Quotes & Tweets from the research and practice

 // adve insights //


Realty Insights : 2016 -17


for Governments & Builders


#realestate sector needs investment funds but the govt has a task in making a set of stipulations in directing them


#realestate investment funds would help check prices only if they keep away from wealthy builders distressed by their own greed > land banks


#realestate investment funds can help or harm buyers’ interests by where they put their money


A case of circle rates (Govts’ guidance price) moving market price! #realestate >


Important to keep the #realestate sector depressed > easy but the Govt ought to have the WILL


#realestate regulatory rules ought to be implemented in certain haste & earnestness to achieve positive impact 


Govt’s task reg #realestate is to ensure increased supply against inherent demand keeping the #prices inelastic 


Would the #realestate market show signs of greater maturity as it recovers now? Would the #prices remain inelastic?


Hard #economics  / #social / #marketing logic 4 Govt > sector flawed by undue cash flow shd be fixed by checking the flow


Lucrative markets spoiled by investors r ideally corrected by checking cash flow & the right time is when the market is stressed #realestate


Foreign investors seeing money in the depressed #realestate market & distressed but rich developers calls 4 Govt policy


Have #realestate developers switched to selling by the carpet area? ??


#realestate builders shd achieve financial liquidity by liquidating land banks created in good times, not through banks


#realestate developers are heard increasingly talking of ‘costs’ only now with the sales hardened a bit


In depressed #realestate market builders shd reduce #prices than try sustain it with wasteful finance & selling costs


Realty 2016-17 > #realestate right now is neither Sellers’ or Buyers’ market


#realestate 2016-17 > Time opportune now for professional and financially sound business groups to enter #realestate market


#realty 2016-17 > gradual transition from market led pricing to cost guided pricing


New #realestate regulatory rules being long overdue Govt would now have the task to ensure builders obey


Is it good time to buy a home? Not yet perhaps. Could be wise to continue to be optimistic in a slow #realestate market


#realestate 2016-17 > builders who talk to the Govt, not politicians, sow the chance to reap from #leadership branding


#realestate 2016-17 > builders being used to flying prices would incur considerable finance cost before discounting


Every % fall in realty prices happens only after absorption of finance cost double that by the builders in sustaining #prices


Real Estate developers looking to trade equity stake as long term funding solution need to know brand #pricing


#realty 2016-17 > in depressed #market sellers who are not greedy make money!


#realty 2016-17 > current slow #realestate market has the potential to evolve new breed of professional developers


#realty 2016-17 > current slow #realestate market has the potential to eliminate unfit developers


In the slow #realty market Builders who skillfully work with the prices instead of absorbing finance cost will keep their financials fine


In the slow #realty market Builders tend to cut profits with more finance cost as against reduced prices and thus cut more of it ignorantly


Market that’s neither buyers’ nor sellers’ suggests of fundamental (social) incongruities > a situation that seeks policy decisions and corrective actions from the governments


Governments seem to be happy to push #realty ‘guideline’ prices for more revenue but aren’t Govts misguiding markets by arbitrary #pricing?


#realty sector would evolve faster with the new rules. Builders who evolve with it would survive. Builders who hasten the change would lead > #leadership


Builders can draw marketing advantages by adopting imminent real estate regulatory bill well before start date


Straight forward #pricing supported by deliberate curtailing of selling costs is the approach to sales in demand suppressed #realty market


Excerpt from the article; ‘On CSR the govt is not quite right?’

"Nothing is clean here – right from land acquisition to selling flats. There is no survey yet but reports tell of rags-to-riches-to-rags stories of gullible marginal farmers around the metros who sold early and cheap to middlemen who are all flourishing with multiple properties now."


