2011 is going to be yet another year of correction for real estate. With Multinational banks already increasing the lending rates which will very soon be followed by nationalized banks. The sprinting chennai real estate is gonna pause and take a little breather for the next couple of quarters. Apartment builders will be slashing prices by the end of march-april. Following their footsteps would be plot sellers.

Goverment's decision to curb inflation by hiking interest rate is a wise step in the right direction. I hope this would bring property prices to fair value. A 10 to 15% price drop is very plausible. If you are planning on buying plot/house/apartment in chennai, wait few more months and you will be able to bargain & negotiate as we get into buyer's market.

Good Luck with your property hunt!
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  • It's really a great news. Will it happen? Hope for the best.
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  • Originally Posted by vivulu
    2011 is going to be yet another year of correction for real estate. With Multinational banks already increasing the lending rates which will very soon be followed by nationalized banks. The sprinting chennai real estate is gonna pause and take a little breather for the next couple of quarters. Apartment builders will be slashing prices by the end of march-april. Following their footsteps would be plot sellers.

    Goverment's decision to curb inflation by hiking interest rate is a wise step in the right direction. I hope this would bring property prices to fair value. A 10 to 15% price drop is very plausible. If you are planning on buying plot/house/apartment in chennai, wait few more months and you will be able to bargain & negotiate as we get into buyer's market.

    Good Luck with your property hunt!


    Looks like you are living in dreamworld.

    don't even think of property prices going down!... everyone wants/expects the property prices to go down...but, it won't happen!....
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  • Even I don't think property prices will come down drastically .However it won't go up in the medium term for sure .I don't think 10 -15% drop is reasonable .we need some drastic fall in prices to come to affordable level which is unlikely in near future .We need some real bad news from west which I am expecting may happen anytime within 1-3 years from now .
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  • Originally Posted by vivulu
    2011 is going to be yet another year of correction for real estate. With Multinational banks already increasing the lending rates which will very soon be followed by nationalized banks. The sprinting chennai real estate is gonna pause and take a little breather for the next couple of quarters. Apartment builders will be slashing prices by the end of march-april. Following their footsteps would be plot sellers.

    Goverment's decision to curb inflation by hiking interest rate is a wise step in the right direction. I hope this would bring property prices to fair value. A 10 to 15% price drop is very plausible. If you are planning on buying plot/house/apartment in chennai, wait few more months and you will be able to bargain & negotiate as we get into buyer's market.

    Good Luck with your property hunt!


    Kelambityan ya, Kelambitan.

    How many times we say that market is above all of and we cannot predict its movements.

    Real estate is not share tradeing. Each and every property is unique.

    It is not like OK today ITC share is trading and Rs 170 next month after profit repoting it may come down to Rs 155.

    If you dont buy ITC share today may be in 6 months you will buy the same ITC share but IN RE the same property may be out of the market.

    In RE what maters in the location and uniquness of the property, even if you paid 5% or 10% more or less you get the property that you like and want.

    Once again RE is a long term commitment (atleast 7 -10 years)

    Get in to RE only if you can afford to hold that property (Not forced to sell) for atleast 7-10 years or more.

    Look for thr property that you like, that you can afford in a decent location pay the market price and stay put for 10 years.
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  • Well said Economist :)
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  • yes they will drop..........
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  • Demand is picking up now. Most of it is pent-up demand from 2009.

    India never slows down. Cities are growing. Rapid urbanization is happening.

    Poor infrastructure means cities can't expand more. Eventually there is a fight for space.

    There is always a good deal if you search. Sellers always quote higher than what you are ready to pay. When the good deal shows up, you should not hesitate.

    Does not mean that you have to overpay. But if you get the right one at decent price, you should take it and not wait for macro factors.

