ks2071746

The prices are down in Bangalore, Mumbai etc. In Bangalore, one can get a good flat at Rs. 2000-2200/sq. ft. In Ahmedabad also it is in the same range. But in Chennai, it is not coming down though it is also not going up either. What is the unnatural thing that is happening in keeping the rates for so long at Chennai ? Is it that the demand outstrips the supply or none of the builders want to reduce the rates.? Is there a cartel working here? Why is it so unnatural here in Chennai? I heard that in a project, the land cost is 1/3, the construction is 1/3 and the rest 1/3 is the profit margin for the builder? Is this true. If so, there should be substantial reduction in the rates, say upto 15% atleast. But this is not happening. One of my known builder says, the rates will come down for large builders and outer limit projects but not for small peojects in the city limits of say 8 or 12 flats etc. for which the lands have been bought a high prices and the rates may remain. I would like to know the rate in Tambaram East near Sanatorium for a decent new 3 bed flat the current rate per sq. ft. I understand it is about Rs. 3500/sq.ft. Is it a reasonable rate? our frineds in this forum may please advise me. Thanks. K.Sivakumar