Yeh post lagta hai Maine likhi hai. I am in the same boat. I really don't understand how cost of houses and rent both have increased this much within a years of post covid normalisation. I have lived in 2 tier 2 cities i.e Bhubaneswar and Jaipur post covid. Both have seen a rise of 40-50% increase in house rent as well as ownership. I don't get it. Who are these people that became Ambanis in covid lockdown. Hearing the same from Bangalore as well. Only thing I can think of is people saved a shit ton during covid and it artificially jacked up the prices. Only solace I gather is that when it all comes crashing down, I wouldn't be having sleepless night because the value of my investment is going down.
>Only solace I gather is that when it all comes crashing down, I wouldn't be having sleepless night because the value of my investment is going down.
I have not seen real estate prices crash in india. They may stagnant for some time but they don't crash
The stagnation is because of the black money as you have mentioned in your post. Registration for a crore, selling it for 3 times that price. Pocketing the rest as tax free. Government crackdown on black money would stop people from buying it for 3 crores. Then it will come crashing down. But then again Indian government will never do that. In any case I have decided that owning a property is more hassle than comfort especially in a transferable job. So I will just wilt away and die in the comfort of my recliner
My house was supposed to be delivered in 2014. It's 10 years and counting and still don't have it.
Housing crises has been created by real estate companies as there are no laws existing.
Huh? Look at the population and area in India. Land is not a freely available commodity here, the population densities in cities are amongst the highest in the world. Im not justifying home prices but how can you compare home prices in Dubai and India??
>Im not justifying home prices but how can you compare home prices in Dubai and India??
Are Indian cities as good as Dubai ? Do people have as much income as in UAE ? Then what justifies such high cost, GDP per capita isn't even in top 100 but real estate price is top 15
>but how can you compare home prices in Dubai and India??
Dubai is literally dessert.
Indian real estate prices has nothing to do with demand. People willing to live in those places are not lining up to buy coz they can't afford it.
I understand your problem,I can try to clarify from my side of the story.My father was in the construction business since the last 10 years and the dynamics which have drastically changed for this business are wild. Earlier the Munical Corporation and govt, RERA were made to assist the home makers and buyers but now they feel like extortion machines,we personally have spent 60 percent of our profit just on Municipal fines,challans,taxes,misc.The Risk/Reward ratio is so low that breaking even seems like a hard stretch.
Illegal Constructio seems more flexible and economical due to the Red Taperism and Municipal Horrors.White Collar Side of this business is extremely dark and that has these effects trickling down on the consumers.
Threshold of what?
I can afford the rent and would do if renting was not that pain in ass here. Landlords arbitrary increase the rent, provide zero service (few things require repairing yet they drag their feet for months but would not taken even a second on deducting from security), arbitrary ask you to vacate!
20% of income going towards expense when it could have gone towards buying actual house is crazy.
All local MLA s and MPS are responsible for this. Thru ask cut and givt too purposely isn't acting on builder lobby
1.5 cr ka small 2 BHK will suck out 3 cr from earnings in loan and this after paying taxes.
Tax payers money is used to fund affordable housing for those who don't pay taxes but instead harass these tax payers
For what it’s worth most Indian cities rank well in price to income ratios across the world except Mumbai
https://www.numbeo.com/property-investment/rankings.jsp
The government is hand in gloves with them and work from the office was enforced because of this only...they know the cattle class will comply no matter what.
Yea, no one's talking about the problem right now cause
1) people are selling off legacy properties at high rates to move to modern apartments on the outskirts, and consider it an an upgrade
2) with inflation and various booms - everyone wants to get in on the value appreciation
I don't see real estate prices crashing, though. They might plateau for a while - but won't come down. And the only people suffering would be those who couldn't get to buy it at a decent price, or those who bought those ghost apartment flats at inflated prices and would then struggle to get tenants.
Soo true. Wealth inequality is significantly bad.
Handful of people trading residential houses for profit and hoarding it hurting avarage salaried person.
Prices are finally increasing in NCR after being stagnant for so long, the Dwarka Expressway frenzy
But yeah the new projects coming up, I am not sure who is buying that. 3-5 crores is like nothing now a days.
