Property Mumbai

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Thursday, 7 July 2011

India Real Estate Market About to Crash Or Consolidation?

Posted on 10:39 by Unknown
Article Link

It is not easy to find an analyst on the street who will be mildly bullish on the real estate market leave along someone who is irrationally bullish. In a scenario where the market seems to be short the real estate market, the laws of contrarian investing state that “when the whole market is long/short a trade, the trade may not fructify” which is what is happening to the real estate market in India. Fundamentally, the market is poised on a knife edge with multiple triggers slowing the market down. Some of the macro pointing to an imminent fall in real estate market are:

  • 75 bps Rate hike by India central bank in 2011 has had debilitating effect on families who have been thinking of a new house purchase. Rising borrowing costs and inflation are reducing ability of Indian families to purchase a house.
  • With more interest rate hikes from RBI in the offing, macro environment is expected to continue to get tougher. Therefore, the risk of an accelerated downturn in sales still remains.
  • Lower Loan/Equity ratio: RBI has now instructed banks to accept nearly 20% of house value as equity portion from the buyer thus effectively reducing the ability Indian families leverage to buy a home.
  • Developers borrowing cost: Rising borrowing cost have also effected developers who now find it difficult to complete projects.
    Email ThisBlogThis!Share to XShare to Facebook
  • Posted in | No comments
    Newer Post Older Post Home

    0 comments:

    Post a Comment

    Subscribe to: Post Comments (Atom)

    Popular Posts

    • Rupee in Doldrums USDINR -> Updates 62 then 64 then 66 then 68
      USD INR in the last year v/s USDCNY (Chinese Renmimbi Yuan)  From the International press http://money.cnn.com/2013/08/19/news/economy/india...
    • China's housing bubble
      Truth is stranger then fiction. India's housing bubble pales in contrast to the bubble in China. China cannot afford to slow down as it ...
    • Strategic Defaults rising
      John Courson, president and C.E.O. of the Mortgage Bankers Association, recently told The Wall Street Journal that homeowners who default on...
    • Vadra and cronies to blame for India's housing bubble.
      Economic times writes here  on Robert Vadra's role in inflating India's housing bubble. Looking at the data we can safely conclude t...
    • Montek says Goldman Sachs analyst is wrong
      “We think the Reserve Bank of India will need to raise effective policy rates by 300 basis points in 2010 to bring policy rates to neutral, ...
    • Hotel plans near BIAL grounded due to lack of water
      If water is not available below 800 ft, how can residential complexes come up here. The bubble is Devenhalli real estate is so ready to burs...
    • Infosys acquires land for second campus in B'lore
      Government lends no hand to software giant. The country’s second largest software exporter by revenue, Infosys Technologies Limited, has acq...
    • Top 10 countries slammed by the crash of gold
      1. USA Holding > 8500 tons of gold 10. India                 550 tons of gold held by the government The appetite of individual investors...
    • India Lands in a Mess
      Article Link A proposed property-rights bill could have far-reaching, positive implications for the economy. Today, the labyrinth of bureauc...
    • Robert Vadra mass-booked and traded DLF flats, but all above board, say DLF sources
      Amazing round-trip trades made by Vadra to make record profits.  It is an absolute travesty of all laws where public companies give loans to...

