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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  • Originally Posted by abk
    you have answered your question. they are offering flats at distant places
    where you dont have anything else other than the OMR for company.
    they expected the IT guys with swanky SUVs used to travelling 100 miles to office in US.to discount the distance and lap up the projects with USPs
    like pool,gym,jogging track etc.
    they realised their folly and are trying to exit fast.
    I dont see those kind of prices in chennai proper.
    anyways they are quoting 2250/sq ft now at dugar which is just 25%less than suburb rates.i still dont see value in them.


    Dear friend,

    What you have stated are quite true.

    ks2071746
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  • Good luck,Keep fingers crossed and wait for the "fall" and you can buy at 80% discount.Let us hope you don't miss the last boat
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  • Miss the Boat

    It is hard to reconcile when people say ' miss the boat'. Looking at one of the posting on this forum, the prices have become doubled and tripled from 2002 just indicating that there is bubble in the property. I have monitored property bubble in many countries around the world and the property values have always plunged getting back to an reasonable levels. The average projected increase in the property / land value is about 2 to 3% a year taking into consideration inflation and salary increases.
    Japan is a country still considered a country with a property bubble and they find it hard to come out of it.
    Basic realism, for the average pay for 75% of the residents in Chennai, the present property prices are not reachable. A few people can control the property prices for a short duration and then it switches to large population controlling the prices in the long run.
    Better to wait and watch for the present moment to avoid disappointment. For sure, the prices cant make a leap at this juncture
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  • Hi Shyame, Even if price crash 50% the same 75% of chennai people will not be able afford. That has been always the case and that will be always the case.
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  • The capitalism, corruption and black money ensure only some own many and many own nothing.The best thing to do for ordinary middle class (most of us) is to follow our parents and grand fathers and buy in outskirts and the population growth would mean in 10 - 15 years you will be in a posh inner city location.
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  • Well said. I wonder if builders are launching 1 crore properties without any buyers! Don't they know the market much better than us (sitting and commenting from distance). Immediately don't come to the conclusion that I'm a builder or broker :D.

    Originally Posted by rickyofsnow
    Hi Shyame, Even if price crash 50% the same 75% of chennai people will not be able afford. That has been always the case and that will be always the case. Ask your father and grandfather,the property (with in the city limit of there time) was not affordable,That is why they went very very far away and bought in Anna nagar and Besant nagar (Middle of nowhere)
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  • Originally Posted by shyame2
    It is hard to reconcile when people say ' miss the boat'. Looking at one of the posting on this forum, the prices have become doubled and tripled from 2002 just indicating that there is bubble in the property. I have monitored property bubble in many countries around the world and the property values have always plunged getting back to an reasonable levels. The average projected increase in the property / land value is about 2 to 3% a year taking into consideration inflation and salary increases.
    Japan is a country still considered a country with a property bubble and they find it hard to come out of it.
    Basic realism, for the average pay for 75% of the residents in Chennai, the present property prices are not reachable. A few people can control the property prices for a short duration and then it switches to large population controlling the prices in the long run.
    Better to wait and watch for the present moment to avoid disappointment. For sure, the prices cant make a leap at this juncture


    this is what everyone said about the sen when it reached 8000 mark today it is double that,
    it is far too exteeeeeeeeeeeeeeeended for a extended bear rally.;)
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  • re not for the faint hearted

    dear baski and others, re doesnot rely on the salraried guys,those days are gone for ever, they dont depend on the 50k salary??? There are millions of business men and nris not knowing what to do with the cash, re is for them, the salary guys are just a drop ,wake up, u are still in 1960s,when business men where few, nris where not heard of, oveseas travel and business was less and land plentiful.in another few years chennai will sell like tokio or newyork or johanesburgh.
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  • Guys do not forget the rapid population growth and Real "INFLATION". Today 1C is equal to 10L 7-8 years ago.
    All youngsters of TN move to Chennai.
    KPO & BPO and bringing in people from other states.
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  • Business man are making money as there are drip down effect from large companies/investments.

    A guy who to do odd furniture and carpeting job in our street 8 yrs ago now supply's office furniture and maintains Huyndai car factory.
    He has grown from TVS50 to second hand Zen to now brand new Ford in 8 yrs. He is also building his first own home. Is India Shining?
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  • CHeck out the rents in the city.My property yields rent of 3 lakhs per Annum.So approximately the value is 3x20= 60 lakhs.So the price is logical.CAn the rent drop from the curent Rs 25000 per month to 2001 levels of 5000 per month? Never..So approximately the value is 3x20= 60 lakhs.So the price is logical.CAn the rent drop from the curent Rs 25000 per month to 2001 levels of 5000 per month? Never.
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  • A view of present and future

    Majority of the peoples pocket is comparatively more in Chennai economy compared to 90’s. I think it is all part of the boom in businesses, establishments due to huge FDI in India and specifically in and around Chennai on and auto Industries and most of population get a share in the growth either directly or indirectly. I think the governments of Tamil Nadu has been doing well on these grounds.