A decent 3BHK is 1.75cr in Dwarka. So it is out of reach for every government employee, which was not the case when I came to Delhi 25 years ago. A lot of my Dad's colleagues bought DDA flats in those days.
If you look at the financial aspect, it is always economical to Moreover you e willstay in the rented house than buying a house. The money which is used to buy a house can be invested and the return can be used to pay the rent. Moreover you will b have to pay money for maintaining & repairing the house.
I would happily rent if renting is not pain in ass in here. Rent increases arbitrary, landlord ask to vacate arbitrary, no maintenance provided by landlord.
I hate moving frequently or not buy certain furniture I need but know next house may not have that space.
Renting doesn't feel like I am settled fully.
I would seriously love to have a long lease contract with fixed increment built in, like it used to be earlier. That's not the case today so I will always gravite towards buying.
I bought a new decent 2bhk for 40 lacs in Bangalore 3years back. I am sure you can find within 50-60 lacs. Unless you want the ultra luxury or even luxury apartments
Back in 2022, I bought a 3 BHK in Gurgaon under affordable housing scheme for 28 lakhs, all my Co worker's told me I am an idiot and now it's difficult to find anything below 1 crore in Gurgaon under new launch.
Unfortunately the demand and supply is still mismatched and the builders are in cohorts with the politicians. So it’s quite difficult for the real estate prices to come down until there is an intervention. It may stabilise for a while but it will always keep on increasing.
At this day a 2bhk 900 sq.ft costs around 1.5cr in Mumbai. The same is around 80-85L in noida and 35-40L in Kolkata or Nagpur. This disparity will be there due to unplanned urbanisation.
OP you can also look for resale property which are 10-15 years old. The rates of those might be affordable for you
Property prices in Bangalore are exorbitant, whether you intend to buy or rent. Although I now reside outside of India, my ultimate objective is to relocate to Bangalore. Rent for a three-bedroom flat is around one lakh, and in reputable communities, buying one would likely cost you more than 3.5 crore. There was a time when nobody wanted to live in Devanahalli, but nowadays, all the luxury apartments sell out within 15 minutes of opening there. A villa starts at 3.5 crore, and believe me, that's just the starting price; you will ultimately need to spend 1 crore furnishing it. Ultra-rich people are investing in real estate and ultimately exiting at exorbitant profits. I invested in Bangalore back in 2010, real estate was picking up then but I got a decent deal for a 3BHK apartment in south Bangalore. If I see now same 3 BHK is priced at 4.5 cr and people are ready to pay for it. I know so many people who have 3-4 properties in Bangalore and they are living in a rental apartment.
I was surprised when the property broker told me that within 15 minutes of registration opening, all the villas were sold off. They sold it for 3.5 cr & now most of them are up for reselling at a whopping price of 5+ cr.
Property brokers drive BMW and Merc in Bangalore, their commissions are so great.
Building tall always doesn't equate to cheaper prices (land wise), there is a ratio for a particular city. For most of Indian cities buildings should not be a single home, but avearge 6 stories tall. Then there will be a good mix of availability and affordability. Building too tall or building singly family homes has ruined our cities.
There is a missing middle similar to US. We are in an uncontrollable urban sprawl.
Nothing different in any other country to be fair. See the state of USA for example, even upper middle class is priced out from the city area.
People who are able to afford do get into 30 years lock-in for mortgages. With credit cards and easy loans becoming easier, people are in debt more than ever.
USAs debt is growing faster than ever, and is all time high on the number. Uk economy is bad. Greece bankrupted. China growths slowing down. Japan has population issue.
India has issues but is surprisingly doing well economically. Which translate to having more money in hand. Hence the spending. If India pushes hard on public transit and planned cities, lot more economic growth is possible.
>See the state of USA for
I seriously don't give a damn about what is happening in other countries. I live in India and I can't afford a place here.
Am I bashing the country for you to defend it with whataboutery?
