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Property prices may crash as Housing loan scam hits India.

Created by : Anjaneyula Reddy, Construction-Heavy, DLF  | 12 01 2010 07:29:07 +0000
Industry : ConstructionFunctional Area : India(Markets)
Keywords : construction market building's real estate property scams builder's adarsh scam. housing loan scam
Activity:  397 views;  last activity : 02 05 2011 12:57:33 +0000

Liquidity for the sector may dry up as bankers turn cautious in sanctioning fresh loans, forcing builders to cut prices to improve cash position, helping prospective buyers who have been holding on due to high prices. So to prevent a recurrence of the loans-for-bribes scandal, and banks’ decision to go for a critical appraisal of all real estate loans above Rs 50 crore.

Would this have a impact on the Real estate?

  
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It would have a impact on the real estate market as there was a series of scams which had come up, including the Adarsh Building scam. This was the major reason for which there might be a crash as the loan's which would be given would not be easy to get. People would not invest their money because they cannot trust the builder's.As which the Builder's have to cut down the prices for which there would be a fall in the market.
By Anjaneyula Reddy, Construction-Heavy, DLF  12 01 2010 07:29:07 +0000
 
Top Argument
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not useful activity for upcoming middle low line community
By JAGADEESAN S, Project Leader/Managing Consultant, Project Consultant  12 01 2010 07:43:59 +0000
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no change in real estate market because of market not see customer proper its blind market
By bharatkumar chamanlal panchal, Private practitioner/Lawyer, bharatkumar c panchal  | 12 27 2010 11:40:58 +0000
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This is an age old phenomenon. This has been happening for quite sometime, but has come to light now. The Government will place a weak scapegoats to bury the entire issue. Nothing will go wrong, the status quo will be maintained.
By S. Muralidharan, Executive Director, Knowledge Foundation & Campus Around the Corner  | 12 26 2010 17:53:45 +0000
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The impact will be there on the price of real estate. It may go down as well. It has been seen that there is price rise in last one+ year and interest rates are expected to go upwards which will automatically brings the prices downwards.
By Atul Kumar, `Confidential, Confidential  | 12 25 2010 06:32:42 +0000
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The main root cause for recession is sanctioning loans for software people without following any limit ,egilibility and so on so as per the advice of reserve bank cut down loans limit and increase in rate of interest is followed by all national banks,it will not affect real estate so much but it will improve real estate in future
By VIMALAN , Construction-Construction Management, PARSVNATH DEVELOPERS LTD  | 12 25 2010 06:07:10 +0000
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i agree with Anjaney. The funds will dry up for the builders who have invested heavily in buying costly land pieces. They are already under pressure to pay their debts. Anyway the prices are unrealistic and could be a bubble. How many people can afford to buy a 2 BHK Flat at 1 Cr? The Market has to come down.
By Ravindra Patil, Director - Marketing, Ultraliant Infotech Pvt Ltd  | 12 11 2010 12:51:57 +0000
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The FM has capped real estate loans to Rs 50 crore and asked for the critical appraisal of all such loans. This would lead to developers moving to private lending. Most of the developers are already facing debt pressure, so in order to improve cash flows developers would now try to sell off faster.. So we may see a declining trend in property rates for some time...
By Anoop Dhopte, Lead Developer, Avaya India  | 12 02 2010 10:36:03 +0000
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I support your views, Jagadeesan.
By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 02 05 2011 12:57:33 +0000
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I AGREE TO YOU JAGDSHEEN JI THAT IT MAY HELP THE MIDDLE SECTION PEOPLE TO BUY HOUSES.
By rakeshbhatnagar , GM Projects., wig brothers india pvt.ltd.  | 12 31 2010 17:15:25 +0000
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there will be some dips as the market reacts but the resilience of our people is fantastic. We as a population have learned to move ahead despite the system, politicians can do all they can to bring India down. The people power is still greater and will be so. Nothing effects us we move on and we grow.How many more scams have posed as a threat to the economy...but have we not continued to steadfastly keep reaching for the sky. I believe in "People power"
By Rashmi Sharma, CEO/MD/Director, AQumen- Empowered Solutions: Human Resources (HR) Consulting  | 12 27 2010 02:19:09 +0000
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Yes it is a game played by the politicians and bureaucrats.  


By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 12 26 2010 16:59:49 +0000
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If lowering of prices is going to benefit few elite ones then only the rumour will lower the prices..else no.
By Vivek Singh, Project Manager, L&T  | 12 26 2010 16:49:13 +0000
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I agree with Mr Narayan. The cost is rulled by the rulers. No point in our discussing these things. Better we discuss forward going stuff.
By Gopala Krishnan.H, CMD, DJA-Inc  | 12 25 2010 07:36:52 +0000
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The government, consisting of the politicians and bureaucrats,will not allow the prices to Crash, because it is they who hold large tracts of land in and around the cities and towns of India.

Just before election they would ensure (by bringing policies and rules) the prices go up so that they can sell the property to make money to contest the elections and during the middle term of their regime they ensure (again by their policies and rules) that the prices dip so that they would buy back the property that was sold.This is their game while we the people suffer.

Of course, the natural course of inflation and other economic considerations also would be in play as usual.


By G A Narayan, VP - Marketing, KE Housing P. Ltd.  | 12 25 2010 07:03:55 +0000
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Property Prices may not crash but will go down by large in comparison to what it is now..
By Mohammed Sarfaraz Alam, Team Lead - Process Design & Quality Control, Powertech Automation Solutions  | 12 06 2010 11:12:58 +0000
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This is just a Rumour. If there would be no crash of the market as we know that like a country like India things like these Scams keep on happening. So this would not affect the people. As we know that their are still large number of people who want to buy houses. In My opinion there would be know crash.
By James Masih, Product/Brand Manager, FedEx  | 12 01 2010 09:42:08 +0000
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