| Topic : Money Investment 2010 |
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Construction Planning & Management |
Project Management ++ |
campus recruitments |
2 more ...
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Activity:
426 views;
last activity : 09 06 2011 06:29:00 +0000
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Based on developement around an area
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Black money & High Income
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Buying power &Easy Home Loans
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College Location
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Demand from the rising Upper Middle class
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PERCEPTION
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Brokers - Black money, Greed and Speculation
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LOCATION
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Black Money & Mafia Dons
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Depending on Area development
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INVESTORS
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Bank Lending Rates
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Future Potential, Supportive Government Policies & Statutory Practices
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The boms and slacks in money markets
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Increased Demands from Higher class People
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Government Approach and preferences
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demand and supply is the first but targetting another
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Buying power of Upper middle class and middle class.
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Greed and need
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Speculation
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Location, availability of easy home loan facilities
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Lack of regulator or regulation
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In my view, development around the areas are main reasons for rise in real estate price in India. For example, in Mumbai prices are rising near Khargar because of construction of its second Airport. In Delhi, the price rise is mainly in the areas around the Metro stations. In Bangalore and Hydrabad prices rise around the areas where multinational IT companies like Microsoft or Oracle. But one thing which can be noticed that no matter it is Electronic city in Bangalore or Salt lake city in Kolkata, price rise in these areas are mainly based of construction of IT companies which results in development of those areas. |
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depends upon your need too if you already have property you would not like to buy more given the hassels of maintaining it,the taxes and the legal problems.the growth in population,the pace at which the place is developing major project in the near by area.the possibility of business/trade and industry in the place
Development around the area is the biggest driver for investment in real estate. In this case one should look at the fact that the investors are the ones, who have surplus money and an investor would invest only at a location where there are potential buyers or end users. The higher the potential higher will be the investment. The investors at the peak normally tend to forget the affordability of the end user and that is why they fail in greed for more money. One should keep on booking profits intermitantly.
According to me,behind the increase in prices of real-estate,this could be one of the reason.As i have noticed in kolkata,price of flats in some areas was low and quite affordable for middle class.But after metro station has been elongated upto that areas,prices of those flat has started to increased.Where many flyover has been made,prices of flats in those areas has increased.
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Here is a sequence of selling and purchasing between Black money and High Income which to my view is responsible for rates of real estate in India……and is directly related to each other.. Black money High Income
Land adjacent to developed property is affected and rates are hiked And the sequence continues……………. If there was no Black money moving around would it be possible for so many real estate players play around so much....everyone knows how much a real estate developer can earn from any development...how do they get so much of funds available .......do they really play a honest game.....its a question for us to think and to invest.
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Yes it is the major factor which drives construction price in India.
I was searching for reason for the current high property prices in Patna, no logic seemed to be working other than abundant availability of black money and and yearn to hide the same in a changing law and order scenario.
Another factor is easy availability of finance from banks which is putting pressure on limited supply and price is soaring like anything.
Agree with Ujwal
A sizeable share in Real estate is black money and may can easily puncture once balck money tracking mecahnism is put in place.
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With the expansion of MNC & Corporates in India the buying power of the private sector employees has improved in the past one decade. The majority of the couples in the cities are both earning so this has added to their buying power. In addition to this the banks home loans are easy to avail and as the rents in the cities is so much that people prefer to give double the amount of the rent as EMI for their own asset (own home). So for the majority of family its like a dream OWN HOME. |
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Hi Dr. Pradeep, I agree with you. The price rise in real estate is due to increase in buying power of the people. Since people started buying more the demand increased and obviously price increased. Then many banks have started giving home loans for low interest rates, which is also one reason for the increase of buying power.
:)
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Does College really drives the real estate prices ?? Well yes, this is what I have noticed in the locality I stay. The real estate prices were low few years back till a college was built, and from then on the price of the land started touching new heights year by year. The property that used to cost around 20lakhs is worth more than a crore now... Because of that one college the whole locality started developing to fulfill the needs of the students coming from various cities and states... which in turn lead to the development of the locality and increase the price of the real estate... |
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As they are identifying better Investment Potential of real estate Vs. Conventional Oppportunities |
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It is Demand and supply. Speculation in real estate is artificial and temporary. Real demand supported by necessary infrastructure facilities for that real estate product can maintain the prices once demand increases for the same price increases. The demand from middle class, upper middle class and real user really matter.
