The story of the boom and the crash in the real estate sector has been well documented. Ever-increasing demand and inflated prices saw housing costs rising to unprecendented heights. But soon the global economic slowdown hit industry sectors hard; none was as badly affected as the real estate sector.
Then the government and the Reserve Bank stepped in. Stimuls packages coupled with dropping interest rates and housing prices have sought to breathe life into the realy sector so that builders can sell their apartments and people can buy them at affordable rates.
So will housing prices drop further? Or should you wait for a while? When will the price rise bottom out? Is this the right time to buy a home? What factors affect real estate the most?
What should you keep in mind while buying a house? How can one get the best bargain?
Santosh Naik, managing director and chief executive of Disha Direct Marketing Services Pvt Ltd, offered some valuable tips during a chat on rediff.com on Friday.
Here is the transcript:
Sandy asked, Sir, I am planning to buy a house in Hadapsar,Pune.what is the rate p.s.f in Hadapsar area,chances of appreciation in 5 year Horizon & expected rentals??????
Santosh Naik answers, at 2009-06-26 15:23:08In Hadapsur the rates are between 1800 to 2800/- and there are good chances of appreciation between 40% - 60% in 5 years horizon.The expected rental would be around 3000/- to 5000/- depending on the area of flat
Prashant asked, Hi Santosh. Is it prudent idea to buy a flat at Godhbandar road, Mumbai. What is the fair price at that location.
Santosh Naik answers, Rates have considerablly have come down on Godhbunder area and the price band is between 2000 - 3200/- depending on the location of the project and stage of construction.Its a right time to invest on Godhbunder Road because the prices are 30% - 50% lower than the peak rates.
sanjaypatle asked, I HAVE BOOKED THE 2BHK @2750, 973 SQ.FT FLAT IN PUNE AT NANDEDG CITY PROJECT OF MAGAPATTA DEVELOPER. WHAT RETURN CAN I EXPECT 3-5 YEARS
Santosh Naik answers, in a span of 3 - 5years you can expect a return between 30% to 50%. Its a good option for investment as far as the project is concerned.
vijay asked, which location is best for book hone
Santosh Naik answers, This is a very general question which i would like to answer keeping in mind todays real estate scnario. Rates have come down between 20% to 60% at different locations and there are many projects available at resonable rates what we call right product at right price. And its a right time to buy residential properties at right price. There are many project being launched from developers at 30% to 40% lower then the market rate. If you study the market rates in nearby area and think the rates are right you could buying the property.
satpal asked, sir could you give me tips to buy a property for investment purpose range 35-55 lacs
Santosh Naik answers, Since i dont know our location preference. As of now in this price range you can buy property in Thane and Borivali
LAL asked, SIR CAN I INVEST IN CHENNAI FOR A FLAT?
Santosh Naik answers, Yes. It is a good tim to buy flat in chennai.
Deepali asked, Sir, m planing to buy a flat in majiwada gaon thane, wht are the rates in tht area...and is the good location to buy a flat .
Santosh Naik answers, You will get a good bargin between 3500/- to 4500/-
Pourus asked, At present I am settled in Alaska and am planning to resettle in India. Can you please explain in short how feasible is making an investment in India and is this the right time to do so? By any chance is the recession in any way will affect my decision of buying a new home in India?
Santosh Naik answers, This is right itme to invest in Indian real Estate since the prices have come down between 30% to 60%. In addition to this due to appreciation in Dollars the effective reduction in rates is around 60%. So overall its a good time for NRI to invest in India. Please check the developers reliability, Legal clearances and approvls and project completion period.
abcde asked, how much would it cost me to buy residential land in Pune, especially in locations like Mulshi or Kondhwa or NDA road ? what are the land rates over there? what place can bring good returns?
Santosh Naik answers, Land rates at above are is between 1000/- to 1200/- per sq.ft. Mulshi will give you good return on your investment
harish asked, What things should be carefully negotiated with a builder while buying a flat?
Santosh Naik answers, You should check developers reliability, legal approvals, project completion period and aminities provided by the developer.
Fonseca asked, Are there any projects available in Nagpur as I am planning to shift soon and what price are they offered at?
Santosh Naik answers, In Nagpur the rates are between 1500/- to 5000/- Per Sq.Ft depending upon the location.
