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Endless Wait for Property Prices to Fall !!!

The Endless Wait for Property Prices to Fall will never end. From my childhood days, i kept reading in Newspapers that every Middle Class Indian aspire for “Roti, Kapda aur Makaan” and wait for Property Prices to Fall. Today, i would like to modify this slogan to “Job, Gold aur Makaan”.  Out of 3, “Makaan” is still a common factor & an illusive aspiration for Indian Middle Class. Fight for Roti and Kapda is over for Indian Middle Class and no longer aspiration becoz its very well within the reach of middle income group. Owning a House or Property is still out of reach for million of Indians…

Circa 2004, After getting a job i decided to buy a house therefore i decided to keep a close watch on Property Prices & wait for Property Prices to Fall. I observed that in Media there are 2 Lobbies, one which is pro builder and second is against builders. I fell in trap of second lobby, which was against builders. This media lobby always projected that property prices at current level are very high and prices will fall in future.

I left many lucrative deals @ 1200 Rs psf in 2004-2005 & kept waiting for property prices to fall. Everytime i decided to purchase a property, i thought prices are high and will fall but prices never fell and my wait for right price goes on…. In 2011 finally i decided to come out of this mindset and brought a property @ 6000 Rs psf i.e. 4 times more than 2004 level. It implies that in 7 years prices increased by 5 times. The flat which costed approx 25 Lac in 2004 was costing 1.25 Cr in 2011. It caused me near Heart Attack that i lost an opportunity of 1 Cr profit. Anyways my e.g. was one of case & not in all cases, prices increase by 5 times. Since i keep a close watch on property prices across India, till date i have not seen property prices falling from current level except in the case of Noida Extension & that too after court verdict. Property prices might not have increased 5 times in all cities but definitely multiplied by 2 or 3 in all Metro’s and Mini Metro’s.

My observation is that Property prices are always range bound and never go below lower bracket of range e.g. Current psf Price in Vashi area of Navi Mumbai is 10k but u might find properties in the range of 9k psf to 11k psf i.e. within the range of 9k to 11k psf but don’t expect prices to go below 9k psf except distress sale or properties with inherit disadvantages like south facing property or property near graveyards.

You must be wondering why property prices don’t fall, there are reasons behind the same. I am listing down the same

1. Circulation of Black Money: Though lot of steps have been taken to weed out Black Money from Real Estate market but still Black Component cannot be ruled out 100%. Normally 20%-30% cash/black component is involved in any property transaction whereas in Delhi & NCR this component can be 50-60%. Secondly becoz of this cash component, Middle class find very difficult to buy a house. For a 1 Cr house, 20 lac cash component and then 20% self contribution as Home loan available will be only 80% of sale value excluding stamp duty etc. Therefore any individual has to arrange for approx 40 lacs from own pocket to buy a 1 Cr flat i.e. 40% of total amount.

2. Land Cost: Land is a natural resource therefore its scarce. Land price increase much faster compared to property/flat price therefore many people buy land for investment purpose rather buying a property. If Land cost will increase than definitely, it will increase the price of a property.

3. Construction Cost: Construction cost include Labour Cost and Cost of Raw Material. With increasing Cement and Labour Cost, Construction cost has increased drastically in last few years. Today in a Metro City, construction cost psf is between 1800-2000 psf whereas in small towns its 1200-1500 psf.

4. 20% investor’s control 80% of Real Estate Supply: Indian Real Estate market is dominated by Investor’s not by end users. These investor’s are Businessmen, NRI’s or Politicians. Investor’s control  approx 80% of supply which in turn increase the rates.

5. Cartel by Builders: Cartel means when all the competing firms join hands to artificially jack up the price. If builders decide that they will not sell below certain price level therefore it increases the price. Secondly in many cases builder keep increasing the rates unilaterally to show that his project is in great demand whereas in reality its not the case. Recently, one of my friend bought a 1500 psf flat directly from builder for 60 Lacs whereas many owners in same complex are selling/transferring it for 48 Lacs becoz they don’t find buyers whereas builder uses his marketing tactics to sell the flats. In short, supply is more than demand. The difference between builder rate and resale price is 12 Lacs & builder has yet to start the registration process.

Now you must be wondering how come builder afford to keep unsold inventory. Answer is very simple, smart builders follow a cyclic process of completion e.g. if a builder launched project A then builder will 1st recover his cost and book his profit upfront from sale of project A. Now in order to complete project A, builder will launch project B and from project B sale, builder will complete project A. Then to complete project B, builder will launch Project C and so on..It also explain the delay in projects. Without getting commencement certificate from local authority, builder cannot sell the project therefore all the excuses of project delay like delay in approval etc are false. If builder is not able to sell project C then he will not be able to complete project B on time.

The complete real estate business is very complex web to understand but in short, i would like to conclude that you can never expect property prices to fall below range as mentioned by me. Any delay is opportunity loss and if you are getting a deal @ 5000 Rs psf today then tomorrow you might need to pay 5500 Rs psf for same property. Let’s not wait for Property Prices to Fall & grab any good deal coming our way.

Copyright © 2011-2012 Nitin Bhatia. All Rights Reserved.

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Bomakai
Bomakai
11 years ago

NITIN SAAB VERY GOOD OBSERVATION, BUT AS AN END USER MY QUESTION REMAINS
WILL THE PRICES COME DOWN IN MUMBAI? DEC12.  

Nitin Bhatia
Nitin Bhatia
11 years ago
Reply to  Bomakai

Dear Sir,

In my opinion prices will not come down due to very high land cost & non availability on land. Prices will sharply increase in Panvel, Ulwe, Wadala, Vashi & Chembur. Investment in these areas will give good returns in near future.

