hi guys , Any news on real estate rates falling? I think all Indians will be really really happy if this fall is accompanied by the fall in real estate rates
RE:Any news on real estate rates
by abc on Mar 17, 2008 05:30 PM Permalink
Unlike stock money or unpagged assets like dollars (which is the root cause of all financial problems), real estate is an item that has a LIMITED supply. As investors find stock markets and currency markets as bad investments, they turn to commodities with limited suuply. i.e. Precious metals, Real Estate etc.
In the short term you will see real estate prices going down a bit but don't wait for too long to buy as the prices will soon correct and continue their move upwards. JMHO
RE:Any news on real estate rates
by Secular India on Mar 17, 2008 06:00 PM Permalink
And LIMITED buyer also - you dodo . The real estate market is fueled by speculation and not demand. Real estate is even more overvalued than stocks. Its not that house owners are all living slums and moving to new houses. It is people who are already staying ( if not owning ) who are buying the EXCESS HOUSES that are getting built at inflated rates. The real estate will correct back to 2005 levels soon.
RE:Any news on real estate rates
by Mr George on Mar 17, 2008 05:29 PM Permalink
Indian Real Estate would correct in due course of time. Indian Real Estate Market is not isolated. Property price correction led to the whole subprime crisis in US and is resulting in recession in USA. Property prices is correcting in Europe with major falls happening in UK, Spain, France, etc. In Cochin, there are more sellers than buyers. People who speculated on property prices in Kerala wants to sell but there are no buyers to be found. Basic principle is simple. When a common man, the average Govt employee or a private sector employee with a wage of around 10,000 rupees per month gets priced out of the real estate market, the market cannot sustain the rise in property prices. All growth has to be inclusive growth which takes into account the whole population rather than a few rich people.
Property prices would correct, but dont expect it to fall say 50 %. It would correct anywhere between 10 to 30 % in the short run. It is something which is echoed by ICICI Bank Chairman K.V Kamath.
RE:Any news on real estate rates
by chunnu on Mar 17, 2008 05:36 PM Permalink
kis fall ki baat kar rahe ho? these guys are building flats for 10 crore each in Noida/Gurgaon. who will buy them is anybody's guess.
