nabishek

Hi Friends,

I had been to the FAIRPRO '09 Fair.My Impression after seeing, is that prices are stagnating for all ongoing projects and builders are trying hard to hold them up.

Prices are 10-20% lower for new projects in the pipeline and for ready to occupy flats.

The discount offered at the stall was very less and were in the range 150-500 Rs/sqft max.

For the benefit of fellow members I am posting the project/price details of some of the properties.

There are lots of properties and also lots of potential buyers.There is sure a sense of uncertainity among the builders and also the buyers on when to make the next move.It was evident that correction in RE prices have started to happen.

Requesting members to respond with their thoughts on the current trend.

vens

I do not get any feeling of prices falling down after seeing these absurd rates. We can only say they have stopped behaving like stock market. Otherwise even if I see prices falling 50% from this level still prices are absurd. I booked a flat in Velacherry at 2400/sft in December 2005 which was already a jump of 50% from 2003/2004 rate at that time. Now it is being quoted 6000/sft. Even considering end 2005 as base rate, even after adjusting for inflation at an average 10% p.a. the price can go to upto a maximum of 3200 /sft now. Unless we get less than this rate do not even think of buying. If everyone will be patient for another 3 years you can get at around 4200 levels which may be fair consideting next 3 years inflation in year 2012. Forget house byuing for sometime and concentrate on other investments or bank FD so that your today's 3200 becomes 4000 or so and RE price will come down from 5250 to 4200.

sethugm

Abishek,

Thanks for your efforts to compile and post for the benefit of all.

The building raw material prices have been corrected.

Stocks have underwent dramatic corrections which reflects the industry growth for the next 9-12 months.

Job prospects/Salary trends are seeing downwards.

GDP/Export growth rate has been rederived and appears bleak.

The project completion dates have seen indefinite corrections.

The margin (buyer component /loan be approved by banks) have seen changes.

The only thing which do not see any correction is Infrastructure and RE Land/Apartment prices priced during the boom time.

Prices displayed above clearly indicates the builders unwillingness to understand the reality and it needs correction in the mind .More the delay more they will be in trouble.

Buyers should do a thorough financial planning before you commit yourself into an long-term debt. Find an ET article. Six home loan mistakes to avoid.

http://www.economictimes.indiatimes....ow/4109679.cms

Appears that builders and promoters still trying hard to see prey in vain.

paul1970

Thanks for price post

arin_12

But it seems that you are paying more than Bangalore.

connect2sam

Good effort ! Thanks for taking the pain to key in these prices !

For the start, builders have started cutting down the prices. This recession is going nowhere for the time being. RE prices in Bangalore has corrected faster and is wise thing to do. Chennai builders couldn't eat their pride and cut down the prices. Instead, taking private equity route to finance is dangerous and will get them in more trouble in future. Many builders will learn some hard lessons this year.

I am not convinced yet to buy flat in Chennai around OMR. It is still pricey and has to come down further. I am waiting to watch distress sale after this diwali, or may be early. I am prepared to wait.

The builders may think otherwise, but I am walking away for the moment.

Thanks,
Salim.

connect2sam

Here is the original link :

http://www.financegurukul.com/2009/0...-house-prices/

Thanks for taking the pain to copy the prices from the above link ! But more importantly, thanks for sharing !

For the start, builders have started cutting down the prices. This recession is going nowhere for the time being. The prices in Bangalore has corrected faster and is wise thing to do. Chennai builders couldn't eat their pride and cut down the prices. Instead, taking private equity route to finance will cost them more and will get them in more trouble in future. Many builders are about to learn some hard lessons this year.

I am not convinced yet to buy a flat in Chennai around OMR. It is still pricey and has to come down further. I am waiting to see distress sale by this diwali or may be early, when the shareholders will ask serious questions about builders remaining solvent. I am prepared to watch it unfold.

Builders may think otherwise, but I am willing to take a dive this time.

Thanks,
Salim.

lovebird

Good, informative thread to all.

wiseman

This is a good beginning.

Te best thing to do will be for us to figure out the list of builders who form the bulk of developments in Chennai (or any other city). Then we can list developments for each of the builders locality wise.

If we can get data for these every month (or even once a quarter on a designated date), it will provide us all a perspective of how prices have moved over the years location wise and will sharply reduce the controversies on prices we seem to be having due to lack of data.

Developed countries first create these systems which allow for people to analyse exactly where they are and take precautionary steps. Countries like ours deliberately do not collect data so that politicians, bureaucrats and corporates can play all sorts games and rake in the profits.

cheers

REGuru

Thanks for posting the rates in chennai. Rates are still at their peak I feel.
It seems the prices have not come down.

If everyone who gets the rate posts then we can have clear Idea of RE.