Thursday, January 8, 2009

Property rates in Pune real estate market

1) According to Promoters and Builders Association of Pune (PBAP)

"I had personally written to all members of PBAP to sell apartments at the lowest possible rates and they have responded positively. The properties are being sold at affordable prices to customers and prices have been lowered up to 30 per cent," Lalitkumar Jain, President, PBAP, said.

2) According to real estate agents in Pune:

"There was no formal reduction of rates but builders were open for bargaining. Even then, there is no response from the potential buyers and this has resulted in almost no deals taking place for a few months now,” Maj Mathew Oommen, a real estate consultant, said.
To read more, please, visit - Express India

3) According to Ritu Goyal Harish in DNA:

The real estate market in the country has dipped, but city builders say a Rs100-Rs200 fall is not indicative of a slowdown. It is part of the business policy!
Not Rock-Bottom for property buyers in (Pune) city

4) According to Mr. Anonymous:

there are 3 types of projects:
1. Alomost Complete:
Almost 80%-90% are already sold, as these projects were launched when market was booming. Builders have already invested huge money in buying land and big construction cost. These builders are not ready to reduce prices by much. Don't expect more than 10% correction here.

2. The project started in Last year, and those will complete in year or two (God knows..) (20% complete):
These project were launched, when marketr was booming, but within few months reverse trend started. Only 10%-20% flats are sold. These projects does not come in affordable housing catagory, as they were launched 1 year back (market was not that bad). You can expect 15%-25% correction in those.

3. New Projects:
Mostly they are of 'affordable housing' catageroy (less quality???). They are launched with reduced prices by 15%-25%.

Now, what is the benchmark to say the priced are somewhat reduced. So, we need to see the average prices at same location when market was at peak.
Planning a home buy? Do it in first 3 months of 2009

5) What is your take on rate cuts in Pune real estate market?:

Real estate rates were always "negotiable"! Only difference is depending upon circumstances while quoting the rate salesman says "negotiable" or "fix rate" or "let us see".

As a real estate salesman, i believe that ultimately it depends upon how many people negotiate. Few months ago, most of the property buyers were booking without negotiating so the property rates were fix. Now, everyone negotiates, so today, property rates are negotiable.

What is your experience? How much negotiations "happened" when you booked your flat? Please, share your experiences in the comments. (Comments Policy)

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  1. The rates can be negotiated upto Rs 2200/sqft in Wakad and 2600/sqft in aundh annexe at this time

    Please post rates in aundh/baner

  2. prices have been lowered UP TO 30 per cent this does not mean prices have been lowered BY 30%. We have seen hardly 10% to 20% based on how badly Builder needs bookings...
    May be in 3-4 months we should see the prices falling by 10% to 20% more...

  3. How much negotiations "happened" when you booked your flat?
    Answer: First of all, I don't want to name builder/scheme of the project. The builder reduced the rate by 12.5% after negotiation. The 12.5% reduction is from diwali 2008 (Which may already be depritiated from the peak).
    Please note that, if projects are more than 7-8 months old, builders will not publish the current rates, because they have already sold some of the flats. So, don't look at the prices shown at first.

    Another thing, the reduction in prices will depend on the location, type and status of the project.

  4. Hello Ravi Sir,
    I appreciate that Mr. Lalitkumar Jain has committed that the property rates has been lower down by max 30%, but the same is not reflected in the market yet. Please provide any one example from a reputed builder’s project.
    There are now new launch projects these days from reputed builders as their current projects are getting delayed due to cancellations.
    30% reduction means a quoted rate of 3000 / sq.ft. can be negotiated to Rs. 2100.
    I do not think even in Kumar Builders current ongoing projects they are ready to offer Rs. 1000 discount per sq. ft.
    I personally feel that in well developed new areas like Baner, NIBM, Mundhwa etc. the rate should be between 2000 to 2500 depending upon the project specks, and other outskirts areas the rate should be below 2000 / sq. ft.
    Three years before in city limit areas the rate were 1200 for good projects, it’s so shocking to see the rate increasing almost 3 times in 3 years. I am sure the material cost may not have been increased at that pace. Builders might be earning huge profits.
    I heard in some of the news channels that the steel & cement prices have come down, so the builders should also offer discount immediately for under construction projects. Property booked in mid of 2008 should be re-negotiated with the builders as Builders are taking advantage of cheap raw material but not passing to the buyer.
    Dear Ravi Sir I would like to know from your goodself about the real current fact of the market for under construction projects.