He is quite on point though in his last line. Right now tier 3 cities seem to be affordable. In tier 1 cities I found Kolkata be somewhat affordable as well for a modest 2bhk. You can try looking your options in tier 3 cities and in the coming decades it will have good connectivity and might get you a good return.
Am also in the same boat as you
>You can try looking your options in tier 3 cities and in the coming decades it will have good connectivity and might get you a good return.
I am not looking to buy real estate fof returns but to live. How does buying in tier 3 city helps when my office and family is in tier 1 city?
Tier 1 cities are unaffordable by a large margin. You can buy up a house at a cheaper rate there and when it appreciates sell it off to buy one in tier 1 city if you wish to.
If you want to buy in your city at an affordable rate you can either look for one at the outskirts and try to negotiate it. Mid tier builders would be more open to negotiation but your work for background check will increase. Or you go for properties which are 15+ years old within the city itself. But then banks won’t provide you 90 percent loans like they do for new construction.
Either way the situation is precarious.
>when it appreciates sell it off to buy one in tier 1 city if you wish to.
It's hard to predict which property gives enough appreciation for me to buy a house. This is game for rich folks not me.
>Or you go for properties which are 15+ years old within the city itself.
Even those are asking inflated rates. I don't mind buying older property and flip it for my requirements but situation is grim there as well.
Generally a property appreciates for 10 years and then prices stabilise. If you can negotiate or if the owner is in a hurry you might be able to convince them at a lower price. Resale properties just might be the way for you to go. But in that case it’s better you approach buyers through mutual contacts coz brokers definitely gonna rip you off. If your finances are sorted then resale properties are the way to go.
Good luck my man. Hope u find what you looking for.
It’s always bad news when you let people use houses as investment vehicles. Interest rates should be super low for a family house and super high for investments…
Never trust bankers…
There should be a cap on how many one guy or institution can buy. Plus reserve majority for localites ( It goes against fundamental rights but people from richer states buying up apartments and then localites pay rent for life)
This has to be the way.
It should be govt's priority to digitalised property records across india, map it to PAN cards and simply not let people hoard the residential property.
If you have money to invest, go invest in FD, Equity, businesses, commercial property, etc. But leave residential property for someone who want to live there.
But since it is the best way to launder and park cash, govt will not do anything.
This is accurately said. We talk about other countries like US about their housing issues but we facing the same issue here. I live in Bangalore and the real estate prices and rent have gone up so high that I am scared to even think about what would the future look like! Recently my landlord called us and told us that he will have to increase the rent (once again in 8 months) because the market rate is more. We think of buying a house but the rates are so high for the apartments located in main city. If u move towards outskirts of the city u have other issues like road problem, dust, water crisis etc. Apartments situated in outskirts of Bangalore were the first to face water crisis.
I agree with your point being that rent is very high. But is it actually artificially inflated or is it cuz of lesser supply and higher demand of decent homes? Our population in Tier-1 cities is going to continue booming, and and if the government doesn’t actually redirect jobs to smaller towns it’s going to keep going up.
P.S, i live in Bangalore.
I am a flat owner....I take 24k for 2bhk ..and honestly...mujhe leneka Mann nahi krta 🥲 but mujhe bhi kahi aur rent pe rehena padta hai so jitna jyada mil sake le leta hu...but I am truly tired of this inorganic fake real estate growth....I hope this market crashes hard someday
Bhai your not alone. I'm in the same boat. My hometown is a tier 2/3 city, and I have a home big enough to to make 2 3BHK Mumbai flats, and still left with space. I moved to Mumbai for job, only to end up living i what I felt was kabootarkhana (pigeon house). With aging parents and wife, I'm sole earning member. Paying 25% of salary as rent. I cant and don't want to buy a home in outskirts for which I'll keep paying for next 30 years, that too a "flat" not even enough for all my needs. And i know for sure, the prices will never fall as people who have bought them, have deep pockets.
My only hope is to have a permanent WFH setup so I can save something for future.
Is Evergrande like situation possible in india, someone knowledgeable about real easte chime in about this? Cases like chintel paradiso makes me worry about every buying flat in a high rise buildings. Also these places were hotbed of covid cases as so many people shared elevator and common amenities. Its just my personal opinion, a person should buy standalone home , if thats not feasible buy a flat in low rise buildings.Just imagine if super tall buildings develops structural problem, it won't be feasible to do redevelopment.
