Property Rates are going down

[sanjaymasawan]

Hi Friends

This is with respect to the recent hot property news traveling with the speed of 3 × 100000000 meters per second. I am Sanjay Masawan working in IT at Seepz, Mumbai and staying at Malad West.

The latest property news has created an immense chaos not only in the country but abroad also. The upsurge in the property rates has resulted in making the lives of people miserable. The average class people, who dreamt of staying in their own houses, now are living distressfully with the fact that they can never buy a house. The house that was 10 lakhs 2 years back is now selling in 21 lakhs. Even the old building resale flat prices have boosted unnecessarily. This in-affordability has caused great tension in the minds of people, which in turn carry this tension to work also.

Finally there is hope for the people and the property may very soon be affordable again. The government has taken the initiative to coerce the builders to sell the area on Carpet and not "Built Up" or "Super Built Up" area. The government should also keep the key factor in mind that the whole purpose of the Carpet Area exercise should result in reduction of the property prices. If the sellers are selling the properties on Carpet area but at the same price then there is no benefit for common man. Government should do something to make the property affordable to common man.

Finally there is Good news that the property prices have started falling in some the areas of mumbai (thane)

The various factors that have triggered to the rates going down:

1. The new housing policy proposing to make sale of flats only on the basis of carpet area.

2. The government making a positive attempt to repeal the Urban Land Ceiling & Regulation Act (ULCRA) in the winter session of the state legislature beginning December 4 at Nagpur. Government has acquired more than 2,000 hectares across the state under the Act in past two years, including some 400 hectares in Mumbai alone. Unlocking this land would also bring down the property cost in Mumbai by 30% to 40%

3. Govt planning area-wise cap on realty prices across country


FACT: Till now the buyers and sellers both were confused. Even though the sellers were coating a huge price for the flats and the property rates was touching the sky, there were hardly any outright deals taking place.

Rates have already started going down and everyone will definitely move to cheaper areas.

Happy Home
Sanjay Masawan

[sanjaymasawan]

Hello guys and gals,

Will the Stock Market tumbling down and due to the impact of the budget the property prices have started to come down. The rising interest rates of Home loans have also added to this.

This means that buying a house will be easy. I have seen this happen at Thane and Malad. What about u guys. Do u have any news.


Regards
Sanjay

[Omni]

I had read an article today about this. India will see quite a number of US investors and perhaps the land will once again begin to be conquered.

[amittewari]

yes i agree 100% that this scrips are surely going to come down further more once the property rate correction takes place.

UNITECH recently gave their views that it will be dofficult to make the so called correction in property rates due to rising demand of property. the ratio 10 yrs before was 20 - 80 % i.e 20% people buying property for their own use & 80% for investment. tody its opposite, 80% are buying properties for their use and 20% for investment. lets see what happens finally !!

still i finalize opinion to stay far from this scrips and better wait and watch.

[nancyarora2020]

I don't think there has been a drop in real estate prices. It is very difficult to predict a fall or rise in property prices. For example I don't see a fall in price in places like Bandra and Malabar Hill which are very popular.The supply of the property markets in our country is not growing fast enough. The demand for housing is much more than the supply. What we are looking forward to at the moment is to see an increase in the housing supply.There has been no drop in the property prices it is just a correction which was overdue in the property market. Saying that prices will drop is giving wrong notions to people. It is good that some sensible people have factored this market condition and corrected their prices. Sellers in South Mumbai areas from Breach Candy to Colaba have been asking for unreasonable premium rates which buyers are not ready to pay. This has given rise to property market stagnation in that area. In places north of Juhu till Borivali there should be a correction of 10-15%. But in places like Worli, Prabhadevi and Bandra the prices will remain steady and we will see growth in future.Developers are making obscene amounts of money. Some of them overprice the property rates without logic or reason.Also property is a part of tangible assets unlike investment in the stock market. So people do prefer to liquefy their money and put it in real estate. The drop in property prices is happening in certain places including South Mumbai. But overall I think the prices in Mumbai are stagnant and this is just a temporary phase.For more view- realtydigest.blogspot.com