Ravi Karandeekar's Pune Real Estate Blog: Paranjape Schemes' Crystal Garden on Baner-Pashan Link Road and the beginning of a new world, Blue Ridge at Hinjewadi!

Pune Real Estate Jigsaw Puzzles:

I do not know why, but i was trying to connect a few things. May be because of habit. Bad habit! Do you know, I have compared two residential projects. Kumar Properties' Megapolis vs. Blue Ridge! Some times, i have quized myself. Is Supreme Pallacio an option or a competition to Gera's Regent Park? Whatever may be the conclusion, for sure, i had always enjoyed the exercise! But this time, when i connected few things, the conclusion was quite scary!

World Financial Crisis:

Before, i go ahead, i have to tell you what was at the back of my mind. Besides this blog, Ravi Karandeekar's Pune Real Estate Blog, on residential projects near Hinjewadi, i have 1) Ravi Karandeekar's Pune Real Estate Market News Blog and 2) Ravi Karandeekar's Pune Real Estate Investment Blog. For a while, on these blogs i was blogging more about Pune real estate slowdown and exclusive (and attractive !) offers but all of a sudden, world financial crisis, recession and depression became major issues.

Fear of Realty:

Not only me, all of us were more concerned with the fundamental issues about the economy. Most of the property buyers who called me on my mobile (91 98600 44110) did not want to talk about home loan interest rates or property prices. But they were asking tough questions like "Should i sell off my flat at Balewadi and move in the rented apartment?" or "Should i cancel the booking and wait for a few more months?" I do not mind, in fact, i enjoy being used as a sounding board, so many times we talk more than customary limit of 8 minutes!

Chasing An American Illusion!:

Out of the few things i was trying to connect, one is this type of conversation i had with the caller from New Jersey, USA. He wanted to talk about his booking at Paranjape Schemes' Crystal Garden on Baner Pashan link road. After three - four years, he may return to India and settle down in Pune, he said.
Since, he had so much time on his hand, i asked him, "why didn't you book a flat in Paranjape Schemes' Blue Ridge at Hinjewadi?"
"Your wife could have gone for shopping at 2 o'clock, watched the movie at 3 o'clock and you would have enjoyed kayaking!"
On this, for the first time, he started speaking in Marathi. He said, "I am pakka Punekar, from Kothrud and I do not believe in chasing American illusion."
"American illusion! What's this? I have only heard about 'American Dream'," I asked him. He tried to explain but i did not understand what exactly he was saying.

Anti-Americanism:

After the phone call, as i always do, i Googled 'American illusion'. What i saw on the first page of Google gave me some idea about Bush Administration, American ventures of greed and control, Wall Street and War Racket, how foreign students are scammed in US and how (in 1942!) Americans learned their lesson at Battan. However, it didn't give me any clue about the relationship between a 3 bhk flat at Crystal Garden on Pashan Baner link road, Blue Ridge Hinjewadi and American illusion. So, i just stopped bothering myself and said to myself 'nice to know one more Anti-American' and closed the topic.

Saving capitalism.....!

Today, for the first time, i visited the website of The Sunday Indian and read Arindam Chaudhuri's editorial "Saving capitalism… from the stupid capitalists!" In his editorial, Arindam claims that his three theories - ‘Happy Capitalism’, ‘Survival of the Weakest’ and ‘Trickle-Up theory' - can save the capitalism from the stupids of Wall Street. Though it sounds too poetic, I do not want to question whether Arindam's theories will be able to save capitalism or not because i have not not read his book “The Great Indian Dream”.

Illusion and Exploitation:

While explaining the reason of current crash in the US financial system, Arindam says, this disaster is not 'an incident in isolation' and at the same time, 'it is not a cyclical trend that would soon get mitigated with time'. After reading the article, my impression was, "creating American illusion and exploiting the weak economies" is a well-rehearsed and successful strategy of Wall Street to milk the economies of their profits! Besides the latest name of US, the Arindam lists include Asian Tigers - like Indonesia, Malaysia, Thailand, and South Korea - along with Japan, and south American countries like Mexico and Argentina! All these economies were lured by the illusion created by Wall Street and exploited to such an extend that most of them took years to recover and many, like Japan, never recovered at all!

Indian Tragedy:

Like Arindam, i was not interested in theoretical discussion about good capitalism and bad capitalism. My interest was Pune real estate. Did the man from New Jersey mean that Blue Ridge is nothing more than American illusion? Then what about "Indian growth story", "Fastest growing economy in the world", "Beating China", "12% Growth Rate" "Foreign Direct Investment in Indian Real Estate" "Special Township Act and SEZ"? All these concepts were not more than just illusions to compel us to open the coffers of Indian economy to Wall Street Bosses? For me, it was difficult to accept that we all have been taken for a ride! But today when i see the falling sensex and the cash crunch, like every Indian, i wonder "So, where is the money?"