Crash will happen based on individual pockets rather than India as a whole unless there are some major economic events. Currently, some pockets are under oversupply and transactions are not happening. It seems the younger generation is not much interested in real estate or owning homes. Many of them are investing in digital investments such as Bitcoin and large chunk is flowing into stock markets. Only the job filled cities such as Bangalore, Chennai, etc are not seeing a downfall . But even in those cities, there are many unsold properties especially in the periphery. A crash will happen first in the smaller markets and then followed by the bigger cities. Due to resources crunch and poor infrastructure, even the bigger cities are losing their real estate charm..
There was never oversupply until now. Demand was also robust. Currently prices are stagnant in few markets in south since a long time. Sales were not happening especially in land deals during Covid as well as after demonitizatipn. some sellers who have cash urgency have already started panic selling .
>Economical to rent a house and buy small plots with whatever u can save..
I will rather rent and invest in equity.
I am not looking for ROI, but a permanent base to settle down for rest of life. It is not too much to ask for.
Stop making a lot of children as population boom exaggerates this problem further. Recently a friend of mine married, and now their parents pressure them to make children, but they don't have time or money to afford. Not only them, but this happens in many households. First pressure to marry someone, then pressure to make children. It will get worst in the future.
[India's Population Expected To Rise Till 2050 And Then Decline: UN (ndtv.com)](https://www.ndtv.com/india-news/indias-population-expected-to-rise-till-2050-and-then-decline-un-3961880)
>Stop making a lot of children as population boom exaggerates
India's population is growing at 1.1% and fertility rate is now 2. Indians are not producing kids in great numbers.
Also, if you talk to people on ground, the high prices are not because of high demand across population. It is due to same set of HNIs investing their money real estate and brokers inflate the price for next buyer.
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2 is already high as around 2.1 means the population is stable, which is good for a country with low population but not for India as there are billions of people. The population in India is supposed to reduce below 1 billion, and for that the fertility rate should be either minus or below 1%.
[File:Total Fertility Rate Map by Country.svg - Wikipedia](https://en.wikipedia.org/wiki/File:Total_Fertility_Rate_Map_by_Country.svg)
According to UN, India's population will go over 1.66b by 2050 from 1.44b from current number. It's not good as it means more people, more resources are required, more space is required, more housing is required, more jobs are required, more foods are required, more energy is required to power all their houses and workspaces. This is not good when the country's size doesn't increase over time.
>and for that the fertility rate should be either minus or below 1%.
And end up with higher number older population and less number of younger population to sustain them?
Population isn't simple variable that you can force it go into negative growth when required and pump up the numbers later.
No country where population has declined way too much has been able to reverse it. They rely on immigration and inviting more issues with it.
Long term sustainability is what we want. It is projected that India's population will start declining as early as 2047 so I don't think we need to intervene anymore and let nature takes it course.
Rather, spend all the effort in developing the human resource.
Yeh post lagta hai Maine likhi hai. I am in the same boat. I really don't understand how cost of houses and rent both have increased this much within a years of post covid normalisation. I have lived in 2 tier 2 cities i.e Bhubaneswar and Jaipur post covid. Both have seen a rise of 40-50% increase in house rent as well as ownership. I don't get it. Who are these people that became Ambanis in covid lockdown. Hearing the same from Bangalore as well. Only thing I can think of is people saved a shit ton during covid and it artificially jacked up the prices. Only solace I gather is that when it all comes crashing down, I wouldn't be having sleepless night because the value of my investment is going down.
>Only solace I gather is that when it all comes crashing down, I wouldn't be having sleepless night because the value of my investment is going down. I have not seen real estate prices crash in india. They may stagnant for some time but they don't crash
The stagnation is because of the black money as you have mentioned in your post. Registration for a crore, selling it for 3 times that price. Pocketing the rest as tax free. Government crackdown on black money would stop people from buying it for 3 crores. Then it will come crashing down. But then again Indian government will never do that. In any case I have decided that owning a property is more hassle than comfort especially in a transferable job. So I will just wilt away and die in the comfort of my recliner
It's the politicians who are both in the selling and buying business of real estate. Why would they unleash crackdown on their own money.