    But I still think early 2010 (last year) was the best time to get in. They have gone by 10-20% now in Chennai.
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  • Former US President Bill Clinton in an Interview with CNBC's Maria Bateromo at Davos said "India would have several years of growth in infra and real estate .... the bubble kind of situation is (in India) not there"

    as heard on CNBC

    Rohit
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  • With companies earnings remaining stable, money inflows into RE sector would be stable. So I do not expect a significant drop in the medium term. I do wonder if there is a long term bubble like we saw in the US market?
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  • Originally Posted by true12345
    With companies earnings remaining stable, money inflows into RE sector would be stable. So I do not expect a significant drop in the medium term. I do wonder if there is a long term bubble like we saw in the US market?


    Where is our WISEMAN to give a fitting replay to you with his 2 page verbage.

    May be bought a property and settled down.

    Looks like we will miss the far fetched spins like Uganda's budget deficit and its determental effects on Chennai RE.
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  • With so much supply in Gurgaon nh8 and dwara eway i am not confident about high appreciations in next few years.

    oversupply is root cause of any bubble creation. this bubble may not deflate but prices may remain stagnant for quite some time.
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  • I think otherwise.... I feel there will be an overall increase of about 10 per cent in rates... with IT companies going in for large recruitments again.. IT sector is also picking up albeit a bit slowly.. I heard DTCP approvals for agricultural lands have been put on hold in Tamilnaldu ... this may also create a supply and demand imbalance and push up prices slightly.. overall increase may not be more than 10 percent due to the inflationary trend of food prices....
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  • Reasons for expecting RE Price tumble


      Home Loan Rate increased app by 25 - 50 bps from all banks increasing repayment burden for home buyers. In fact it's a well measured step from Indian Govt to save the country from a economy crisis as seen during SE Asian Economy crisis, States and European Credit Crisis. All economy crisis happens during real estate bubble and it not only affects just real estate price but all aspects of life pushing inflation at all time high and loan defaults, unemployments and increase in black money flowing in to economy.
      Min Margin slab for home loans have been increased to 20% for home loan upto 20 lacs and 25% for home loans more than 20 lacs. It shows bankers being more cautious about higher home loan segment. And all these steps as directed by RBI. GOI is decissively taking steps to curtail public interest for real estate sector and wants to divert those extra funds in to other sectors by increasing tax saving investment slabs and including more avenues of investments.
      Just imagine if within next 1/2 year, the tax saving slab is going to be increased to 3 lacs instead of current 1 lac, then can any home loan tax benefitter under sec. 28a would be beneficial. May be yes and may be not but there wont be so much hype or demand for investing in to properties as extra surplus fiund size would diminish and finding it's investments in to other sectoral bonds or fixed deposits.
      Last but not the least...the spread between buyer's expectation and seller's expectation for property price.. It's widening broader.
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  • Originally Posted by bhabani348

      Home Loan Rate increased app by 25 - 50 bps from all banks increasing repayment burden for home buyers. In fact it's a well measured step from Indian Govt to save the country from a economy crisis as seen during SE Asian Economy crisis, States and European Credit Crisis. All economy crisis happens during real estate bubble and it not only affects just real estate price but all aspects of life pushing inflation at all time high and loan defaults, unemployments and increase in black money flowing in to economy.
      Min Margin slab for home loans have been increased to 20% for home loan upto 20 lacs and 25% for home loans more than 20 lacs. It shows bankers being more cautious about higher home loan segment. And all these steps as directed by RBI. GOI is decissively taking steps to curtail public interest for real estate sector and wants to divert those extra funds in to other sectors by increasing tax saving investment slabs and including more avenues of investments.
      Just imagine if within next 1/2 year, the tax saving slab is going to be increased to 3 lacs instead of current 1 lac, then can any home loan tax benefitter under sec. 28a would be beneficial. May be yes and may be not but there wont be so much hype or demand for investing in to properties as extra surplus fiund size would diminish and finding it's investments in to other sectoral bonds or fixed deposits.
      Last but not the least...the spread between buyer's expectation and seller's expectation for property price.. It's widening broader.


      We have been discussing this for the last 3 to 4 years in this forum. We always expected RE prices to fall drastically like here in the US. I was one of the strong supporters of the RE bear club along with Wiseman.