  5. What happened to Lalit Kumar, suddenly??? I thought he will increase rates by another 500 per sq. ft. to put more pressure on buyers... seems he don't have enough guts to do this any more, he knows where he stands, where he is and where he is coming from.
    However, he made enough for his next 10 generations out of his sucking business in the last 10 years.
    Pune real estate is a worst place to put your haed earned money in as an investment, only because the puneri builders are awasome greedy and rude witheir customers and most dis-honest.
    Ravi, please convey my this post to Lalit Kumar Jain, his PBAP and all his chelas and political gods, if you can.

  6. Guys, don't listen to what PBAP says, they are setting up a new trap to lure you all.
    It's a trick, spread the word that procesa re already corrected by 30% but don't reduce actual prices, and then wait and see the reaction in the market. When people like us respond, they get an idea that there are still many buyers left in the market who will loose patience and finally book. After all you loose.
    If the buyers withdraw their interest, then you will see sudden drop in prices. Ideally, today the prices should be at a level from where they started rising (Prices of 2003).
    Check e-sakal, the sakal lobby have lot of vested interest in pune real estate. The political lobby have stake/share with almost every big builder in pune. e-sakal have come up with an survey for home buyers. This is another trap set by these guys to fools investors. Be careful in the coming years, time is difficult, don't loose your hard earned money.
    Best of luck.

  7. Some friend of mine negotiated rates at Wadhwani Construction, Pimple Saudagar to 2050-2100 Rs sq ft....Rate are coming down , just wait !!!!

  8. Hi,

    About the post "Some friend of mine negotiated rates at Wadhwani Construction, Pimple Saudagar to 2050-2100 Rs sq ft". Is this ready to move in or under construction?? My friend is negotiating rates in Aundh Annexe and the best that he is getting right now for a "ready to movein" flat is Rs 2600 per sq ft. I am worried thst it is high. Please comment.. Thanks...

  9. Hi Guys,

    Recently I visited the Property exhibition at Hotel Orchid at Balewadi..

    And was shocked by the increased in the rates by the all builders for Wakad and Pimple Sudagar area….

    The rates observed are below ---

    Ready possession flats – 2500 – 2700 (Approx)

    Future possession flats (dec 2010) – 2300 – 2500 (Approx)

    Is the real estate market in the boom again?? Why the builder’s are still increasing the rates??? L

    Have I missed the best buy period????

    Please provide you valuable thoughts ….. also suggest the good property within 25 lacs….




  10. builders are just not ready to negotiate! after a month long attempt at getting a ready / Jul 2009 possession 2BHK from good builder under 30 lac, i am forced to stretch budget to 36+ lacs! the only ones offering a bit of bargain are in pimple saudagar. but those figures too are inflated......... 2600 ready, 2350 launch. some other ready possession rates post serious bargaining: warje 3300, vishrantwadi 3100, magarpatta 3200. builders unwilling to budge. many sales offices are vacant, hardly any sales calls returned. the balewadi exhibition was a disappointment, while engg. college ground was good. most projects offering 'great' deals are basically presently barren ground i.e. launched only, no further progress or otherwise unsellable varieties: 1st floor back facing, or top floor 'hot', surrounded by adjacent buildings, etc. anyone any views on chakan? rates pretty low, but whats the future ?

  11. another phenomenon widely seen is that the parking is optional, to reduce the sticker price...... but then when the society forms, your car will be outside the main gate 'cos all the rest are taken! also, builders are asking development charges (1 lac), or reducing the amenities originally published, or using lower quality ones to save costs. some like Rama group are still quoting 'super built up' and huge parking fees, but otherwise psf is low.

  12. I have some suggestions as to how realty prices can be reduced , I hope the finance minister reads this rather than handing out sops to greedy builders who any which ways are not goin to pass on benefits to buyers.

    1. Stop NRI investment in residential properties in major cities (mumbai,pune,etc)
    2. Stop indian investors from investing in apartments who any which ways spike up prices and then sell it. If a family own one house then disallow them from investing into another house just for INVESTMENT purpose.
    3. Any FII investment in residential projects should be locked in for 7-8 years rather than 3 years, given the long duration most of the FII wont invest.
    4. What all this will do is leave the builder with no money to construct houses. And he would have to start taking money from people like you and me to construct a building. As there will be no speculation only genuine buyers would be able to buy houses and this would keep property rates in control.

    If the freakin government took these steps then they won't have to provide sops etc, people would get affordable housing and genuine customers would again start buying houses at rational prices.And this would stimulate the economy which the idiot government is trying to do. (Although i support the congress but sometimes I feel that they should start thinking smartly and help normal people. Some arm twisting of the builders is required as they have been given a free hand uptil now. But then the congress gets its funding from the builders for elections so this is never gonna happen)