Thanks & BR
Nitin Bhatia 

Niraj
Niraj
9 years ago
Reply to  Nitin Bhatia

Hi
Looking at the market in panvel, was opting for my first investment there. Currently have almost 6_7lacs for down payment and the balance would be loan of min 25_30 years for a property value of new flat under construction of around 35 lacs. I am still not convinced to buy the flat as I think property price from 5100 today will not go above 10000 or 11000 Max in 10_15 years and this would not yield much of investment return considering high rate of house loan and amount. Kindly advice should I buy in panvel at 5100 to gain against property price and interest that I would pay. I feel at the end of the tenure the property would cost me at a min of 9000 psf min. Pls advice.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Niraj

You have not mentioned whether you are buying for investment or own use. Panvel is big market. The rates depend on area to area. Recently prices increased by 10%. Current average rate is around Rs 5200. In my opinion, if location is good then you are getting a decent deal. Prices will increase due to commissioning of Navi Mumbai Airport. You may also check New Panvel but rate diff is not much. Average price in New Panvel is Rs 4600.

VD Pandey
VD Pandey
10 years ago

Dear Sir,

over a million flats are lying vacant in NCR shows that prices of property crash

2 BHK flats minimum cost is around 40-50 lakh that too in not well connected area.

9% monthly interest of 40 lakh is around 30 thousands per month. Good Quality rented homes are available in 15000/-.

in south delhi posh area rate is declined by 25%

Nitin Bhatia
Nitin Bhatia
10 years ago
Reply to  VD Pandey

In Delhi, land cost is high. Secondly, in Delhi Rentals are much lower compared to property prices. Considering this it is advisable to stay @ rent in Delhi but prices will not come down. We should not go by media reports which are paid news to create demand for property. Rates are stable but will not drop.

Surender Jakhar
Surender Jakhar
8 years ago
Reply to  Nitin Bhatia

Hello Sir,

Property Prices are down by around 30% in Delhi, What happen to the Customers, Instantly where they lost, as per my knowledge all the Incomes of the customers has increased in the last 2 years ( Increments of the salaries class is around minimum 10% annually & No one is fired from the job also). Then why did they don’t buy home & how they are managing their Housing Requirements. From last two year I am sure that Population increase would be there, so where did they stay. As per my knowledge even when market is slow the sales has been drooped by around 10 to 20% but there is almost 100% drop in sales of Real Estate. What is the reason, Can I say that from 2012-2103 the Prices & Sales are not driven by End users but by the Investor to Investor Only. There are NO END USERS at that time also. Further I believe that Creation of Income from any other job profile like Salaries or business ( other than Real Estate) & than Putting that Money for End-use in Real Estate would show the real Graph of Countries Economy & Per capita income level. But just Shifting one Property Money into another is not a real Growth. As I understand in 202-13 Property Market movement is not mostly because of Newly earned money Salaries or business ( other than Real Estate) rather the purchases are mostly done when someone’s previous property soled out. Further as I understand every economy runs on an Win Win Situation for the benefit of both Investor & the end-users, Plz. explain How an Investor who buy a piece of land or plot would help end-users for his requirements. If a investor doesn’t invest for plot than how end-users will be in loss.

These above Clarification really help me to Invest smartly rather than to stuck in a bubble or fake market & make a huge loss.

Thanks & Regards,
Surender Jakhar

Nitin Bhatia
Nitin Bhatia
8 years ago

Improvement in economy will take time. It’s not the case that people are not losing job or fired. Secondly, in Delhi and NCR it doesn’t make sense to invest in property at such high rates. The property investment in past was not from salaried class but from investors who got huge money when govt acquired lands in Haryana, UP and Rajasthan. Now this money has dried up and reality is in front.There is NO LIQUIDITY in the system and its a catch 22 situation for builders, investors and end user. Bubble will burst shortly in some pockets.

Shadab
Shadab
10 years ago

In general people who compare interest/EMI amount paid per month for home loans VS Rent will never think of buying a flat if they are thinking in short term.
We can calculate it in this way, 4 years back one of my friend purchased a 2BHK flat worth 25L and now the cost of similar 2BHK flat is some where around 35 to 40L in Pune, Over 4 years of time he might have paid approx 8L extra as interest, still the amount will not exceed 35L, even if we consider both values same and think that we can take property any time. We are wrong because 4 years back he got the property in the area which is well developed now and I will get similar property in outskirts (20 to 25 KM away), another factor to be considered is rent which we pay over this years while thinking to buy a property will be wasted, which has not returns. so its always better to grab a good deal asap.

Nitin Bhatia
Nitin Bhatia
10 years ago
Reply to  Shadab

Interesting observation. I agree with you

mohammad
mohammad
10 years ago

Please give tips to secure property which is on rent in Navi Mumbai if owner is not present in that city all the time and depends on agent.

Nitin Bhatia
Nitin Bhatia
10 years ago
Reply to  mohammad

Its based on trust factor between owner and agent. Ideally the keys should be handed to association office and agent may take the keys and return it back after showing the flat.

Surender Jakhar
Surender Jakhar
10 years ago

Why we have double standard minds…INVESTORS vs END USERS

Pls. clear my confusion about the below points:

1. Why Investor required in Real Estate Market if ultimately he has to sell the same to END USER (Ultimately End User is the final financier) ??

2. Why Investment in Real Estate Market is not called Black Marketing (Because it Hits End users Lifestyle, because Due to Hike in prices of property end users have to pay virtually hiked prices & he is forced to live with a lower standard of lifestyle by compromising on his other day to day needs) & How this is different from Black Marketing in Railway Tickets,Fuel,Electricity & LPG.

