Indian Real Estate Sector

The Technology & Economic Forum is a venue to discuss issues pertaining to Technological and Economic developments in India. We request members to kindly stay within the mandate of this forum and keep their exchanges of views, on a civilised level, however vehemently any disagreement may be felt. All feedback regarding forum usage may be sent to the moderators using the Feedback Form or by clicking the Report Post Icon in any objectionable post for proper action. Please note that the views expressed by the Members and Moderators on these discussion boards are that of the individuals only and do not reflect the official policy or view of the Bharat-Rakshak.com Website. Copyright Violation is strictly prohibited and may result in revocation of your posting rights - please read the FAQ for full details. Users must also abide by the Forum Guidelines at all times.
Karkala Joishy

Re: Indian Real Estate Sector

Postby Karkala Joishy » 27 Nov 2008 00:36

Singha, thanks for the info. Any idea what will be the cost of a 3 bed flat in the JP Nagar/Jayanagar area or surroundings? Or are they just impossible to find now?

Singha
BRF Oldie
Posts: 66605
Joined: 13 Aug 2004 19:42
Location: the grasshopper lies heavy

Re: Indian Real Estate Sector

Postby Singha » 27 Nov 2008 07:24

the older sectors of JP nagar and all of jayanagar have no land for big
projects. mostly you would find small 4 storeyed flats without much of
common garden area or play area. its ok if you have grown up kids.
advantage is all the infra is close and roads etc are well kept.

JP Nagar 9th phase near puttenahalli lake has big projects like elita promenade (purva-keppel jv), L&T south city, HM, brigade millenium,
brigade gardenia and adarsh rhythm....this is the area opposite IIM.
good projects but communting on bannerghatta road is a rather unpleasant prospect. if the BMIC road is given last piece of land near
bannerghatta road then connectivity to electronic city, and upto mysore road all the way upto tumkur road will be there as a ring road. then things might be better.

as of now ORR/sarjapur road/HSR layout looks better location. HSR also has a few projects like purva, sobha , many smaller flats or if you have the money, nothing like buying a 60x40 plot there and building your own nice house.

Singha
BRF Oldie
Posts: 66605
Joined: 13 Aug 2004 19:42
Location: the grasshopper lies heavy

Re: Indian Real Estate Sector

Postby Singha » 09 Dec 2008 08:55

2 KIA, 2 wounded in prestige shantiniketan again. retaining wall of
a basement collapsed on them due to muddy foundation.

vina
BRF Oldie
Posts: 6046
Joined: 11 May 2005 06:56
Location: Doing Nijikaran, Udharikaran and Baazarikaran to Commies and Assorted Leftists

Re: Indian Real Estate Sector

Postby vina » 09 Dec 2008 09:26

Prestige Shantniketan seems jinxed. Guess there is some evil spell kind of thing on it. Already 4 killed in that place in accidents until now.

merlin
BRF Oldie
Posts: 2154
Joined: 01 Jan 1970 05:30
Location: NullPointerException

Re: Indian Real Estate Sector

Postby merlin » 09 Dec 2008 09:56

Singha wrote:as of now ORR/sarjapur road/HSR layout looks better location. HSR also has a few projects like purva, sobha , many smaller flats or if you have the money, nothing like buying a 60x40 plot there and building your own nice house.


60x40 plots :(( :(( :(( They cost a bomb there man! Prices are so unreal.

Singha
BRF Oldie
Posts: 66605
Joined: 13 Aug 2004 19:42
Location: the grasshopper lies heavy

Re: Indian Real Estate Sector

Postby Singha » 09 Dec 2008 10:00

its all depends - if a smart lad had a 250k house in CA purchased in mid 90s and sold it off in 2007 for 1 mil to relocate, he/she has 750k-30% tax? of profit to play with.
there are such people who have r2i'ed on the best possible terms.

I know someone who has purchased a house in sunnyvale for 900k, 900 sq ft and 50+ yrs old :mrgreen:

Satya_anveshi
BRF Oldie
Posts: 3532
Joined: 08 Jan 2007 02:37

Re: Indian Real Estate Sector

Postby Satya_anveshi » 09 Dec 2008 10:14

Karkala Joishy wrote:Singha, thanks for the info. Any idea what will be the cost of a 3 bed flat in the JP Nagar/Jayanagar area or surroundings? Or are they just impossible to find now?


not speaking for Singha. This really has been my dream too. I lived in JP Nagar II Phase, stone's throw away from Ranga Shankara and Innisfree school and close the MLA Ambarish's place.

