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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  • Its better to stay in Australia

    Originally Posted by Natarajg007
    It is true that infrastructure in India does not match USA or Australia. The comparison however is that between Europe and India. We are not talking about sparsely populated area like Australia. Well as someone said in the links above a typical 3 bedroom flat in Chennai in a known area even not the hi-fi ones, like Vadapalani costs 75L to 1C. A similar area in Bangalore will cost much lesser say 35L to 50L. Reason is simple. Land price is same in both areas but FSI in chennai is low. WIth such FSI, with limited developed areas (with or without potholes) the demand for housing in Chennai will hold the prices.
    NRIs tend to take a condescending look, but well 2 years ago I had a running battle with some silly NRI about a price of land in Arcot road at 1C. He felt it was too much. TOday the same land is not available for 2C. So if u wanna buy, Buy, otherwise stay in Australia with your Marsupial friends.


    Yep I reckon it is better to buy a house in Australia where the government is trying hard for the betterment of life of people and we have medicare (free medical treatment), affordable housing ( in terms of earning here) not like India where people earn 20k per month and have 40 lakh flats (min) in remote areas. Here we can get a decent salary as well as decent house prices which are more economic than Chennai as well. And of course you cannot compare Infrastructure. I reckon only the prices crash in India it is the best time to buy houses like what happened in US now with the Credit Crunch. No offence but it is my personal feeling. :)
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  • Will prices in Chennai really come down ?

    Here is my gut feeling, there are pockets in Chennai where some top politicians have huge land bank and are in collusion with the builders (mainly large flat promoters). There Large project realtors invariably launch their roadshows abroad (invariably US where India growth story blah blah sells) and then come to India with 25% of their project already sold off. I dont think there can be much disturbance in rates here unless there are some structural problems in the economy (for people with a little long term memory you can look back at the 96- mid 99 period). The impact of US recession , hike in interest rates etc may have impact in other areas which are blocked by speculators, second rung politicians, local big wigs. There could be some rejig here but no more than 15% correction from current levels but if economy turns worse (primarily Oil spikes) and US recession is worse than anticipated (> 15 months) then a further correction can be anticipated.. Chennai folks have Real Estate and Gold as primary investment avenues and there is lot of liquidity primarily from huge rents and profitable sales of earlier Real Estate investment not to mention increased salary levels and increased repatriation from US kin.

    They key here is how govt. will manage the Oil deficit , already there is atleast Rs. 25 P litre on Petrol and Rs . 15 on Diesel AFTER Oil Bonds. The govt. can max wait till next election. Imagine if the govt. had hiked petrol and diesel even by Rs. 10 what will happen to the Indian economy, what about hikes of 20 or even 30 if Oil moves up.. Can the India economy sustain ? Will IT companies on city's outskirts still provide Cabs for daily commutation ?

    Oil worldwide has been infiltrated heavily by fund flush funds creating a speculation premium of over $50 and this is only bound to increase...

    Net Net I think though India is a growth story there are simply too many events on the downside. So its better to wait and watch from the sidelines for now untill a few months from the next general election when clear signals could be available bothways..
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  • There are some related posts in the forum that address the crippling infrastructure of India, especially the Indian cities.

    Where is this confused nation heading to?

    Look at the rising cost of living, increased taxes and 104 % tax on cars. What are we paying these taxes for?

    It's a mess everywhere. The gap between the rich and the poor is widening even more.

    People are blindly running after money with little or no civic sense.

    India was never meant to be like this. It has failed to come up as a sound nation.

    CHAOS is the MANTRA that it runs on.

    Unfortunately, we will see more and more brain drain as anyone who gets an oppurtunity to leave this country, will certainly want to leave this expensive place ASAP.

    There is no concern about a better tommorrow or the future of our children.

