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Humor

Hitler responds to Asaram Bapu

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Mumbai Realty

Is Mumbai in a real estate bubble?

Had an opportunity over the last few days to check out a few realty projects in Mumbai

One project I checked out was L&T Realty at Parel.This project was launched in Oct 2012 and was sold out in a couple of days.The launch price was 16000 Rs psf and is now currently quoting at 19000 Rs psf.Of course, this does not include many other charges such as floor rise (Rs 100 psf per floor) etc.They have one 2BHK available on the 37th floor which has a ticket price of 3.8 Crores !!

The area around this project used to be where the textile mill workers used to stay.Wonder how they feel about the gentrification of their neighborhood.Am reminded of this song from Shanghai which aptly captures what is going on

Now funny thing is possession of these hugely expensive flats is in 2017 !!When I asked the sales person what price does he expect the prices to be on possession, he replied that he expected the prices to double !So will a 2BHK of around 700 sq feet carpet in Central Mumbai cost 8 Crores in 2017?The mind boggles.

The next project which is creating waves in the Mumbai realty market is Lodha at Worli.The presentation is enclosed below:

[gview file=”https://alphaideas.in/wp-content/uploads/2013/01/Codename-Lodha-Blue-Moon.pdf”]

Now, the interesting part of this project is that buyers will not be able to do the site visit during the pre launch phase.There are no layout plans nor any site plans shared with the buyers.So effectively, buyers are booking flats like cinema tickets.You don’t know whats in the movie but you are hoping something good will happen.

Also, there is a lockin clause till possession ie buyers can’t sell the flat during the construction phase.And finally, the expected possession is 2017.

Despite these onerous conditions, this project is expected to be a grand success.Some realtors have told their clients to book blindly saying there will be atleast a 25% appreciation by April 2013.

And the party continues….

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Mark Mobius:2013 will be a fantastic year

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Links

Linkfest:Jan 08,2013

Some stuff I am reading today morning:

IT firms go slow on hiring, salary hikes (BusinessLine)

Tax shock for India Inc (ET)

Arun Maira warns of sub 5% economic growth (FE)

The export of Indian financial markets is going undetected (Mint)

SBI RGESS fund review (OneMint)

Zombie nation (DailyReckoning)

The fifth horseman:Samsung (TechCrunch)

What does David Sokol have to say about Warren Buffett (Dealbreaker)

Why investors love emerging market junk bonds (Quartz)

Whodunit:Mafatlal’s paintings worth crores replaced with fakes (MumbaiMirror)