My next r2i after saving enough money ($hit, keeping the job right now for the next quarter is a major achivement), that is the place I am going.

In 2004-5, there was one 40x60 plot close to where I lived, broker ba$tards were quoting 4000 psft - 96 lakhs for that plot. Told him I can't buy such cheap plots :) For apartments, IMO you are looking at about 50L for tier1-2 builders.

vina
BRF Oldie
Posts: 6046
Joined: 11 May 2005 06:56
Location: Doing Nijikaran, Udharikaran and Baazarikaran to Commies and Assorted Leftists

Re: Indian Real Estate Sector

Postby vina » 09 Dec 2008 13:07

50Ls, you gotta be joking. You will get a 2 bedroom at best and that too a "builder's" apt, with zero bells and whistles , at a going rate closer to 60L in that place you are speaking close to Ranga Shankara /Innisfree

Satya_anveshi
BRF Oldie
Posts: 3532
Joined: 08 Jan 2007 02:37

Re: Indian Real Estate Sector

Postby Satya_anveshi » 09 Dec 2008 19:08

vina wrote:50Ls, you gotta be joking. You will get a 2 bedroom at best and that too a "builder's" apt, with zero bells and whistles , at a going rate closer to 60L in that place you are speaking close to Ranga Shankara /Innisfree


I can imagine how the brokers would have manipulated the field simply by the word of mouth (or is it their a$$). I pray everyday to the dieties of Tirupati and Swamy of Mantralaya to make me rich enough to afford a decent home in that area within next 3 years and have my parents rest easy and enjoy Bangalore climate with frequest visits to the western ghats.

On other note, I heard from people in the know that of all (tier -2?)builders, Gopalan is better in terms of price/performance, quality, fairness.

vsudhir
BRF Oldie
Posts: 2173
Joined: 19 Jan 2006 03:44
Location: Dark side of the moon

Re: Indian Real Estate Sector

Postby vsudhir » 09 Dec 2008 20:14

If an r2i is looking at investing in a 3BR in hyd in the next coupla yrs, any tips, do's and don'ts etc from any knowledgeable folks here? Rough area+ rough est of price range would be hajaar appreciated onlee saars.

pradeepe
BRFite
Posts: 741
Joined: 27 Aug 2006 20:46
Location: Our culture is different and we cannot live together - who said that?

Re: Indian Real Estate Sector

Postby pradeepe » 10 Dec 2008 13:26

Sudhir,
Nows a good time to start hunting to get to know your options, but if I were you I'd wait a few months before doing anything.

There is a glut of apartments and very few buyers are entering the market. Not the same situation with homes/villas though. Builders who bought land when it was very cheap are also down but still putting on a brave face, but those who got in late and thats even the Aparna types in some areas are looking desperate.

Most upper tier builders were not even entertaining anything below 4000 3-4 months ago, now many of them are close to and below 3400/sft. Of course I am excluding the emaar type outfits, where apartments were earlier quoted at 6-8cr (!!) and now around 4cr and the Lodha types with 1 apt per floor with your own pool and private elavator.

As for me, I am looking for the Aparna, Fortune type builders to get close to or below 3000/sft. 2800/sft is what I said would make me part with my money now.





Cash flow

Singha
BRF Oldie
Posts: 66605
Joined: 13 Aug 2004 19:42
Location: the grasshopper lies heavy

Re: Indian Real Estate Sector

Postby Singha » 10 Dec 2008 13:43

Vars is another smaller builder who has made some decent apts. another two are sterling and skyline.

if you look in bylanes of indiranagar or richmond town there are some pretty high quality small apts but due to small land area, they do not have the resort style amenities and green areas of big projects.

if you have somewhat grown up kids or kids are already in college, these
can be good option to live closer to center of city.