    With deepest Regret. :(
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  • chennai prices

    are real estate prices -- apartments and plots - in Chennai in for a downward price trend ?
    I visited a prominent ad about a dupleix house, a few years old, on one ground plot in Pallikaranai- Manohar Nagar 5th street -- the owner was quoting 53 lakhs for it without any corporation water connection, a very long winded road - with the major bus stop the Velacery Vijay Nagar Bus stop - some 3 km away. No immediate faciltiies/ amenities in the vicinity. the house would have to be renovated --they had 8 feet by 8 feet rooms for bedrooms !

    I found this quite an absurd price to quote and the owner defended it saying that the nearby Kamkoti Nagar it is 70 lakhs the asking rate.

    Will someone make any analysis of the real estate trends of June- July in Chennai after the petrol price hike.
    thanks
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  • I request all you people to please rise above your limitations and look at the bigger picture first. While India may be shining according to some, we are still a very weak economy. A few years of cost advantage, which we have squandered away by doing clerical jobs, does not make us an economic superpower - yet. At the height of our economic boom, we continue to import ever higher amounts as compared to our exports. Remember, our economic boom is entirely dependent on export-led boom. And now its coming to an end - at least for the next 4-8 years; maybe for the next generation.

    Wondering why I'm not talking about RE prices in Vadapalani - or wherever? Because this whole thing is an utterly greed-led bubble due to the phenomenal stupidity of the builders, government AS WELL AS buyers. In previous generations we used to ask builders a simple question - "please explain why so much?". Is that asking too much of today's buyers - especially the youngsters? It appears so. In our days we kept our mouths shut, listened to our elders (not always wise :) and learnt from THEIR mistakes, unlike today. And the results show. Only the NRIs seem to be asking that question and that may be a life-saver for them!!!

    Prices are insanely high in Chennai (or Gurgaon, Bangalore, Pune or wherever) - even for Manhattan levels (I should know since I have property bought by my great-grandfather in Mylapore at 3k for 9 acres 105 years ago. Even 35 years ago this land was selling only for Rs.10 per SFt. In those days Vadapalani was a village outside Madras and Chengalpet was light-years away :).

    And infrastructure abroad is from a different planet. Anyways, the gigantic credit bubble in the west is coming to an end - to be followed by 10-12 YEARS of severe recession, depression and general weakness. US, UK, Spain, Australia, Ireland and maybe the whole of EU are almost definitely headed into the most severe recession seen since your great-grandfather's time (They probably were not affected since they lived within their means - we, especially the younger generation definitely does NOT). Do you young chaps really think you will be earning ever-increasing high wages for the next 20 years so you can afford to make your builder and banker rich? Welcome to the REAL WORLD!

    I expect prices - especially in IT boom cities to come down anywhere from 50% to as high as 80% in the suburbs (especially now with price of petrol). And then I will buy because the next boom will be even bigger and crazier than this one and make me a very rich dude :).

    Stock markets are excellent lead-indicators with a 6-9 month lead. The stock prices of leaders in RE - DLF, Sobha, Unitech, Ansal, etc - are a clear indication of the bloodbath to come in RE prices. Building (and Builder greed) is peaking, while demand is crashing. People who have already bought into flats they can ill-afford will realise - when they lose jobs OR their salaries crash - that the only way out is to lose their life-savings as well as sell "their" homes (actually banks own 80% of them on an average) at losses. Whats happening in US, etc WILL follow here. Don't believe me? Write to me when RE stocks are at 15% of their peak prices and RE is going at 30% of their peak prices.

    Till then, raise cash, hold off purchases and have a little more peace of mind! :)

    cheers
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  • Originally Posted by Til
    I live in Australia and recently I checked out a flat in Kilpauk for Rs.2.75 crores. It was from DOSHI housing Ltd who build flats in places like KAZHIVELI (The Garbage Dump) near VELACHERY. The funny thing was the availability status of sold in all the flats. For that money honestly you can purchase a beautiful house in Sydney. I don't think Chennai has so good infrastructure like Sydney like roads where you can lie down and no power cuts etc. etc. Im not sure if the SOLD status is real or not? If it is real I reckon the people who bought these flats are LOSERS. With respect to IT people they travel abroad & they should realise that the money they are paying for houses in Chennai or in any part of India for that matter is not worth it. They should demand all the high quality infrastructure like Western Countries from govt or should not pay that much money (purely for prestige). As Indians here say that even if you have millions of Rs in India if you go to street there is holes and problems everywhere. So the people who buy apartments in India should realise that there are other people in India who earn less than them. I am from health sector here and our salaries are high compared to IT people both in India and abroad. But we also have second thoughts about investing in Chennai for that money as we consider it is not worth it. Its only for our parents we think of getting a home in Chennai.

