Real Estate trend 2009 & DLF Westend Heights, Bangalore in Trouble

In continuation to my post  Real Estate Prices in India face slowdown 

I happened to read the below public notice in todays (May 07, 2009) Times of India Bangalore Edition, page 20. 

This is also available in their online newspaper edition called e paper( I am not able to put the link here) but go to http://epaper.timesofindia.com/Default/Client.asp?Daily=TOIBG&showST=true&login=default&Enter=true&Skin=TOINEW&GZ=T and check out for page 20. 

I dont know how true  it is that DLF tried selling the residential property in bangalore without approval as claimed in the notice, but one thing is for sure if it is right then its one of the worst things to happen to DLF and to the real estate markets. 

Real Estate Trends 2009:

Pretty sad to see the state of affairs in Real Estate companies. In fact if you read my earlier post on real estate you will find that the actual correction should have been close to 30% in various markets. I still feel there is lot of room for real estate prices to go down. The reasons remain the same. Till now lot of companies somehow managed to keep the price drops to just around 18% but things still are not looking good, funds have still not started flowing to the builders even after the rate cuts. This can lead to more price drops in most of the markets where prices had bubbled. I feel that if builders reduce more prices then cautiously buyers might come in and prices will start stabilizing. I have seen some builders in Bangalore doing so lets see how it progresses. 

I was going through the jones lang la salle research report on global market perspective available at their website www.joneslanglasalle.com. It says, in Mumabi the rentals have gone down by 25% Delhi by 18%. Its not only the residential prices its also comercial which is getting hit now. I quote them 'The decline in Asia Pacific property fundamentals is likely to continue during 2009, with office rentals expected to fall between 20 percent and 40 percent'. So its not only property price its also rental which is in trouble.

Just an opinion. 


Comments

  1. Victor MalangalMay 08, 2009

    Thanks for the post Suresh and also thanks for keeping us updated. Indeed its so bad to see builders flouting rules.
    Can you let me know which agency or whom to contact for buying a property in Bangalore / Kerala. English speaking only. My friend Vincent told me to check with you for genuine guys.
    Regards

    ReplyDelete
  2. UnknownMay 08, 2009

    Dear Mr Victor
    Thanks for the comment. Nice to see that you liked the post. There are few guys whom I know in Kerala & Bangalore who can help you, I have sent you a mail with their details at the same ID.
    Please do check and feel free to call or mail me.
    Regards
    Suresh

    ReplyDelete

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