Comments on Mumbai Matters: Mumbai real estate: slowdown yes, panic no

Friends...the RE mkt bubble got bigger..those insi...

2011-12-03T10:53:12.007+05:30

Friends...the RE mkt bubble got bigger..those inside are feeling warm and spacious now...happpens...those outside is cold and uninviting...its a tug of war...of cold and warm...how many of us want to be warm...the bbubble will get bigger or how many will wait until everyone is cold...then it will be a long cold winter...like in siberia...but that is utopia..does not exist. Mumbai exists. My prediction - market will discount uncertainty steeply...you will understand if you are a fin-whacko...so ready projects - thumbs up::::under construction - thats where the blood will flow first...cheers Joy is BMW

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2011-06-25T13:21:18.516+05:30

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Visit http://www.redevelopmentpmc.com

The real estate market in Mumbai are increasing da...

2010-06-25T16:56:58.064+05:30

The real estate market in Mumbai are increasing day by day, which is beyond the common mans reach

Reading this post after about 1.5 year. I don'...

2009-12-20T14:10:36.561+05:30

Reading this post after about 1.5 year. I don't think the prices fell at all. In fact, they might have just gone up.

I am looking for 2BHK in Borivali-Kandivali & ...

2009-12-11T17:26:22.115+05:30

I am looking for 2BHK in Borivali-Kandivali & the prices are 80-90 L.Builders are asking 50 % black. I saw even builder like Ekta is asking 20 L black which was shock for me.Theysay Borivali rate as per GOVT. is Rs.3600 ,so your agreement will be max.5000/sq.foot
Interestingly I found many potential buyers like me are hoping prices to fall.
Why should I pay builders my hard earn money & fill the coffers of banks?
i am ready to wait for fall of Builder lobby who is bullying us for decades togather...
jeet

Your blog is very nice... i like your blog .... <...

2009-10-14T18:32:03.809+05:30

Your blog is very nice... i like your blog ....

Madurai Hotels

Its all in buyers hands.If everyone stops buying t...

2008-12-29T11:08:00.000+05:30

Its all in buyers hands.If everyone stops buying these houses at such a riduculous cost and all finanace stops to these biilders from outside countries/mafia definatly prices will come down.

I still beileve that prices will come down in coming months bcoz lot builders are out of finanace due to recission. All forign counties have pulled out their money from our market due recission all over countires.

Dude, check this out.. http://mginger2009.blogspot.com

I invested in real estate with Lokhandwala Builder...

2008-10-29T08:39:00.000+05:30

I invested in real estate with Lokhandwala Builders and I am sharing my experience at http://lokhandwala.wordpress.com

That Article is just wish-ful thinking..Real-Estat...

2008-10-16T23:03:00.000+05:30

That Article is just wish-ful thinking..Real-Estate crashes have occured before in Mumbai and will occur again (pretty soon actually)..The previous crash mid-90's closely linked to stock market and loss of wealth is going to be over-shadowed by the coming crash..Here are the reasons why it is going to happen

1] Excess liquidity in the Market over the past 4 years has lead to record numbers of financed homes..Remember the 90's..how many people did you know that were paying off their Mortgage? How many couples decided to move out of their parents home after they got married? This is a very recent trend and people with less than stable jobs have bought homes worth 4-8 times their salaries
2] Loss of Wealth: Investors can already feel it..if you any appreciable portfolio in the market or commodities you are surely feeling poor..Poor people hold on to their cash
3] Jobs: Number one factor for home sales is the un-employment rate..not inventory or lack of space..there are millions living in joparpathies across mumbai..there is no lack of inventory..The fact is no body can buy a house at these ridiculous prices..It will be worsen by the econmic crisis as people who burrowed money unable to pay the Mortgaes will default as they lose jobs..Most of these jobs depend on growth in the U.S and other Western markets
4] Loans: Average Indian is more in debt than he was 10-Years ago..We have not burrowed to produce..just like Americans we burrowed to buy cars,clothes, gagdets etc..A lot of folks will not make these payments once they feel a loss of wealth
5] Monetory Policy: Reserve bank has created excess liquidity in hopes of beefing up prices..but the money is not going to homes..It getting sucked up in the international finacial market..They will have to raise interset rates to curb the falling rupee and rising Oil import bill..Leading to more defaults on home, car, credit card loans further worsening the crisis

The real estate in US has dropped more then 30 %, ...

2008-09-26T17:56:00.000+05:30

The real estate in US has dropped more then 30 %, when the prices went up here everyone thought the same and gave the same reasons as the article writer has given. I agree that the price in high end flats in mumbai wont drop as much as the suburbs.
Correction is bound to happen. Thats the basic law Period.

Whoever is wrting stuff about just shive sena is a...

2008-08-05T21:47:00.000+05:30

Whoever is wrting stuff about just shive sena is a kiss ass idiot ...I think there is a like shive sena in everystate and there is a like Bal Thackerey in every state ..Maybe its karnataka or gujarat or andhra pradesh ...so whoever moron is writing just about shiv sena and marathi manoos should not make it explicit just about one community or one leader or one state ...Dude even US tried to keep jobs going out of US so its all over dude ..
well i visited bangalore not while back and i noticed there is big fight between gulate /kundus(tamils) and kannadian..and not to mention UP and Bihar with lalus

When the Shiv Sena headed by Bal Thackeray came to...

2008-07-09T18:41:00.000+05:30

When the Shiv Sena headed by Bal Thackeray came to power in Maharashtra in 1995
apart from changing names and putting a huge burden on civic infrastructure
and water supply system by giving free flats to slum dwellers under the Slum
Rehabilitation Scheme the Shiv sena was also pressuring the MNCs who wanted to
setup their manufacturing and non-manfacturing industries in Mumbai and
Maharashtra to reserve 80% jobs for the marathi manoos.