They will crash when global warming causes the coastal states to sink. Lol nobody would be buying then too.
I will be long dead by then so I don't care.
People living 1km from beach will jack up price as now you have beach view
Nah they won’t.
My house was supposed to be delivered in 2014. It's 10 years and counting and still don't have it. Housing crises has been created by real estate companies as there are no laws existing.
It is absolutely ridiculous that it's cheaper to buy a house in Dubai than in India. Governments and builders are just looting the people.
Huh? Look at the population and area in India. Land is not a freely available commodity here, the population densities in cities are amongst the highest in the world. Im not justifying home prices but how can you compare home prices in Dubai and India??
>Im not justifying home prices but how can you compare home prices in Dubai and India?? Are Indian cities as good as Dubai ? Do people have as much income as in UAE ? Then what justifies such high cost, GDP per capita isn't even in top 100 but real estate price is top 15
Population and land area. India has note rich people than many countries in absolute terms.
>but how can you compare home prices in Dubai and India?? Dubai is literally dessert. Indian real estate prices has nothing to do with demand. People willing to live in those places are not lining up to buy coz they can't afford it.
Folks will come here and comment that you earn so much money, you are not middle class, you can easily buy a flat etc. It's sad man
I understand your problem,I can try to clarify from my side of the story.My father was in the construction business since the last 10 years and the dynamics which have drastically changed for this business are wild. Earlier the Munical Corporation and govt, RERA were made to assist the home makers and buyers but now they feel like extortion machines,we personally have spent 60 percent of our profit just on Municipal fines,challans,taxes,misc.The Risk/Reward ratio is so low that breaking even seems like a hard stretch. Illegal Constructio seems more flexible and economical due to the Red Taperism and Municipal Horrors.White Collar Side of this business is extremely dark and that has these effects trickling down on the consumers.
What did you mean by extremely dark?
Blatant Corruption,depressing levels of Political Pressure, people being cheap (not just in monetary aspect) ,Sadistic People and the list goes on.
20% is well within the rent threshold.. you must be celebrating
Threshold of what? I can afford the rent and would do if renting was not that pain in ass here. Landlords arbitrary increase the rent, provide zero service (few things require repairing yet they drag their feet for months but would not taken even a second on deducting from security), arbitrary ask you to vacate! 20% of income going towards expense when it could have gone towards buying actual house is crazy.
Ideally true .. buying your own home is always the target. But 20% of salary going to rental cost is not much compared to other cities
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>suffering from succesa Ah yes! Not able to afford a home for family and being disgruntled of renting process is suffering from success.
Sorry.
and you must be a landlord.
Nahh I am a peasant… but I commented on the 20% income goes to rent thing. Where I live, I pay around half of what I earn for rent. So : )
All local MLA s and MPS are responsible for this. Thru ask cut and givt too purposely isn't acting on builder lobby 1.5 cr ka small 2 BHK will suck out 3 cr from earnings in loan and this after paying taxes. Tax payers money is used to fund affordable housing for those who don't pay taxes but instead harass these tax payers
For what it’s worth most Indian cities rank well in price to income ratios across the world except Mumbai https://www.numbeo.com/property-investment/rankings.jsp
Delhi - 10.7 New York - 11 So good to know that Delhi is close to New York in terms of affordability. I am at peace now.
Hahahaha fair enough. I guess the data just goes to show that there are much worse places around the world compared to even New York
The government is hand in gloves with them and work from the office was enforced because of this only...they know the cattle class will comply no matter what.
Yea, no one's talking about the problem right now cause 1) people are selling off legacy properties at high rates to move to modern apartments on the outskirts, and consider it an an upgrade 2) with inflation and various booms - everyone wants to get in on the value appreciation I don't see real estate prices crashing, though. They might plateau for a while - but won't come down. And the only people suffering would be those who couldn't get to buy it at a decent price, or those who bought those ghost apartment flats at inflated prices and would then struggle to get tenants.