3. How Investor Help Real Estate Market for lowering the Property Prices. Instead if Investors stop to enter in this market directly to buy a home or office & they should invest in the stock market for the respective builder, than their money can be used for construction before sales of the unit by builder to the end-users.

4. Direct Investment are Good for our Country Economy or Bad for our Country Economy ??

5. If Investors are Good for Country Economy & for Investor Profit than Why Government will not open Investment opportunity for General Public Directly in Railway Reservation, Fuel, Electricity & LPG. Investor can get good Return in these cases as compare to Real Estate.

For Example: Like in Real Estate if any one who have enough money is free to buy n numbers of property by paying tax to govt & become a legal deal. In the same manner If Govt. opens Railway Tickets Reservation system can be open for General Public who actually don’t travel ( Than Called Investor) & he can buy ticket in advance (pay tax to the gov.) become legal purchase & than later on can sell the ticket to actual traveller ( So called END User), the end user have to buy ticket for higher price from this Investor for the same standard of travelling which he could get if railway directly sell the ticket to him.

Pls. differentiate How those two situation are different as per economics rule of demand & supply.

6. Why Property Price Hike is considered as Growth (While Price Hike of Railway Tickets,Fuel,Electricity & LPG Considered as Inflation) & Similarly Property Price Stability is considered as Slow down of market & General public is not happy with this situation. (While low prices of Railway Tickets,Fuel,Electricity & LPG Considered as Good Situation & Good )

7. If Investor have enough money than why they don’t prefer Fixed Deposit in Bank, If Bank get sufficient money from the Investor than Bank Can create competition between Investors pay them less FD Interest rate & offer Loan to required ( Industry & Builders & End users) with very Low Interest Percentage & Money can be used in various of projects other than Real Estate also . Even If Investor are not directly Invest in the Real Estate than the Price of Land will also become low as compare to now. Than an Industry setup Can get the Land for Manufacturing/ operations with Lower Price & Can use Investor Money thru Bank with Lower Interest , Hence Can Produce Products with Lower Cost due to low Input Cost.

8. Property Price Hike is Healthy for Our Country Economy or not, in both cases pls. explain how??

9. Why Property Growth is measured in terms of per unit Price Hike but not in terms of Infrastructure ( unit) Volume Hike.

10. If Infrastructure/ Construction Volume is taken into Account for measuring Real Estate Growth than the Price Must not increase steeply, I am i right or wrong ??

11. How Government Can Stop Investor to Invest their Money Directly in Real Estate & Encourage Investor for Share Market & Bank FD (So that Day to Day Life of End-Users Won,t Effect because Investor are not Directly involve in property buying hence keep the Property Prices Genuine.)

12. Why General Peoples (End Users) along with opposition Political party are not raising the issue against ruling party for Price hike in Real Estate ?? as they are raising in other cases for price hike in Sugar, Railway, Fuel etc.

13. In the renter system, Investor are not there, so you may see the Rent vs Property whole price is just 0.1% per month, for example a property worth Rs. 1 Crore the rent is only rs. 10 K, which is less than Bank FD because if someone put Rs. 1 Crore in Bank FD than he will get 0.75% /month Interest (09% Annually) (around Rs. 75000/month) whoever he is getting only rs. 10-15K as a rent. . The Rent actually indicated the really shows per ca-pita income because rent is only paid by a person who actually utilize the space.

We are Generally compare our country with Developed country in terms of Infrastructure, but the above situation Indicated that the Infrastructure is our least preference because if it improves than Property price will not hike steeply. We should decide whether we House is a commodity to earn money or a place to live better life (Otherwise there is no diffrence between Human & Animals) .if you want the situation may change, than pls forward the same, so this msg will reach to 130 crores Indians

I think 20% Investors can not derive 80% market if all peoples unite & think in a same way.

Nitin Bhatia
Nitin Bhatia
10 years ago

1. Two reasons (a) To park Black Money (b) Due to economic Disparity. Only 10% people in India control 80% capital therefore 10% people are investor with multiple homes and 90% population is end user
2. Again two reasons (a) Land is scare and any natural resource which is scare you have to pay premium (b) There is no uniform development in big country like India. Everyone would like to live in top 10 cities because of growth opportunity therefore it put burden on limited resource thus people have to pay higher price for everything
3. Property is appreciating asset & also deliver regular return. If i invest 1 Cr in property, along with appreciation i will receive monthly rent which is not the case with Stocks or Gold therefore property will always remain no 1 choice for investment.
4. I think you are referring to Foreign Direct Investment. It is very good as India does not have sufficient capital to deliver growth. I am sorry to say but FDI is like oxygen for our country and we cannot survive without it
5. It will again increase black marketing and inflation. Investor will start hoarding and create scarcity to make more money. Govt provide Electricity, Gas etc not for profit but as basic need of common man. Govt is already subsidizing and incurring losses on this. If these sectors work on demand supply then common man will not be able to afford electricity or gas
6. Property Price are not linked to inflation. Its only psychology of common man and over obsession to buy a Makaan which keeps prices high. Imagine if all people decide not to buy a property, prices will crash. Its a matter of demand and supply. Demand is high so prices are high. High property price means growth because it shows high purchasing power.
7. Bank FD cannot beat return on property investment and i mentioned Property and Gold asset class deliver max return. Secondly these 2 asset class are heaven to park black money. In FD, everything is in white
8. High Property Price means High Purchasing Power of buyers thus sign of economic prosperity and growth.
9. Infrastructure is Govt’s responsibility and its capital draining. People want good roads but don’t want to pay even 5 Rs toll whereas property is reverse case. Though capital draining, people are willing to pay premium.
10. No, Infrastructure growth will directly increase property price e.g. if a village is connected by road then land rate will double.
11. Govt cannot stop and also would not like to stop. Stamp duty is major source of revenue for any state Govt besides excise duty. Any slow down in real estate will impact state govt finances.
12. All political leaders are big real estate investors.
13. Seems you are referring to case of Delhi and NCR. In Mumbai and other cities, you may fetch 25k-30k rent for 1 Cr property. At the same time in Delhi and NCR rate of appreciation is highest in country so an investor don’t mind less rent. 1 Cr property will be 3 Cr in next 3-4 years.