SACK asked, HELLOW SIR, I AM PLANNING TO BUY 2 BHK IN RUSTOMJEE GLOBAL CITY IN VIRAR BUILDER IS COATING 2650/SQ.FT CAN YOU SUGGEST ME THIS RATE IS GOOD FOR LOCALIATY LIKE VIRAR
Santosh Naik answers, this is a good rate to buy this property at Virar
ravid asked, when prices will saturate for buying house in bangalore
Santosh Naik answers, The prices have already come down in Bangalore and if you have finalised the property you can still negotiate the rates with the developers.
Zingalal asked, Hi. There are plots available for Rs. 650 per sq. feet at Khise Park near Lohgaon airport in Pune. Do you think it is worth it?
Santosh Naik answers, You can still bargain and get approx 10% lower price
Anilambani asked, What is your vision for 3 -5 years from now for property rates? Will they Increase? If yes how much increase can be expected in Noida and Greater Noida?
Santosh Naik answers, Noida abd Greater Noida has got a good future as far as Real Estate is concern and you can expect 60% - 80% appreciation in 5 years
nitinvgandhi asked, I want to buy second house in Mumbai as investment. Budget is Rs 25 Lakhs. which place/area you suggest ? Do you want to recommend any specific project ? thanks
Santosh Naik answers, You can buy a second home in mumbai suburbs like Virar, Kalyan and dombivali at your budget of 25 lakhs
phgaykar asked, hello sir...do u think purchasing home now in Pune....Rahatani area is good decision...or should we wait for sometime
Santosh Naik answers, Pune prices have bottom down and it is a right time to invest in Pune
sunh asked, hello, my neighbour is selling his house it is a 1 room house, we plan to buy it to extend our house. his house is 330 sq feet. however he is asking for 25 lakhs. I am staying at mulund mumbai. the price he is asking looks unreasonable to us. what could be the right price for such a house. Kindly guide.
Santosh Naik answers, The price seems to be unreasonable. Should close the deal between 18 - 20 Lakhs
Jibran asked, The kind of amenities that are promised at such times of recession, how legible are they? Is it necessary for us to probe into the authenticity of the list of amenities? Because at times what is promised and what is delivered differ on a big scale.
Santosh Naik answers, Make it sure the aminities promised by the developer is a part of Sales agreement between you and developer. This will help you to protect your interest
amar asked, Is it the right time to buy 1 BHK flat in Western suburbs like Goregaon / Malad / Kandivali, or should i wait for prices to drop ?
Santosh Naik answers, Yes. Dont wait
vin1 asked, Now a days most of real estate companies are lauching Bugget homes also Union goverment decided to build 1 Lac homes in future also Future group is also coming with idea of "Ready to live homes" Does it mean we can expect more supply in Real estate market and hence end customer would get right price?
Santosh Naik answers, With the launch of many Budget Home projects there are good chances of getting residential apartments at right price.
nitinvgandhi asked, What is scope od investment in Indore. Indore or Mumbai better for return in Investment? budget is Rs 25 Lakhs
Santosh Naik answers, Mumbai is a better investment location whatever your budget maybe
ramkiran_2k asked, I HAVE BOOKED THE 2BHK @2750, 970 SQ.FT FLAT IN Visakhapatnam AT Rajendra Nagar,pin code 530 016 WHAT RETURN CAN I EXPECT 3-5 YEARS
Santosh Naik answers, You can expect around 60% return in 5 years time
seedhasaada asked, Is it right time to buy in places like Sunshine County of Ansal API at Kundli? What would be appreciation in next 4-5 years?
Santosh Naik answers, The appriciation at Ansal API at Kundali will be aroung 40% to 50% in 3-4 years
Aditya asked, I plan to make real-estate investment in Ahmedabad/Vadodara. Which are the areas worht investing in these 2 cities both from the point of view of infrastructure and future appreciation of prices?