    !!! PEOPLE SHOULD START THINKING ABOUT BOYCOTTING SUCH HUGE INCREASES IN PRICE UNTIL & UNLESS THE PRICE IS REALLY WORTH IT!!!

    hey Til,
    india is india. its a whole package. tyake it or leave it. you sit in australia and talk about things should become better and ppl should boycott etc...what planet are you on? if you dont want to buy...its your choice...but dont stop others from making sensible decisiopns by buying in madras. earning more doesnt mean common sense, which might be the lacking thing for whatever reason.
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  • You are right. But, Australia too is hurting!

    Originally Posted by Til
    Yep I reckon it is better to buy a house in Australia where the government is trying hard for the betterment of life of people and we have medicare (free medical treatment), affordable housing ( in terms of earning here) not like India where people earn 20k per month and have 40 lakh flats (min) in remote areas. Here we can get a decent salary as well as decent house prices which are more economic than Chennai as well. And of course you cannot compare Infrastructure. I reckon only the prices crash in India it is the best time to buy houses like what happened in US now with the Credit Crunch. No offence but it is my personal feeling. :)


    Hi TIL,
    Ignore the sidetracking, personal targeting that some of our young Indian friends resort to when they don't have much to say. I'm in India too. And have always been here (though travelled to many parts of the world and worked there from time-to-time).

    You are absolutely right. Most of the youngsters have never seen downsides. Neither have they seen the dramatic and sustained increases in mandatory expenditure in latter life when marriage and kids come in. They have only seen a few years of wildly inflationary salary increases which are bound to go south in the near future. And many of them are also confused with all kinds of advice they get (most of them detrimental to them) like, "Buy before its too late", "Prices are running away, they will never come back to these levels", "Land is not being made anymore", etc, etc. They do not have the maturity to differentiate whats good for them from the self-serving advertising of builders. Besides, today's uncertain climate leads them to believe that, if they can manage to somehow buy a house (mostly owned by banks where they only become debt-slaves to banks) they will, rather quickly, become rich. Very few are willing to believe that long-term CAGR in RE is only between 12% to 16% - that too in good areas only.

    Yes. Based on the last Big Bear in Indian Realty (1995-98) when the World had a much more sound economic outlook and even then prices in most places declined 50% +, I believe we are in a long and very painful decline at the bottom of which you will find RE at attractive long-term prices again.