I agree with you but we cannot change psychology of indian mindset where Roti, Kapda and Makaan are must.

Deepak Tiwari
Deepak Tiwari
9 years ago
Reply to  Nitin Bhatia

//Bank FD cannot beat return on property investment//

Wrong. If I buy a house with 500 psf, it costs me 18-20 lacs in Delhi but I get it for rent for 5K per month. Now, I pay 60K/year. But if I keep 18-20 lacs in FD, I will get a minimum of 1.5 Lac INR.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Deepak Tiwari

You are not considering property appreciation in calculation. In case of Bank FD, principal remain same i.e. there is no appreciation.

Deepak Tiwari
Deepak Tiwari
9 years ago
Reply to  Nitin Bhatia

Principle also increases if you save rest of the amount i.e. nearly 1.5 lac- 60 k = 80-90 K per year. Keep it in bank. I don’t think it is wise to buy home if you have home somewhere. Buy it only if you really need it.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Deepak Tiwari

For 2nd Home, you should always consider annual yield and future appreciation & also evaluate other investment opportunities.

Darshan
Darshan
10 years ago

Whether Investment in Virar west at mumbai is good decision at present What you think?

Nitin Bhatia
Nitin Bhatia
10 years ago
Reply to  Darshan

Virar West is good area to invest. All basic amenities like school, hospital, banks. grocery stores etc are in vicinity. It is just 5 Kms from western express highway and there is no water shortage in area.

Jyoti
Jyoti
9 years ago

Do you think that in the coming years property price will increase ???

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Jyoti

Govt of India is planning 100 smart cities which will ease load on existing metros and mini metros thus will cool off price. It will depend on location of these new 100 smart cities. Though it will take 10-15 years but it will keep property prices in check. Secondly, prices will also depend on land availability in city.

I am not expecting good appreciation in real estate but prices will be range bound and will remain stable.

aakash
aakash
9 years ago
Reply to  Nitin Bhatia

dear mr bhatia my query is lttle complicated , i am willing to invest with loan in noida extension a 3 bhk unit at 3100psfbut need to pay 65%now. My mind is in dual stage and thinking should i wait and buy at later stage. i wont be using it for minimum 10 yrs.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  aakash

Currently Real Estate market is going through difficult phase due to economy slowdown, over supply and huge debts of builders. Situation will not improve atleast for a year or so. Prices in Delhi and NCR have corrected by 10% in last 1 year and will further correct. I suggest you to wait for some more time before investing in real estate. For own use, you can buy anytime but for investment purpose wait for right time.

aakash
aakash
9 years ago
Reply to  Nitin Bhatia

thank you Mr bhatia , i read ur aricle on RTM as well. going by your advice i am planning to wait ,probably after a year i can get same rates. Although i want for end use(10yrs ) but not finding the right property . Plz throw some light on subvention plans like panchsheel greens 2 is offering in NE. Is it worth a try ? Actually lil concsious after reading your article endless wait .

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  aakash

RBI banned Subvention schemes but builders are launching it in new avatars. I will not suggest. You may check following post

http://www.business-standard.com/article/pf/subvention-scheme-is-a-double-edged-sword-113092100696_1.html

Deepak Tiwari
Deepak Tiwari
9 years ago
Reply to  Nitin Bhatia

The current real estate market in Delhi is inflated by 40-50%. I see prices crashing to great extent. I talk to property dealers, they all admit there is no demand. Some of them have shut their shops as they are not even able to manage their offices.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Deepak Tiwari

I concur…Prices have corrected by 20%-30% in many pockets.

Mohan R Gopal
Mohan R Gopal
9 years ago

Reasons for Property prices holding:
1) Capital gains tax – if you sell a property you have to buy another property to save tax – one is forcibly made to plough the money back into the real estate market
2) Safe Haven for black money as there is a difference between buying / market prices and the Registration prices.
Govt should lower the capital gain tax to the level of 5 % from the existing 20% level for long term Capital gains tax – this will bring the prices down drastically. Money will go to more productive places.
And increase the registration value / guide line value and reduce the registration cost – back money will not be able to enter the market as the registration value is more than the market value

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Mohan R Gopal

I concur with your views and valid suggestion from your end.

anirudh
anirudh
9 years ago

dear nitin sir , i want a suggestion , i am having a house in thane gb rd at present 1bhk n staying in it , runing loan of 33.lacs , market value as of today is 65lac , i want to book one 2bhk flat in under construction total cost of flat all inclusive is 99.lacs , as i am thinking that i can pay the innitial amount of 25% at booking n slowly step by step i can pay till 50% of the cost by self funding n later can take some top up housing loan 20% on existing housing loan n the last portion of 30% by selling my 1 bhk house in which i am staying , as the possesion of the new 2bhk will at least take 4yrs, hope u can uderstand my thinking as the prices of both flats will increase in this time frame would it be a correct deccission , kindly please suggest,, regards anirudh

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  anirudh

To answer this query require financial calculations based on your source of income and whether it is stable or not. Secondly, you have made multiple assumptions like you will arrange 50% self funding in future, 20% top up on existing loan, price appreciation, you will get possession in 4 years etc

If you wish to avail my services on chargeable basis to study your case in detail then you may call me at +91 94800 21000 to discuss your case.

