One more dull property exhibition in Pune:
For a while, builders were talking about slowdown & unsold inventory and spreading negative sentiments in Pune real estate market. Then came RERA and government took a lead in bashing the builders. File FIR against the builder - the notification issued by special inspector general of police was the last straw which broke the back of builders in Pune. This might be the reason for the poor response to Sakal Vastu, Pune property exhibition organized at Pandit Farms on 19th, 20th & 21st August 2016.
Retrenchment in IT as well as in multinational automobile & engineering companies in and around Pune has taken it's toll. How can you expect people - who are worried about losing their jobs - visit any property exhibition & book a flat? One of my readers said.
"If this is the fact - then why are you here?," I asked.
"To check whether am I the only unfortunate," my reader said.
"Did you happen to meet any?," I asked.
"Yes! So many!!," my reader said.
"Really! Who? How do you know? Did you ask them?," I said.
"Yes! I didn't have to ask them. Because they were supposed to talk with me. They were all real estate salespeople in the stalls. Young salespersons looked frustrated, worried & demotivated. Seniors were disconnected with what is going on. The juniors were too naive to grasp the reality," my reader said.
"This may be your impression - may not be the fact," I said.
"It's a fact! I was not meeting these guys for the first time. In the last 6 - 8 months - I have met them multiple times - at their site offices and in many property exhibitions. You know? I am searching for a home for over a year now!," my reader said.
My reader was almost right about the widely spread frustration among the real estate salespersons in Pune. Many have admitted it. But they blamed the flat buyers for not being serious about buying a flat. Attending these casual visitors is frustrating. Every exhibition has casual visitors - but this time - the number was unusually high. Many salesmen told me.
You know why? It's not about recession & job insecurity. The reason is - that event - which was organized at Pandit Farms - between 11th and 15th August. Look around - you can feel the bad - unholy - vibrations all around. Someone said.
What say you?
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Dear Ravi,
ReplyDeleteGood to see you putting photos of another boring real estate exhibition after long period. Thank you for the same.
One my friend had gone to VITS hotel for Sunday brunch. There after having his lunch, did some timepass at exhibition called something like Best of West Pune. And there were not even handful of visitors there.
Builders should reduce prices rather than wasting money on such exhibitions.
Some important news I would like to share related to real estate.
Who pays if builders don’t have the money?
If the builder has diverted money to other projects or elsewhere, the buyer’s quickest remedy – to force the builder to settle – would be to initiate criminal proceedings. Buyers also have the right to file civil proceedings for recovery of the property. They can also choose to terminate the agreement with the builder and recover the principal amount and compensation, say legal experts.
And what happens if a buyer is left in a state where he cannot recover money from the builder? Legal experts say that buyers take the risk of investing in an under-construction project and that is an individual risk. Buyers have the legal right to recover the amount but if they cannot, that is the consequence of the risk they have taken.
http://www.hindustantimes.com/real-estate/who-pays-if-builders-don-t-have-the-money/story-HZXylTJCb7kkRrl0qHjpmJ.html
The Pune Municipal Corporation (PMC) has cancelled the licences of two construction firms — Pride Purple group and Srinivas Developers :
http://www.thehindu.com/todays-paper/tp-miscellaneous/tp-others/builders-licences-annulled-after-balewadi-collapse/article9019956.ece
Even Godrej properties saw it's lowest sales in past 3 years. By looking at news about risks associated with under-construction flats above, hope buyers avoid buying such under-construction flats.
Pune realty prices down first time in 5 years: Report
http://www.business-standard.com/article/economy-policy/pune-realty-prices-down-first-time-in-5-years-report-116081900823_1.html
And this report is published by one of Pune builders, Gera ! What is important is acknowledgement coming from Pune builder himself indicating upcoming price crash in Pune real estate due to poor sales coupled with increasing inventory due to high prices.
Sales & prices are also falling in Pune :
http://www.hindustantimes.com/real-estate/delhi-ncr-stuck-with-2-64-lakh-unsold-homes/story-dURDnwcnLrt6L6gZ1i0VWP.html
And with all the IT layoff news coming out, hope buyers become more aware & take more well informed decision, especially IT yedas. Don't fall to builders trap of if not now, never logic.
The situation in which real estate is, makes staying on rent even more lucrative, better to wait & purchase at far lower prices once real estate prices crash.
Hi Ravi Sir,
ReplyDeleteI've been to both exhibitions VITS and Sakal.
Response is down because rates aren't coming down.
RBI has done its duty by reducing interest rates , banks have even reduced home loan to their customers.
But these builders haven't even reduced prices.
Wakad , near by area : 6000+
Pirangut still at 2600 without any proper infra.
Met the same builders/gundas , same rude attitude , same advertisement same cost sheets , same faswa-faswi / banava-banavi st,ill they are taking parking charges/infra charges/unnecessary amenities + no Environment Clearance certificate !!
Just came across the news about IT jobs:
ReplyDeletehttp://economictimes.indiatimes.com/jobs/artificial-intelligence-will-chomp-down-a-chunk-of-indias-present-knowledge-economy/articleshow/53854687.cms
World is moving towards automation technologies like Internet of Things, AI, Automation robots which might compromise 40-50% of IT workforce in India by 2025. For the rest skill based jobs there would be huge supply but less demand. It puts ball in employer's court. Even they have to agree upon competitive salary terms.
Most of Indian IT jobs contains repetitive bull work which requires no additional knowledge. Such knowledge can be cropped into Knowledge Database & machines will take care of chores. Even jobs such as Project Manager(or any kind or manager) which fetches 1.5 lac+ pm will be doomed.
One can imagine the impact of such incident on RE market. Those opted for long term home loans shall face the heat. Many of them will go bankrupt. Even builders can also go bankrupt. So it does make sense to go for rented apt till the dust is settled. On the positive note, it will burst inflation bubble.
Just on serious note, I stay in west pune and work in viman ngr. Daily I commute for 22kms. When I use car I just go mad about driving, take leave on next day bcz of frustration. When I use my bike I need to take daily massage and I m sure after 45 I m gng to face some serious issue. I think many of us facing similar issues. If this is the situation how can one think of investing 60-70l for a falat.
ReplyDeleteIn addition the kind of job insecurity I atleast couldn't think of buying another home.
Looking at infrastructure of the garbage city how builder expect one to pay such a hefty price.
It's Buy a falat and become flat scheme. Isn't it.
Continuing same point... forgot to mention few points.
DeleteWhile on d way to office seeing 2-3 fights have become normal. Few days before 2 persons around 50 got off their cars and started fighting in d mid of d road, others were watching like any movie shooting is gng on.
Accidents now people have become used to it. Get injured and die like anything. Now someone will say this is God's act/fate.
I agree with Ramesh, absolutely right...Builders should reduce prices.
ReplyDeleteThey use our hard earned money to build huge townships and travel in imported cars with out money. They dont even look educated now a days...!!!
Loading charges of 30 -40% is just another bullshit way of fooling the Punekar's !
Jago Grahak Jago !