Most of the MNCs were simply not interested in the shiv senas fatwas
and the MNCs ignored Mumbai and Maharashtra and they pumped in most of their investments in Andhra Pradesh, Karnataka, Tamil Nadu, Kerala,Haryana,Punjab and Gujrat as a result people in these states benefitted and
these states are slowly marching ahead of maharashtra. Due to the idiotic
policies of shiv sena many manufacturing industries also shifted from mumbai and maharashtra
to other states.

The MNS headed by Raj Thackeray is making the same mistakes which the
Shiv Sena had made and ultimately it is the marathi manoos in mumbai and
maharashtra who will suffer. A day will come when the Marathi manoos will have to migrate to other states for jobs already many marathi people are working in bangalore, hyderabad, chenna.

The only reason why the Maharashtra government is protecting the Thackerays
is because the Thackerays belong to the Maratha community.

Thanks everyone for your comments. I've replied to...

2008-06-21T13:04:00.000+05:30

Thanks everyone for your comments. I've replied to these in a separate post here.

Good to see your confidence... I am not sure if yo...

2008-06-21T10:53:00.000+05:30

Good to see your confidence... I am not sure if you are old enough or if you have lived in Mumbai long enough... prices had crashed 50% in early 90's after a huge run up... This boom is no different... Prices will crash 30 to 50%... This downturn will last longer... Real estate typically crashes in slow motion and lasts lot longer... I purchased a 3 bed flat in Andheri in 02 for 20 lacs... its now worth 1.2 crores... thats ridiculous! This will crash and crash bad... US is already feeling the tremors... Europe the crash has just begun... China and India are next... Good Luck!

The Shiv Sena says that Mumbai will burn if it bec...

2008-06-18T12:08:00.000+05:30

The Shiv Sena says that Mumbai will burn if it becomes a city-state or union territory or separated from Maharashtra. But the Shiv Sena which has been ruling the BMC for more than 20 years has allowed slums and illegal constructions to flourish in Mumbai and has made the lifes of tax paying citizens of mumbai miserable this proves the shiv sena has already burned mumbai. On 26/7 all shiv sainiks and their leaders also went into hiding instead of coming to the rescue of mumbai citizens.
Either the Shiv Sena or any other Political party which is opposing Mumbai from becoming a city-state or union territory take full responsibility in solving Mumbai's problems either through a voting system the citizens of Mumbai should be allowed to decide whether Mumbai should become a city-state or union territory or remain with Maharashtra.

My thoughts:

1. Prices are artificially inf...

2008-06-18T06:42:00.000+05:30

My thoughts:

1. Prices are artificially inflated because of speculation and greed. Everyone is holding out for the greater fool who will buy at a higher rate. But, once there is an external shock (US recession effects may do it) people who need liquidity will start selling. As always, herd mentality will ensue.

2. The first signs of decline will not be in the price/ sq.ft, it will be when the builders start throwing in stuff free as part of the basic package - free woodworking, for instance. Have you seen that started to happen?

3. The current bubble has not been financed only by stock market profits. That is why it is not exactly following the stock market. The bubble is because of very easy availability of loans with little or no documentation required (just as in the US).

I don't think real estate prices will fall 15% or 20%, in my opinion that's not much (as you mentioned, it's on a much higher base anyway). I would expect a roll back of prices to 3-4 years back - before the era of cheap credit, and adjust for inflation.

So you are attempting to understand the real estat...

2008-06-16T14:26:00.000+05:30

So you are attempting to understand the real estate position in Mumbai, but you are not clear in your mind the market picture of real estate in massive Mumbai? To help you, here is a preview of real estate market in Mumbai. Mumbai is going to be the town of the potential. According to the facts & figures, the real estate sector is growing at a blistering 30 per cent annually. Mumbai real estate is among the most expensive in the world - more than that of Tokyo or New York - and there is no shortage of those who can afford to pay. Some of the few successfully completed real estate projects in Mumbai are new airport at Navi Mumbai, New Suburban Trains Project, Bandra-Worli Sealink Project, Santacruz-Chembur Link Project, De -congestion of Prime CBD areas, Current Transportation systems, New Bridges Project, Sprawling Townships Project, Shopping Malls, IT Software Parks, Office complexes and development of Property investment proposition. Now, the city is undergoing redevelopment and restructuring. Various big real estate developers & constructors like DLF, Akruti, Parasvnath are bidding for the redevelopment of Dharavi which is Asia’s biggest slum and Mumbai’s biggest mess. Another interesting trend taking place in Mumbai is the remodeling of commercial spaces to retail spaces. With the property values of commercial spaces touching the sky, developers find it difficult to sell their commercial/office property. Hence, many of them are positioning their property as retail space in a hope to find more takers. Mumbai property market is a case in point. This market needs to be studied carefully as most the property trends arise from this market.For more view- realtydigest.blogspot.com

excellent article. being in mumbai for the last 5 ...

2008-06-14T20:03:00.000+05:30

excellent article. being in mumbai for the last 5 years and having worked abroad earlier, i am really surprised to see the level of maafia cum cartel culture that operates in the real estate market in Mumbai.builders in cahoots with investors(these are mainly politicians and the govt officials who channelise their dirty money via builders)have made a mockery of demand- supply capitalism and affordable pricing. i have not been able to zero in on a single decent quality 3 bhk flat in western suburbs for less than Rs.1.25 cr. Now who on earth will be able to pay this kind of money?. their is something completely ridiculous about mumbai real estate prices and honest tax paying mumbaikar will now have to move to slums as the last alternative.Its important for buyers not to fall to the smooth sales talk of agents and builders and wait for the price to correct. it is bound to happen but we got to break the back of the investors and make them flee the markets as it happend in 1999.