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What is the Impact of Rising Inflation on Chennai's Real Estate?

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What is the Impact of Rising Inflation on Chennai's Real Estate?

Last updated: December 11 2009
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  • #31

    #31

    Re : What is the Impact of Rising Inflation on Chennai's Real Estate?

    Wiseman,
    US was in recession agreed, but is in the path of recovery and will surely recover. Had this kind of situation happened for any other country, that country would have been in pure shambles by now. US are creators and inventors in every field - right from electronic goods,aviation, oil & gas etc. Rest of the world technologically depends on US to a large extent and they know how to recover..they just invent make business and others follow..Still oil wells around Mexico is largely unexplored compred to middle east....Hence bankruptcy in US is IMPOSSIBLE....

    Reg,
    Ravi


    At least 6 US states are technically bankrupt - and this includes California, which is the 6th largest economy in the world!!! Just today the NY FED has stated that they would be technically bankrupt early next year!

    Lets face it. Slowly its becoming apparent that the US is bankrupt and headed for a financial disaster of monumental proportions! No country in the world is safe when this happens because every single country is dependent heavily in the fiscal health of US, UK, EU and Japan (thats 80% of the World's economy friends - for all the big talk w create a rather small footprint in the world economy). And all of these are headed for the rocks! SIMULTANEOUSLY!!!

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    • #32

      #32

      Re : What is the Impact of Rising Inflation on Chennai's Real Estate?

      I don't think any of the upper middle class population (rate of which is increasing) prefers north Chennai, unless they work in northern side.
      I'm saying this based on the trend. No offence meant to north Chennai as I love any part of Chennai.

      Originally posted by Economist View Post
      I thought we were discussing Chennai Real estate not Just OMR belt or apartments in certain pockets. When I mean Chenai RE I mean all area in Greater Chennai and all type of properties (appartment, Plots, Acerages,Houses etc)

      Now you are rubbishing Residex report (RBI owned NHB backed).

      Any way LOOK: ]http://www.nhb.org.in/Residex/CHENNAIres.php[/url]

      You will find Velachery and Mylapore as well.

      Your HDFC and north chennai preference story line is hilarious.

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      • #33

        #33

        Re : What is the Impact of Rising Inflation on Chennai's Real Estate?

        Real Estate prices

        Chart of the dayReal estate prices are on the uptick once again. As banks armed with single digit lending rates try to woo new borrowers and cannibalise on their competitors' market share, real estate prices that showed marginal signs of cooling off last year are once again heating up. As per the country's largest dedicated mortgage financing institution HDFC, the home prices are once again becoming less affordable as was the case in FY07. This may affect the borrowers' loan servicing power and pose a risk to the banks' asset quality. As seen in today's chart, the affordability multiple (calculated by dividing the property price by the annual income) has once again gone up to 5 times in 1HFY10 as against 4.5 times in FY08. Although this is significantly lower than the multiple of 20 times seen a decade ago, mortgage lenders need to be cautious given the larger penetration of other high-risk retail loans.




        ]http://www.equitymaster.com/5MinWrapUp/detail.asp?date=11/10/2009&story=5[/URL]

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        • #34

          #34

          Re : What is the Impact of Rising Inflation on Chennai's Real Estate?

          Prices in other cities like Bangalore, Hyderabad have undergone the necessary corrections. Now it is affordable to buy in Bangalore or Hyderabad. Also the improvement in job markets will benefit Bangalore and Hyderabad.

          However in Chennai, prices are still unaffordable. Improvement in the job market will benefit Chennai too, but the people don't prefer to settle here, it is not aspirational to settle here like Bangalore.

          As far as ecomomy is concerned, liquidity is available and is flowing in.

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          • #35

            #35

            Re : What is the Impact of Rising Inflation on Chennai's Real Estate?

            Originally posted by contra View Post
            Prices in other cities like Bangalore, Hyderabad have undergone the necessary corrections. Now it is affordable to buy in Bangalore or Hyderabad. Also the improvement in job markets will benefit Bangalore and Hyderabad.

            However in Chennai, prices are still unaffordable. Improvement in the job market will benefit Chennai too, but the people don't prefer to settle here, it is not aspirational to settle here like Bangalore.

            As far as ecomomy is concerned, liquidity is available and is flowing in.
            Contra a perpetual chennai hater who writes on Chennai RE. Some Chaluvali guy I suspect!

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