Monday, July 14, 2008

Builders in Pune dismiss suggestions that the property prices are heading for a sharp drop, claims that the demand is steady & still outstrips supply

Chicken Soup for the Pune Real Estate Developer's Soul:

My secret source has told me that Mr. Lalit Kumar Jain, Chairman and Managing Director, Kumar Builders, and President, Promoters and Builders Association of Pune (PBAP) and Mr. Satish Magar, Managing Director, Magarpatta Township Development and Construction Company and Nanded City Development and Construction Company Limited and Vice President, Promoters and Builders Association of Pune (PBAP), have appointed a ghostwriter to write a book "Chicken Soup for the Pune Real Estate Developer's Soul".

Though Mr. Jain is fond of "soup", for the obvious reason, he was against naming the book "Chicken Soup". He was insisting on "Baby Corn Soup". "Pethkar Projects' English ad in Marathi news paper Sakal, about launching 2 bhk budget flats at Rs. 38 lacks in Balwantpuram - Samrajya, convinced Mr. Jain about the urgency and emergency of publishing the book immediately" said unofficial source.

The book "Chicken Soup for the Pune Real Estate Developer's Soul" is a collection of inspirational, motivational and uplifting stories, Mr. Jain and Mr. Magar tell in their speeches in the PBAP meetings, to help Pune real estate developers discover, experience and retain key concepts and approaches. For example, "Pune bucks the trend" is a motivational story, specially written for Mr. Jitendra Pethkar, on a key concept:
“How can prices move down when both land cost and cost of construction that accounts for 60 per cent of the final price are phenomenally up over the last three years?”
Related Stories:

1) At Paranjape Schemes' Blue Ridge, Hinjewadi, few flats are available for booking!

2)Promoters and Builders Association of Pune strikes back: increases the per-square-foot rate of flats between Rs 50 and Rs 400 from April 20

3) Builders will increase the rate according to the stage of the construction, says Shantilal Kataria, while talking on rising property prices in Pune

5 comments:

  1. This unfortunately (for buyers) is true - I've been inquiring in Nagar Road area for a 3br apartment - and resale flats are still the same price. Sellers are now willing to negotiate - but just a little - max 100-200 psf. Whatever be the reality - Sellers are holding up. This bubble and crash effect is yet to hit the road.

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  2. This year the rains were not as expected and we are almost nearing to a terrified situation which will adds up in to more economic chaos.
    So.... more hot air is being blown in to the bubble now and this time it will not just crash but explode....
    There is absolute pannic in the developers but they are not showing up and pretending as if everything is all-right, reality of realty is different and taking a reverse turn...
    So.... investors, please hold on for another yearat least for your benefit, don't step in, otherwise you will loose...
    US and UK economy is boggling down day by day and things are just getting out of their control...
    Indian IT largely depend on them, so obviously, jobs of IT workers are at risk (just check with some IT employees of big companies and ask how their company is doing)
    So....stay away and save your life... once in the recent past, flats were sold at 1000 per sq. ft., today the same area is sold at 5000 per sq. ft. Something is terribly wrong and un-justified, but investors are not realising this and did mad investments in the past 3-4 years at higher rates, just out of craze...
    Save your life now...!!!

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  3. The developers first should explain what is the reason that the prices went up 5 times? Looting common man and money laundering by builders should at first be stopped and then these builders should have any moral right to speak.

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  4. Don't follow the property purchase trend instead keep patience and enjoy life without any liabilities.
    In today's scenrio, its better to rent a house instead of paying higher interest amount monthly and at the end of day paying more than the property cost to bank and builders.

    Thanks,
    Manish

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  5. US has gone bankrupt. IT demand will reduce. Pune Real Estate bubble was because of IT/ITES growth story. That bubble has burst in US. IT jobs will be reduced. PINK SLIPS will be introduced. I hope this will bring down the Demand in Reality. Supply will increase. AND hence have a nice time PRICES ARE BOUND TO CRASH UNDER GRAVITY OF THEIR OWN. Its a cycle freinds and we can not deny it.

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