    But then, Australia too is in the grip of a Great Bear in RE. You guys too must be hurting there?
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  • It is very clear in this forum that people who post here "cry about" increased real estate prices. This is normal for losers to do. One guy even says price will come down and he will reenter, almost justifying that since he did not enter before, price has to come down and after he enters price will go up. Wishful thinking.
    No doubt quality of life in India is not same as among Marsupials of Australia. In India you have people and services for low prices, in Australia you can have Marsupials but not people or services. Our so called NRIs who have lost their money investing in some realesate in USA or Australia (one guy tells the prices fell for his 2004 bookings from its peak to his purchase level in USA) are now wanting to enter at the low in India, so they talk about price rise in India.
    Well the truth is pretty simple. 5 years ago, I had money to buy large pieces of land in Bangalore. I preferred to invest them in RBI Tax Free bonds. One such investment would have resulted in 5 to 6 times easily and I know one particular land in AECS layout which was for 26 lakhs and I told the guy it was too costly as I knew 3 years before that it was costing just one third, and did not proceed with it. Today it is worth around 2 crores. Now I am talking of 3 times appreciation between 2000 to 2003 and 6 times from then to now. In simple terms it was 200/sqft in 2000, 600 in 2003 and today 3600.
    The bluffers and hallucinists on this board are continuing to believe that prices will fall. Now this AECS plot coming to 200/sqft again is not impossible but then the salary of a fresh S/W engineer has to come to Rs 2Kp.m. then for a decent college guy not one who has some strange 50K rank and also studies in some college in TN or Karnataka and calls himself an engineer.
    Growth is a dubious truth. It hurts. Prediction of prices is even more difficult activity. Because US realesate fell should it fall in India. US is a developed economy, so the prices oscillate there in a band. India has just grown, or rather growing. One "buddisali" talks about stock markets and RE stocks falling as if that means everything. US market take DJI did not move up any more than 90 to 100% between 2003 and 2007 peaks. NIFTY the Indian index went up 6 times in that same period. From 1000 in 2003 to 6000 in 2007-8 peak. Now will Nifty come to 1000 if DJI comes to 2003 level of 7500. I bet they are not correlated anyway.
    Our NRI friends in this board, seem to know not about their new residences nor about their old address. They want clean villas in India, since they have one in Australia, but will yet like to get a servant to wash their clothes, while they will have to do that in their washing machine in Australia. Kangaroo thinking wont help.
    Come to the reality. In Chennai I have lands that I have acquired way back in 1980-90s and they have probably appreciated some 100 to 200 times. Is that unusual?
    The problem is we are imagining that salaries can go up but not prices. No doubt in India the rich are getting richer and the poor poorer, but that was true even in the 80s. So if someone is imagining price of realestate will fall to his liking because he is not able to afford it, one can at best pity him.
    Incidentally talking about 20K salary in India and 40L flats. In 1970s my BIL bought a house for 40K rupees in Mylapore. His salary was around 1K p.m. Today a similar folk will get a salary say 30K p.m. and so should logically be able to buy for 12Lakhs. The problem is he cant buy a house and certainly not in Mylapore. So he will shift out of the city and buy a flat in say Urapakkam or SriPerumbudur. Now the funny part is even in Urapakkam flats are costing 30L. So what does he do. He finds the cheapest of the cheapest and manages a one bedroom old flat. So it is a natural spreading of reality.
    Again there are specific issues about Chennai. ONe can only build 1.5FSI unlike Bangalore. I can get u a good flat 2 bedroom, 1000sqft within 10km radius from MG Road for 20-25L. In Urapakkam such a flat costs 30L. THis is because in BLR they can build multiple times Chennai FSI. So you might as well get your city to relax FSI.
    Finally the funny truth is. In Urapakkam a person sells a old house 750sqft building and 900sqft land for 30L. Now to construct 750sqft is 7.5L, so 900sqft should cost 23L. Unfortunately if I had only land of 900sqft I will not get a price beyond 10-15L if I am lucky. So the builder makes a fortune in Chennai. Similar logic is not builder biassed in Bangalore. So the truth is a. Chennai folks are terribly lazy (compared to what they claim...just because they wake up at 5am due to the heat!), b. Chennai builders are inefficient in resource utilisation (typical of the Auto guys always wanting beyond the meter) and c. Cheating is common and builders cheat. So fix these issues, dont crib about high prices simplistically.
    Finally I am a Chennaite who has moved to Bangalore in the past many years and have vested interest in both these places and I have been an NRI too at some point of time and I can tell you that REALESTATE price in Chennai or for that matter in INdia will not fall, just that it might become a bit more difficult for sellers and a bit more easier for buyers.
    Dont be fooled by this board filled with potential buyers. They are just selling you a pipe dream on realestate price crashing!
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  • I missed this in my previous note. If in 70s a house in Mylapore was a norm and today one can only afford a flat in Sriperumbudur, then it is NOT WRONG. Simple. Drive on NH4 and you will see why you have fantastic connectivity near Sri Perumbudur and you dont have to go the narrow bylanes of Mylapore. Ofcourse the old sucker generation will yet say Mylapore or TNagar is great, even though they have narrow roads, congested with traffic, infested with slums as they can say we have an MRT on top of the Covum. Now this mentality will disappear slowly and then the almost 10 to 20 times difference in price of land between Mylapore and Sriperumbudur will narrow. To give an analogy, in the US, downtown is filled with not so affluent folks though the prices are higher there while the well to do move to posh suburbs outside. So I must mention about a HP employee wanting to buy a land in Urapakkam and was measuring the distance from the railway station there. He incidentally works in some place in Chennai city. Also know of a person who takes the train from urapakkam to go to chepauk to work.
    What it means is when cities grow so will prices? Western nations have grown differently. Marsupial Australia has vast waste lands but if that is what our friend here loves, he is welcome. Ask him to go to Europe and he will realize the pocket sized flats people live there in. Then go to US and see Bush and his 100acre ranch. Finally go and see so called Developed Singapore where 2 or 3 families share a 2 bedroom flat.
    Comeon India is India and dont try to compare. Cheers.
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  • BTW my friend, dont get too upset with that Australia based NRI. One acquaintance family of mine in Chennai have some land in Chrompet. The son in law who lives in Australia is having a continous dispute with his MIL and BIL on this property. Think of it, should he not be happy to be in Australia. Not that he wont get a share of land, but he wants a particular portion of the land. So much for our Mentally Deranged or Rearranged NRIs and their insult of India.
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  • Wise man,