Balmukund Bhatt
Balmukund Bhatt
9 years ago

do this simple mathematics and pay rent and balance in to recurring fix deposit and see how rental is so cheper in India comapare to own the house

Nitin Bhatia
Nitin Bhatia
9 years ago

It depends on case to case basis.

Vinu Kritik
Vinu Kritik
9 years ago

dear nitin sir your article is very helpful..i want to buy a chawl house in mumbai ..then the main purpose is for gaving rent and investment…comparing to other flats the chawl price is very low…so sir kindly gave me a advice that is it secure??i dont no what papers i want to check before buying that..pls gave me a reply….thank you….

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Vinu Kritik

The rules for chawl is different in Mumbai. I suggest you to hire a local property lawyer who is expert in such transactions. It is imp to check whether the chawl is regularized or not.

Vinu Kritik
Vinu Kritik
9 years ago
Reply to  Nitin Bhatia

SIR
THANX FOR UR REPLY…

AM1610
AM1610
9 years ago

Dear Mr. Nitin, Interesting read … Suggestion requested – Is Faridabad a good investment destination ? Considering Gurgaon has seen all the current growth and construction is going beyond. Demanded current sft rates for good sector 21C ~ INR 5000 to 5500 / sft . Can I expect the rates to drop to 4500 – 4700 / sft in the near future 6 month. I have a 5 Yr horizon to stay with my family and then would exit to a better location.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  AM1610

You may check Dwarka Expressway. Your will find properties in your budget. I will not suggest Faridabad, until unless you are buying for own use and your place of work is in Faridabad.

Nish
Nish
9 years ago

Dear Mr.Nitin, – Is it a right time to invest in a residential plot in Rohini sector 28 or 32?That too through a bank loan.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Nish

It depends on the rate at which you are buying.

APJ
APJ
9 years ago

Hello Bhatia Ji,
I am looking for purchasing a flat 2-3BHK(1200-1500 sq.ft.) in Noida extension Cherry county project. Please let me know the future growth for this deal in terms of appreciation,connectivity.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  APJ

I have not done due diligence of this project therefore cannot comment.

Guest
Guest
9 years ago

Hi, I have been looking for 3 bhk in pune kharadi.. I am seeing quotes like 1.35 -1.38 crores in kharadi pune.. 1975 sq feet.. is it worth to buy or wait for price to fall ? I feel the price is inflated
kindly advise .. Trinity towers kharadi pune.. do u know any good projects 3 bhk in pune at a lower cost ?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Guest

You may check resale property in nearby areas. As you rightly mentioned, prices are inflated without any demand.

sachet
sachet
9 years ago

sir, I have booked a flat in adaigaon panvel at rate of 3625/sqft. I am in doubt of the returns as there is slow down in the market and lot of flats are still unoccupied. Can you also let me know whether the area adaigaon is a good option as I have just given a token amount and all other formalities are yet to be done

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  sachet

This area is basically New Panvel. It is not within municipal limits. There are some other problems like electricity etc. This village is covered by NAINA (Navi Mumbai Airport Influenced Notified Area) along with its SPA CIDCO for planned development which is only plus point. Rates are dropping 2%-3% every quarter.

You can see appreciation only in next 8-10 years after the Navi Mumbai Airport is operational.

Suhel Sayyed
Suhel Sayyed
9 years ago

Hello Nitin,
It was nice to go through your article as it was clear, honest and very logical.
My question is, I want to book a 2 BHK flat in Pune. Recently prices have come down in Pune aand that is a good indication. I would be moving to Finland for next 6-7 months and planning to gather some 10-15 Lakh cash as savings during this time.
Do you see it advisable to book a property right now or shall wait till year end as there may be further correction?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Suhel Sayyed

It is expected that market will be down for next 12-18 months. You can wait till year end.

Dhaval
Dhaval
9 years ago

I am planning to buy a 1/2 BHK flat in Nani Mumbai. I currently stay in Mumbai.

Following are my questions:

1. Shall I post pond my decision to buy a flat in navi Mumbai by 1 yr ?
2. Is there a possibility of residential prices coming down in Mumbai suburbs like Borivali – Kandivali West?

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Dhaval

Mumbai is financial capital of India. Land is the costliest asset in Mumbai therefore in my opinion
1. You can postpone but it depends in which area you are planning to buy. If it is outskirts like Panvel, New Panvel, Airoli etc then you can wait. In Vashi, Nerul, Kharghar, KoperKhairne etc the probability of price drop is negligible. At max, it can be stagnant.
2. I don’t think so.

dibubhai
dibubhai
9 years ago

Hi. I already have a place to stay (my parent’s flat). I am planning to shift to a second flat, but I have no compulsion to buy a second flat immediately. In my situation, which is more economical – to save more money for some years, build up a corpus, and then buy a flat so that I don’t have to take 80% loan from the bank, OR, buying a flat right now with 80% loan from the bank.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  dibubhai

I suggest you to save atleast 50%-60% of down payment before you purchase your own house. Right now you should save.