    To be in the right place and in right time makes a big difference and so is the case of students who graduated by end of 90’s, beginning of 00 and also the active work force under the present climate in Chennai. While it was hard to get decent jobs in 70’s, 80’s, 90’s for competent people, it became quite simple for majority of the population due to high manpower demand. People start to flock into the city thereby increasing population density and increasing prices. Look at China what happened in the last 5 years and what is happening now where people are moving back to their villages to do their good old jobs

    While in 90’s, a server in the restaurant will be happy with a 1 or 2 re tip, now the same people expect 5 or 10 re tip. Looking around in Chennai, there are lots of people from other states taking over these jobs. Even look at the cost of commodities, restaurant bill, bus charges, water charges, electricity bill etc, there is multiple times increase in all of them from 90’s. One of the reasons is inflation ( not a major player ) and secondly peoples affordability index has increased and more people have moved into the middle class cader ( it is observation on the global level ). The number of 2 wheelers and cars on road have increased multiple times and as an Indian am happy and proud.

    These all looks good for the current local economy as long as we are able to attract more FDI and retain our competitiveness in the market and keep the share between the people. The businessmen already complain that cost of doing business is high in Chennai as compared to running a company in Kualalumpur. So, it is all looks good news presently and only time in future will say whether we will remain as competitive and prospective in future.

    Just looking into a global side of things and comparing it with Chennai. 1 crore rupees is about 150,000 Euros, 210,000 dollars, 300,000 Singapore dollars and 720,000 Malaysian Ringgits. One can compare the quality of house / apartment / land that will be available in these countries for the cost of 1 crore apart from living standards, quality of life etc. compared to life in Chennai with all pollution, drainage, quality drinking water etc. ( I am not complaining, just stating facts ).

    At the present juncture, India is booming and is shining and it all depends in future whether the selfish MNC companies will still continue to stay in India and support our people or move to low cost destinations. My take is we have become / becoming more expensive to throw the MNC’s to other low cost economies
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  • It is extended, but for some reasons. Not toooo extended!

    Originally Posted by abk
    this is what everyone said about the sen when it reached 8000 mark today it is double that,
    it is far too exteeeeeeeeeeeeeeeended for a extended bear rally.;)


    Abk,

    If you go back to 1987-88 onwards, all deep bear markets have had rallies back which have been 100%. So this is not unusual.

    But this time around, we are not in a regular bear market, but a once in a lifetime bear (last time it came in the decade my father was born 1930s). Some analysts also record this as a once in 300 years phenomenon, which they call a Grand Super Cycle.

    This is largely a US-led phenomenon and our country will be swept along for a while after which we may chart a separate and more bullish course, so lucky we are in India now.

    Yesterday was probably the signal given by US markets that this exteeeeended rally might be over and we may be in for a large and steep fall. Still too early for confirmation, but watch today's US market performance. Our markets may remain uppish and flat for still some time, probably Diwali.

    I still believe we had a strong bear market rally and should see 9800-10500 again!;)

    cheers
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  • Economic gloom gone, but it's not boom yet: IMF

    The International Monitory Fund said the global economy is recovering faster than expected.

    The positive report card from IMF yesterday.

    And our Wiseman is talking about a great depression Mark II.

    Guys get over it, The GFC was no way near bad as it was first thought to be.

    Like it or not the global economy is well on the recovery path - even if you are in denial.
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  • Originally Posted by wiseman
    Abk,

    If you go back to 1987-88 onwards, all deep bear markets have had rallies back which have been 100%. So this is not unusual.

    But this time around, we are not in a regular bear market, but a once in a lifetime bear (last time it came in the decade my father was born 1930s). Some analysts also record this as a once in 300 years phenomenon, which they call a Grand Super Cycle.

    This is largely a US-led phenomenon and our country will be swept along for a while after which we may chart a separate and more bullish course, so lucky we are in India now.

    Yesterday was probably the signal given by US markets that this exteeeeended rally might be over and we may be in for a large and steep fall. Still too early for confirmation, but watch today's US market performance. Our markets may remain uppish and flat for still some time, probably Diwali.

    I still believe we had a strong bear market rally and should see 9800-10500 again!;)

    cheers


    wiseman it is not going to happen in atleast 3yrs.
    the world is changing so fast that predicting beyond three years is 'insane' in any scenario.
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