Upper middle class people who own more than 2-3 houses hurt me more than Ambani/Adani ever did
Soo true. Wealth inequality is significantly bad. Handful of people trading residential houses for profit and hoarding it hurting avarage salaried person.
Prices are finally increasing in NCR after being stagnant for so long, the Dwarka Expressway frenzy But yeah the new projects coming up, I am not sure who is buying that. 3-5 crores is like nothing now a days. A decent 3BHK is 1.75cr in Dwarka. So it is out of reach for every government employee, which was not the case when I came to Delhi 25 years ago. A lot of my Dad's colleagues bought DDA flats in those days.
If you look at the financial aspect, it is always economical to Moreover you e willstay in the rented house than buying a house. The money which is used to buy a house can be invested and the return can be used to pay the rent. Moreover you will b have to pay money for maintaining & repairing the house.
I would happily rent if renting is not pain in ass in here. Rent increases arbitrary, landlord ask to vacate arbitrary, no maintenance provided by landlord. I hate moving frequently or not buy certain furniture I need but know next house may not have that space. Renting doesn't feel like I am settled fully. I would seriously love to have a long lease contract with fixed increment built in, like it used to be earlier. That's not the case today so I will always gravite towards buying.
I bought a new decent 2bhk for 40 lacs in Bangalore 3years back. I am sure you can find within 50-60 lacs. Unless you want the ultra luxury or even luxury apartments
Dude check current prices. You were lucky enough to buy during COVID times when the prices actually went down for once.
Back in 2022, I bought a 3 BHK in Gurgaon under affordable housing scheme for 28 lakhs, all my Co worker's told me I am an idiot and now it's difficult to find anything below 1 crore in Gurgaon under new launch.
Well said
Unfortunately the demand and supply is still mismatched and the builders are in cohorts with the politicians. So it’s quite difficult for the real estate prices to come down until there is an intervention. It may stabilise for a while but it will always keep on increasing. At this day a 2bhk 900 sq.ft costs around 1.5cr in Mumbai. The same is around 80-85L in noida and 35-40L in Kolkata or Nagpur. This disparity will be there due to unplanned urbanisation. OP you can also look for resale property which are 10-15 years old. The rates of those might be affordable for you
Property prices in Bangalore are exorbitant, whether you intend to buy or rent. Although I now reside outside of India, my ultimate objective is to relocate to Bangalore. Rent for a three-bedroom flat is around one lakh, and in reputable communities, buying one would likely cost you more than 3.5 crore. There was a time when nobody wanted to live in Devanahalli, but nowadays, all the luxury apartments sell out within 15 minutes of opening there. A villa starts at 3.5 crore, and believe me, that's just the starting price; you will ultimately need to spend 1 crore furnishing it. Ultra-rich people are investing in real estate and ultimately exiting at exorbitant profits. I invested in Bangalore back in 2010, real estate was picking up then but I got a decent deal for a 3BHK apartment in south Bangalore. If I see now same 3 BHK is priced at 4.5 cr and people are ready to pay for it. I know so many people who have 3-4 properties in Bangalore and they are living in a rental apartment. I was surprised when the property broker told me that within 15 minutes of registration opening, all the villas were sold off. They sold it for 3.5 cr & now most of them are up for reselling at a whopping price of 5+ cr. Property brokers drive BMW and Merc in Bangalore, their commissions are so great.
Building tall always doesn't equate to cheaper prices (land wise), there is a ratio for a particular city. For most of Indian cities buildings should not be a single home, but avearge 6 stories tall. Then there will be a good mix of availability and affordability. Building too tall or building singly family homes has ruined our cities. There is a missing middle similar to US. We are in an uncontrollable urban sprawl.
Yeah true
Nothing different in any other country to be fair. See the state of USA for example, even upper middle class is priced out from the city area. People who are able to afford do get into 30 years lock-in for mortgages. With credit cards and easy loans becoming easier, people are in debt more than ever. USAs debt is growing faster than ever, and is all time high on the number. Uk economy is bad. Greece bankrupted. China growths slowing down. Japan has population issue. India has issues but is surprisingly doing well economically. Which translate to having more money in hand. Hence the spending. If India pushes hard on public transit and planned cities, lot more economic growth is possible.