Ronnie DSouza
Ronnie DSouza
9 years ago

Hi.. Nitin, I’m a NRI and last year I’ve invested in a flat in Panvel (Karanjade Node), I need your opinion to rate the growth of this node in next 5 years

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Ronnie DSouza

Average rate in this area is Rs 4500 psf. Currently there are no triggers for appreciation. The commissioning of Navi Mumbai airport will be next trigger. Tentatively 1st phase will be completed by 2018 therefore you can expect good growth after 2018. I expect annual appreciation of 8%-10% in this area.

Ronnie DSouza
Ronnie DSouza
9 years ago
Reply to  Nitin Bhatia

Hi Nitin appreciating your valuable comments.. based on the development plans in place in and around panvel will this node be vaiable location after 5 years as 1st home…

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Ronnie DSouza

In my opinion 8-10 years.

Asheesh Jain
Asheesh Jain
9 years ago

Dear Sir, I am purchasing 2 BHK in Shilphata (Near Dobivali, MMR), Should I wait for sometime or grab the deal immediately…

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Asheesh Jain

It depends on purchase price.

Sneha
Sneha
9 years ago

I am looking to purchase a 2bhk in any area between Bandra west to Santacruz west or Vile Parle east. Can you suggest if I should wait as prices in Bandra to Santacruz are falling but Vile parle east is at its peak it seems.

Nitin Bhatia
Nitin Bhatia
9 years ago
Reply to  Sneha

You may observe small correction in certain pockets but overall rates in premium suburbs like Andheri, Bandra, Santacruz and Ville Parle are stagnant. If you are buying for own residence then you can buy else you can wait for 6 months.

Rajib
Rajib
8 years ago

I have book a flat in Taloja phase 2 @3900 ps.ft. It’s only 200 meters away from pendhar metro station. Please share your view about the location and also prospect of price appreciation in near future down the line 4-5 years. As per the current work status, metro to be up and running by mid of 2017.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Rajib

Taloja is a good place to invest with long term horizon. Location and connectivity is good. It seems you booked 2-3 years back as average rates are now around Rs 4500 psf in your area. You can expect 10% appreciation on CAGR basis. After Metro connectivity you can expect 15% appreciation.

Rajib
Rajib
8 years ago
Reply to  Nitin Bhatia

Thanks Nitin for sharing your views. I have booked this flat in february this year only. But, yes current average price is around 4500 psf

Rajib
Rajib
8 years ago
Reply to  Rajib

Today i had a discussion with some agents. As per their view price will come down by at least 30% in navi Mumbai. Is it true?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Rajib

I disagree. Its a trap so that owners sell their flats. At most prices may be stagnant. Taloja is good pocket, you may retain your investment for good returns.

Rajib
Rajib
8 years ago
Reply to  Nitin Bhatia

Thanks for your advice nitin. I was in dilemma, should I hold or sell after talking with those agents. But now I have made my mind to hold for long term.

Jayesh
Jayesh
8 years ago

Hello Sir, I had invested in Virar(w) 1BHK @ 4950 psf in 2013, seems like prices are falling down. is there any possibility of price appreciation in Virar(w) ?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Jayesh

Its not that property rates are falling. You entered at very high rates. The average rate in 2013 was Rs 4300 psf. You need to wait for at least 2-3 years to recover your loss.

Jayesh
Jayesh
8 years ago
Reply to  Nitin Bhatia

Thank You!! I realized wasn’t able to negotiate, a learning for me.

pijush
pijush
8 years ago

hi nitin, i suppose to buy a 2 bhk (90Lakh)flat at kajuwadi(near Kajuwadi police station),andheri east. It is without parking and heavily populated with slum and sub standard people. Is the area good to invest from resale point of view. Pls suggest I am clueless

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  pijush

If the location is not good then you may avoid.

harry
harry
8 years ago

is it safe to buy in action area 2 Newtown at present scenario or should I wait as I see rates decreasing or almost remaining same. Also what is the safe rate to enter the market?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  harry

It depends. You may wait for few months.

Harry
Harry
8 years ago
Reply to  Nitin Bhatia

thanks Nitinji.
Actually I’m getting around 4500 per sq ft but the builder is saying they are going to increase the price soon.Is it feasible in present scenerio.Actually only advantage for it is its good location.Also I’m worried about the fact that real estate rates might decrease a little.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Harry

This is the standard reply from builder to pressurize buyers to close the deal.

Harry
Harry
8 years ago
Reply to  Nitin Bhatia

That’s true Nitinji.Actually I’m worried because the project is by a new developer but the advantage is it’s extremely good location and also the area is developed over there.There are other good projects with reputed builders but the infrastructure will take long time to develop in those areas.Can I do something to check the authenticity of the project?
Waiting for ur valuable suggestions.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Harry

You may hire a local property lawyer for title search report.

Harry
Harry
8 years ago
Reply to  Nitin Bhatia

Thanks a lot Nitinji

Frank_Mumbai
Frank_Mumbai
8 years ago

Hi Nitin,
I am looking at investing in a 2bhk flat Ulwe or Dronagiri for around 50 lakhs. I have saved around 10 lakhs in cash and the rest Im looking for a bank loan. The prices in Ulwe have already peaked so much, do you think it makes sense to invest in Ulwe or Dronagiri now or should I wait for 6-8 months?
Thanks,

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Frank_Mumbai

Wait for sometime.

Ajit w
Ajit w
8 years ago

Hello Mr Bhatia, I am Ajit from Mumbai, u might be aware of a new project coming up on Ghatkopar Mankhurd Link road named Rising city by Rare townships. They have currently launched Phase 1 with 6 bldgs. Well their asking rate is 13000 psf. Well I have heard a lot of people saying that the Global economy is going to go down and real estate prices will get hit the maximum in the next two years. Do u think this will happen?? After reading ur article I don think it will happen, however i wanted to know your insights about the same. Last so many years they have never fallen down. Kindly Opine about this.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Ajit w

In my opinion, Rs 13000 psf is too high rate for this pocket on Ghatkopar Mankhurd link road. This area is surrounded by slums.

