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Indian Real Estate Sector

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Singha
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Re: Indian Real Estate Sector

Postby Singha » 13 Aug 2017 11:42

Builders short of cash flow tend to pay off their large suppliers and agents with flats. There are 10 flats in my complex with no traceable owners from day1 in 2010 now. All their dues are pending and nobody has ever lived there. These are benami dark pool properties in the hands of these friends and associates

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Re: Indian Real Estate Sector

Postby prahaar » 13 Aug 2017 13:48

I met an Ola driver who owns multiple taxis. His uncle was paid for with flats in lieu of a piece of land + some cash which was acquired by Nanded city Pune. He was provided 10 flats at 2500 Rs/sqft. That price is approximately the BOM to construct the high-rise tower.

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Re: Indian Real Estate Sector

Postby putnanja » 13 Aug 2017 18:26

prahaar wrote:I met an Ola driver who owns multiple taxis. His uncle was paid for with flats in lieu of a piece of land + some cash which was acquired by Nanded city Pune. He was provided 10 flats at 2500 Rs/sqft. That price is approximately the BOM to construct the high-rise tower.


Thats how typically flats are built these days. Was speaking to one of the big RE guys, and typical way the promoters operate is to offer flats for land taken over. It has been more than 10 years since builders started buying land in cash. Typical agreements are made to offer "x" number of flats in the community being built. The land owners then sell these and make money off it. In major cities, the land owners typically offer these flats at 5-10% less than what the builder quotes, though you go through the builder for all formalities. You will still have to pay to builder for things like common ameneties like clubhouse, gym, pool etc if any. But going through land owners, you will many times not pay for floor premium (where they charge more above 5/6th floor etc), view premiums etc that the builder charges, and sometimes parking space is also included.
Last edited by putnanja on 13 Aug 2017 20:31, edited 1 time in total.

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Re: Indian Real Estate Sector

Postby Sachin » 13 Aug 2017 20:07

putnanja wrote:
prahaar wrote:I met an Ola driver who owns multiple taxis. His uncle was paid for with flats in lieu of a piece of land + some cash which was acquired by Nanded city Pune. He was provided 10 flats at 2500 Rs/sqft. That price is approximately the BOM to construct the high-rise tower.


Thats how typically flats are built these days. Was speaking to one of the big RE guys, and typical way the promoters operate is to offer flats for land taken over. It has been more than 10 years since builders started buying land in cash. Typical agreements are made to offer "x" number of flats in the community being built. The land owners then sell these and make money off it.

There is this huge complex of villas & duplex flats near Vegetable Oil.Co HQ in Bengaluru. The land owner was a real humble farmer living across the road. His home it seems still is an old one with the basic amenities (+ a cow shed). As part of the deal he was given around 7-10 villas/flats etc. He rents this to "techies" of various companies and takes the rent. On every week end after the 1st of a month, this man its seems used to walk in the typical turn out of a Kannadiga farmer; a shirt (full sleeves)+dark/khakhi shorts (old police style)+a kind of white cloth put on the shoulder. He visited every home, collected the rent by cash and went back :).

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Re: Indian Real Estate Sector

Postby Singha » 13 Aug 2017 22:32

sunnybrook? right next to the office complex?

atleast he has remained genuine and true to his self, than waste his life on daru, audi q6 and dressing up. i can respect that.

its rare to meet any person unaffected by easy cash flow.

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Re: Indian Real Estate Sector

Postby Singha » 14 Aug 2017 13:59

NDTV
The Bombay High Court on Monday put Sahara's luxurious Aamby Valley property, near Pune, up for auction. According to notices issued in newspapers, the official liquidator of Bombay High Court has set a reserve price of Rs. 37,392 crore for sale/lease of properties of the Aamby Valley City in Lonavala. The Supreme Court in April had ordered auction of Aamby Valley township after Sahara failed to deposit dues towards refund to investors.

