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

Helo ks2071746 ,

Its nice that you are sharing very valuable information.

I beleive that this forum is not used to market certain builders.

Cheers.

ROTFL, ROTFL,

If IT was not the cause of this RE boom, then what driven this market?? Do you think its it because of PTC bus drivers, auto rickshaw and small time street side fruit vendors like you??

Hi KS

Someone in this forum was speaking about Orchid springs by Alliance in Padi. When they first came up some 1.5 years back their price per sqft was rs4000/sqft. Remember their model flat was constructed some 2 years back. Now they officially launched it some 2 weeks back for rs2999/sqft they say it's an introductry offer.

I know they are struggling to get the approval for a long time as I personally know some big heads there, but they are confident that they will get the approval. So these kind of moves by RE companies makes me to wait and watch.

You have said that the price in chennai will not come down more than 10%. I fear I do not agree with you on this. I myself have a apartment in perungudi, which I got in 2004. When I tried to sell it some two months back I was not getting the prices, which I got quoted in 2007. So I decided to keep the flats for a long run.

My experience tells me that the prices are already down by 15% - 20% and they will not bounce back in 2009 as the world economy will not revive in 2009 (IMF chief statement today in ibnlive.com).

I don't know whether the prices will hit rock bottom, but I'm pretty sure that it's not gonna go up.


Dear Sridhar,
Thanks for your frank comments. I also agree, the prices will not go up. They may even come down to some extent. Only thing is that it may not be to the tune of 30% etc. in the case of already fast progressing projects, may be new launches where they may increase the offer rates and offer good discounts or free items. For such of those projects in advanced stages of constructions, the reductions may be to the tune of maximum 10% or even lower, as the promoter would have bought the land at higher prices, used steel, cement etc. bought at the earlier high prices. Even in the case of discounted prices in new projects, the quality may be on a lower side and after all the real quality of construction will come to the fore only after a few years and not within an year or two. In any case, if the prices come down, the buyers will be the beneficieries and they should select good projects as these are one's life time purchase.


ks2071746Hi KS

Someone in this forum was speaking about Orchid springs by Alliance in Padi. When they first came up some 1.5 years back their price per sqft was rs4000/sqft. Remember their model flat was constructed some 2 years back. Now they officially launched it some 2 weeks back for rs2999/sqft they say it's an introductry offer.

I know they are struggling to get the approval for a long time as I personally know some big heads there, but they are confident that they will get the approval. So these kind of moves by RE companies makes me to wait and watch.

You have said that the price in chennai will not come down more than 10%. I fear I do not agree with you on this. I myself have a apartment in perungudi, which I got in 2004. When I tried to sell it some two months back I was not getting the prices, which I got quoted in 2007. So I decided to keep the flats for a long run.

My experience tells me that the prices are already down by 15% - 20% and they will not bounce back in 2009 as the world economy will not revive in 2009 (IMF chief statement today in ibnlive.com).

I don't know whether the prices will hit rock bottom, but I'm pretty sure that it's not gonna go up.


Dear Sridhar,
Thanks for your frank comments. I also agree, the prices will not go up. They may even come down to some extent. Only thing is that it may not be to the tune of 30% etc. in the case of already fast progressing projects, may be new launches where they may increase the offer rates and offer good discounts or free items. For such of those projects in advanced stages of constructions, the reductions may be to the tune of maximum 10% or even lower, as the promoter would have bought the land at higher prices, used steel, cement etc. bought at the earlier high prices. Even in the case of discounted prices in new projects, the quality may be on a lower side and after all the real quality of construction will come to the fore only after a few years and not within an year or two. In any case, if the prices come down, the buyers will be the beneficieries and they should select good projects as these are one's life time purchase.


ks2071746

Dear Sridhar,
Thanks for your frank comments. I also agree, the prices will not go up. They may even come down to some extent. Only thing is that it may not be to the tune of 30% etc. in the case of already fast progressing projects, may be new launches where they may increase the offer rates and offer good discounts or free items. For such of those projects in advanced stages of constructions, the reductions may be to the tune of maximum 10% or even lower, as the promoter would have bought the land at higher prices, used steel, cement etc. bought at the earlier high prices. Even in the case of discounted prices in new projects, the quality may be on a lower side and after all the real quality of construction will come to the fore only after a few years and not within an year or two. In any case, if the prices come down, the buyers will be the beneficieries and they should select good projects as these are one's life time purchase.

ks2071746

Flats are for living, land is for investment. Hope that message is getting into the numb skins on this board.
Flats are for living, land is for investment. Hope that message is getting into the numb skins on this board.

Dear natarajg007,

Some little correction. Flats are for living as well as some reasonable appreciation over a period of time. Whereas land can be for investment mostly if selected rightly and one can wait for longer periods. As far as I could see, black money plays a very big role in RE that too more in land deals.

ks2071746:D

Dear natarajg007,

Some little correction. Flats are for living as well as some reasonable appreciation over a period of time. Whereas land can be for investment mostly if selected rightly and one can wait for longer periods. As far as I could see, black money plays a very big role in RE that too more in land deals.

ks2071746:D

Dear Natarajg007,

If flats are for living then my monthly EMI should be equal to the rent which I pay for the flat.

Or the rent should be at least 70-80% of EMI, even if we consider appreciation on the UDS of land separately.

When my EMI is almost 3/4 times of rent, I am not able to understand your message. This is one of the reasons for which people are postponing flat purchases today.

Could you please explain your view?

What would be your advise to someone who wants to buy a flat to live in Chennai?

Dear Natarajg007,

If flats are for living then my monthly EMI should be equal to the rent which I pay for the flat.

Or the rent should be at least 70-80% of EMI, even if we consider appreciation on the UDS of land separately.

When my EMI is almost 3/4 times of rent, I am not able to understand your message. This is one of the reasons for which people are postponing flat purchases today.

Could you please explain your view?

What would be your advise to someone who wants to buy a flat to live in Chennai?