    I support your ideas, the recession you are talking about will happen but not now. It will take another 10-15 yrs for such a recession. Now the cerdit markets are supported and protected ( surgery) by the central banks. This surgery will fail , to know the result it will take time 10-15 yrs from now.

    Paul
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  • Originally Posted by Natarajg007
    I missed this in my previous note. If in 70s a house in Mylapore was a norm and today one can only afford a flat in Sriperumbudur, then it is NOT WRONG. Simple. Drive on NH4 and you will see why you have fantastic connectivity near Sri Perumbudur and you dont have to go the narrow bylanes of Mylapore. Ofcourse the old sucker generation will yet say Mylapore or TNagar is great, even though they have narrow roads, congested with traffic, infested with slums as they can say we have an MRT on top of the Covum. Now this mentality will disappear slowly and then the almost 10 to 20 times difference in price of land between Mylapore and Sriperumbudur will narrow. To give an analogy, in the US, downtown is filled with not so affluent folks though the prices are higher there while the well to do move to posh suburbs outside. So I must mention about a HP employee wanting to buy a land in Urapakkam and was measuring the distance from the railway station there. He incidentally works in some place in Chennai city. Also know of a person who takes the train from urapakkam to go to chepauk to work.
    What it means is when cities grow so will prices? Western nations have grown differently. Marsupial Australia has vast waste lands but if that is what our friend here loves, he is welcome. Ask him to go to Europe and he will realize the pocket sized flats people live there in. Then go to US and see Bush and his 100acre ranch. Finally go and see so called Developed Singapore where 2 or 3 families share a 2 bedroom flat.
    Comeon India is India and dont try to compare. Cheers.


    Hi Nataraj,
    Calling others names does not achieve anything except let people know that you do not have much of value to say! :)

    I'm not trying to start a flame-war here, but I've been around and do not get surprised by what others think as unusual cyclical patterns in nature. And (even though your argument smells of sour grapes) there must be a reason people pay 15000 per SFt in Mylapore. Its called infrastructure and closeness to REAL POWER CENTERS. You are right. When cities grow prices will go up - BUT NOT HIGHEST IN THE OUTSKIRTS. It will go highest in the center, declining radially outwards. But you smart guys don't seem to notice that prices in outskirts with absolutely NO infrastructure is shooting up while closer to center they are stagnating. Doesn't it seem funny to you that it may be the mafia thats conning you out of your money (and future) by selling you dreams (that may turn nightmares soon)?