Living a Lie:

I do not want to regain my consciousness and face the reality. I do not want to accept that Pashan Baner link road in Pune Municipal Corporation is the reality. I do not want to give up the dream of becoming the world citizen without leaving Pune. I do not want to stop dreaming about changing the way i live. I want to keep on dreaming about going for kayaking!

What's your take on Indian Growth Story:

What do you think? Am i unreasonably pessimistic? Am i thinking irrationally and illogically? Did you ever think that, some day, we all are going to end up as victims of American illusion? Please, share your views in the comments. (Please, read the comments policy before you post!)

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7 comments:

AnonymousMonday, October 20, 2008 12:56:00 PM
Why blame America???
Look at our own, problem is with us.
AnonymousTuesday, October 21, 2008 10:56:00 AM
People like Arindam Chaudhry are not worth mentioning on your esteemed blog. The following are the reasons :

1. They are the most organised thugs and advertise that they provide free lap tops to every student and charge 4 times its cost in fee.

2. They are into making stupid dreams like " Rok sako to rok lo " acronymed asininely as RSTRL.

3. You will find praises for them only intheir own advertisements.. So much of pseudo intellectual masturbation.

4. They come up with stupid and incredible headlines - " Sachin donates 12 crores to Indian dream foundation " , when this damdi khor wont even pay duty for his car. Its improbable that Sachin will ever donate even 12 lakh let alone 12 crores.
Ravi KarandeekarTuesday, October 21, 2008 12:32:00 PM
# Ref: "People like Arindam Chaudhry.."

Really! I did not know this side of Arindam! I have to look beyond real estate! Very sad to read about Sachin. Is it about that car he was gifted? However, thanks!
AnonymousWednesday, November 12, 2008 11:07:00 AM
Yes, it is about the Ferrari car which was gifted by Fiat. Sachi want that Ferrari by paying nothing. He is not willing to pay the tax& duty to Maharashtra government though he getting the car totaly free of cost. So how people will believe that he will donate 12 crores? We don't believe that he will ever donate Rs. 12 also.
AnonymousSunday, November 23, 2008 6:58:00 PM
Hi Ravi,

Now I suppose Pune RE has crashed.
Venkatesh Flora at Mundhwa is giving 50% discount & current rates are @Rs.1650/sq.ft.

Many projects are getting delayed not only because of no bookings but also due to cancellations by existing buyers/investors.

Several areas like Wakad,Baner,Balewadi,Pimpale Saudagar etc. see their residential projects halt. This is only due to absence of "END USERS" from the market.

The news which you have had posted earlier that land rates at Baner are around 1000-1500/sq.ft, the builders for most of their projects have purchased land few years earlier. They can still make profit today by selling @Rs.2000/sq.ft. The raw material costs like steel & cement too have fallen by over 44%.
If at all the builders have purchased the land @1500/sq.ft, then its their fault & buyers won't pay for their dumb acts. For the builders, greed seeped in & profits were out. Now that there are no buyers, the builders are in pain which is good for them.

Any business which runs only on the basis of INVESTORS can't last long. In the end it's the end user who dictates the prices.
The economic situation for RE won't improve for atleast next 24 months.

http://economictimes.indiatimes.com/Markets/Analysis/
Financial_crisis_affecting_India_Asia_Experts/articleshow/3745888.cms

http://economictimes.indiatimes.com/Markets/Analysis/
IMF_economist_says_worst_of_crisis_to_come/articleshow/3746201.cms

http://onlinenews.lokmat.com/php/detailednews.php?id=MainEdition-1-1-
18-11-2008-30854&ndate=2008-11-18&editionname=main

The recent survey by CNBC-TV 18 showed that the buyers are demanding 40-50% cut in current RE prices. I won't be surprised if the rates at Baner come down to sub 2000/sq.ft. After all besides economic crisis, there is oversupply of RE in commercial & residential space in 2009 of which 57% supply will be in areas of Baner,Balewadi,Pashan etc. which will further drag down the prices; not to forget the resale flats from investors which amount to additional 40% supply.

RE Crash!!!!RE Crash!!!!
AnonymousSaturday, January 03, 2009 12:34:00 AM
Hey Ravi,

Nothing new on your blog in the last 2 months?? Does this indicate that Pune RE has gone into coma if not dead??

Please post news about current rates of Pune RE as several areas & projects have now reduced rates.

Btw, what happened to Nanded City? Everything gone with the wind?
I suppose PBAP is in doldrums. For builders, (P)awar is (BAP).
AnonymousSaturday, January 10, 2009 1:16:00 PM
Hey Ravi,
See how the real estate is going to crash.

Real Estate can Witness Major Collapse in the Next 6 Months:-

http://www.indianrealtynews.com/home-loans/
real-estate-can-witness-major-collapse-in-the-next-6-months.html

Speculations in Realty Sector over Top Officials Exit:-

http://www.indianrealtynews.com/real-estate-india/
speculations-in-realty-sector-over-top-officials-exit.html

Sunday, October 19, 2008

Paranjape Schemes' Crystal Garden on Baner-Pashan Link Road and the beginning of a new world, Blue Ridge at Hinjewadi!