Santosh Naik answers, Both Ahmedabad and Vadodara are upcoming cities and hold good prospects for real estate investment. You can invest in good and reliable projects with a time horizon of 3-5 years
rupesh asked, , Hi, I am 24 year old. I have recently bought a flat for Rs.13lakhs in resale in 8 year old building at Mira-bhayander road. I hav took a loan of rs.6 lakhs from HDFC @ 9.25% Floating. Was that a good deal considering all aspects. Kindly provide your suggestion
Santosh Naik answers, Please let me know area of the Flat. The Home loan interest rate is very good
phgaykar asked, is there any project going by you in Talegaon area where I can do good investment in the range of 10 lac
Santosh Naik answers, You can get a good deal in Talegan at 10 Lakhs. The current rate for flats is between 1400 - 1800/- Per Sq.Ft
varadan asked, hi sir, i got 4 flats each of 1400 sq ft in a exchange deal.they are situated at banaswadi-just 5 minutes from ring road. they are ready to occupy and will generate atleast 80k rent. is it good to give them for rent or sell of now and invest someother else. what would be the correct rate in case selling is the choice
Santosh Naik answers, I suggest you to give 2 flats on rent and sell 2 flats and invest in other real estate projects
parveenkumar asked, What do you think about price trend in next 03 months of real estate in NCR ( Faridabad,Gurgaon, Panipat, Palwal) and delhi?
Santosh Naik answers, You can expect the rates to be at same level in next 3 months in NCR region
rupesh asked, its 525 sq.feet , Sir
Santosh Naik answers, 13 Lakhs for 525 Sq.Ft is a good deal
Jugnii asked, I have shortlisted a flat in Mahadevpura in Bangalore. 1200 Sq Feet for 30L. 3BHK on third floor. Is this the correct value for money at that place?
Santosh Naik answers, Yes
prakashk asked, Mr Naik, is greater faridabad a good investment opportunity @ Rs 18-20 lakh for a 1000 sq feet flat? (sector 80, 86, 85, 87, 75 etc)
Santosh Naik answers, Yes its a good investment opportunity
VASAN asked, Sir, which project is worth buying in mumbai ....nirmal lifestyle city in Ambivali or casaloda project near kalyan-shil road..........please suggest
Santosh Naik answers, Both are good projects. You have to take decision keeping in mind your requirement.
bally asked, Sir, how do see the sale in real estate given the recession in certain sectors?
Santosh Naik answers, You will be surprised to know that there is a total demand of 2.65 Cr residential units in India. And it will take more than 20yrs to build this numbers.
pankaj asked, , what is the future of HUDA Plots in Gurgaon in next 3-5 years?
Santosh Naik answers, HUDA plots in Gurgaon is a good investment opportunity
DARSHAN asked, IS THIS RIGHT TIME TO BUY COMMERCIAL PROPERTY OR SHALL I WAIT ...PROPERTY PRICES IN VIKHROLI (W) KAILASH COMPLEX. AR AROUND 7000 - 9000 /- PLS REPLY.
Santosh Naik answers, Commercial properties prices have come down and you can still bragain with the developers to get a better price
s asked, Sir, is it a right move to go for plot loan alone and think about construction of house at a later time. The interest rate is about ~12% pa for the plot loan. please advice.
Santosh Naik answers, It depend on which project you are investing. But land investment is always considered good investment over a period of 3-5 years
rajathiraja asked, Hello sir, I am looking to buy XSreal project in OMR Chennai . Whether it is right time to buy or can wait for some time so that rate will reduce
Santosh Naik answers, Chennai prices have already bottomed down
AnilDelhi asked, Is it necessary to register a apartment before I take possesion of it. I have a apartment in Gaziabaad of which I will get possession in Jan 2010
Santosh Naik answers, I suggest you to register the apartment in your name if you are planning to retain it for 3-5 years
sunilborn4u asked, Will prices of flats in hyderabad start increasing now or should we wait to sell?
Santosh Naik answers, The prices will be steady for next 3-6 months
Aditya asked, but which areas in these 2 cities of ahmedabad & vadodara? can you please suggest some?
Santosh Naik answers, Please give me your email Id i will get back to you with regards to the same
Satya asked, I am looking for a flat in Mumbai , prefferably in Santacruz East or Thane , it is right time or should wait?
Santosh Naik answers, Its right time to buy dont wait now
kaushik asked, Can you comment on the current trends of housing sector in the NCR region. Mainly Gurgaon.