      But the truth of the matter is, RE prices in India has defied all the notions. So i don't think Indian RE will fall ever fall.

      Its so unfortunate that i have to switch side or side with our bull team CEO Nataraj this time.

      We have been discussing this for the last 3 to 4 years in this forum. We always expected RE prices to fall drastically like here in the US. I was one of the strong supporters of the RE bear club along with Wiseman.

      But the truth of the matter is, RE prices in India has defied all the notions. So i don't think Indian RE will fall ever fall.

      Its so unfortunate that i have to switch side or side with our bull team CEO Nataraj this time.

      We have been discussing this for the last 3 to 4 years in this forum. We always expected RE prices to fall drastically like here in the US. I was one of the strong supporters of the RE bear club along with Wiseman.

      But the truth of the matter is, RE prices in India has defied all the notions. So i don't think Indian RE will fall ever fall.

      Its so unfortunate that i have to switch side or side with our bull team CEO Nataraj this time.

      We have been discussing this for the last 3 to 4 years in this forum. We always expected RE prices to fall drastically like here in the US. I was one of the strong supporters of the RE bear club along with Wiseman.

      But the truth of the matter is, RE prices in India has defied all the notions. So i don't think Indian RE will fall ever fall.

      Its so unfortunate that i have to switch side or side with our bull team CEO Nataraj this time.

      We have been discussing this for the last 3 to 4 years in this forum. We always expected RE prices to fall drastically like here in the US. I was one of the strong supporters of the RE bear club along with Wiseman.

      But the truth of the matter is, RE prices in India has defied all the notions. So i don't think Indian RE will fall ever fall.

      Its so unfortunate that i have to switch side or side with our bull team CEO Nataraj this time.

      We have been discussing this for the last 3 to 4 years in this forum. We always expected RE prices to fall drastically like here in the US. I was one of the strong supporters of the RE bear club along with Wiseman.

      But the truth of the matter is, RE prices in India has defied all the notions. So i don't think Indian RE will fall ever fall.

      Its so unfortunate that i have to switch side or side with our bull team CEO Nataraj this time.

      We have been discussing this for the last 3 to 4 years in this forum. We always expected RE prices to fall drastically like here in the US. I was one of the strong supporters of the RE bear club along with Wiseman.

      But the truth of the matter is, RE prices in India has defied all the notions. So i don't think Indian RE will fall ever fall.

      Its so unfortunate that i have to switch side or side with our bull team CEO Nataraj this time.

      We have been discussing this for the last 3 to 4 years in this forum. We always expected RE prices to fall drastically like here in the US. I was one of the strong supporters of the RE bear club along with Wiseman.

      But the truth of the matter is, RE prices in India has defied all the notions. So i don't think Indian RE will fall ever fall.

      Its so unfortunate that i have to switch side or side with our bull team CEO Nataraj this time.

      We have been discussing this for the last 3 to 4 years in this forum. We always expected RE prices to fall drastically like here in the US. I was one of the strong supporters of the RE bear club along with Wiseman.

      But the truth of the matter is, RE prices in India has defied all the notions. So i don't think Indian RE will fall ever fall.

      Its so unfortunate that i have to switch side or side with our bull team CEO Nataraj this time.
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  • If we're restricting our discussion to TN, the prices have not dropped a single rupee - it utmost stagnated for sometime, and started moving up again. All projects, in the city and at its boundaries, as well as the suburban (if we call oragadam, sriperumbudur as sub-urban) have all gone up by around 8-10%. Add to this the increase in home loan rates. Effectively, for an end use buyer, it has gone up by around 12-15%. Factually, the prices in chennai are incomparable to that of Delhi or Mumbai. We're just slightly ahead of Ahmedabad or Thane rates. Having a sound manufacturing base and growing service sector, TN is actually quoting at a discount compared to Delhi, Mumbai or even Bangalore. In fact, if people are looking at Hyderabad, its a great time to buy provided one is ready to take the risk of "Telengana" factor which brought down the RE prices in this metro. I'm quite positive on TN RE per se, and its on upward move from here for few more years.
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