Ajit w
Ajit w
8 years ago
Reply to  Nitin Bhatia

Agreed Sir, however,,If u see the adjoining area in ghatkopar east the rates are approximately 14 to 15000. Also can u please throw some light about the realty price trends. Thank you

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Ajit w

Ghaptkopar (E) is a big area from Amar mahal to Ghatkopar railway station and including Garodia Nagar & other neighboring pockets. I will not mind paying extra 2k-3k psf if location is good.

Nitin Bhatia
Nitin Bhatia
8 years ago

You may wait for few months if you are buying for investment purpose.

parijesh
parijesh
8 years ago
Reply to  Nitin Bhatia

thanks for your valuable reply.

rakesh
rakesh
8 years ago

Hi Nitinji… my earlier query seems to have gone missing. Essentially, I want to know if a rate of Rs 23,000 psf for BKC in Mumbai is a reasonable rate for booking a flat or is it too high? In such areas, are rates likely to decrease significantly?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  rakesh

It’s a reasonable rate provided project is at good location and not adjacent to Kurla side. Prices will remain stable for sometime. It has already decreased from Rs 40000 psf in 2012 to current Rs 23000 psf. A deal at Rs 21000 psf will be good to go.

Ashwin keshwani
Ashwin keshwani
8 years ago

dear nitin sir,
I am planning to invest in a flat situated 1 km from Neral(matheran) station at 1900 psf purely for returns on investment.i have been told that property prices will only increase in karjat belt becoz of increased connectivity,super high costs at posh suburbs of Mumbai and upcoming airport at navi mumbai.
in future i am also planning to invest in more such properties..
please can u tell me that whether property prices in ths region will fall or it will only go up???

Nitin Bhatia
Nitin Bhatia
8 years ago

Property rates will be stable for sometime and you can expect appreciation in 5-7 years. Secondly, i could not understand how the navi mumbai airport will help price appreciation in neral. You may expect appreciation only if govt decide to promote Matheran. You can slightly increase your budget and look for properties in New Panvel area.

Vidyesh
Vidyesh
8 years ago

I am looking for investment in 2BHK flat in Lodha Palava, shilphata, navi mumbai. They are asking for 5100 psf. is it reasonable rate? I am afraid, if I invest today rate may fall down or will remain the same for 1 or 2 years. what is the growth opportunity in this area? please suggest.

kishore
kishore
8 years ago
Reply to  Vidyesh

Buddy I am a consultant working for Mumbai, ahemadabad, pune.call me
My name is Kishore – 9930301279

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Vidyesh

Some time back the builder was charging around Rs 5800 psf. You are right that rates are dropping. You may wait for some more time. This area will take time to develop. You may invest from 7-10 years horizon.

Sachin
Sachin
8 years ago

Hello Nitin,

I am planning to buy a 2BHK in Pune (Nanded City) Project, is this the right time or should I wait for approx 6 months?

Thank you!!

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Sachin

If you are buying for investment then you can wait.

Shyam
Shyam
8 years ago

Hi Nitin,
I am planning to buy 1 BHK just outside Seawoods station (Nerul-E, Sector 25). Price is 70L for 625 SqFt.

Please advise if this is a good investment.

Thanks a lot.
-Shyam

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Shyam

Price vary drastically in this area. If the location is good then you may go ahead else psf rate of Rs 11200 is too high for this area.

Gaurav
Gaurav
8 years ago

Hi Nitin,
I am planning to buy a 1BHK flat in Thakur Complex, Kandivali. It is a resale flat with area of around 450-500 sqft. The price quoted is 80 L. Should I wait for sometime or go ahead with this rate?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Gaurav

If you are buying for investment then wait else you may go ahead.

Vinod
Vinod
8 years ago

Hi sir this is vinod I’m planning to buy 2bhk in virar (w) in rustomji global city actually the rates are very fluctuating so do u think this is the proper time to invest in virar pls advise

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Vinod

If you are buying for investment purpose then you can wait else you can buy.

Smita
Smita
8 years ago

Hi

Smita
Smita
8 years ago

Hello sir, i had invested in bhagtani riyo jaycee group project in mira roadby paying 30 pct 2 yrs back, however there is not yet improvement in the project as the builders office is saying they are still awaiting iod and the land is currently in family dispute.Should i still stay with the project or withdraw the amount

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Smita

You may move out of project as it will take time to resolve the legal dispute.

Ruchi
Ruchi
8 years ago

Hi Nitin,

I wanted to know if buying a property in the Bramhand (near Hiranandani Estate) area of Thane be a good idea. What kind of appreciation can be expected and which projects are good in this area? What would be an a good rate of a 2 BHK?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Ruchi

Its a good area nearly 1 km from Ghodbunder road. Rate of Rs 9000 psf will be good deal. Buy only from reputed builder as most of the land in this area was rural/agricultural. You can expect appreciation of 6%-10% depending on the pace of development.

Ruchi
Ruchi
8 years ago
Reply to  Nitin Bhatia

Thanks Nitin. Is Regency Heights a good project? What should be an ideal rate for an 816 Sq Ft 2 BHK? Within how many years can an appreciation be expected?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Ruchi

I have not evaluated this project.

