Lux is up: realtors confident that housing prices will not dip

Another feeble attempt by the paid news media to sucker buyers into their trap 

If the Indian economy is booming Mumbai property goes up. 

If the Indian economy is slowing Mumbai property goes up. 

These morons think that Mumbaikars are lemmings. What is constant in Mumbai is the generation of black money. This could be responsible for the rise in property till now during boom times. However when everything is slow, black money generation too has to be slow. 

If existing investors have their black money stuck with builders, how can they take profits and invest in the next venture. I spoke to a broker who said, "Investor ka paisa atka hain, he is ready to discount the price" however the project is delayed so which person in the right mind will buy from the investor when the builder is running out of money. This is in Vile Parle.

I forsee this situation all over Mumbai. Its best to buy I keep repeating ready to move in or resales. This market is stuck in the muck for many years to come. Demand for housing will remain, the smart investor will bring cash to the table and take a discount. Anyone going for too good to be true deals will be slaughtered mercilessly by the brokers 

 Hindustan Times report 

 As the Indian economy slows down, the real estate sector, with its back to the wall, remain gung-ho that prices will not dip any time soon. 

 In a recent realty event in Mumbai organised by CII, top property developers aired confidence that prices in residential realty would remain high. “There is pressure on developers, but that is because of the delays by the state government,” said Sandeep Runwal, director, Runwal Group, a Mumbai-based developer. “The delays are affecting the prices as it would only increase the cost for developers.” And the costs are likely to be passed on to customers. 

 According to data compiled by international real estate consultants, about 60% of projects launched in metros fall in the luxury category. However, private investors seem to be taking a cautious approach, and are only going in for smaller projects with smaller tenure of investment. “We are treading cautiously and want that the project we invest in is priced conservatively,” said Ramesh Jogani, managing director, Indiareit, a private equity arm of the Piramal Group. 

“We are giving preference to smaller projects over bigger ones.” Commercial realty, however, is a different story, with rentals under pressure. “The situation has improved (recently) as the demand and supply currently match, but if supply increases, there would be a pressure on rentals in commercial real estate,” said Cherag Ramakrishnan, CEO, Equinox Realty, the real estate arm of Essar Group.

Home sales slump by more than 50% in Delhi, Mumbai areas

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While MMR reported the sharpest drop of around 58%, NCR slumped 57% from the year earlier. Bangalore witnessed a drop of 18% in sales, the report added.

Sales in NCR dropped to 15,104 units from 35,420 units and it fell to 11,473 units from 27,676 units in MMR.

The two regions saw a residential supply of 107,731 and 89,461, respectively, in the first quarter.

Samir Jasuja, founder and chief executive officer, PropEquity Analytics, said, “In the coming quarters, there would be strong pressure on many micro markets and we expect inventory overhang to increase and absorption could continue to slow down. Mumbai in MMR and Gurgaon in NCR have seen the sharpest falls in absorption.”

“If this trend continues, there could be a price correction of 5-20%, especially in the micro markets of NCR, MMR and Hyderabad,” he added.

Bangalore hasn’t been as badly hit because of demand from genuine homebuyers and end-users, apart from the fewer unsold properties.

Sales in the southern city fell 18% to 7,704 units from 9,410 units.

The other two markets are largely investor driven.
“Generally, investor-driven markets would see downward risks than end-user driven markets,” added Jasuja.

Jokers are appalled at the S&P downgrade threat

The jokers at the planning commission install 35L toilets while projecting a 50 cents a day as survival metric for Indian. Scum of the earth can be better then these guys

Minister of State for Planning Ashwani Kumar defended India on Thursday, saying its expected growth rates and projects to boost internal trade and development do not warrant a junk status credit rating. On Monday, Standard & Poor's warned that India could become the first so-called BRIC economy to lose its investment-grade credit rating citing slowing economic growth and policy inaction for instituting economic reforms. 

 The rating agency cut India's BBB-minus rating outlook to negative in April, meaning it expects to make a decision within a 6-24 month time frame. 

The news knocked the rupee and stocks lower. "People are entitled to ask what are you going to do about delayed decisions, what are you going to do about second generation reforms," said Kumar. "But 

I am appalled by the suggestion of S&P that India is compared with junk status," Kumar told Reuters. India reported its worst economic growth rate in nine years for the first quarter of 2012, marking a dramatic slide in world's second fastest growing economy.

Gross domestic product growth slowed to 5.3 percent, from 9.2 percent in the same period a year ago. "I recognize that our last-quarter GDP growth figures at 5.3 percent have not given us any comfort," Kumar said during a visit to the United States. 

 He reiterated a government growth forecast of 7 percent in 2012, and said that despite the difficulties of the global economic situation, India expected an average annual growth rate of 8.5 percent between 2012 and 2017.

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Salman Khan 'overpays' for flat, lands in trouble

I've seen some flats which have a parking lot on each floors. Most brokers say the buyers will convert it to the living space in the future. Salman's case will cause immense grief to these buyers as BMC will slap big fines on these flats. 

 By Sudhir Suryavanshi | Agency: DNA 

Bollywood actor Salman Khan has once again landed in trouble for paying a higher amount than the actual market value of a house in ‘The Address’ building at Bandstand in Bandra (West). Khan has bought a 1,079-square metre carpet area on the 11th floor of the 28-storey building. The building is being developed by Samudra Developers Pvt Ltd of the Dheeraj Group. Besides paying Rs1. 64 crore towards stamp duty, Khan has paid almost Rs20 crore for the said area. “It comes to almost Rs1.80 lakh per square feet, against the market rate of Rs25,000 to Rs30,000. The amount is six times more when compared to the existing market rate. It is quite high. It must be a case of money laundering,” said YP Singh, an activist who played a major role in exposing the controversial Adarsh Housing scam. 

 More here