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All these above points and much more contribute to the upward growth of prices in the real estate. But most of all, it the PERCEPTION of the investor which take the price up. The seller / developer / builder / et all do their bit create a great positive perception in the minds of the buyer. Smart buyers study all the points with a neutral mind and take a decision before investing. Others just fall prey to the flights of fancy created by some developers and after a while realize that they have made the wrong choice. The better the perception created the better the price raise. Hence create positive perception about the property and location. |
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Most of the real estate prices are increase by broker virtually. Let me tell one incident. Three years back I went along with my friend for negotiating a plot in a prime location of Bangalore and there was only 2 lakh difference between my friend and the seller. One evening when we visited seller for a final price, few guys were at sellers home already. We were told that guy has finalized the property for 6 lakhs more what seller expects and paid 25% advance and the final settlement would be in six months. That broker would sell for higher price in six months time. You don't believe it within a week the property price increased 6 lakhs and it would further increase when that broker sold it to other person. This is one example I come across.
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I have enough experience in calcutta that rising price of real estates taking place due to nexus between promoter,brokers (behind the curtain - mafias supportrd by politicians )who are joined hands to increase the prices.Ultimately middleclass buyers are being cheated but most of the time buyers are compelled to pay higher price to get accomodation and they have to absorve this type of injustice.Abrupt price increase without justifications are became nomal practises in our country.After all country is developing.
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The location caters for accessibility to markets,work place,security.The invesment is secure as it appreciates in due course of time.The location is therefore only driver for real estate prices in India. |
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The toostepers have a heart to spell out.When i say location it conotes accessibility.The idea perception is good but it is in abstract terms.Other ideas choreograph the inbuilt thinking of humans.The location is the primary concern while initially deciding the long term investment.My money,my idea and my security drives the intending buyers for a location.
The location saves the headach of surfing for the prospective buyers.Once the location is selected and settlement done,the buyer begins relocating himself.As the place's significance depends on the scenic beauty,accessibility,the appreciation doubles up .The buyer who is now seller,negotiate for higher price and this cirlce of evolution goes on .
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yes I agree with Mr.shrikant Indian's black money and mafia dons are driving the real estate
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It can be depending on Area Development and location of Area, mostly i preferred Road touch and good location means development Area. and also depending on land.... |
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Investors drive the prices in real estate sector to some extent.
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Bank Lending Rates |
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Real Estate prices are not only driven by the developments taking place in the surrounding areas. The future potential of the location is also a highly influencing factor. Development of public infrastructure, supportive Government Policies and favourable Statutory practices also contribute. |
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Profitts are invested during the upward trend in money market and the survived capitals are secured during recession. |
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I think the main reason for increaseing prices of real estate is Increased Demands from all level. Now days its seen as good investment for the return. So, as a investment point of view all are demanding it.So, it drives prices.
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All we know, whether its central Government plan for new IITS or IIM, or airport construction or central Government SEZ plans, infrastructure plan. They are the one and important factor for driving the real estate price........ |
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The airport are made at the time of inception, far away from the populated ares. But the growing influence craete housing societies and and other construction groups those use and occupy the vacant space around the airports. Just take the case of Delhi airport. At the time the area around was nothing but agricultural or dry land.Same is also true for Benglore. There fore let us not put the cart before the horse.Cost of housing is directly proportional to the cost of land which is always too much in comparisen. |
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Therecent boom in realestate is because the puchasing power of middle class and upper middle class. Once they felt insecure about their incomes they started withdrawing from puchases. |
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The propensity of people to invest in real estate to get quick and high returns on their investments. And then the need for residential and commerical accomodation. |
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If any big project is planned in an area, people speculate that the property prices in that area will increase and try to buy there. Looking at the people's interest the real estate developers will try to inflate the prices |
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Location and availability of home loan facility with less paperwork, lesser interest rates and higher chances of obtaining a home loan drives the real estate prices in India. The more the credit facilities are easily available by way of easy sanctioning of home loans the more the real estate rices will go up. An example of this is when the interest rates was hiked due to inflationary pressures by RBI in late 2008, the real estate prices came down quite a bit. And when RBI reduced the interest rates due to low inflation in early 2009, the real estate prices started increasing again. Thus, location of the property and easy home loan availing facilities play a key role in driving the real estate prices in India. |
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Real state market are the most illiquid and unregulated market in the country. We should have a regulator like TRAI in telecom. This authority should then ensures that the interests of consumers are protected and at the same time to nurture conditions for growth of real estate, residential & commercial complexes and infrastructure (water, electricity, road, Metro, hospital, school, shopping center etc.) in a manner and at a pace which will enable every Indian to own a decent house to the economically weaker segment of the society to the premium/ high end segment. Further such authority will ensure proper guidelines and supervision to ensure that all the projects are environment friendly, minimum damage is done to fertile land and other such issues of national and global importance. |
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Yes completely agree there is urgent need of a regulator in this field yet am as well aware this will never ever be allowed to happen in India.
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