Mihaylo
BRFite
Posts: 751
Joined: 09 Nov 2007 21:10

Re: Indian Real Estate Sector

Postby Mihaylo » 10 Dec 2008 15:03

Hi guys, am planing on investing in a 1 BR flat in Mumbai, around the InOrbit mall by mid next year. Any thoughts on the timing and also the location that I have selected. I have family living in the area and hence would be able to manage the unit better.
thnks

amardeep_s
BRFite -Trainee
Posts: 46
Joined: 23 Mar 2008 20:04

Re: Indian Real Estate Sector

Postby amardeep_s » 10 Dec 2008 16:31

Mihaylo wrote:Hi guys, am planing on investing in a 1 BR flat in Mumbai, around the InOrbit mall by mid next year. Any thoughts on the timing and also the location that I have selected. I have family living in the area and hence would be able to manage the unit better.
thnks

Mihaylo, location around InOrbit is a traffic nightmare. Projects going around there include Rustumjee Ozone @ 9500 psf ,Acme Complex @ 9500. A km away is the Raheja palm Court and palm springs complex @ 7500 psf. These are actualrates, brokers missell rustomjee quoting 11000 psf and raheja as 9500 psf, ofcourse 'negotiable'. 1BHK is available at the raheja place. However if your family and you can manage, @ 5 km ahead of InOrbit DB Realty has a under0con project @ 5500 psf. However, looking at the current state , Ready to occupy at Raheja is the best bet. Something that is being just launched such as DB Realty project should not betouched imho. Hard bargaining can net the rustomjee and acme places @9000 though being traffic bottlenecks , not advised.

vsudhir
BRF Oldie
Posts: 2173
Joined: 19 Jan 2006 03:44
Location: Dark side of the moon

Re: Indian Real Estate Sector

Postby vsudhir » 10 Dec 2008 21:04

Tks pradeepe.

No, am looking at entering the mkt sometime next yr, after r2i. Right now, folks home booked a flat in Alwal outskirts mre from an investment POV.

Yes, am expecting a drop in per sqft prices by another 10-15 (perhaps even 20) percent. Are you in swades or in massaland, btw?

Satya_anveshi
BRF Oldie
Posts: 3532
Joined: 08 Jan 2007 02:37

Re: Indian Real Estate Sector

Postby Satya_anveshi » 11 Dec 2008 09:20

vsudhir wrote:Tks pradeepe.

No, am looking at entering the mkt sometime next yr, after r2i. Right now, folks home booked a flat in Alwal outskirts mre from an investment POV.

Yes, am expecting a drop in per sqft prices by another 10-15 (perhaps even 20) percent. Are you in swades or in massaland, btw?


Don't have much knowledge of Hyd real estate but if you are IT/VT type, it makes sense to live near Hi-Tech city or personally I prefer living closer to BHEL township. You can get to Hi-Tech city within 20 mins and good peaceful living conditions.

I had a nice offer in 2004 to buy a home built on a 300 sqyards plot in the BHEL township for about 25L. I fumbled (ofcourse...bang opp the home of my in-laws :lol: ) and I never got that offer again. Market went up and the same is now going for over 45L.

Other area where my friends bought apartments is near Nacharam (near Hubsiguda / Tarnaka). Good apartments - don't know the builders. You will see a lot of folks from defense services.

When I lived in Hyd (Vidya Nagar / Ram Nagar near OU) but the area had water problems and very cluttered for my current taste. I also used to see nice neighbourhood in Vikrampuri, Bowenpalli areas of Secunderabad.

Mihaylo
BRFite
Posts: 751
Joined: 09 Nov 2007 21:10

Re: Indian Real Estate Sector

Postby Mihaylo » 11 Dec 2008 15:48

amardeep_s wrote:
Mihaylo wrote:Hi guys, am planing on investing in a 1 BR flat in Mumbai, around the InOrbit mall by mid next year. Any thoughts on the timing and also the location that I have selected. I have family living in the area and hence would be able to manage the unit better.
thnks

Mihaylo, location around InOrbit is a traffic nightmare. Projects going around there include Rustumjee Ozone @ 9500 psf ,Acme Complex @ 9500. A km away is the Raheja palm Court and palm springs complex @ 7500 psf. These are actualrates, brokers missell rustomjee quoting 11000 psf and raheja as 9500 psf, ofcourse 'negotiable'. 1BHK is available at the raheja place. However if your family and you can manage, @ 5 km ahead of InOrbit DB Realty has a under0con project @ 5500 psf. However, looking at the current state , Ready to occupy at Raheja is the best bet. Something that is being just launched such as DB Realty project should not betouched imho. Hard bargaining can net the rustomjee and acme places @9000 though being traffic bottlenecks , not advised.

