Chennai real estate is now on a downward slide.

Market studies have shown that prices of land, apartments and even commercial rentals, particularly that of IT buildings, have come down by about 15 per cent.

Land in Sriperumbudur, which was selling at Rs.7 lakh to 8 lakh per ground, has come down to Rs.5 lakh to 5.5 lakh. Layouts promoted at Vadkapattu, on the outskirts of Chennai, which were selling thick and fast, are stagnating. About 25 per cent of the plots in many layouts, priced at Rs. 650 per sq.ft., remains unsold even after months.

If you are a serious buyer, prices can be negotiated considerably, say brokers. The stagnation is visible. Not that the big builders are finding it easy. One of the upmarket builders near Navalur, on Old Mahabalipuram Road, has about 50 per cent of his apartments unsold. Last year’s euphoria has died down.

Srinivasa Shipping and Property Development Limited Managing Director Prakash Challa estimates about 20 million sq.ft. of IT space will be added to Chennai by 2008 and may put pressure on rentals.

A few promoters confirm off the record that IT companies, which were willing to pay rental of Rs.35 to 40 per sq.ft. until a few months ago, are now offering only Rs.25 to 28 per sq.ft. In August 2006, similar commercial space in T. Nagar was rented out for Rs.70 per sq.ft.

Builders’ Association of India (Southern Centre) chairman A.V. Ramaswamy confirms the downward trend and attributes it to higher land prices, speculation, rising construction costs and higher interest rates.

Experts say the price to earning ratio of Chennai properties is high and has reached unsustainable levels. Such corrections are bound to happen. Some predict that stagnation in property market will lead to further drop in prices. The current market correction, however, has not made housing or land affordable to large sections of people. The biggest gainers will be big realtors, who could buy large tracts of land at a relatively lower price.

- The Hindu
6th July,2007
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  • Aaaaaaaaaaaaaaaaaayiram biskothu

    Rendaaaaaaaaaaaaaaaayiram biskothu

    Moovaaaaaaaaaaayiram biskothu


  • Don't repeat your posts. You will get knocked out of forum!

    Originally Posted by whatheheck
    Whenever i read Nataraj's post, i used to remember a comedy scene in one of Pandiyarajan's movies.

    Pandiyarajan will hire 10 mentally retarded people and take them to an auction house.

    During the bid, each one of these mentally retarded people must call some numbers in thousands.

    1st person will call "Rendaaaaaayiram"
    2nd person will say "Naaaaaaaaaalaaaaaaaaayiram"

    They will keep on calling those numbers throughout the bid.

    Similarly our friend Nataraj has been calling "1 C", later "2 C"

    "3.2 C", "5 C" and so on.

    Nataraj, some advice for you.
    Please make sure you don't roam on the chennai streets chanting "1C", "2C" "2.5C" etc.

    Dear Whattheheck,

    Please don't repeat the posts verbatim. There is a Bot (or the Admin) who is roaming in these posts who does not like spam (or repetitive posts).

    So, when they decide it is spam, pooof, you are knocked out.

    So, please don't repeat your posts verbatim (I do notice that the headers are different, but that may not be enough ;)).

    After the event, you should not end up saying "What the Heck!" :)

  • PandiyaRajan - Joke

    Mr Whatheheck

    Yes .When I read this gentleman's comments ,it exactly reminds me that comedy scene in one of Pandiyarajan's movies .

    On reading your comment ,I could not control my laughter for about 10 mins .

    Thanks for the excellant comment.
  • What the heck?
  • Loosu payele, Loosu payele, Unna evanda inga vittan loosu payele! USle kasa thola chuttu inga vandu picha edukkara payale.
  • sabash, sariyana potti

    Sabash, sariyana potti.

    Dont stop this.

    I really enjoy all these kooothus.

    Thanks for make us laugh

  • Nataraj anna,

    Neenga enna pathil sollala???

    Please keep this thread going.

    :) :) :) :) :) :)

    Originally Posted by whatheheck
    Dei MKM Nadarasu,
    Naan US la illa da. Madras-la thanda iruken loosu koo
  • Christmas present venuma Antony payale? Poye mada koyile keelu, inga ille? Purinju da!