‘Affordable Housing’ is flawed by the expression and understanding to evolve as a segment > builders understand it as small houses. #realty


The only approach to ‘Affordable Housing’ is by way of Government action on elements that unduly make housing unaffordable. #realty


Prolonged depressed market suggests fundamental flaws in the sector that are detrimental to the end consumers > #realty


In a prolonged depressed market competition strategy is critical not funding strategy > reason for continued stress in #realty sector


Excerpt from the article; ‘On CSR the govt is not quite right?’

"In spite of the crooked weighing balance they use vegetable vendors can kick their guilt and feel proud thinking of the property developers’ deceptive practice of selling by the dubious super built area."


In the #realty sector resistance to reduce #price creates cost of no-sale (cost of money) with hardly any gains for the builder or the buyer


In the #realty sector #price tends to defy gravity owing to false mass psychological convictions and expectations > the cause it flies easy


Slowing #realty market is a great opportunity for progressive builders to acquire leadership attribute with mature pricing strategies


With builders in the #Realty sector confusing buyers with ingenious offers on the #prices shouldn’t the govts make policy stipulations?


Excerpt from the article; ‘On CSR the govt is not quite right?’

"Often it is the entire sector that is dirty. Housing is a typical example of gross irresponsibility – all through – where the government looks like an unconcerned spectator. In fact the sector thrives because of that. The noble purpose embedded in the name 'housing' is mercilessly derided by everyone in the business by obstinately selling investment opportunity instead – to those who already have it, not just one or two …, at the cost of homeless – at the cost having it at obnoxious price, at the cost of not having it at all."


In the investment driven #Realty market shouldn’t the govts intervene in evolving corrective policies?


Realty market is skewed in favour of the Builders with unduly excess flow of finance hence the unrealistic prices - - and the stress so often


Excerpt from the article; ‘Won’t the public sector banks make lessons from their NPAs and make them public?’

Contrary to popular perceptions in the sector good banking ought to be about lending against business potential and not essentially against full collateral security – at least by the spirit of it. The shallow conviction in practice explains the excessive lending by these banks for home (additional) buying and to the builders as well, unmindful of the undue support they provide to the builders in driving up the prices in the sector.


Being pessimistic on price, controlling cost of money and cost of selling are critical for builders to stay fit in correcting #Realty market


In the depressed #Realty market ideal #strategy for builders is to reduce sales cost but the practice is opposite in spite of feasibility


Excerpt from the article; ‘Six innovations banks would shy to try’

"Banks ought to know that their lending which fuels demand can also push it to superfluous levels hurting the fundamentals of the overfed sector / segment at the cost of much, much larger populace. Banks' lending to the realty sector is so much flawed that their thoughtless lending to the builders beyond their project needs and to multiple home buyers driven mainly by collateral comfort carelessly ignoring the adverse impact of the superfluous prices has indeed unarguably made the first time buyers bear the brunt and the massive true demand being excluded."


With falling #prices what responsible #pricing strategy would help builders in the #Realty sector grow sales optimizing revenue??


In a #Price stressed #market sellers who are not greedy make money! #Realty Developers - in 2016!!


Excerpt from the article; ‘Helping the rich with cash’

A major portion of the inflated prices in the housing sector is due to criminally superfluous lending by the banks to property developers that gives them the evil support to keep the prices rising by keeping the flats unsold. The equation is simple. Number of flats done but unsold and sold but unoccupied in any metro city, which on a real count can be terribly surprising, is the stuff that keeps the prices flying ever. And, that is largely financed by banks; to the builders directly and through the investors indirectly. Multiple house loans by banks to individuals is a socially negative practice which in fact creates investors and goads them to stretch out again and again – in buying properties as investment. Helping the rich with cash!


Govt’s guidance prices on #Realty sales may be restricting price correction. Calls for evolving comprehensive #price management system soon


Pamphlet on Apartment in #Bengaluru - up to 50% discount, chance to win Car. Shouldn’t govt stipulate #Pricing norms for the #Realty sector?


Actions on the part of the Govts on the many incongruous practices in the #Realty sector been overdue for years now >>

Report in Economic Times


 // adve insights //