Amardeep, thanks for your input.Although, since this is just for investment purposes, would bangur nagar also be a viable alternative ? Palm court is a nice option. I visited that complex and liked it a lot although again I dont' really care since I won't be living in the unit anytime and hence the interest in Bangur Nagar - which would be cheaper and also some of those societies would potentially be going into redevelopment soon so might profit from the additional sq footage which I would get.

amardeep_s
BRFite -Trainee
Posts: 46
Joined: 23 Mar 2008 20:04

Re: Indian Real Estate Sector

Postby amardeep_s » 11 Dec 2008 18:41

Mihaylo, the place you suggest -Bangur Nagar is fine too. However it has mostly old buildings and societies , as per what i know , are not going in for re-dev. Moreover, at this point of time i feel though TDR rates have dropped, few re-dev projects are going on as the market isnt suitable to the same. The only new project in that place is Sheth -Vasant Polaris @ about same 11500. Just make sure , if creek facing than on upper floors, as during monsoons the creek side is marshy. Maybe in one years time, the rates can stabilise, >10000 is a bit expensive .

vipu
BRFite -Trainee
Posts: 14
Joined: 31 Dec 2008 08:06

Re: Indian Real Estate Sector

Postby vipu » 03 Jan 2009 15:27

Another Best practice..

http://timesofindia.indiatimes.com/Cities/Was_draw_for_DDA_scheme_rigged/articleshow/3929211.cms

How valid are the schemes/lotteries to allot plots to general 'Middle class'?. Down south in K'tka, BDA-B'lore has grand plans coming up with NICE Corridor, Knowledge City and New BDA Layouts.

Any sign that the JNuURM plans would be fruitful under these Municipals?.

CalvinH
BRFite
Posts: 583
Joined: 15 Jul 2007 04:14

Re: Indian Real Estate Sector

Postby CalvinH » 04 Jan 2009 10:13

^^I think you cant stop what happened in DDA draw. If someone files 1000 applications using dummy applicants then some of them are bound to get through in the lucky draw.DDA cant check particulars of all 5 Lac people who applied in the scheme even if they found that some of them share same cellphone number or address.

I consider a draw to be rigged really when you find that most of the successful people are not from the common masses but from influential class like politicians, babus, judges etc. This happened in one of the scheme in Noida in 2004. The list of successful candidates for first draw (and the next one too)reads like the whos who list from Delhi and UP political/bureaucratic/Judiciary class. The draw got cancelled. The next draw was canceled again for same reason (what an audacity) and the final draw was conducted after 4 years in Nov 2008.

vipu
BRFite -Trainee
Posts: 14
Joined: 31 Dec 2008 08:06

Re: Indian Real Estate Sector

Postby vipu » 05 Jan 2009 08:27

Shades of Rupenben Panchal?.. 8) :lol:

SaiK
BRF Oldie
Posts: 36300
Joined: 29 Oct 2003 12:31
Location: NowHere

Re: Indian Real Estate Sector

Postby SaiK » 06 Jan 2009 21:29

I heard bangaluru bubble just broke.. prices have come down.. hah~ nemesis has ways... I believe in these karmic laws now.

what are the new values in hep bangalore places? any idea?

vipu
BRFite -Trainee
Posts: 14
Joined: 31 Dec 2008 08:06

Re: Indian Real Estate Sector

Postby vipu » 27 Jan 2009 12:41

Have a question regards GDP and the Value of land in India.

Assuming the value of Urban land at 500Rs/Sqft.. for 1SqMeter we get about 5000Rs/-
Again for 1sqkm would be worth 1000X1000X5000 = 500Crores(5.0E9)Rs/-

Again assuming Urban land in India at conervative 1000sqkm(200sqkm for the metros each) would be 1000X 500Crores = 5,00,000CroresRs/-

With india's GDP at 3Trillion$. at 50Rs= 1US$
[url]http://en.wikipedia.org/wiki/Economy_of_India#cite_note-Indian_economy_.27to_overtake_UK.27-44
[/url]
1 trillion = 1000billion$ = 1000*5000CroreRs/ = 50Lakh Crore.

please let me know (your thoughts on) what the realistic growth rate (6%) would realize a 15% increase in Land rates?. Now that the Service industry(it-vity) has taken a hit, are we following the Us in a housing/Real Estate Boom?.. what then is the real price per sqft for urban land in India...

