3 ms·

Is the real estate market still good? I have family abroad and want to invest.

kamaal 8y ago
That depends on what time scales you are looking at. Also staying Abroad and investing in India isn't a good thing to do. Sometimes there are encroachment issues.
- hiyer 8y ago
  That's only if you buy land. Not if you buy an apartment or fully constructed house.
sidm83 8y ago
Not good. I've been tracking the prices in Mumbai which has the most expensive market with the least supply in India and prices have not moved since 2014. There is potential for drastic fall as per the unsold inventory which may take over 7 years to sell based on current sales numbers. The Delhi-NCR market has seen drops of 20-25% as its a much bigger market and developers do not have the financial muscle compared to the ones in Mumbai.
- sumedh 8y ago
  > There is potential for drastic fall as per the unsold inventory which may take over 7 years I have been hearing that for the last 7 years.
  - ItsMe000001 8y ago
    Depending on context, does the potential for an event go away when the event does not occur for a long time? Much of the time I'd say that that has no information value whatsoever, and sometimes it may actually signal worse to come. So by itself I would claim the piece of data that you mention, accepting it at face value, is meaningless.
  - sidm83 8y ago
    Its not quite out in the open yet, but it is happening when you sit on the table and negotiate. A prime builder in the most prime location (BKC) is offering nearly 30% off on initial quote after a few rounds. There is humongous over supply in areas like Goregaon and Worli/Lower Parel. As per industry sources there is very little movement for properties north of INR50m which is essentially every apartment >=2br south from Bandra onwards. Builders like Oberoi have still not managed to sell flats which have been ready for 3-4 years in Goregaon, resulting in the recent 25% * 4 years scheme. It's a matter of time till they capitulate. Even otherwise, if they stay at old rates, they're effectively falling on account of inflation every year.
  - sidm83 8y ago
    There is also a clear change in the sales pitch. 4 years ago the pitch was about "investing". Now its about "end use". Clear sign of ending of investor fueled bubble.
- mockingbirdy 8y ago
  Thanks everybody, you saved me a lot of money. I had completely different information about the market.
throwawayqdhd 8y ago
Not really. Liquidity is a major problem. Properties sit n the market for years sometimes (as my dad's) before finding a buyer at supposed market valuation (which, in my view, is highly inflated)
hiyer 8y ago
Residential property is overpriced and supply exceeds demand. It's unlikely prices will fall - in India people would rather hold on to property than sell at even a slightly lower price - but you would have to be in for the really long haul to realize a decent profit.

That depends on what time scales you are looking at. Also staying Abroad and investing in India isn't a good thing to do. Sometimes there are encroachment issues.

hiyer 8y ago
That's only if you buy land. Not if you buy an apartment or fully constructed house.

sidm83 8y ago

Not good. I've been tracking the prices in Mumbai which has the most expensive market with the least supply in India and prices have not moved since 2014. There is potential for drastic fall as per the unsold inventory which may take over 7 years to sell based on current sales numbers. The Delhi-NCR market has seen drops of 20-25% as its a much bigger market and developers do not have the financial muscle compared to the ones in Mumbai.

sumedh 8y ago
> There is potential for drastic fall as per the unsold inventory which may take over 7 years I have been hearing that for the last 7 years.
- ItsMe000001 8y ago
  Depending on context, does the potential for an event go away when the event does not occur for a long time? Much of the time I'd say that that has no information value whatsoever, and sometimes it may actually signal worse to come. So by itself I would claim the piece of data that you mention, accepting it at face value, is meaningless.
- sidm83 8y ago
  Its not quite out in the open yet, but it is happening when you sit on the table and negotiate. A prime builder in the most prime location (BKC) is offering nearly 30% off on initial quote after a few rounds. There is humongous over supply in areas like Goregaon and Worli/Lower Parel. As per industry sources there is very little movement for properties north of INR50m which is essentially every apartment >=2br south from Bandra onwards. Builders like Oberoi have still not managed to sell flats which have been ready for 3-4 years in Goregaon, resulting in the recent 25% * 4 years scheme. It's a matter of time till they capitulate. Even otherwise, if they stay at old rates, they're effectively falling on account of inflation every year.
- sidm83 8y ago
  There is also a clear change in the sales pitch. 4 years ago the pitch was about "investing". Now its about "end use". Clear sign of ending of investor fueled bubble.
mockingbirdy 8y ago
Thanks everybody, you saved me a lot of money. I had completely different information about the market.

throwawayqdhd 8y ago

Not really. Liquidity is a major problem. Properties sit n the market for years sometimes (as my dad's) before finding a buyer at supposed market valuation (which, in my view, is highly inflated)

hiyer 8y ago

Residential property is overpriced and supply exceeds demand. It's unlikely prices will fall - in India people would rather hold on to property than sell at even a slightly lower price - but you would have to be in for the really long haul to realize a decent profit.