What this article basically says is 1. Those who have bought houses till yesterday, are all fools 2. You should wait till 2022 by when the present Government will make "Housing for all in India" successful and you will get a house anyway
The Times of India Mumbai 2.1.2017 carried a report stating that 13 lakhs flats are in locked down/not in use in the Mumbai Metropolitan Region as per the 2011 census(may be of govt). By now it may be almost 20 lakhs flats. What can be cost of 20 lakhs flats. On a conservative estimate Rs. 30 lakh crrores. That means Rs. 30 lakhs crores in concrete is blocked in the economy. Of that take 50% cash portion, Rs. 10 lakhs crrores lying blocked in the MMR Region only in black cash. What is the use of Modiji's demonetization, when this much huge amount of cash is lying hidden in real estate in the Mumbai region only. What about other main cities. In NCR it would be double. That is Rs. 20 lakhs crrores of black money is blocked in the NCR.Considering at least 10 major cities taken together, imagine what can be quantum of black money lying in the real estate across the country. It can be Rs. 100 lakh crrores. This is in the case of flats and houses. What about in immovable landed property. It won't be less than half of it. That is 50 lakhs crores. So altogether in flats and land it may come upto at least Rs. 150 lakh crrores in cash portion. Same amount in white. Both combined it may be around Rs. 300 lakh crrores lying in property,blocked. What is the total worth of this country? What is the GDP of this country? Apart from this some foreign rating agency has recently stated that 1% of Indians hold 50% of the country's wealth. Nothing surprising. Who will bell the cat & corre
Re: Real Estate
by binu ravi on Jan 19, 2017 05:43 PM
Don't worry brother. we never thought 1000 & 500 rupee notes will vanish with in 50 days???. we all stood in queue to exchange our black to white & many of our brothers are still caught with old currency. yesterday 65 lakhs was recovered. Mr. Modi has a great plan. On implementation our brothers will soon stand in queue to sell all the additional flats which are locked and kept for selling at a higher rate. with out melting this ICE Mr. Modi cant do much. so surely he will go for it.
Re: Real Estate
by raj a on Jan 29, 2017 12:07 PM
This is just the beginning of new era. when you start something there is always a pain but when the results come, you will be proud of yourself that you lived in the era of Modiji. A selfless person - did you ever thought a politician would keep his head on the block so soon after winning elections. think over it - you will never find a person so selfless person. One more thing - boats are safer in the harbour but it is not the purpose for which it was made.
On ground level prices have not corrected as stated. Hardly 10% correction. It is nothing. Wait for an year, just go on watching where the investors would run,and run.There won"t be much intake by investors. Those who have invested are waiting face the tune!. Further Modji has already announced that Benami property act will follow suit after demonetization. It may come along with budget. If BJP has to go to polls i.e. 2019, it has to show some sign of improvement for Housing for all by 2022. Now it is 2017. So in another 5 years they have to meet the target. That means by that time the BJP go to polls in 2019, 50% target of housing for all needs to be met. Strict implementation of benami property act, true cashless deals can and will make way for actual price correction to 2004 level, then only actual end users in need of house in the EWS/LIG/MIG segment can buy a home. If not with the current price correcting to 25 to 30% reduction nothing may happen. Once the big developers feel that there are no takers for high end/luxury houses they may also think of coming to terms to make home for affordable segment. Otherwise not much hope. The flourishing of black money in the real estate started right from 2004 with the blessing of UPA-I.Their philosophy was "let the business take place, let some body get employment".For them a Parent selling his child and few people get some benefit out of it,is business. Nothing wrong in it.A true close study will reveal their phil
Facts are not placed properly by the concerned officials. And Govt is only fooling common people by giving hope that real estate prices will drop. What is the use of real estate prices in the range of crores dropping a bit. Its of no use for the common people. If the Govt. is happy that the idea of stopping black money from circulation in market by demonetisation is successful then the immediate impact should be that rates of flats below 40 lakhs should reduce so that its in the reach of common man. Else Modi's plan is only helping well off people to become more richer and comfortable because the real estate will still thrive on projects costing very high.
Prices are not falling.. even if they are fallen, it is less than 10%. Most of the investors do not need cash (anyway Modiji has made them cashless), where will they deposit cash. So hold tight.. prices will fall. Unitech is desparately selling.. DLF is desparately in need of cash. Assotech / Supertech are on the verge of Bankruptcy.. So investing in these properties from these builders is like putting money into ponzy scheme.
Better wait for more time. and buy property from secondary market or finished products. There is no appreciation in the primary markets.
Also till then, the rental for buyers is good. With a yield of close to 2%, the investors are letting their houses out on cheap rent. So use this opportunity to stay on cheap rentals..A 4 Crore house in GGN - you pay less than 65K rent. What else do you need
