Hi Friends,

Could any body explain me what’s happening in Chennai real-estate, I left Chennai before 3 years, on those days i hear an 1 bhk apartment of 500 to 750 sqft is avail for 5 to 10 lakhs. Nowadays only waste lands which are far away from chennai some 50 to 60 kms are avail for 5 to 10 lakhs, house rents are increased to 200%, is this going to continue...

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  • avadi

    I have been given a quote of 36lakhs for 1 ground. This is at AVIV enclave @ Avadi. Seems too expensive. Any comments??
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  • Hi

    It seems that at the prevailign prices the PE of chennai properties hovers around at 4 which is quite insustainabl.
    Also Growth component thats required to push up the proces beyong imaginable valuation is stuttering..
    Reasonably speakign teh rate of growth in Bangalore is much betetr than in chennai..also the facilitites are better than here,..
    Still Chennai is expensive..
    And what..with no facilities, open sun parking and virtually 600 sqft,20 yr flats are quoted at 40 -50 lacs - wich is beyond comprehension even for western cities with all its infra..

    At any day its bound to fall..Matter of time...until these greedy folks burn the fingers..
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  • Originally Posted by vbhish
    Hi

    It seems that at the prevailign prices the PE of chennai properties hovers around at 4 which is quite insustainabl.
    Also Growth component thats required to push up the proces beyong imaginable valuation is stuttering..
    Reasonably speakign teh rate of growth in Bangalore is much betetr than in chennai..also the facilitites are better than here,..
    Still Chennai is expensive..
    And what..with no facilities, open sun parking and virtually 600 sqft,20 yr flats are quoted at 40 -50 lacs - wich is beyond comprehension even for western cities with all its infra..

    At any day its bound to fall..Matter of time...until these greedy folks burn the fingers..

    Hi is it nessary to get the panchayat subdivision approval for the patta land in ECR road to sell it, and why.
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  • Originally Posted by wajeed
    Hi is it nessary to get the panchayat subdivision approval for the patta land in ECR road to sell it, and why.
    or there is any problem in selling the land and who will have the advantage out of it the seller or the buyer.
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  • Originally Posted by svr1977
    Hi Friends,

    Could any body explain me what’s happening in Chennai real-estate, I left Chennai before 3 years, on those days i hear an 1 bhk apartment of 500 to 750 sqft is avail for 5 to 10 lakhs. Nowadays only waste lands which are far away from chennai some 50 to 60 kms are avail for 5 to 10 lakhs, house rents are increased to 200%, is this going to continue...


    U have gone from India (Chennai) to some recession hit country? Cant help you. Dont come back and bring recession here! ROTFL.
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  • Chennai RE

    Originally Posted by Natarajg007
    U have gone from India (Chennai) to some recession hit country? Cant help you. Dont come back and bring recession here! ROTFL.


    Dear natarajg007, Though little harsh comments from you, I enjoyed it.

    ks2071746;)
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  • Well Nats and KS. You guys were fond of NRI when they were sending $$$$$$ to India. Now one says don't bring recession and other admires it. Such a shame
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  • Originally Posted by sridharchennai
    Well Nats and KS. You guys were fond of NRI when they were sending $$$$$$ to India. Now one says don't bring recession and other admires it. Such a shame


    If some one says - don't bring recession- is it possible that one can bring recession into India really? One can always take it in a lighter sense . We are always fond of NRIs irrespective of whether they bring some Dollars to India or invest more In US.

    ks2071746
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  • Originally Posted by ks2071746
    If some one says - don't bring recession- is it possible that one can bring recession into India really? One can always take it in a lighter sense . We are always fond of NRIs irrespective of whether they bring some Dollars to India or invest more In US.

    ks2071746


    Hi KS,

    They cannot bring recession with them to India, but if a large number of NRI's come back to India say in case of reverse brain drain that can create a sense of panic in society. In this dire situation they will not be able to charge a premium salary for their experience and Indian companies will be happy to hire them for their rich experience in western countries at the salary of their Indian counter part or with a positive difference of 5% at this stage.

