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.