Ruchi
Ruchi
8 years ago
Reply to  Nitin Bhatia

Ok. Can you evaluate the same and confirm?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Ruchi

project evaluation report is available on PAID basis. If you wish to avail the same, you can mail me at info@nitinbhatia.in

Ruchi
Ruchi
8 years ago
Reply to  Nitin Bhatia

Ok. Thanks Nitin.

Runal Shinde
Runal Shinde
8 years ago

Hi sir,

I am planning to buy a property in Nalasopara west with 3300 psf
rate, is the right rate or should I wait for the fall in rate as market price
is expected to fall more.

The property which I have seen falls between Nalasopara and Virar,
is it better to buy property in Virar or Nalasopara West. As people face a lot of electricity and water
issues in Nalasopara and Virar.

Could you suggest what would be the best psf rate for which I should
bargain with the builder.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Runal Shinde

Seems to be decent deal provided locality is good.

NeeLesH KuMar SaHu
NeeLesH KuMar SaHu
8 years ago

Can
i invest in SUpertech property near to sector 1 in noida extension, or cn i invest in noida
extansion /greater noida property like in supertech sports village and all
other supertech property like supertech eco village ? is it safe now?

Nitin Bhatia
Nitin Bhatia
8 years ago

Project review service is available on paid basis.

Jigar
Jigar
8 years ago

Hi,

I want to buy second home in Lonavala or Alibhaug.
Do you think there will be price correction in those area?

Jigar Thakkar

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Jigar

It depends in which pocket you are buying.

Umesh Hande
Umesh Hande
8 years ago

Hello Sir,

I am looking forward to buy 1BHK flat in kamothe sector 22, as private terrace including in that, it does charge me around 46 lakh, is it a good deal? or should I wait for some more time?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Umesh Hande

You have not mentioned area

Umesh Hande
Umesh Hande
8 years ago
Reply to  Nitin Bhatia

It is 710 sq ft area, in khandeshwar, kamothe sector 22, please suggest me if it is good deal?

Umesh Hande
Umesh Hande
8 years ago
Reply to  Nitin Bhatia

Sir Waiting to your replay

Umesh Hande
Umesh Hande
8 years ago
Reply to  Nitin Bhatia

It is 710 sq ft area, in khandeshwar, kamothe sector 22, please suggest me if it is good deal?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Umesh Hande

It’s a decent deal. You may negotiate 1-2 lac more.

Umesh Hande
Umesh Hande
8 years ago
Reply to  Nitin Bhatia

Thanks sir for information.

Tajinder
Tajinder
8 years ago

Hi Nitin,

I am so happy with the level of information you have shared.

I am looking to buy 1bhk, however I am confused with the locations. The property will be like a second home.

1. Can you please share some inputs on what exactly is “collector approved project”. Do they run a risk of losing money at a later stage. Cos I like the New Panvel area, however there is not much accessibility out there.

2. Which is a better option to go for : Badlapur / Vasai / New Panvel.

Thanks in Advance,
Tajinder

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Tajinder

1. Collector Approved Project means agricultural land is converted to Non-Agricultural for residential purpose. You check whether Commencement Certificate is available or not. Also check whether property title is clear or not.
2. My preference will be New Panvel

Tajinder
Tajinder
8 years ago
Reply to  Nitin Bhatia

Thank you

sweta
sweta
8 years ago

Hi Nitin,
We are looking to buy a flat in Navi mumbai, ghansoli, sector 22.It is an investors flat which got its possession in March this year.It’s a 960 sq feet(and a parking space) build up area flat and a 4 story building.Though the rate in this area is around 7500 psf, the total costing is asked as 81 lacs by the owner.Could you suggest if the price quoted is correct or should we bargain more.

Thanks,
Sweta

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  sweta

Price is on higher side. You can bargain.

sweta
sweta
8 years ago
Reply to  Nitin Bhatia

Thanks for your reply!
What should be the bargain range? Its 2bhk flat in sector 21 and also got OC.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  sweta

You may check last 2-3 transaction price in same complex and also in nearby apartments then you can decide the scope of negotiation.

kulvinder kaur
kulvinder kaur
8 years ago

Hi Nitin,
I want to invest in property. I am confused regarding property appreciation hike among navi Mumbai (kharghar/Kamothe/New Panvel) or Gurgaon or Noida/greater Noida. Please let me know which city will be best for investment point of view with good appreciation. I am confused. I want to invest for 1BHK. please guide where to invest and when to invest ? shall I wait for sometime for investment for further reduction ?
Please help and advice…
thanks
kulvinder

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  kulvinder kaur

I will prefer Navi Mumbai. For investment, you may wait for sometime for rates to stabilize.

ganesh mahadik
ganesh mahadik
8 years ago

hello,
my budget of 1 bhk flat is 2000000..age 27,where I can invest it properly or can I wait for fall prices .

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  ganesh mahadik

for investment you can wait.

vikas
vikas
8 years ago

I would like to invest in Land in Adai gaon, Panvel, Near to Express highway, which is coming under NAINA project. Can you pls give your opinion for upcoming 1-2yrs about returns or per sq. ft rates of plot? Is worth to take plot there in todays situation?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  vikas

You should invest in this area from long term horizon of 5-7 years. The appreciation of plot/land is more compared to residential property.

prh
prh
8 years ago

dear,
I want to buy 2BHK in Charkop kandivali west. what will be the best rate. I carried inquire with various builders.It informs in the range of 10000 to 12000 per sq feet.Can I wait or Buy it.It is for own residence purpose

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  prh

Builders rate does not include various misc charges. A final rate of Rs 11000 psf on total cost is a good buy. As you are buying for self occupation therefore you may go ahead.

vikas
vikas
8 years ago

hi

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