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Are Chennai Real Estate Prices Going to Drop 25% By Year End?

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Are Chennai Real Estate Prices Going to Drop 25% By Year End?

Last updated: October 21 2009
17 | Posts
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  • #11

    #11

    Re : Are Chennai Real Estate Prices Going to Drop 25% By Year End?

    Originally posted by yeskrish View Post
    The prices you quote for Wmambalam and Kodambakkam are on the high side. Pricess were never above 6000 during the paek. so stop this countinng 25% decline from imaginary higher prices!

    I would enter only when flats from mambalam at 4000 range and T Nagar at 5500 range.
    I am sure this will happen.
    Salries will not only go to 2006 levels it may even be zero very soon. thousands are going to lose their jobs.
    Dear friend,

    I expect the prices at West Mambalam may come down to Rs. 4500 range and T.Nagar to Rs. 6000 levels, of course in good localities, within an year's time.

    ks2071746

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    • #12

      #12

      Re : Are Chennai Real Estate Prices Going to Drop 25% By Year End?

      Originally posted by ks2071746 View Post
      Dear friend,

      I expect the prices at West Mambalam may come down to Rs. 4500 range and T.Nagar to Rs. 6000 levels, of course in good localities, within an year's time.

      ks2071746
      Dear friend

      Wait for harvesting time to reap.

      Thanks in advance

      chataara

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      • #13

        #13

        Re : Are Chennai Real Estate Prices Going to Drop 25% By Year End?

        Originally posted by msenthil74 View Post
        Hi,

        The prices have dropped . New flats in W mamblam and kodambakkam have come down from 7000-7500 to 6250-6500. Old flats(less than 3 yrs old) are there from 5500- 5750 for good ones and medium ones of more than 3 yrs are available from 4500 - 5500.

        If interested tell me my id msenthil74gmail.com. I am not a broker .

        Senthil
        Senthil,

        It appears you are trying to sell your flat, if you are not a broker .In kodambakkam old flats cost Rs 4000 per sqft. If it is top floor it will cost Rs 3500 per sqft

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        • #14

          #14

          Re : Are Chennai Real Estate Prices Going to Drop 25% By Year End?

          Originally posted by Nataraajg007 View Post
          Senthil,

          It appears you are trying to sell your flat, if you are not a broker .In kodambakkam old flats cost Rs 4000 per sqft. If it is top floor it will cost Rs 3500 per sqft
          And you sucker is sitting on one of these apartments and paying the poor owner only Rs 3000 while his property will get a minimum rent of Rs 10000. Ha sucker!

          Comment

          • #15

            #15

            Re : Are Chennai Real Estate Prices Going to Drop 25% By Year End?

            chennai real estate Prices are down!!!

            All house prices , land prices are down which is excellent. I can see it is down almost 20-30% minimum from the previous cost. If buyers wait for another 1 year without buying properties. I am sure prices will be down by 40% in chennai .

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            • #16

              #16

              Re : Are Chennai Real Estate Prices Going to Drop 25% By Year End?

              Gamble

              RealEstate is always seen as the best place for Investment.
              The people who buy a property not for usage, but for its appreciation.

              Though, this has taken beyond affordability of common man. There are still a big section of people who can afford (NRI, , Engineers, etc).

              There are several reasons why growth is so high....

              1. There is no better/attractive place for Investment than RE.
              2. Buying own Home/Apartment is always dream for South Indians.
              3. Best place for *brokers* to make money., they will continue to hype on this.
              4. There is also a high demad for good housing..
              5. Rent is a good/stable money for retirement life. Also grows(?) along with monthly yields


              Even with all these reasons, I will not invest in Chennai I would invest in a low cost place (Coimbatore, Tiruchy, Tirunelvei) to invest which will obviously grow in future.

              Please think/answer before you proceed....

              Is it a good idea to push all your money into one sector which is under a big question?

              1. Can we find buyers when we want to sell in case of a need?

              2. Can I see atleast 8% to 9% appreciation every year? (as you get in fixed deposits).
              - Which means a 50L property should be 80 Laks in 6 years.

              beware. It is a G A M B L E.

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              • #17

                #17

                Re : Are Chennai Real Estate Prices Going to Drop 25% By Year End?

                Cautions about buying in haste

                Dussehra and Diwali aren’t just the season for Durga pooja, laddoos, and Ram Lila. Its also the time when the maximum number of new real estate projects get launched.

                Developers use this season to their advantage because they know that you will be most keen to make a real estate investment during these auspicious days.

                But don’t rush in blindly just because you want to buy something before this holy time period finishes. Here are 5 tips that you must keep in mind before you buy property this festive season.

                But first, here is a preface to the current environment in real estate. Many developers are still in a financially weak condition. The situation in the market is still a little fragile.

                Just because the stock market is going up does not mean that normal conditions have returned to the real estate sector as well. So, please keep this background in mind as you think about the following 5 tips.

                1) Choose your builder wisely: The real estate sector, globally and in India, is notorious for developers who take investors’ money and then run away. Make sure that you go with a reputed builder who has been developing properties for a while and has had an operating history.
                Don’t just go with any builder, it might be worth paying a premium to go with someone who has built their reputation over a few decades.

                If you have not heard of your developer, always ask your developer what properties they have developed, and if possible speak to customers who bought properties at these developments to learn from their experience.

                2) Ask for a construction-linked payment plan: As discussed, the financial conditions of various developers are still not totally safe. So, rather than give them money at their will, ask for a construction-linked payment plan.

                This way you know that your installments are actually going towards financing the development, rather than being used for other unknown purposes. Beware of time-linked payment plans, and if you have the option stay away from such plans.

                3) Penalties for delays: As it happens, many if not most of the projects launched last Diwali have not even seen construction begin. Yet, many customers have paid their installments on time with nothing to show for.
                Understand what rights you have in case of delays. Ask for a definitive date for when construction should begin.

                If you are dealing with a small builder, that does not have a long operating history, make sure that the contract gives you adequate protection against the builder just sitting on your money and delaying the project’s completion.

                4) Location: Don’t be in a rush to buy property just because the price looks tempting, and its an auspicious time to buy property during the festive season. Recognize that the single most important factor in buying real estate is usually the location of the property.

                Can you see yourself living there, or someone renting this property? Is it close to civic amenities and is the planned connectivity convenient?

                5) Don’t buy to flip: Don’t assume that you will easily be able to flip your property to another buyer for a premium just on the back of paying your booking amount and some installments.

                In the near-term, there could be an over supply of apartments. Also, keep in mind that there are 1000s of other people who are already sitting on apartments where they want to sell them.

                Buy a property if it makes economic sense for you as an investment, or as a residential home. Don’t gamble.

                Comment

                • #18

                  #18

                  Re : Are Chennai Real Estate Prices Going to Drop 25% By Year End?

                  Buy a own house

                  Buy a own house if you are living in a rented house.

                  For a gross salary of Rs.10 Lacs per annum a Home of Rs.40 Lacs is very affordable. Rs.40 Lac homes and apartments are available in OMR, GST, Ambattur etc where most of the jobs are shifting.

                  By the time your gross salary increases to Rs.15 lacs per annum, even price of same property will rise to Rs.60 lacs.

                  So why wait, buying now is better then paying higher EMIs later.

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