    Categories

    • "bubble diagnostics"
    • "fortune tellers"
    • "investor activism"
    • "Santa Cruz"
    • 2G scam
    • a
    • Ahmedabad
    • alibaug
    • Ambani
    • asbestos
    • bad loans
    • Bangalore
    • banking
    • bankruptcy
    • base price
    • bear market
    • BJP
    • black money
    • bollywood
    • BRICS
    • brokers
    • bubble
    • budget
    • budget 2012
    • builders
    • bust
    • chandigarh
    • Che
    • chennai
    • Chidambarm
    • china
    • Cialdini
    • classifieds
    • Commercial RE
    • common sense
    • Congress
    • consumer protection
    • corruption
    • credit infusion
    • criminal
    • crisis
    • deals
    • debt
    • default
    • Delhi-NCR
    • diagnostics
    • discount
    • DLF
    • documentary
    • dubai
    • economy
    • EMI
    • Europe
    • exodus
    • exurbs
    • f
    • fire-safety
    • fire-sale
    • floods
    • FMP
    • foreclosure
    • fraud
    • fsi
    • Goa
    • goldman sachs
    • group purchases
    • GST road
    • guidance
    • gujarat
    • gulf
    • h-1b
    • Haridwar
    • hinjewadi
    • HNI
    • housing crash
    • hyderabad
    • hyderabjaipur
    • i
    • idiot
    • indiastockmarketbubble
    • inflation
    • Influence
    • infosys
    • interest
    • interest rates
    • investments.
    • investors
    • ipl
    • IPO
    • italy
    • jaipur
    • kbc
    • kerala
    • kochi
    • kolkata
    • land
    • layoffs
    • legal
    • Lehman
    • leverage
    • loans
    • lobby
    • London
    • luxury homes
    • maha-mumbai
    • malls
    • mantri
    • Maraimalai Nagar
    • marathi
    • marketing
    • Maytas
    • mba
    • media
    • Media; Times Group;
    • morons
    • mumbai
    • Mysore
    • nagpur
    • nashik
    • navi mumbai
    • New York
    • NRI
    • paid news
    • PE
    • pending approval
    • politicians
    • poll
    • property
    • protest
    • prudent investing
    • psu
    • pune
    • raids
    • RBI
    • realtors
    • realty funds
    • recession
    • redevelopment
    • regulator
    • repossession
    • Residential RE
    • retail
    • Rishikesh
    • Rupee
    • Russian Mafia
    • saneprice.com
    • scam
    • sea-link
    • Sensex
    • sez
    • shops
    • singapore
    • skywalk
    • slowdown
    • speculation
    • sra
    • srk
    • stocks
    • stone
    • subprime
    • suckers
    • taxes
    • tdr
    • telangana
    • terrorist attacks
    • theft
    • tides
    • touts
    • townships
    • trumpet
    • twitter
    • ULCA
    • unemployment
    • Unitech
    • unscruplous builders
    • unscrupulous builders
    • USA
    • value
    • vastu
    • Vizag
    • wikileaks
    • yale
    • zoning

    Blog Archive

    • ►  2013 (11)
      • ►  September (2)
      • ►  August (1)
      • ►  June (2)
      • ►  April (2)
      • ►  March (1)
      • ►  February (1)
      • ►  January (2)
    • ►  2012 (34)
      • ►  December (1)
      • ►  November (2)
      • ►  October (4)
      • ►  September (1)
      • ►  August (1)
      • ►  July (3)
      • ►  June (4)
      • ►  May (2)
      • ►  April (2)
      • ►  March (3)
      • ►  February (6)
      • ►  January (5)
    • ▼  2011 (49)
      • ►  December (6)
      • ►  November (7)
      • ►  October (3)
      • ►  September (2)
      • ►  August (2)
      • ▼  July (2)
        • NOIDA mess - What to do about it
        • India Real Estate Market About to Crash Or Consoli...
      • ►  June (5)
      • ►  May (4)
      • ►  April (5)
      • ►  March (5)
      • ►  February (3)
      • ►  January (5)
    • ►  2010 (95)
      • ►  December (1)
      • ►  November (7)
      • ►  October (6)
      • ►  September (6)
      • ►  August (4)
      • ►  July (7)
      • ►  June (8)
      • ►  May (10)
      • ►  April (9)
      • ►  March (16)
      • ►  February (9)
      • ►  January (12)
    • ►  2009 (160)
      • ►  December (12)
      • ►  November (9)
      • ►  October (11)
      • ►  September (10)
      • ►  August (13)
      • ►  July (10)
      • ►  June (13)
      • ►  May (10)
      • ►  April (13)
      • ►  March (18)
      • ►  February (21)
      • ►  January (20)
    • ►  2008 (142)
      • ►  December (10)
      • ►  November (13)
      • ►  October (19)
      • ►  September (5)
      • ►  August (11)
      • ►  July (11)
      • ►  June (9)
      • ►  May (18)
      • ►  April (11)
      • ►  March (8)
      • ►  February (14)
      • ►  January (13)
    • ►  2007 (8)
      • ►  December (8)
    Powered by Blogger.

    About Me

    Unknown
    View my complete profile