The Housing Sentiment Index


The MB IIMB HSI,jointly developed by IIM-B and will determine how buyers and investors view the market, which in turn, influences their purchase decisions and aggregate demand. The index is likely to become an early indicator of how markets would perform in the future.

An HSI of 100 suggests that buyers expect prices to remain at current levels while values lower and greater than 100 suggest that buyers expect prices to fall and rise, respectively.

The Housing Sentiment Index (HSI) has dropped almost 20% over the past quarter across India, except in Bangalore, where sentiment has improved due to the uptick in the IT industry. The aggregate HSI dropped to 93 from 117 in the previous quarter. Read more of this post

Where Are The New Properties In Mumbai?

wealthymattersIn Mumbai there were around 18,000 units launched in the first half of the year till June, representing an increase of 30% over last year.

Of the total new launches, a majority of 30% were concentrated in the western suburbs of Andheri, Bandra, Malad and Goregaon. Navi Mumbai contributed 24% to the overall launches with the second phase of a large township project launched in Panvel.

The central suburban stretch from Kurla to Mulund contributed 20% to the new launches with two large projects coming up in Mulund along with projects in Chembur, Kanjurmarg and Ghatkopar.

In Thane, where a number of projects are currently under construction, the pace of new projects has slowed down in 2013.

The Sinking Rupee Through Foreign Eyes


Here’s the Financial Times on the depreciating Rupee:

“the rupee has lost 57 percent of its value against the US currency since it peaked at 39.40 rupees to the dollar in February 2008”.

So basically foreign investors have lost over half the value of their original investment in India in dollar terms  in the previous 5 years.Or 15% per year.How many of their investments returned over 15% per year?Was the overall return so much better than the 1-2% returns in their own countries?Does it explain why Indian financial assets don’t seem so interesting to foreigners and NRIs?

Small wonder that the only Indian assets that Dollar owners want is real estate,So boys and gals get ready for another round of irreversible increase in the price of land and real estate.Even today,the average family can own an average Mumbai flat only by saving 10 lacs a year for 30 yrs and that’s not considering interest .Pray how many Indians have incomes that can allow such savings over a life-time?Get ready to be priced out of the market and become a life-long renter.

The Real Rate Of Interest On Deposits


Small wonder that gold prices shot up and gold  investment became popular between 2008-2011,huh?Ditto for real estate.

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