>See the state of USA for I seriously don't give a damn about what is happening in other countries. I live in India and I can't afford a place here. Am I bashing the country for you to defend it with whataboutery?
He is quite on point though in his last line. Right now tier 3 cities seem to be affordable. In tier 1 cities I found Kolkata be somewhat affordable as well for a modest 2bhk. You can try looking your options in tier 3 cities and in the coming decades it will have good connectivity and might get you a good return. Am also in the same boat as you
>You can try looking your options in tier 3 cities and in the coming decades it will have good connectivity and might get you a good return. I am not looking to buy real estate fof returns but to live. How does buying in tier 3 city helps when my office and family is in tier 1 city?
Tier 1 cities are unaffordable by a large margin. You can buy up a house at a cheaper rate there and when it appreciates sell it off to buy one in tier 1 city if you wish to. If you want to buy in your city at an affordable rate you can either look for one at the outskirts and try to negotiate it. Mid tier builders would be more open to negotiation but your work for background check will increase. Or you go for properties which are 15+ years old within the city itself. But then banks won’t provide you 90 percent loans like they do for new construction. Either way the situation is precarious.
>when it appreciates sell it off to buy one in tier 1 city if you wish to. It's hard to predict which property gives enough appreciation for me to buy a house. This is game for rich folks not me. >Or you go for properties which are 15+ years old within the city itself. Even those are asking inflated rates. I don't mind buying older property and flip it for my requirements but situation is grim there as well.
Generally a property appreciates for 10 years and then prices stabilise. If you can negotiate or if the owner is in a hurry you might be able to convince them at a lower price. Resale properties just might be the way for you to go. But in that case it’s better you approach buyers through mutual contacts coz brokers definitely gonna rip you off. If your finances are sorted then resale properties are the way to go. Good luck my man. Hope u find what you looking for.
I believe real estate is a bubble in India which will explode if the government decides to increase FSI in cities or develop new tier-2 towns.
It’s always bad news when you let people use houses as investment vehicles. Interest rates should be super low for a family house and super high for investments… Never trust bankers…
There should be a cap on how many one guy or institution can buy. Plus reserve majority for localites ( It goes against fundamental rights but people from richer states buying up apartments and then localites pay rent for life)
This has to be the way. It should be govt's priority to digitalised property records across india, map it to PAN cards and simply not let people hoard the residential property. If you have money to invest, go invest in FD, Equity, businesses, commercial property, etc. But leave residential property for someone who want to live there. But since it is the best way to launder and park cash, govt will not do anything.
This is accurately said. We talk about other countries like US about their housing issues but we facing the same issue here. I live in Bangalore and the real estate prices and rent have gone up so high that I am scared to even think about what would the future look like! Recently my landlord called us and told us that he will have to increase the rent (once again in 8 months) because the market rate is more. We think of buying a house but the rates are so high for the apartments located in main city. If u move towards outskirts of the city u have other issues like road problem, dust, water crisis etc. Apartments situated in outskirts of Bangalore were the first to face water crisis.
I agree with your point being that rent is very high. But is it actually artificially inflated or is it cuz of lesser supply and higher demand of decent homes? Our population in Tier-1 cities is going to continue booming, and and if the government doesn’t actually redirect jobs to smaller towns it’s going to keep going up. P.S, i live in Bangalore.
I am a flat owner....I take 24k for 2bhk ..and honestly...mujhe leneka Mann nahi krta 🥲 but mujhe bhi kahi aur rent pe rehena padta hai so jitna jyada mil sake le leta hu...but I am truly tired of this inorganic fake real estate growth....I hope this market crashes hard someday
Bhai your not alone. I'm in the same boat. My hometown is a tier 2/3 city, and I have a home big enough to to make 2 3BHK Mumbai flats, and still left with space. I moved to Mumbai for job, only to end up living i what I felt was kabootarkhana (pigeon house). With aging parents and wife, I'm sole earning member. Paying 25% of salary as rent. I cant and don't want to buy a home in outskirts for which I'll keep paying for next 30 years, that too a "flat" not even enough for all my needs. And i know for sure, the prices will never fall as people who have bought them, have deep pockets. My only hope is to have a permanent WFH setup so I can save something for future.