Singha
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Re: Indian Real Estate Sector

Postby Singha » 15 Aug 2017 10:52

http://timesofindia.indiatimes.com/indi ... 067036.cms

NEW DELHI: The Centre may step in to provide relief to thousands of home buyers hit by insolvency proceedings against Jaypee Infratech, including sale of the company's assets to raise money to complete the project.

On August 9, the Allahabad bench of the National Company Law Tribunal (NCLT) ordered the appointment of an insolvency resolution professional (IRP) after IDBI Bank sought initiation of bankruptcy proceedings against the company following a diktat from the Reserve Bank of India.
Apart from the land tracts on which it has already accepted bookings for apartments, villas and plots, Jaypee has a large land bank along the Taj Expressway and possibly along the Noida-Greater Noida Expressway as well.

While the company promoted by the Gaurs has been talking of disposing of land to raise funds, it has repeatedly failed to fulfill its promise.
The Taj Expressway itself is a key asset that can be disposed off, something that banks had been suggesting to the Gaurs. But the promoters have not agreed to the suggestions and have instead raised loans against the expressway.


Sources said the government may explore the possibility of appointing a receiver or state-run agencies for the completion of projects where over 32,000 individuals have booked apartments. Although bookings started as far back as 2008, the company has been running woefully behind schedule, causing hardship to home buyers who have dipped into lifetime savings or taken loans.

The government will discuss with the ministry of corporate affairs (MCA) if the Insolvency and Bankruptcy Code (IBC) provides legal ground for other asset sale to fund incomplete projects. This is the first indication that the Centre will step in to resolve the crisis as the fate of the flats is uncertain.

"We may have to take the legal way through NCLT, which can pass an order to appoint an authority, maybe a state agency, to sell assets of Jayee Infratech and with the money from sale of assets, the pending projects can be completed," said a source, adding that the insolvency proceedings can continue simultaneously.

The law provides for the IRP to work out a resolution plan within 180 days, which can be extended by another 90 days, else go for liquidation. During the 270 days, the promoter or another company can take over the company. The government realises that the Jaypee Infratech case cannot be treated in the same way as a power or steel project.

Singha
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Re: Indian Real Estate Sector

Postby Singha » 20 Aug 2017 11:03

our carpenter was saying that after GST, his workflow from interior design and architect firms who do commercial / house projects has slowed down to almost nothing over the past 1 month.

on the manufacturing side, I have a confirmed PO made out to lenovo for a office monitor yet after nearly 7 weeks no supply and still 2-3 weeks to go per the dealer. their supply side had stopped almost 3 weeks before the GST kicked in.

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Re: Indian Real Estate Sector

Postby ashish raval » 20 Aug 2017 13:09

Singha wrote:our carpenter was saying that after GST, his workflow from interior design and architect firms who do commercial / house projects has slowed down to almost nothing over the past 1 month.

on the manufacturing side, I have a confirmed PO made out to lenovo for a office monitor yet after nearly 7 weeks no supply and still 2-3 weeks to go per the dealer. their supply side had stopped almost 3 weeks before the GST kicked in.

There is slowdown in many sectors where credit and cash ruled. They are in more of adjusting right now just like monetisation and will take another couple of months to adjust to new reality. It is a huge structural change so bound to have some effects.

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Re: Indian Real Estate Sector

Postby Marten » 20 Aug 2017 13:20

Singha wrote:sunnybrook? right next to the office complex?

atleast he has remained genuine and true to his self, than waste his life on daru, audi q6 and dressing up. i can respect that.

its rare to meet any person unaffected by easy cash flow.

First house. On the right. His swimming pool is used by a couple of ducks and hens. Hehe. He does have an expensive German car sitting in the garage though. New complex by DSR overlooking PSB probably was also owned by him. Construction around that place seems to have slowed down quite a bit though.

