pradeepkumark123

Would like to know if RE prices in chennai expected to drop further or will it remain stable/increase for year 2009?
Reason is

1. There has been very marginal drop in RE prices across chennai <10% as compared to bangalore/mumbai to 35-45%

2. Real estators have been holding the flats though not booked and they aren't dropping prices..instead it's been cat and mouse game..

Natarajg007

By creating a poll you dont get much of the truth! Since polls are easily subverted!
Look at the fact. As you say RE prices did not fall any bit. Now with an improving situation they are likely to shoot up. So asking if they will fall is just not worth the question.

contra

This poll is a good new feature added to the forum. It adds some quantification and more meaning of most visitors think. Keep it up!

smartboy

Probably a good effort to find observer opinion.

anandxx

RE prices will never drops!

Lower prices are when
1.) Based on speculation people try to get rid of invested
properties and hapy with what ever profit they made
on investment
2.) people sell for requirement of liquid cash.

3.) Compromised locations which people are speculative about
holding.

Easy way to say if RE prices will drop is to gauge whether as a person
you will be ready to sell below invested price or at par. which will
happen only to 20% of cases.

So yes RE prices will drop (as u call it) for 20% of property and for the
rest it will either stabilise or increase..............

Thats my understanding.

anandxx

as far as 10% is concerned all RE prices are normally inflated by 10%
Which is the bargaining part. This is not a drop in prices.

VunnaiPolOruvan

RE seems to be stagnate, But will rise as the demand for house in and around chennai is huge.

wiseman

Anand,

When a property in a particular neighborhood is quoted at a certain price, generally all similar houses in that area take on the same price. And if the rate has dropped, so also all houses drop in rate in a general sense.

This is the same reason, when prices were rising, when a particular project quoted say 1 Cr, up from 70 lakhs, everyone else became delirious with joy that their flat was now worth 1 Cr and so they were rich.

So, where is this logic about only 20% of homes being quoted lower (because they were speculator-owned) and somehow others not being quoted lower simply because they were owned by genuine investors.

I have never seen people quoting their price based on whether the current owner bought it on a speculative basis or on a longterm basis. And in any case how do you determine it?

The fact of the matter is that, a vast majority of people bought homes in the 2006-08 timeframe falling for this forever-rising-prices and catch-it-now-before-it-flies-away-forever story concocted by builders and Realtors and sprerad by eager-to-be-conned gullible people.

Now that they do see prices coming down, it is hard to admit to be taken for a ride. So, this ostrich-head-in-sand attitude of it's only the other guys flat that has come down and not mine. Similar stories are told about soldiers who went to war thinking that somehow the bullet would always hit the other guy and he would return unhurt.

It is always wise (though a little painful) to face the truth as early as possible and take whatever action as you deem fit to save your skin (sometimes doing nothing is also an option).

There are 3 decisions you can take in any situation.
Positive decision. Negative decision. Indecision!

Normally the third is the worst. And I'm confident that, if now prices are coming down to launch level prices (which means 100% of gains have been wiped out for buyers), rest assured that the head-in-sand attitude of builders would only see them finally unload all their inventory at distress prices which could sometimes go even below cost price, simply because the flats may be seized and auctioned off at prices down 70% or lower from peak price - which would very well be below cost.

For the builder, better than lose everything due to seizure, he might at least save 35% of peak price by selling himself and recovering money, instead of bank seizing it, where le loses 100% (and maybe even more if you count the interest paid on the amount raised!!!)

cheers

lovebird

Yes it will rise after 5 years.

Whether you buy now or after 2 years, price will be more or less same

chataara

Dear friend

Absolutely correct

thanks
chataara