    All this will happen at the cost of the people who are already working here. Market will be flooded with experienced resources in all industries, but with very less openings for jobs.

    Anyways thanks for taking my comment on the last message in the right sprit :)

    Thanks,
    Sridhar
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  • Chennai RE

    Originally Posted by sridharchennai
    Hi KS,

    They cannot bring recession with them to India, but if a large number of NRI's come back to India say in case of reverse brain drain that can create a sense of panic in society. In this dire situation they will not be able to charge a premium salary for their experience and Indian companies will be happy to hire them for their rich experience in western countries at the salary of their Indian counter part or with a positive difference of 5% at this stage.

    All this will happen at the cost of the people who are already working here. Market will be flooded with experienced resources in all industries, but with very less openings for jobs.

    Anyways thanks for taking my comment on the last message in the right sprit :)

    Thanks,
    Sridhar


    Dear Sridhar,
    Some lighter moments are also needed when we read the harsh exchange of messages between members, to dilute the situations. No one should hurt the feelings of any one else or attack personally with some harsh words. Intentions should be clear and there can be some enjoyment some time within limits. As far as Chennai RE is concerned, yes, there is a downtrend but not to the extend what we read from the media/papers. It varies from 5 to 10% depending on the locality, size of flat, the builder and the stage of construction and the quality of construction. New projects getting started offer better prices but they may delay the projects. Better to look for the stage of construction, go in for an almost getting completed flat in a locality most conveneinet to the buyer, of course avoiding the water logging areas. This is not the time for investmemnt in RE but time for buying for own use getting the best locality from a good and decent builder.

    ks2071746
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  • Actually NRIs returning to India and I know a few are finding it almost impossible to get a job here.
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  • Originally Posted by Natarajg007
    Actually NRIs returning to India and I know a few are finding it almost impossible to get a job here.


    If the NRIs are finding it difficult to find a job, certainly they will not invest their balance amount in RE. Even if they tend to invest in RE, they will try all possibilities to reduce the rate.

    If these kinds of NRIs are increasing in great number, there will be stagnation in plot sales.

    The so called IT boom is in jeapordy. Every ITians are counting their days not knowing about their future. In fact, they are not able to get bride/bridegrooms because of this situation.

    Banks are not giving loans generously for property buying. Banks are giving just half amount of property value.

    This situation will last for another 2 or 3 years.

    So, RE market is coming downwards.

    Thanks

    chataara
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  • Originally Posted by chataara
    If the NRIs are finding it difficult to find a job, certainly they will not invest their balance amount in RE. Even if they tend to invest in RE, they will try all possibilities to reduce the rate.

    If these kinds of NRIs are increasing in great number, there will be stagnation in plot sales.

    The so called IT boom is in jeapordy. Every ITians are counting their days not knowing about their future. In fact, they are not able to get bride/bridegrooms because of this situation.

    Banks are not giving loans generously for property buying. Banks are giving just half amount of property value.

    This situation will last for another 2 or 3 years.

    So, RE market is coming downwards.

    Thanks

    chataara

    Ur base assumption that IT drives the boom is incorrect. Full stop.
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  • Chennai RE

    Originally Posted by Natarajg007
    Actually NRIs returning to India and I know a few are finding it almost impossible to get a job here.