    Property takes time to mature and go up in value - these short bursts are only that, eventually long-term returns in RE average 20% per annum AT BEST. Usually, if you factor in risk of buying in all the wrong places, returns are in the 12-15% range long term. Anything more is a CON!!!

    You guys think its your God-given right to see RE prices go up, up and further up (at astronomical rates of ROI), JUST BECAUSE YOU DID THE FOOLISH THING OF BUYING THEM AT RIDICULOUS PRICES to begin with!

    Wake up! Haven't you heard of Economics? Ignorance is NOT bliss! This BIG BEAR MARKET we are getting into is only the BEGINNING! Expect a VERY DEEP and VERY PAINFUL decline in the next few years. If you have bought a house in the recent past, expect to pay ever-increasing amounts of money as EMI (Its called inflation and its here to stay for a while) while you see your salary stagnate AT BEST or even go down (This is called Deflation which kills economies by slow strangulation). We are getting into a rare economic situation of simultaneous inflation + deflation - called STAGFLATION. This is a double whammy killer. And it happened last in the 1970s (probably before some of us were born - ask your dad how painful it was then).

    I promise you. You will one day - in the not-too-distant-future - post that I have been right (and richer by that much) and you have been wrong (and poorer by that much). Not that it gives me any pleasure to see you guys suffer because some Builders con you with all kinds of lies thru Ads, etc.

    But suffer you will. Thats the Law of Nature. Money ALWAYS passes from the Foolish to the Wise. And this happens in 2 ways, at the top and the bottom. The Wise always BUY assets with cash when others are FEARFUL of buying (which is at the bottom). And they always SELL assets for cash when others are GREEDY to buy (which is at the top). Please note the emphasis on cash, NOT credit! Do you know another statistic? Over 96% of urban Indians do not have cash reserves even for 6 months of living. And with credit getting strangled and interest rates going up and jobs being lost where do you expect the money to come from for people to be paying higher and higher rates? PURE FANTASY!

    Greed has not ended. Total Fear has not set in. Bottom is not yet in sight!!! I'm waiting and accumulating cash while keeping my expenses to the minimum. I rest my case :D

    And as for the person who said this crash is coming 10 years later. Sorry dude, its already here and will probably be gone 10 years from now. You may have missed the bus by then when the next boom will be under way :)!

    cheers
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  • Loser? Think again!