Please avoid/disregard location and transport since they are pretty much the number one reason.

krishnan
BRF Oldie
Posts: 7345
Joined: 07 Oct 2005 12:58
Location: 13° 04' N , 80° 17' E

Re: Indian Real Estate Sector

Postby krishnan » 27 Jan 2009 12:47

Chennai govt has an official website which records the recommended land prices. If thats what you want to known. I dont known about other states.

chetak
BRF Oldie
Posts: 19307
Joined: 16 May 2008 12:00

Re: Indian Real Estate Sector

Postby chetak » 27 Jan 2009 12:53

Singha ji,

Any thoughts on flats on the Ring road near the Ram murthy nagar junction, Banaswadi?

Thinking of investing there.

TIA :)

Singha
BRF Oldie
Posts: 66605
Joined: 13 Aug 2004 19:42
Location: the grasshopper lies heavy

Re: Indian Real Estate Sector

Postby Singha » 27 Jan 2009 13:06

my wife works nearby. if its within kalyan nagar, HBR or HRBR layouts which is the southern side of the road then it is a ok idea.
there are big and well designed BDA roads all being official bda layouts. however bear in mind there are some slummy pockets islanded by the layout formation - avoid these.

I would avoid the northern side of the road because its a messy
asortment of regularized layouts with poor muddy roads.
ramamurthy nagar falls within this belt I guess.

also avoid complexes that are totally on the road - the noise, pollution and security risk is more. that road is heavy truck route mumbai-pune-blr-chennai.

ideally you should have a rich Mallu FIL who will buy you a 80x60
bda plot there and fund construction of a nice 3 storey house with
a panoramic terrance and "BR den" on top for your personal pleasure. I know some guys who "lucked out" on the FIL front.
some of these old codgers have more money than they know what
to do with + a marriageble daughter(s).

chetak
BRF Oldie
Posts: 19307
Joined: 16 May 2008 12:00

Re: Indian Real Estate Sector

Postby chetak » 27 Jan 2009 13:32

Singha wrote:my wife works nearby. if its within kalyan nagar, HBR or HRBR layouts which is the southern side of the road then it is a ok idea.
there are big and well designed BDA roads all being official bda layouts. however bear in mind there are some slummy pockets islanded by the layout formation - avoid these.

I would avoid the northern side of the road because its a messy
asortment of regularized layouts with poor muddy roads.
ramamurthy nagar falls within this belt I guess.

also avoid complexes that are totally on the road - the noise, pollution and security risk is more. that road is heavy truck route mumbai-pune-blr-chennai.

ideally you should have a rich Mallu FIL who will buy you a 80x60
bda plot there and fund construction of a nice 3 storey house with
a panoramic terrance and "BR den" on top for your personal pleasure. I know some guys who "lucked out" on the FIL front.
some of these old codgers have more money than they know what
to do with + a marriageble daughter(s).



Singha ji,

Thanks a lot.

The target seems to be on the service road by the side of the Tamarind restaurant, building called Keerthi Royale.
A few of the the apartments are in the last stages with many of already handed over with many people living there.

What could be a reasonable rate in this area?

Would much appreciate any inputs.

Singha
BRF Oldie
Posts: 66605
Joined: 13 Aug 2004 19:42
Location: the grasshopper lies heavy

Re: Indian Real Estate Sector

Postby Singha » 27 Jan 2009 13:44

I have seen it. its almost overhanging on the road down below. prolly
ok from investment pov (easy access to road) but I wouldnt buy it to live in.

prices I have no idea. but dont believe brokers. talk to builder and see
how desperate they are.

Nayak
BRF Oldie
Posts: 2553
Joined: 11 Jun 2006 03:48
Location: Vote for Savita Bhabhi as the next BRF admin.

Re: Indian Real Estate Sector

Postby Nayak » 27 Jan 2009 16:50

There is a real-estate channel on mah cable !!!

I thought watching Peace TV/Q TV was fun, but this channel takes the cake.

Vipul
BRF Oldie
Posts: 3728
Joined: 15 Jan 2005 03:30

Re: Indian Real Estate Sector

Postby Vipul » 27 Jan 2009 20:25

Have been waiting for 6 Months for rates on a couple of properties in Bombay to fall,but has not happened so far.What gives for this uniquely Mumbai situation?? For now no option for this Vulture but to keep flying around in the sky.