Santosh Naik answers, The prices in Gurgaon area will be steady for next few months
Kinshuk asked, how is talegaon as a destination?any good project to invest in?
Santosh Naik answers, talegaon is a well know destination and very close to pune. Its a good investment destination also. There are many project in talegaon in which you can invest
Renuka asked, Do you think the prices of apartment in Bangalore will go up in the coming months?
Santosh Naik answers, No it will be steady for next few months
samy asked, I am taking up a new job soon with a better pay and want to invest in a property for tax savings as well as appreciation in the next 3-4 months.Is this the right time to buy? Is Bangalore/Coimbatore a good option?what sft rates can I expect in these places in decent localities?
Santosh Naik answers, This is a right time to Buy residential property with a purpose of Tax saving. Banglore will be a good option. Rates varies depending upon the location of the property
Gautam asked, Sir, i bought a 2 BHK 1304 sqft in 23.50 lacs in sector 88 faridabad from SRS builders. What is the future.
Santosh Naik answers, Its a good buy with a horizon of 3 years
kausik asked, Sir, i am planning to buy a CMDA approved plot 1200sq.ft at 6.5Lacs in Ponnamallee road 2kms before sriperambadur (chennai) . Is it a good investment and is it a good price. Pls advice
Santosh Naik answers, Yes. You can go for this investment
np_vb asked, Everybody is saying prices are crashing, but when we enquire to any builders prices they quote are somewhat same in mumbai. how do we negotiate with them?
Santosh Naik answers, There are some developers who have not reduced the prices. But i am sure they will reduce the prices soon. But there are many projects which are being offered at reduced prices.
miracle asked, How about the infrastructure of nashik sir, is it a good place to invest in a property of our choice.How far has it developed? After marriage my husband plans to settle there.
Santosh Naik answers, Nasik is the fourth largest city in Maharashtra after Mumbai, Pune and Nagpur. It has got a good potential for real estate investment
investor asked, Hello Mr. Naik, I am thinking of investing in a small property of upto 15-20 Lacs in Mumbai - which projects / areas would you recommend I check out?
Santosh Naik answers, in 15 to 20 lakhs budget you can get residential apartment in Virar, Kalyan and Dombivali
Saradhi asked, How did you think the project of Alien Space Station in Hyderabad will go on? is it worth buying flats in this venture. Does this type of project sustain in Indian Conditions?
Santosh Naik answers, We have to wait and watch for this projects.
investor asked, and what do you think would be the returns that one could expect in 3 years?
Santosh Naik answers, real Estate investment is always proved as a good investment over a period of 3-5 Years. You cn expect a return of around 50% in 3-5 Years
bally asked, Sir, are there any affordable housing in central mumbai area Between Dadar to Byculla?
Santosh Naik answers, Unfortunately NO
walloper asked, is it good to buy near shamshabad cargo area of hyderabad? like jalpally / lakshmiguda etc ...? Also, near madhapur / hi-tech city
Santosh Naik answers, Hyderabad is a good investment desitination at current prices
rajesh rao asked, sir is it better to invest in property at vasai area Mumbai.
Santosh Naik answers, Yes
lans asked, can you comment that developers are still struggling with their balance sheet. if that is the reason price should be going down. are you recommending the customers to further wait that would push the builder to reduce the price further in mumbai
Santosh Naik answers, There are many project available at right prices. You should study the projects and take decision
vvvvvvvvvv asked, hi is it possible to get a individual house in Bangalore with in 20 lakhs?
Santosh Naik answers, No
Manjushree asked, Sir, I am an employee.. Is this the right time to invest in real estate or should i wait for sometime... I am a working employee
Santosh Naik answers, Buy now this is the right time to invest
sabin asked, Is it a good idea to bye a flat in Goa as investment?
Santosh Naik answers, Yes. Goa is a good investment for Rel Estate
pramodbau asked, Will the poor mansoon take the toll of real estate market?
Santosh Naik answers, I hope the monsoon will be good the year. Lets pray for good Monsoon
pradip asked, If u buy property in area like lower Parel what apriciation for residential property u except
Santosh Naik answers, Any real Estate investment is a good investment and you can expect 30-50% return in 3-5 years
Santosh Naik says, Thank You Very Much. Hope to interact with you again..