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Re: Indian Real Estate Sector

Postby schinnas » 20 Aug 2017 15:53

Bangalore real estate has dropped on average by 10% to 20% in the past couple of years in some areas such as whitefield. The most affected seem to be luxury properties such as Villas, Penthouses, etc. However, the price hasn't fully tanked as owners and builders are refusing to accept reality. In most apartments, the prices have stagnated for past 3 years with some secondary sales leading the way with price drops. All indications are that prices would further drop if buyers don't rush in unnecessarily. Another 10% to 20% correction is expected at a minimum as the amount of unsold and unoccupied inventory is still very high. Additionally, there are several under construction properties that are on hold with builders not having cash to complete them. These builders would need to do a fire sale of some of their unsold inventory to get out of the mess.

Most villa communities in Bangalore are faced with falling rental income (villas that used to rent for 1.5 lakhs per month are now rented for 50K rs) and still faced with villas that aren't rented at all. With all transactions linked to PAN and AADHAR, there isnt easy flow of blackmoney in RE. Prices of $1M+ villas have taken a 20% hair cut now with no sign of bottom yet.

The only exceptions are some pockets in HSR, Koramangala and other strategic locations such as pockets of KR Puram, etc.

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Re: Indian Real Estate Sector

Postby srinebula » 20 Aug 2017 19:50

Does anyone know the situation in Hyderabad?

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Re: Indian Real Estate Sector

Postby prahaar » 21 Aug 2017 13:35

https://www.youtube.com/watch?v=KM89hMmL5YI

This is a well known builder in Western Maharashtra. His case is just a symptom of a widely prevalent issue. It is hard to believe only one builder is undergoing this.

The Ajit Pawar led groups seem to be out of such issues.

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Re: Indian Real Estate Sector

Postby Rishirishi » 23 Aug 2017 04:48

The construction industry has always been driven by speculation. Typically people would book flats at a discount hoping to sell them off when they were built. The promoters got cheap finance and reduced the risk. It has worked well for many people. I feel there is nothing wrong with this practice, as long as people are informed of the risk involved.

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Re: Indian Real Estate Sector

Postby sum » 23 Aug 2017 06:36

Does any of the informed gurus know of any reliable seller/agent of a site/plot worth investing in Bluru?
I would prefer if it was gated typed place( for security reasons) since the plot would most certainly be empty for a few years( since would require lots of $$ to build again) but have ZERO clue of the RE scene and very wary of the kind of cheating going on with land related dealings. So, was wondering if any one has chaiwallahs who could provide a reasonable option

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Re: Indian Real Estate Sector

Postby pgbhat » 23 Aug 2017 17:46

^ it is a renters market out there better to rent and buy property elsewhere than Bangalore. See if you can wait it out for few more years. IMHO Buying property in Bangalore right now means shelling out first world prices for third rate surroundings and amenities. Not to mention God knows how many violations with legal troubles that come with it. That being said pressure to "settle down" and owning a piece of property is always there especially in India.

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Re: Indian Real Estate Sector

Postby srin » 23 Aug 2017 18:30

pgbhat wrote:^ it is a renters market out there better to rent and buy property elsewhere than Bangalore. See if you can wait it out for few more years. IMHO Buying property in Bangalore right now means shelling out first world prices for third rate surroundings and amenities. Not to mention God knows how many violations with legal troubles that come with it. That being said pressure to "settle down" and owning a piece of property is always there especially in India.

+1. Properties with "reasonable prices" are typically on the outskirts with terrible approach roads and tanker water supply. And God alone knows when BBMP hallucinates a "raja kaluve" on the property and starts demolishing homes.
Adding to that, the rental yield is quite low (2-3%) in many areas.

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Re: Indian Real Estate Sector

Postby negi » 23 Aug 2017 23:41

Actually theory and practice in real estate are polls apart ; if you have a property nearby any IT park and it is a decent gated complex you are talking about at least 25-30k INR pm for a semi furnished 2 bhk; rent for a premium apartment complex is on even higher side. However if you go to E city and Bannerghata road and are willing to be say more than a km away from main road you can get premium 3 bhk for 20-25k INR pm for rent . Rent for a 2bhk in Indiranagar and such places is beyond 35 k without any amenities .