Vikram Rathore
BRFite -Trainee
Posts: 42
Joined: 12 Jul 1999 11:31
Location: India

Re: Indian Real Estate Sector

Postby Vikram Rathore » 28 Jan 2009 08:38

As someone who has been sitting on the fence waiting for the `right' time to buy (in other words, couching my own laziness and inertia in more strategic sounding reasons!!), I think the dynamics in the Indian real estate market are not exactly driven entirely by demand and supply- at least in the short term. If I look at markets like Gurgaon or the NCR area- one would expect that rates would have come down significantly- and they are softening and on the wat down gradually- what keeps them up is the fact that builders and speculators have invested huge amounts and have a vested interest in keeping the rates artificially inflated. As a simple exercise, if you contact agents you will typically be quoted a rate thats 10-15% higher than what you could be asked for the same place directly from the seller.

But I suspect the bubble will burst soon- as many new projects are nearing completion, and the builders will have little option to start reflecting more realistic prices. I think 2009 will end up being the year of the buyer as far as real estate in India goes...or at least hoping so!

CalvinH
BRFite
Posts: 583
Joined: 15 Jul 2007 04:14

Re: Indian Real Estate Sector

Postby CalvinH » 28 Jan 2009 15:14

@NCR the rates are already softening. For one property (completed and ready to move now) in one of the NCR region re-sale from original buyers is flooding the online property portals. Price 44-48 Lacs for 3 bedroom whereas the developer is quoting 40.8 lacs.

Speculators and investors are having a really bad time with this one at least.

Vipul
BRF Oldie
Posts: 3728
Joined: 15 Jan 2005 03:30

Re: Indian Real Estate Sector

Postby Vipul » 28 Jan 2009 20:33

In Mumbai i feel its is the Builders more then the speculators who are holding (atleast trying to) the Prices.The excessive speculative buying in the Suburbs beyond Thane and New Bombay has softened prices a little. Most of the projects are still under construction and buyers are in position to back-off now that they have already paid 20-25% of the initial price.However once these projects are completed a correction of 25% is being foreseen.

Rishirishi
BRFite
Posts: 1052
Joined: 12 Mar 2005 02:30

Re: Indian Real Estate Sector

Postby Rishirishi » 03 Feb 2009 03:58

Vikram Rathore wrote:As someone who has been sitting on the fence waiting for the `right' time to buy (in other words, couching my own laziness and inertia in more strategic sounding reasons!!), I think the dynamics in the Indian real estate market are not exactly driven entirely by demand and supply- at least in the short term. If I look at markets like Gurgaon or the NCR area- one would expect that rates would have come down significantly- and they are softening and on the wat down gradually- what keeps them up is the fact that builders and speculators have invested huge amounts and have a vested interest in keeping the rates artificially inflated. As a simple exercise, if you contact agents you will typically be quoted a rate thats 10-15% higher than what you could be asked for the same place directly from the seller.

But I suspect the bubble will burst soon- as many new projects are nearing completion, and the builders will have little option to start reflecting more realistic prices. I think 2009 will end up being the year of the buyer as far as real estate in India goes...or at least hoping so!


Most large builders are in a desperate financial position. Unitech for example has debt twice the value of its assets. It is only a matter of time, before some of them will go bust. Once that happnes a lot of property will come out on the market below cost leve. If you are planning to purchase, sit tight and wait for the speculators and builders to go bankrupt. Market will fall.
It would not surprise me if upper class locations start to hot the 3000 pr sqft mark and greater noida starts to hit below 2000 per sq mark. Be careful of substandard quality.

hnair
Forum Moderator
Posts: 3700
Joined: 03 May 2006 01:31
Location: Trivandrum

Re: Indian Real Estate Sector

Postby hnair » 03 Feb 2009 05:16

Singha wrote:ideally you should have a rich Mallu FIL who will buy you a 80x60
bda plot there and fund construction of a nice 3 storey house with
a panoramic terrance and "BR den" on top for your personal pleasure. I know some guys who "lucked out" on the FIL front.
some of these old codgers have more money than they know what
to do with + a marriageble daughter(s).


