Proprty Bubble.

In Ahmedabad, more and more Mall or super Mall are coming. the price is rising at rocket speed. People in dewali usually talked about realty market and its profit or appreciation. This Dewali, Realty market discussion  put behind the discussion of Stock market. We used to had family re-union at different hotels or restaurant. This time we selected some in mall. Surprisingly, I noticed some symptoms of property bubble exactly what I did in Dubai and had to run away within couple of days from there. 

The summery : 

It is very difficult to find end user in the market and the investor are moved towards stock market recently to grab this Navratna issues and for that matter they are or want to sell their property from realty market. So supply in realty market is high. Stock market is giving gain in short time and is highly liquid. Investor with big money can part with some for risky business.  

I realised that most of the shops in mall are sold out but 40-50% of them are not occupied by end user. 

Every mall has one super mall in the ground and/or Cinema on the top. So people's time is mostly consumed more in such cinema or Super Market. When people comes into such mall, they deliberately cannot spend more time in shopping from other small store as normally happens in that of foreign. This is because, still in  Ahmadabad brand awareness is not upto the mark. Digit of Brand conscious people is very low, as "Extra" money is not in the hands of those. Their requirement are still get satisfied in one visit in the Super Market so they are left with no extra money to spend in the other stores in the mall. They spends more tie in Shelf viewing too in the Market and ultimately left with little extra Time that can be spent in such other stores in the same market. So People coming to mall have no extra money and time (may be time is money elsewhere..) that allow people to visit other stores in the mall. So ratio of footsteps for mall and that of stores are very tiny. 

The result, these little stores are very hard to be sold to the end user. As end users are the true businessman and verify all the parameters well then the Realty investors. They still prefer Isolated ( from Super mall or Mall) commercial place in residential locality which is cheap and makes space for their margin. Investor will not believe in purchasing store in mall on re-sell basis. Rather they will invest in new opening mall. This is because, for them Investing in realty is long term concept and they have invariably more more fund in Black Money. They are ready to park their these "blind fund" into such property and they are not hurry to get it back as that cannot be invested else in "white" channel.    

  

so, from the above facts it is quite clear that offer from the investors in realty market falls short of what bid that end user can afford. End user has its own parameters and are not meant for making profit on sell and purchase of property. End user has its own perimeters to play within, as banking and other infrastructure's  parameters commands them to be within.We all ( including those IT officers ) that we are having a counter    economy . This economy has always saved this economy to collapse , but internal ups and down are favorable to those who have major part of this second Economy. Now this realty game is for and between the   the investors and not between the Endures and -the developer or  End users and the investors. Of course some end users will to accept the price what is meant for the investors game. But they defiantly, take the decision when it fits in their own parameters. 

This excercise keep the price up and then after a time that becomes new bottom in the market. People in Bombay always says that price is high and it remains high because its demand is high and it is required by end users. The Ahmadabad scenario is different as of now .. the percentage growth will surpass that of bombay by end of 2012 while to surpass that of in Rupees term, will take 1 decade... as compared to Bombay. Bombay is shapped like crocodile tail, while ahmedabad can grow like ganpati's Stomach... here is the difference between the pace of price rise in this two different area, apart from the growth factors. 


Sixer :
When you have something that you have to consume, the price rise of that  thing will not meant for you. 
if you have one house to reside therein or one office from where to run your business, the price rise of that property is of null effect for you.Gold jewelery Shop will also require to make its profit and loss analysis and requires to use cost cutting tools though gold price is increasing. This is the fundamentals of my Physical(real) profit of accounting.