No worries, even before the currency situation, the Real estate was limping (except Bombay). A distant cousin of mine has got a beautiful 3 bed more than 1000 SQFT flat on sale, it is not moving. He has reduced the price to less than 65 Lakhs.
Its in a posh neighborhood..
Chennai story is pretty known after the flood..
Quote:
Originally posted by futureguy
Can a decent 1,000 sq. ft. Carpet area flat be bought in Bangalore for 1 crore ?
Is cheating, unregulated buying process , red tape, bureaucracy, corruption, bribes the same as before, while buying flats in Bangalore.
Or its more regulated now and more safe to do a RE transaction in Bangalore. And less hassle than before.
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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
In NCR, the RE is very hot. The builders are accepting up to 100% payment in old 500 and 1000 currency notes in back date and giving receipts for the months of Sept and Oct. But this situation will not stay for a long time and eventually the RE market will cool off in coming months.
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A Delhite in Toronto
Location: God's own country
Posted on: 15-11-16 07:41:34
It is just a week now. It will take more time.
For sure, prices will drop. Prior to the demonitizations, the inventory with major builders was at an unsustainable level. It will surely implode now.
Prior to the demonitization, a builder at OMR was selling his new apartments at Rs 2800, slashed from Rs 3500 per sq ft. For the past one week, there was no new proposal to buy any house by any client. The situation will get worse.
It is a catch 22 situation where in people may sell their ancestral property / land and then use it to buy houses. Now no one can sell anything. Most people had their money converted into Gold / Real Estate. Now only Gold is sellable. Real estate is unsellable and hence no new buying too.
It is a very sad situation which we will see soon.
There is prediction here that one should start converting black money into Us $ (as it is done in other countries like Mexico, Purto Rico and the like). They are expecting 1 US $ = Rs 100 soon. Also there is prediction that the new Rs 2000 notes will be demonitized once the new rs 1000 notes come (in 3-6 months).
What I would advise CD's thinking of ever investing in India, is to keep their cash in US $ and in designated FCNR accounts. In 6 months time, the RE would be reaching their low. After 6 months, it will start picking up as further black money would come.
Murali
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I am a Gents and not a Ladies.
Quote:
Originally posted by futureguy
What is the real situation on the ground in India and in reality ?
Some people are saying no effect on RE whatsoever as the black money, builder lobby, corruption is so strong the builders are not blinking and won't reduce the price no matter what. Flats will sit empty, but they won't reduce it.
Have Real estate prices, either new construction or resale flats really come down ? Due to the black money guys in problem due to Rs. 500 and Rs. 1,000 banning ? Is it suppose to come down in the next 6 months or so ?
Mostly Mumbai, Delhi, Bangalore , Kalkotta and Chennai ?
Or Tier 2 cities like Pune, Mangalore, Hyderabad ?
I know someone who is planning to relocate to either Pune or Bangalore from Canada. They are in IT and job in India is not an issue, they already have solid offers. They don't want to rent, but buy a flat in a good locality.
After living in a house in Canada, they are shocked to see crappy shit hole flats in Indian cities going for 3-4 crores each. They are hoping for a crash, only way they can afford a flat in India. Otherwise all their savings from Canada will be gone in accomodation.
Is a 30 % RE crash a reality in the coming 1 year in India or not ?
Hyderabad market has stayed low-key for the past two years. The trend being slow sales and high inventory. Bifurcation of AP into two states has played a role.
As other posters have mentioned, there is an overall RE depression across Indian cities, and as per my observation Bangalore is no different. However, some builders are able to sell flats better than vacant land. The current currency policy may also have some impact on properties. You can try areas like Bannerghatta, Yelahanka, Electronics City, Whitefield, Kirshnarajapuram etc. for the budget your friend has in mind. These are "suburban" properties.
There are rumours making rounds that some kind of national ULC Act could be enacted. Again, these are rumours.
Location: God's own country
Posted on: 17-11-16 07:35:01
Things are getting clearer now.
Indian economy is in dire straits. People are feeing the cash crunch. Esp. agriculture people and people in rural areas are feeling the pinch.
The Indian stock market is down for 7 days now. After 9 days there are no signs of things getting better. It may take 40-60 days more for things to be normal.
Real estate will be the first hit. Already all construction sites have been stopped and all labours have gone back to their states since the owner canot pay the weekly wages by cash.
It will take a very long time for things to recover.
However, this is good for the people of Gulf / America thinking of returning to India or to make a RE investment in India as things are going to get cheaper and RE prices more affordable.
Murali
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I am a Gents and not a Ladies.
Agree with your assessment. It will be a right time for NRI's/OCI's to invest in luxury and high end flats with their white dollars when the price will come down.
Quote:
Originally posted by futureguy
My sources are telling me :
1. Price Upto 1 crore.
There is NO change in the price. These flats are mostly bought by salaried people. Generally 20 % down payment and 80 % bank loan. Usually husband and wife both working, and resonable corporate income. So they can carry monthly EMI payment.
Most of their payment is White and by Cheque, very little black money. So prices have not come down.
2. Price from 1 to 2.5 Crore.
5 % to 10 % price reduction. Generally bought by small businessman. With 30 % or so paid in black. The rest paid in White. Generally these guys don't take a bank loan and make full payment on their own. 70:30 or 60:40 or whatever the white/black ratio might be.
3. Only luxury and super luxury flats above 2.5 Crore are coming down by a bigger percentage.
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So not sure how this benefits the common man and the poor class and the middle class.
99 % buy in the 1 crore range, they can't really afford more than that, and those prices have not come down at all ! They can't carry an EMI for flats bigger than 1 crore as they have other expenses too like food, transport, kids school fees , medical fees, clothes etc.
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A Delhite in Toronto
Investing there has been pretty risky after 2008...
Quote:
Originally posted by Delhite
Agree with your assessment. It will be a right time for NRI's/OCI's to invest in luxury and high end flats with their white dollars when the price will come down.
Quote:
Originally posted by futureguy
My sources are telling me :
1. Price Upto 1 crore.
There is NO change in the price. These flats are mostly bought by salaried people. Generally 20 % down payment and 80 % bank loan. Usually husband and wife both working, and resonable corporate income. So they can carry monthly EMI payment.
Most of their payment is White and by Cheque, very little black money. So prices have not come down.
2. Price from 1 to 2.5 Crore.
5 % to 10 % price reduction. Generally bought by small businessman. With 30 % or so paid in black. The rest paid in White. Generally these guys don't take a bank loan and make full payment on their own. 70:30 or 60:40 or whatever the white/black ratio might be.
3. Only luxury and super luxury flats above 2.5 Crore are coming down by a bigger percentage.
-------------
So not sure how this benefits the common man and the poor class and the middle class.
99 % buy in the 1 crore range, they can't really afford more than that, and those prices have not come down at all ! They can't carry an EMI for flats bigger than 1 crore as they have other expenses too like food, transport, kids school fees , medical fees, clothes etc.
-----------------------------------------------------------------
The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM
