Hi

In chennai the prices of plots or even a flat for that matter is going beyond the reach of a common man. Is there any chance for the prices to correct in near future?

With a salary of 15k, it is beyond the capacity of common man to buy a house or flat
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  • chennai prices

    In chennai, Govt has fixed the guideline value way back in 2007. Given the guideline values, which will stagnate but not go down, it is hard to see chennai city prices going down subtantially except for a 5-10% here and there. Govt will not reduce guideline values as it will cause fall in revenue as well create issues in valuation. Suburbs, where guideline values have been substantially lower as compared to the prices quoted, correction is natural without any grave loss to the govt as well as the builder
    So, within city limits, forget prices coming down....
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  • Suggest

    Hi

    Please suggest is the right time to buy a land in checnnai or can i wait for some month is there any chance for price to come down?
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  • Originally Posted by lovebird
    It is good finally there is agreement that flat price is falling

    Flats dont define RE to me. They are for the foolish investors and serious residents!
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  • Do guideline values go only one way? Up?

    Originally Posted by iampicolo
    In chennai, Govt has fixed the guideline value way back in 2007. Given the guideline values, which will stagnate but not go down, it is hard to see chennai city prices going down subtantially except for a 5-10% here and there. Govt will not reduce guideline values as it will cause fall in revenue as well create issues in valuation. Suburbs, where guideline values have been substantially lower as compared to the prices quoted, correction is natural without any grave loss to the govt as well as the builder
    So, within city limits, forget prices coming down....


    iampicolo,

    Whatever gave you the idea that guideline values cannot come down, just like they went up?

    They are guidance values and not rules to be enforced by law. When desperation reaches certain levels and buyers dictate terms, guideline values will be set aside and prices will reach their correct levels.

    Its a flawed approach to base an argument on opinion rather than facts. Eventually facts and the laws of demand/supply will prevail and the persons basing arguments on other parameters will suffer.

    Wait and watch.

    cheers
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  • Originally Posted by iampicolo
    In chennai, Govt has fixed the guideline value way back in 2007. Given the guideline values, which will stagnate but not go down, it is hard to see chennai city prices going down subtantially except for a 5-10% here and there. Govt will not reduce guideline values as it will cause fall in revenue as well create issues in valuation. Suburbs, where guideline values have been substantially lower as compared to the prices quoted, correction is natural without any grave loss to the govt as well as the builder
    So, within city limits, forget prices coming down....


    Dear friend,

    Within city limits, the reductions are in the range of 5 to 10 % only that too by some promoters and not by all. Most give a nominal reduction like Rs. 100 or 200 /sq. ft. Instead, they offer some free things like grills, grill gates, electrical fans/lights, AC in one bedroom, free open car shed etc. etc.

    ks2071746
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  • Originally Posted by wiseman
    iampicolo,

    Whatever gave you the idea that guideline values cannot come down, just like they went up?

    They are guidance values and not rules to be enforced by law. When desperation reaches certain levels and buyers dictate terms, guideline values will be set aside and prices will reach their correct levels.

    Its a flawed approach to base an argument on opinion rather than facts. Eventually facts and the laws of demand/supply will prevail and the persons basing arguments on other parameters will suffer.

    Wait and watch.



    cheers


    wiseman i have never seen guideline value go down ever in chennai from 1995. and enforcement is there in terms of stampduty.you can choose to sell your property for a rupeee no law can stop that.
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  • Originally Posted by yeskrish
    What is the ground reality for chennai realty?
    are the prices in the city area falling? if it is stagnant then is it the stage set for fall to happen in 1-3 months time?



    here is the thread starter dated a year back.

    still the answer is wait and watch
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  • Actually ABK, every foolish bear here is continuing to ask if prices will go down in the next 3 months and sadly they are hoping until death!
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  • Originally Posted by abk
    here is the thread starter dated a year back.

    still the answer is wait and watch


    So this thread was started in Jan 2008 when everything was going well for Indian economy.Bears even in that boom time were predicting prices will fall.Everyone knew prices are falling across India from 2008 till date(except that few bulls trying to sell their land will not agree.That is understandable)
    So now after finanacial tsunami blew away world and Indian economies bears are again saying price destruction will continue to happen for atleast some more years.So you wait till next year and again ask whether prices have fallen.Prices would have fallen only thing few people will not have the mind to accept the fall.Its like closing your eyes and saying world has gone black.
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  • Rightly said. Only people with vested interests will want the economy to go through a bullrun burnout. Lets be realistic guys.

    For Stock markets: Always see at what rate the GDP growth vs Budget deficits are correlated. If the GDP growth is 8% and budget deficit of 4% and the stock market grows at the rate of 100% every 6 months you should know something is not right..

    For Property prices : Always check the prevailing rents in that area. if the price to yearly rent ratio is more than 22 to 25.. you should better stay far away!
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  • Originally Posted by BigBear
    So this thread was started in Jan 2008 when everything was going well for Indian economy.Bears even in that boom time were predicting prices will fall.Everyone knew prices are falling across India from 2008 till date(except that few bulls trying to sell their land will not agree.That is understandable)
    So now after finanacial tsunami blew away world and Indian economies bears are again saying price destruction will continue to happen for atleast some more years.So you wait till next year and again ask whether prices have fallen.Prices would have fallen only thing few people will not have the mind to accept the fall.Its like closing your eyes and saying world has gone black.


    come on BB nobody here has/can refuse to accept reality we are asking you to come up with facts and when i accept your 1cr offer for tambaram you say will you buy at 3cr? get me data from sellers inside the city and the suburbs showing the drastic fall you are talking plots of 1gr in estb locales are still not available (at crashed prices).browse magicbricks,99acres etc and show me the offers(pls ensure that annanagar means annanagar and not beyond padi)
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  • Originally Posted by abk
    come on BB nobody here has/can refuse to accept reality we are asking you to come up with facts and when i accept your 1cr offer for tambaram you say will you buy at 3cr? get me data from sellers inside the city and the suburbs showing the drastic fall you are talking plots of 1gr in estb locales are still not available (at crashed prices).browse magicbricks,99acres etc and show me the offers(pls ensure that annanagar means annanagar and not beyond padi)

    How many times bears had quoted articles regarding the fall in prices.If you dont believe news articles it is not my fault.In 99acres I can quote any fancy price like 1cr for land near tambaram.You think people take this serioulsly.How many ads we are seeing in 99 acres which are repeated for more than 1 year without any takers.That itself shows it is just some ridiculous guy quoting some ridiculous price.
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  • Originally Posted by BigBear
    How many times bears had quoted articles regarding the fall in prices.If you dont believe news articles it is not my fault.In 99acres I can quote any fancy price like 1cr for land near tambaram.You think people take this serioulsly.How many ads we are seeing in 99 acres which are repeated for more than 1 year without any takers.That itself shows it is just some ridiculous guy quoting some ridiculous price.

    Abk is genuinely looking for a place. He is not just quoting 99acres prices. Bigbear you need to take a deep breath and relax.
    BTW in the next few days you can short Nifty and see it even at 2500 or 2000. Dont come and say that therefore RE will collapse. It just may not, especially in Chennai or Bangalore.
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  • No scope for growth - Atleast

    To every one who asks the question about the price drop...

    We are talking about a general phenomenon (RE Price) and no one can give a definite answer.

    In my feeling the price will not drop and i am sure CHENNAI prices will NOT go higher... It is well beyond deserving rates.

    If you have too much money please go and waste in Chennai.

    A average salary for a well paid guy in Chennai is less than Rs. 50000.00. And he cannot afford to buy a apartment for 1 Cr.

    And there maynot a pay hike for IT professionals in near future as we have just recovered from a slowdown.

    So keep your money in FD's for next few years, Atleast that will yield 8 to 10% growth..

    I am not a astrologer, but I share my opinion with some common sense.

    You may hear many false news from RE brokers...never decide with a brokers recommendation...
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