I am pretty sure the work from home ended to bring back the money in real estate that are owned, run and managed by politicians behind the curtains.
It's an open secret. The SEZ laws let govt do that.
Increasing living costs and decreasing incomes. Lets not start on the unemplyment levels.
Is Evergrande like situation possible in india, someone knowledgeable about real easte chime in about this? Cases like chintel paradiso makes me worry about every buying flat in a high rise buildings. Also these places were hotbed of covid cases as so many people shared elevator and common amenities. Its just my personal opinion, a person should buy standalone home , if thats not feasible buy a flat in low rise buildings.Just imagine if super tall buildings develops structural problem, it won't be feasible to do redevelopment.
Crash will happen based on individual pockets rather than India as a whole unless there are some major economic events. Currently, some pockets are under oversupply and transactions are not happening. It seems the younger generation is not much interested in real estate or owning homes. Many of them are investing in digital investments such as Bitcoin and large chunk is flowing into stock markets. Only the job filled cities such as Bangalore, Chennai, etc are not seeing a downfall . But even in those cities, there are many unsold properties especially in the periphery. A crash will happen first in the smaller markets and then followed by the bigger cities. Due to resources crunch and poor infrastructure, even the bigger cities are losing their real estate charm..
>Crash will happen based on individual pockets Never seen a crash in real estate.
There was never oversupply until now. Demand was also robust. Currently prices are stagnant in few markets in south since a long time. Sales were not happening especially in land deals during Covid as well as after demonitizatipn. some sellers who have cash urgency have already started panic selling .
Economical to rent a house and buy small plots with whatever u can save.. Dont build or buy rn
>Economical to rent a house and buy small plots with whatever u can save.. I will rather rent and invest in equity. I am not looking for ROI, but a permanent base to settle down for rest of life. It is not too much to ask for.
Stop making a lot of children as population boom exaggerates this problem further. Recently a friend of mine married, and now their parents pressure them to make children, but they don't have time or money to afford. Not only them, but this happens in many households. First pressure to marry someone, then pressure to make children. It will get worst in the future. [India's Population Expected To Rise Till 2050 And Then Decline: UN (ndtv.com)](https://www.ndtv.com/india-news/indias-population-expected-to-rise-till-2050-and-then-decline-un-3961880)
>Stop making a lot of children as population boom exaggerates India's population is growing at 1.1% and fertility rate is now 2. Indians are not producing kids in great numbers. Also, if you talk to people on ground, the high prices are not because of high demand across population. It is due to same set of HNIs investing their money real estate and brokers inflate the price for next buyer.
|| || | [India](https://en.wikipedia.org/wiki/India)|1.6|2.1|2.0| 2 is already high as around 2.1 means the population is stable, which is good for a country with low population but not for India as there are billions of people. The population in India is supposed to reduce below 1 billion, and for that the fertility rate should be either minus or below 1%. [File:Total Fertility Rate Map by Country.svg - Wikipedia](https://en.wikipedia.org/wiki/File:Total_Fertility_Rate_Map_by_Country.svg) According to UN, India's population will go over 1.66b by 2050 from 1.44b from current number. It's not good as it means more people, more resources are required, more space is required, more housing is required, more jobs are required, more foods are required, more energy is required to power all their houses and workspaces. This is not good when the country's size doesn't increase over time.
>and for that the fertility rate should be either minus or below 1%. And end up with higher number older population and less number of younger population to sustain them? Population isn't simple variable that you can force it go into negative growth when required and pump up the numbers later. No country where population has declined way too much has been able to reverse it. They rely on immigration and inviting more issues with it. Long term sustainability is what we want. It is projected that India's population will start declining as early as 2047 so I don't think we need to intervene anymore and let nature takes it course. Rather, spend all the effort in developing the human resource.