It all seems so dreamy and beautiful that the deja-vu cannot be ignored, bearing a suspiciously familiar similarity to India’s boastful retail, or the airlines, or the soft drinks, or the car industry story, where almost all companies came in hypnotized by the promise of a huge market; and almost all players (from 70% in retail to 100% in aviation) are suffering pitiable losses as on the current date. Arvind Khanna, COO, Beekman Helix has his own spin, “There is a marginal softening in the property rates – 10-15%, but it is not universally applicable, it holds true for certain pockets only.” Raman Sood, Managing Director, Eros Group, divulges his views to B&E, “Prices in the sector have packed; I expect a correction over the next 3-6 months at 10-15%. There is correction right now, but people will continue to 
pick up property.” Rahul Todi, MD, Bengal Shrachi Housing wasn’t ready to be left behind, “The real estate boom started in 2001-2002. It has been 4-5 years now. If it sustains for 5-6 years, it is sustainable.” He strongly claims that stability is round the corner.
With due respect to all of the above mentioned executives, the hilarious part of all these comments is the analogy we drew with King Kong earlier. Many head honchos of real estate firms seem to have a memory recall of exactly one day. Irrespective of the government’s extremist efforts to debilitate the growth of this sector, top managers of this sector – rather than on planning their future investments based on interest rates, demand forecasts and costs of capital – are almost blindly positive about the future returns. A mere mention from us that there might be losses, and one sees the motley crew jumping together with fanatical fervour to oppose our impunity.
Of course, the RBI, for the sake of buyers, has decided to reduce the weightage on home loans up to Rs.2 million to 50%, a move which has been well accepted by the small borrowers. So what should an apprentice consumer be doing in such a dynamic situation? B. P. Dhaka of Parsvnath advises, “The time is right to buy a property for an end user. He needs to evaluate his capital and need judiciously.”
pick up property.” Rahul Todi, MD, Bengal Shrachi Housing wasn’t ready to be left behind, “The real estate boom started in 2001-2002. It has been 4-5 years now. If it sustains for 5-6 years, it is sustainable.” He strongly claims that stability is round the corner.With due respect to all of the above mentioned executives, the hilarious part of all these comments is the analogy we drew with King Kong earlier. Many head honchos of real estate firms seem to have a memory recall of exactly one day. Irrespective of the government’s extremist efforts to debilitate the growth of this sector, top managers of this sector – rather than on planning their future investments based on interest rates, demand forecasts and costs of capital – are almost blindly positive about the future returns. A mere mention from us that there might be losses, and one sees the motley crew jumping together with fanatical fervour to oppose our impunity.
Of course, the RBI, for the sake of buyers, has decided to reduce the weightage on home loans up to Rs.2 million to 50%, a move which has been well accepted by the small borrowers. So what should an apprentice consumer be doing in such a dynamic situation? B. P. Dhaka of Parsvnath advises, “The time is right to buy a property for an end user. He needs to evaluate his capital and need judiciously.”
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Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