    I would rather say, considering th high salary in $ terms what the NRI would have been getting, is not possible to get here in India now, I am afraid even half of that. But, even if they get, say 1/3 at the lowest end, from $ 3000 to 1000/pm here, it is about Rs. 48,000 per month which is not bad in today's conditions of downtrend in the job market.
    With regard to the RE market in Chennai, one can visit the web site of one good builder doing quality construction in and near Tambaram area ( www.r...............com ) one can see the details of their various projects, the flat details like area, rate, all other charges, the names of the person who have already booked the flats as well as the unsold flats. No hide and seek in the details. Any one can visit the site and also get the plan etc. from their office in Selayur. The rates normally do not undergo change either increase or decrease from the first offer rate till the booking of the flats. Most flats get booked fast within a few weeks of announcement. Projects are announced only after all approvals are obtained. Only very small discounts are offered and not like what one may expect under today's market scenario, as one could read in the media/papers/forume - like 15%, 20%, 30% etc. The constructions at the sites go on progressing fast irrespective of the booking/vacant flats and once the flat constructions progress, people book the flats even at the time of almost getting completed stage. This builder says, there is not much problem for him to sell the flats and his progress at the different project sites do progress uninterruptedly irrespective of the unsold flats. I even gather that he returns the advance amount with no deduction to the buyer in case the buyer is not able to get the bank loan approved or at the worst case, gets fired from his job. They have over 15 projects running concurrently now with good construction in decent localities. Please believe me, I am only a recent customer for this builder and have no other interest in them or in their business. They may not even know me from the id indicated in this forum.
    In fact, during the construction stage, recently, I tokk one of my close relatives, who is also a Flat Promoter in the Peramubur area for him to see the flat configuration, construction, locality etc. and trust me, my relative gave certificate that this Tambaram builder consrtructs the building as though it is for his own ( builder's ) personal use, i.e., to say, such good care and quality of materials and construction. In fact I booked my dream 3 bed flat during Sept. 08, after about 4 months from the start of the construction, when mine was the 3 rd flat to be booked in this project of 8 flats, now only 2 flats remain to be booked which also may get booked in the short time, the flats will be ready for handing over by mid March 09.
    Incidentally the carpet area of my flat is a little over 75% of the superbuilt up ( saleable area )

    ks2071746:p
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  • Chennai RE

    Originally Posted by ks2071746
    I would rather say, considering th high salary in $ terms what the NRI would have been getting, is not possible to get here in India now, I am afraid even half of that. But, even if they get, say 1/3 at the lowest end, from $ 3000 to 1000/pm here, it is about Rs. 48,000 per month which is not bad in today's conditions of downtrend in the job market.
    With regard to the RE market in Chennai, one can visit the web site of one good builder doing quality construction in and near Tambaram area ( www.r...............com ) one can see the details of their various projects, the flat details like area, rate, all other charges, the names of the person who have already booked the flats as well as the unsold flats. No hide and seek in the details. Any one can visit their project and also get the plan etc. from their office in Selayur. The rates normally do not undergo change either increase or decrease from the first offer rate till the booking of the flats. Most flats get booked fast within a few weeks of announcement. Projects are announced only after all approvals are obtained. Only very small discounts are offered and not like what one may expect under today's market scenario, as one could read in the media/papers/forume - like 15%, 20%, 30% etc. The constructions at the sites go on progressing fast irrespective of the booking/unsold flats and the flat constructions progress, people book the flats even at the time of almost getting completed stage. This builder says, there is not much problem for him to sell the flats and the progress at the different project sites go uninterruptedly irrespective of the unsold flats. I even gather that he returns the advance amount with no deduction to the buyer in case the buyer is not able to get the bank loan approved or at the worst case, gets fired from his job. They have over 15 projects running concurrently now with good construction in decent localities. Please believe me, I am only a recent customer for this builder and have no other interest in them or in their business. They may not even know me from the id indicated in this forum.
    In fact, during the construction stage, recently, I took one of my close relatives, who is also a Flat Promoter in the Peramubur area for him to see the flat configuration, construction, locality etc. and trust me, my relative gave certificate that this Tambaram builder constructs the building as though it is for his own ( builder's ) personal use, i.e., to say, such good care and quality of materials and construction. In fact, I booked my dream 3 bed flat during Sept. 08, after about 4 months from the start of the construction, when mine was the 3 rd flat to be booked in this project of 8 flats, now only 2 flats remain to be booked which also may get booked within a short time, the flats will be ready for handing over by mid March 09.
    Incidentally the carpet area of my flat is a little over 75% of the superbuilt up ( saleable area )

    ks2071746:p


    I am sorry friends. In spite of my care and reading the draft many times before submitting my message here, some typographical errors crept in. I will improve. As I am not able to go through the edit mode, correcting the mistakes and submitting again..

    ks2071746
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