Friends, I have been reading the posts on this forum for many months and I have found the quality of analysis and information so helpful - thank you.

I am relocating to Chennai (from Delhi) and I have heard of a flat in T Nagar (near SGS Sabha) which is over 10 years old and the rate being asked is 14000 per square foot. The flat is in very good condition but I am confused about the rate - the broker says that no new flats are coming in T Nagar so this is an okay price. What do you all think? Any advice will be most helpful.
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  • I live in that area. sometime back price was around 10,000 RS square feet for old one. is that a new construction. Area is good but how much you wanted to pay is the question. rentals are always cheaper
  • Thank you srini234. Yes, the locality is good and very central. I was told this is a good time to buy because prices in T Nagar are expected to skyrocket soon. Was not sure how much a resale flat is worth, though
  • 14K is little bit higher for a 10 yr old unit.
    It depends on the exact location. Try to get information from sales happening in the nearby units. I have come across new ones at 12.5-13K two months ago. But price depends on the street and neighbourhood. Brokers would always make you to jump in.

    If you are new to the city, I would suggest renting before jumping in.
  • Thank you, k11. I am not new to the city - have lived here before, and so I would like to take a permanent residence this time, instead of renting. My daughter is going to go to PSBB, which is just down the road, and this flat seems very attractively located - it is at the end of Habibullah Road that is just a hop, skip and jump away from Gemini. Yes, it does seem high for a resale flat. But I have been scouting the market for months now and there are very few good flats of that size coming up in T Nagar - wonder why that is so? In your view, is 12-13K okay?
  • The other side of GN chetty road is also good. Lakshmi colony, N cresent rd, etc are pretty good residential locations and demand higher premium.

    Habibullah, Nair rd, Giri Rd are priced similarly.

    But I still feel it is little bit expensive at 14K for a 10 yr old unit. What kind of square footage are you looking into.

    But if you find one with updated floors, AC, woodwork, 2 car park, applicances, etc you can pay a little bit higher. UDS is also important. More UDS (65% or higher) means higher value.
  • Thanks again, k11. Yes, it has most of the things you mentioned, good flooring 2 car parks, woodwork, and so on. How do I go about finding out the UDS% - will there be documentation I can ask for?
  • Yes it will be in the sale deed.
  • Maybe I should post this as a separate thread. The sale deed (when bought by the owner from the builder) says that the sale area of the flat is 1900 sq feet, of which the plinth area of the flat is 1860 square feet and another 40 feet has been added as undivided share comprising staircase, lobby, lift machine room etc. This does not make sense to me because how can the UDS (calculated at 1/16th, there are 16 flats) of the total common area, ever be 65%? Perhaps the UDS you refer to is something else?
  • It is the same thing we are talking about.

    Your UDS is 1/16th of the total land area occupied by 16 flats.

    Here it means all the 16 flats are of the same size.

    This should be equal to around 65-70% of your carpet area (1800 or whatever).
  • For a 1900 Sqft flat your UDS should be close to 1200 sqft approx.

    The building should sit on 8 grounds or more then.
  • Thanks for your patience, k11. So, if I get you right, I take the plot size, convert grounds to sq feet, then take 1/16th of that and see how much that forms of the sale area of the flat itself?

    That is very helpful - but it does not form part of the original sale deed by the builder to the owner - I mean, it can be calculated because the deed for buying the land is available.

    If I may ask - why is a greater UDS% more valuable? It is unlikely the flats will ever be bashed down and just the land sold, isn't it?
  • To go back to your earlier post, k11, you said UDS of 65% or higher can command a higher price - is there any way of figuring out how much more premium can be paid for a flat if it does indeed have a higher UDS?
  • Flat Value = (UDS in Sqft * Land Cost Per Sqft) + (Construction Cost of the flat * (100-Depreciation%) + Any premium

    In your case as an example,

    Flat Value = (1,200 UDS * 20,000 Land Cost) + (30 Lac Construction Cost * (100-30% depreciation) + 4lacs (for 2 carpark) + 2 lacs (Woodwork)

    = 2.4 Cr + 21 lacs + 4 + 2 = 2.7 Cr (approx)

    Plug in your own numbers and calculate.

  • It is unlikely the flats will ever be bashed down and just the land sold, isn't it?

    This is happening in Bombay. Redevelopment is pretty common now.

    Even in Madras, builders are trying to get TNHB apts having higher UDS. So that they can get more FSI.

    There is no land available in the City.

    As the govt increased FSI in the second master plan, you will see more redevelopments.
  • Originally Posted by k11
    Plug in your own numbers and calculate.

    Oh, this is marvellous, thank you k11.

    A couple more questions : how do you assume 30 lac construction cost? Is there a per sq foot rate for that as well?

    And why is there a 30% depreciation on that - 30% for 10 years assumes a flat is going to be there for 30+ years, is it?

    And why 20000 per sq feet - if the flats can be broken down, do we take the residential value for the plot or the commercial value. Jones Lang LaSalle say the value of T Nagar land is between 8-10 cr per ground - so at least 33000 per sq foot

    Finally : this comes to 2.7 cr for 1900 sq feet flat - which is 14200 per sq feet - so maybe the quote for 14000 is actually okay?