So long story short yes buying is a slightly risky proposition but that is the case when you do not do enough research ; if you are for example buying from a top builder a ready to move in unit in current times you can get a really good deal this is like a stock market situation ; remember 2008 ? Lot of people bought homes at a very good rate during the recession , 2bhks in PSN and PFS at that time went for 20-25 lakhs they all are in vicinity of 90l-1cr today .

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Re: Indian Real Estate Sector

Postby Singha » 24 Aug 2017 06:52

Yolo

No matter how much one saves optimizes etc its all zero when we pass away

Plus women want their own house to decorate atleast once in life

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Re: Indian Real Estate Sector

Postby srinebula » 10 Sep 2017 22:03

sum wrote:Does any of the informed gurus know of any reliable seller/agent of a site/plot worth investing in Bluru?
I would prefer if it was gated typed place( for security reasons) since the plot would most certainly be empty for a few years( since would require lots of $$ to build again) but have ZERO clue of the RE scene and very wary of the kind of cheating going on with land related dealings. So, was wondering if any one has chaiwallahs who could provide a reasonable option


I have plot that mostly fits the requirements you mentioned. I am thinking of selling it off. Let me know if you want to take a look.

sum
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Re: Indian Real Estate Sector

Postby sum » 11 Sep 2017 05:30

srinebula wrote:
sum wrote:Does any of the informed gurus know of any reliable seller/agent of a site/plot worth investing in Bluru?
I would prefer if it was gated typed place( for security reasons) since the plot would most certainly be empty for a few years( since would require lots of $$ to build again) but have ZERO clue of the RE scene and very wary of the kind of cheating going on with land related dealings. So, was wondering if any one has chaiwallahs who could provide a reasonable option


I have plot that mostly fits the requirements you mentioned. I am thinking of selling it off. Let me know if you want to take a look.

Sure, saar. Bliss to provide ur email ID and i will contact

Sachin
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Re: Indian Real Estate Sector

Postby Sachin » 25 Oct 2017 14:16

How reliable are the prices quoted in the real estate web sites like 99acres etc.? Are they generally inflated? Was planning of looking for a plot (mostly in 1500-2400sq.ft) in the suburbs of Bengaluru. No plans for renting out, the aim is to settle down there. Hence also not very keen on an apartment (especially in the IT-Vity belt).

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Re: Indian Real Estate Sector

Postby Aditya_V » 25 Oct 2017 14:19

Sachin, Prices are generally inflated. Its about looking out and finding a good deal that makes sense.

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Re: Indian Real Estate Sector

Postby JayS » 25 Oct 2017 14:22

Sachin wrote:How reliable are the prices quoted in the real estate web sites like 99acres etc.? Are they generally inflated? Was planning of looking for a plot (mostly in 1500-2400sq.ft) in the suburbs of Bengaluru. No plans for renting out, the aim is to settle down there. Hence also not very keen on an apartment (especially in the IT-Vity belt).


I never go by RE sites' trend values or any agents' quotes. Better indicator is ads put up by direct owners. A survey through a number of such ads gives decent band of prices. If buying from developers, the quoted prices are standard rates which are negotiable always, even up to 10% in my experience. expected prices by sellers are always a bit on higher side. You can negotiate a bit on it. But direct owners are less flexible generally.

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Re: Indian Real Estate Sector

Postby Akshay Kapoor » 25 Oct 2017 16:52

.

Suraj
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Re: Indian Real Estate Sector

Postby Suraj » 22 Nov 2017 22:42

Delhi-NCR property prices down 5%: Note ban, delayed RERA, GST cast gloom
The National Capital Region (NCR) has witnessed a three- to five-per-cent decline in average per-square-foot property prices over the past one year (July-September 2017 from 2016), a report said on Tuesday.

NCR, considered to be the largest real estate hub in the country, currently has around 200,000 unsold flats, with Greater Noida and Gurgaon accounting for more than half this inventory, a report said on Tuesday.

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