r2i forum

http://www.rediff.com/news/2007/nov/29ulca.htm

Wonder what effect it will have on prices in area where land is going to be released.

As per the experts on TV prices will be stagnant to some reduction in certain fringe areas. Vikhroli, Thane, Mulund seems to have more UCLA land. I think adjacent areas to these will drop as well as the UCLA land prices drop.

What about pune ? What area if any are likely to see a reduction ?

Today's newspapers are full of headlines about crash or correction in prices of land and flats. But the details are fuzzy. Noone is saying how much land would be freed in PMC area. It will sure increase the land supply in fringe areas and villages. But listen to the builders, they are still maintaining that prices won't correct. If there is a correction, it will take few months before builders see the writing on wall and start pricing the projects more reasonably. Of course at the first sign of even a minor correction, speculators and investors could get antsy and that could trigger some selling. Personally, I believe there is plenty of room for correction in areas like Baner, Balewadi, Wakad and various annexes. In dense or upscale areas (Kalyaninagar, Kothrud, Aundh etc), the prices could stagnate for a while although any correction in these areas would be bonus for the likes of me!

They are talking about additional 9000 hectors of land in PMC & PCMC area. Builders association agreeing of 10% price reductions. Could be more if Corporations provide Town planning resources like waste drainage, water suppy etc on a priority basis. Overall there should be some price reduction.

They are expecting (Govt) rates lower by 200 to 250 psf
http://www.loksatta.com/daily/20071130/pun01.htm

The effect of ULCA on Pune real estate prices is hyped in my opinion. The price of real estate is tied to location and road connectivity and availability of utilities and basic infrastructure. I doubt all 25000 acres is in well developed areas

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