    Originally Posted by Natarajg007
    It is very clear in this forum that people who post here "cry about" increased real estate prices. This is normal for losers to do. One guy even says price will come down and he will reenter, almost justifying that since he did not enter before, price has to come down and after he enters price will go up. Wishful thinking.
    No doubt quality of life in India is not same as among Marsupials of Australia. In India you have people and services for low prices, in Australia you can have Marsupials but not people or services. Our so called NRIs who have lost their money investing in some realesate in USA or Australia (one guy tells the prices fell for his 2004 bookings from its peak to his purchase level in USA) are now wanting to enter at the low in India, so they talk about price rise in India.
    Well the truth is pretty simple. 5 years ago, I had money to buy large pieces of land in Bangalore. I preferred to invest them in RBI Tax Free bonds. One such investment would have resulted in 5 to 6 times easily and I know one particular land in AECS layout which was for 26 lakhs and I told the guy it was too costly as I knew 3 years before that it was costing just one third, and did not proceed with it. Today it is worth around 2 crores. Now I am talking of 3 times appreciation between 2000 to 2003 and 6 times from then to now. In simple terms it was 200/sqft in 2000, 600 in 2003 and today 3600.
    The bluffers and hallucinists on this board are continuing to believe that prices will fall. Now this AECS plot coming to 200/sqft again is not impossible but then the salary of a fresh S/W engineer has to come to Rs 2Kp.m. then for a decent college guy not one who has some strange 50K rank and also studies in some college in TN or Karnataka and calls himself an engineer.
    Growth is a dubious truth. It hurts. Prediction of prices is even more difficult activity. Because US realesate fell should it fall in India. US is a developed economy, so the prices oscillate there in a band. India has just grown, or rather growing. One "buddisali" talks about stock markets and RE stocks falling as if that means everything. US market take DJI did not move up any more than 90 to 100% between 2003 and 2007 peaks. NIFTY the Indian index went up 6 times in that same period. From 1000 in 2003 to 6000 in 2007-8 peak. Now will Nifty come to 1000 if DJI comes to 2003 level of 7500. I bet they are not correlated anyway.
    Our NRI friends in this board, seem to know not about their new residences nor about their old address. They want clean villas in India, since they have one in Australia, but will yet like to get a servant to wash their clothes, while they will have to do that in their washing machine in Australia. Kangaroo thinking wont help.
    Come to the reality. In Chennai I have lands that I have acquired way back in 1980-90s and they have probably appreciated some 100 to 200 times. Is that unusual?
    The problem is we are imagining that salaries can go up but not prices. No doubt in India the rich are getting richer and the poor poorer, but that was true even in the 80s. So if someone is imagining price of realestate will fall to his liking because he is not able to afford it, one can at best pity him.
    Incidentally talking about 20K salary in India and 40L flats. In 1970s my BIL bought a house for 40K rupees in Mylapore. His salary was around 1K p.m. Today a similar folk will get a salary say 30K p.m. and so should logically be able to buy for 12Lakhs. The problem is he cant buy a house and certainly not in Mylapore. So he will shift out of the city and buy a flat in say Urapakkam or SriPerumbudur. Now the funny part is even in Urapakkam flats are costing 30L. So what does he do. He finds the cheapest of the cheapest and manages a one bedroom old flat. So it is a natural spreading of reality.
    Again there are specific issues about Chennai. ONe can only build 1.5FSI unlike Bangalore. I can get u a good flat 2 bedroom, 1000sqft within 10km radius from MG Road for 20-25L. In Urapakkam such a flat costs 30L. THis is because in BLR they can build multiple times Chennai FSI. So you might as well get your city to relax FSI.
    Finally the funny truth is. In Urapakkam a person sells a old house 750sqft building and 900sqft land for 30L. Now to construct 750sqft is 7.5L, so 900sqft should cost 23L. Unfortunately if I had only land of 900sqft I will not get a price beyond 10-15L if I am lucky. So the builder makes a fortune in Chennai. Similar logic is not builder biassed in Bangalore. So the truth is a. Chennai folks are terribly lazy (compared to what they claim...just because they wake up at 5am due to the heat!), b. Chennai builders are inefficient in resource utilisation (typical of the Auto guys always wanting beyond the meter) and c. Cheating is common and builders cheat. So fix these issues, dont crib about high prices simplistically.
    Finally I am a Chennaite who has moved to Bangalore in the past many years and have vested interest in both these places and I have been an NRI too at some point of time and I can tell you that REALESTATE price in Chennai or for that matter in INdia will not fall, just that it might become a bit more difficult for sellers and a bit more easier for buyers.
    Dont be fooled by this board filled with potential buyers. They are just selling you a pipe dream on realestate price crashing!


    Dear Nataraj,

    I suppose you meant me by this piece,

    ...."cry about" increased real estate prices. This is normal for losers to do. One guy even says price will come down and he will reenter, almost justifying that since he did not enter before, price has to come down and after he enters price will go up....

    Dude, let me give you some statistics since you are in Bangalore. Do you recognise the area behind BDA complex in Koramangala (prime land with LARGE houses which you can't even buy in your dreams). Back in 1986 I bought 2 adjacent plots of 60x40 for Rs.16000 apiece (with CASH out of my savings as I was making 4k pm in those days; don't ask me how much I'm making now, its obscene, ha, ha). That was when they were STILL clearing scrub land to make plots RIGHT IN THE HEART of Koramangala (were you even born then?) :).

    Infosys then had a turnover of Rs 32 lakhs per annum and I used to personally sell training and software to them on behalf of NIIT.

