1. •  
     CommentAuthorPankaj
   • CommentTimeSep 29th 2007

    

   • Answers: 2
   • Joined: Sep 29th 2007

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   Rising interest rates should have made impact on real estate market and I suppose property price should have come down....but to my experience it did not....Im looking forward to invest now, please advice.
2. •  
     CommentAuthorvikram
   • CommentTimeSep 29th 2007 edited

    

   • Answers: 104
   • Joined: Jun 20th 2007

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   Despite falling housing sales, builders are continuing to hold their price line without effecting the much anticipated downward correction. This is despite various attempts by the Reserve Bank of India in the last one year to cool real estate prices by raising interest rates.
   However, builders say housing prices are going to remain the same. They say rising input costs and high land price does not allow them to reduce housing price.
3. • CommentAuthorhiba
   • CommentTimeSep 29th 2007

    

   • Answers: 29
   • Joined: Jun 20th 2007

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   The earlier rush to invest in property has slowed down. Even the builders are looking for buyers who are looking for a home to live in than speculative investments. This is a good time to invest, as any other time because the property prices are likely to remain stable. It also depends on the location of the area of investment. Prime properties and areas like Navi Mumbai offer good investment opportunities. Investment from speculation point of view is not recommended due to high interest rates
4. • CommentAuthorumkr
   • CommentTimeOct 26th 2007

    

   • Answers: 3
   • Joined: Oct 24th 2007

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   I do not know how much you have studied the property market and the trend for the last 2-3 years. My impression is that things have not changed in terms of infrastructure, public facilities and overall costs involved in construction business. It is only the nexus of huge unaccounted money, builders lobby, corrupt government machinary and a link to those in power, which have driven the property rates to such an unprecedented level. Directly or indirectly, electronic media and some elements who benefit by such a hype also contributed to this blind cycle. All these elements have projected housing sector a boon for making quick money by speculation. The unorganised housing sector has trapped thousands of individuals who just invested their hard-erned money and money taken on high interest rates from financial institutions for a quick buck. These gullible persons and the new breed of young, the so-called IT and financial professionsals who get paid incommesurate with their qualifications and labour, simply forgot to value the money they are earning. We have a class of people in Government service, traditional industrial sector, PS banking sector and small time businessmen, who are just weeping. These people are totally frusted, feeling marginalised in society even though they form the backbone of the society and they are the lifeline of the country well being. Housing and not land plots can not be a good investment medium either for short term or long term gain for people who are not from this sector. If one sits cooly and calculates initial investments and total outgoings on a flat or house in Mumbai or Navi Mumbai over a period of time say, 5-10 years, he can easily find out the appreciation would not be more than 10-15%. This does not include risks and value dipreciation due to wear and tear and general degradation in quality. Property fetches good returns in short terms only during time of hypes. Please remember the sudden crash of the propoerty market a decade before. Those who burnt their fingers at that time simply can not think of investments in properties now. If your risk appetite is high, simply invest in stocks or MFs. Thay will give much better returns with easy liquidity than properties. Anyway, now party is over as investors are running away and only genuine buyers are coming. Even if prices do not come down due to other legitimate reasons, it will not appericiate at the rate it did during the last 2-3 years. Property valuations are extremely high at present and this is just a black hole. You can join the club but will not be able to come out easily. It is now only for those who are looking to buy a house for own use and not for speculative earning. Builders have their own reasons not to openly accept drastically reduced demand. Please remember - speculation earns only when there are purchasers left in the market. It would not be a good investment if you can not realise your money at will and a level you expect.

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