fact increased due to various reasons known to all of us.hence one should have patience to wait for some time to have good market for real estate, and it may be available for song , wait and see.those who have invested will never regret.
RE:real estate market
by sibby mathews on Jul 30, 2008 06:30 PM Permalink
If real estate is going to be available for a song, then how will those who have invested not regret ??
In the month of January and in May there was a slump in real estate except in some metros none of the builders in other places reduced their prices. They were very stubborn and adamant about it because there are people who are booking at high rates
RE:This is all rubbish
by sibby mathews on Jul 30, 2008 06:35 PM Permalink
I do not know about other Metros; but in Chennai, there are now thousands of completed apartments that have been waiting for several months to be bought. And, in the over hyped IT corridor of ECR-Taramani area, it is reported that more than 2 lakh sqaure feet of newly built commercial space has been lying unsold for nearly a year now. Yet, much of the same media (that earlier went overboard in continuously reporting the 'boom') has shown extreme reluctance in reporting this development !!!
RE:This is all rubbish
by Ram Krish on Jul 31, 2008 04:33 PM Permalink
Media is like the street dogs you see around you. It runs with tail wagging to ANYONE who is willing to feed it. Except that, unlike Media which spouts all the rubbish about ethics and morals in reporting, the dog does not have that pretense (it is at least honest about its intentions)!!!
And since it cannot bite the hand that feeds it, it paints a rosy picture about realty, right?
But reality will set in soon as the sun sets (albeit temporarily) on the Realty sector. Already the big company stocks are down 70% and they are desperate for cash. Recent rate hikes will hit them doubly as it will make it costly for buyers AS WELL AS for builders to borrow (they are screwed). They may survive but will probably decline to 85% - 90%. Smaller players may simply get bought out or die. There is going to be extreme pain in this sector. Watch out! Keep your money in cash and you will get some fantastic bargains around 2010 onwards.
When the Realty sector stops feeding media, watch the media turn on them and tear them up. Part of life on the fast lane, I suppose.
The scoundrels and vagabonds populating the real estate space have been raking it in for too long. I would rather they lose their pants and under wears in the near future
RE:No need to shed tears
by Ram Krish on Jul 31, 2008 04:24 PM Permalink
Well, they may be able to hold on to their underwear, but pants? ... :)
Note what Mr. Harikrishna says about the question of this likely to resemble 1995. Note that in 1995, prices came down by anywhere from 50% upto 80%!!! Not joking. I was there and saw it; even have specific data in my market.
This time the magnitude of the problem is much worse. The Global recession (both in general as well as in RE) will go on till at least 2010-12. It may even become a depression (somewhat like 1930s in the US).
What Mr. Harikrishna and the entire banking and RE industry are not willing to admit is that, with the humongous amounts of money at stake (he himself has $500 million in cash to answer for and the clock is ticking!), EVERYONE is in DEEP denial about this slump.
In my humble opinion, fall, especially in high-growth areas like Chennai, Bangalore, etc will be in the range of 40% to 80% from peak. WAIT. Till the builders are in default. Recent attempt by builders to raise additional cash (within ONE year of raising huge amounts) from the stock market indicates severe/desperate cash crunch. Only problem is, even stock market investors are running scared.
One thing he was right about. Those who wait will get a bargain of a lifetime, literally.
If the reality market goes down it will be good...The builder polticicien nexus failed to understand one very important point here our economy mainly growing due to FDIs and their ancillaries..The foriegn companies are coming to india due to cost advantage over their own country or any other country , rent/reality price is also one of the major factor of the cost of any product/services if the real estate market goes skyhigh the companise will loose the cost advantage and will move to other countries.. even our own industries will move out..infact its already been seen..The government/builder lobby should look in to it..
The steep rise registered in the real estate prices is not factually due to either increase in the income levels of the people or genuine demand for them,but by only artificial demand and unilateral rise resorted to by the realtors in connivance with the govt in some states like Andhra Pradesh where the ruling party is bent upon making money in all possible ways and the real estate field has come very handy & alluring for them.these unscrupulous realtors,with the help of their net work of brokers raised the prices so much that the prices skyrocketed and proved unaffordable even for NRIs who are said to be affluent compared to their India counterparts.Added to this,easing of house loan interest rates coupled with cut throat competition amongst various financing banks/ institutions gave fillip to the greed of the realtors who allowed the bubble to enlarge to such an extent that it has to finally burst.It is a simple truth that any thing that raises so swiftly without a valid reason has to come down with equal speed-rather more speed.The decline in demand with same speed actuated by abnormal increase in the cost of the home loans,high prices & the mismatch of the supply & demand has now left the real estate business in a lurch- especially for those who invested heavily in anticipation of further rise & becoming millionaires overnight;those who staked are in a quandary with no other way than to go for distress sales.The proverb"greed leads to grief" should never be forgotten.
The steep rise in the real estate registered during the years 2005-06 was not,strictly, owing to increase in income levels,but because of the artificial hike resorted to by the Realtors in connivance with govt in some states like Andhra Pradesh where the ruling party has been keen in making money on all fronts and the real estate field appeared very handy & allluring for it.Added to this,the interest rates on home loans were perhaps the lowest we ever saw with stiff competition amongst the financing banks/institutions.In contrast to the days when the prospective borrowers were required to go around banks completing all formalities which were very cumbersome,banks staff themselves were behind the borrowers with all ready made stuff and a less than week process time in all.With all these inherent artificialities,the bubble went on enlarging to such an extent of skyrocketing unaffordable prices,that it has to burst in the absence of people coming forward to buy.The greedy realtors and their brokers who earned hefty amounts on the deals hardly realised that what they brought in is not "fat" in the activity,but only a swelling which is a sign of sickness.Any thing that increases abruptly & unreasonably has to crash down and it rightly happened to the real estate too.This applied even to the stock market also in spite of its learning several bitter lessons in the past.The real estate prices were raised to such an extent that even NRIs fear to tread in.Greed always leads to grief