    And I still maintain that prices today are RIDICULOUS (the moderators don't allow me to use more colorful language!!! :))

    So, dude, we are not losers (much as you would like to believe). You might be surprised to find that actually, you just might be that loser when you get taken to the cleaners when prices crash!

    But what do we poor losers know about experienced people who have ALL THE EXPERIENCE of a few years of bubbly prices! :D

    Just to set right your misconceptions about "losers"!

    cheers
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  • Originally Posted by Natarajg007
    BTW my friend, dont get too upset with that Australia based NRI. One acquaintance family of mine in Chennai have some land in Chrompet. The son in law who lives in Australia is having a continous dispute with his MIL and BIL on this property. Think of it, should he not be happy to be in Australia. Not that he wont get a share of land, but he wants a particular portion of the land. So much for our Mentally Deranged or Rearranged NRIs and their insult of India.


    Why Natraj? Why? - This much of hatred and anger on NRI's.
    Putting it all on prespective,everyone agrees the following:


      Indian Realestate market is based on limited fundamentals and more on speculation(Ie:Income Vs Home price,Per capita Income,Avilability of infrastructure)
      Drastic rise in asset value does not mean real growth when inflation eats into the actual growth.
      A sustainable growth in price means the Rupee value should be stable.I disagree with your comparision of India being better than Eroupe and Sigapore.

      I Have lived US & UK and traveled to Australia and Singapore all those places are honestly far superior in infrastructure and quality,however the asset prices are cheaper than Indian Metro Cities.

      The above statement does not mean I dont love my Mother land India,But a mere statement of fact.

      We Indians (All of us) must ask the questions to the goverment and Property developers - What am I paying for?

      We need Transperent Real estate transaction and strict controlls on dealers who just blow up the prices without fundamentals.

      Unreasonalble and unfundamental boom has always led to lot of pain,Like

        1997 Asian economic crisis in Malaysia,Thailand,Indonesia,Philipines and sigapore.
        2008 Subprime meltdown of the US.
        1987's Bond market Crash.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.It is all a cycle - People like us should not be carried away by greed and speculation - The devlopers,dealers and brokers feed on our greed and make themself rich.

        Ask questions and raise awareness.
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  • realestate has entered decline phase

    I am an NRI from UK with long and regular connection with India, UK and US.
    I have seen the rise and fall of US & UK real estate cycle twice.

    Those cycles have/had the same characteristic as what is happening in India (Except India is more aggressive)

    Both equity and real estate Cycle in UK, US &Australia is about a 7-8 year cycle( 4 years Up and 4 years down).
    India seems to have longer Cycle 10-12 year (4-5 years of drastic up and 10 of flat to down).


    As an economist and a property owner in India and abroad - all I can say is what is happening in India is extreme greed and speculation - This illogical and unsustainable.

    I love to see my property value go up but in a sustainable level and in tandem with macro economy.

    I have seen dealers/Traders entering in to POWER OF ATTORNEY DEALS and then trading it to third party for a huge profit.

    I have seen uneducated brokers/dealers earning up to one crore in 1 year by SWITCHING couple of properties like commodities.

    I haven’t seen any market in the world that is so un transparent.
    SPECULATION IS THE NAME OF THE GAME IN INDIAN REALESTATE MARKET.

    I was quoted 1C for a property in Chennai in Dec07 and again the same property (Unsold) in March 08 was quoted 1.3C and now in June the same property (Unsold) he is quoting 1.5C in June 08

    The vendor has not sold the property in the past 6-8 months how ever he did not fail to increase the asking price by about 30% every 3 Months

    As a owner of properties in India, I am saying it is not sustainable.
    Greed and speculation will end in pain and COMMONSENCE WILL PREVAIL.

    If not 1997 EastAsian economic crisis (Thailand,Malaysia,Indonesia etc) will be repeted in India with a devaluation of rupee followed by inflation linked economic meltdown which would take 10 years to get back on feet.

    DON’T FORGET WE LIVE IN A GLOBAL VILLAGE NOW, What happens In US, Middle east or Europe will have direct Impact on India.

    What goes around comes around.
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