:shock: You have no idea. I almost "lucked out" a few centuries ago. Got friendly with this lass from Mounts and next you know, I was meeting the said old codger somewhere in lush 3rd block Koramangala. Slurped down the appam + egg curry (me bachelor...food 8) ) in a hurry and ran for the hills with me lungi balled up in me hands. Still shudder when I go by the BDA complex.....

"rich Mallu FILs" are for those afflicted with brochuritis. Not for old school jingos who want to one day become these old codgers. :D

CalvinH
BRFite
Posts: 583
Joined: 15 Jul 2007 04:14

Re: Indian Real Estate Sector

Postby CalvinH » 03 Feb 2009 06:33

[quote="Rishirishi]
Most large builders are in a desperate financial position. Unitech for example has debt twice the value of its assets. It is only a matter of time, before some of them will go bust. Once that happnes a lot of property will come out on the market below cost leve. If you are planning to purchase, sit tight and wait for the speculators and builders to go bankrupt. Market will fall.
[/quote]

It wont be that simple. The relationship of a major builder going bust and homes becoming affordable suddenly is not straight. First if a major builder goes bust then some of the banks will take a major hit. Share market will take a hit and sentiments to buy a property will turn negative too. Properties will run in litigation as most of the properties are partly paid by different buyers. The prices of unsold and incomplete properties would come down but with the risk of never being completed.

Lets say one builder folds up and lets assume the other builder reduce prices by 1/3. will anyone be willing to put a down payment of 20% and invest in the property knowing very well that this builder can fold up too.

What will benefit an aam aadmi like us is if price of a completed home in a good location will come down but thats not going to happen. Prices of houses in good location will never come down so much that they become an cheap buy for common man. Is prices coming down by 20% in HSR layout. What we need is a correction of 30% for them to become attractive for us which will never happen for these areas.

What we are looking at now is large investments made in areas which are otherwise not hospitable in the hope that they will become hospitable due to large and continuous flow of investments. This flow made the prices to rise and kept the place attractive. Now when its drying up will a common man go and try getting house in these locations or will he sit on his hard earned money for the mood to turn optimistic.

I see large swathes of semi-developed suburbs with unfinished buildings as the future for sometimes. This is not going to benefit anyone in short term.

Sachin
Webmaster BR
Posts: 7411
Joined: 01 Jan 1970 05:30
Location: Undisclosed

Re: Indian Real Estate Sector

Postby Sachin » 03 Feb 2009 13:38

A quick question here, real-estate experts.

Want to know how the defaulting loans for housing are treated. For eg:-
1. Mr.X takes a loan for say 10 lakhs.
2. Mr.X has already paid up 2 lakhs, and then finds out he is out of his job, and cannot continue with the EMIs. He tries to sell it off to others, but cannot do that either.
3. The bank comes up with threats and finally decides to seize the flat. Mr.X agrees with it.

What happens to the 2 lakh paid by Mr.X? Will it (or atleast part of it) be returned?
What would the banks ideally do with the flat sitting in their hands? Do they try to sell it of to another buyer? What if it is a really tricky situation and nobody wants to buy that flat?

krishnan
BRF Oldie
Posts: 7345
Joined: 07 Oct 2005 12:58
Location: 13° 04' N , 80° 17' E

Re: Indian Real Estate Sector

Postby krishnan » 03 Feb 2009 13:50

Why would the bank return the 2 lakhs? Most of the time the banks seize the house and try to sell it.

Tanaji
BRF Oldie
Posts: 3241
Joined: 21 Jun 2000 11:31

Re: Indian Real Estate Sector

Postby Tanaji » 03 Feb 2009 17:07

Your 2 lakhs in most cases are gone.

You have to understand that in this case, the bank is looking out for its own interests. Its interest in recovering the loan amount first, which is 8 lakhs in this case. So it will sell immediately to the buyer who ponies up at least that amount. It's sole aim is to get the bad loan off its balance sheet, getting a good price on your behalf is not its concern at all. As you have said that the person tried to sell it himself, implies that its a very depressed market... so chances are the bank will sell to the first buyer.

Raju

Re: Indian Real Estate Sector

Postby Raju » 04 Feb 2009 14:17

>> What happens to the 2 lakh paid by Mr.X? Will it (or atleast part of it) be returned?

the money already paid up will be treated as rent I suppose.


Return to “Technology & Economic Forum”

Who is online

Users browsing this forum: Aditya_V and 13 guests