Its Time Realty majors face Reality.

Had written  about a recession in real estate , due in part to the huge overpricing and a sharp fall in demand , thanks to worldwide recessionary trends and a reluctance of the well connected builder lobby to reduce prices.

As things stand now, even after the push/ stimulus package announced by the govt, and policy of making PSU banks offer teaser floater home loans at 8%,  no real demand spurt has been seen, as prices are still extraordinarily high, in terms of the infrastructure bottlenecks  and getting a loan from a psu bank is not easy (especially evident from HDFC s success).

India is facing its own housing crises .

Some developers including prominent ones like DLF have started to sharply cut prices and offer some sort downside protection to stimulate demand in the housing sector.

But the fun bit is that people are getting organized in Google groups and social networking sites  and are choosing to walk away in numbers  especially when there is no black component involved to buffer the loss.

Read DLF customers gang up, pressurise developer to commit refund

After DLF, Unitech has restive customers to soothe

As global recession hits big time NRIs will prefer to invest locally in rather than buy overpriced luxury houses in India.

People have lost a lot of money in the markets with worldwide sightings of black swans. Markets have crashed and DLF (182) is quoting at almost 70 % discount to its ipo Price of 525 per share and is quoting at 1/4 of its 52 week high of Rs739.

People are also loosing jobs especially in high paying sectors like hospitality and international airline sector etc  and their incomes are dropping from 5 figure salary s to  zero.

Read

How the middle class is losing its homes

12,000 flats up for sale on EMI defaults

People are realizing the risk of investing almost all their life savings into a single unproductive asset / house especially when markets are heading southwards and falling valuations and  the risks of rising emis on finances and cost.

People are getting acquainted with  price to income ratios , wage to rent ration etc and are taking decisions with much more research .

As things stand now Ask now estimates a further correction of 30% from here and the buzzword henceforth will be value buying , affordable housing and low cost housing.

Leaving you with an interesting pic from mintblogs.

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