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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  • Originally Posted by ks2071746
    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


    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.

    Thanks,
    Sridhar
    CommentQuote
  • Dear KS can i have the promoters name or website? Just want to have a look. Thx
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  • Marketing

    Helo ks2071746 ,

    Its nice that you are sharing very valuable information.

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

    Cheers.
    CommentQuote
  • Brokers

    40 Lac Land is quoted as 52 Lac By Brokers :

    All the forum can easily understand how the prices have jacked by Brokers and you can hear the same from an ardent RE Bull(thats what he claims).

    The property prices have been inflated heavily by unscrupulous Bs(I meant brokers).

    So the current prices quoted will be definitely based on the number of transactions happened on the property and number of brokers involved in each transactions.More the number of transactions ,more inflated the price is & this most inflated prices are quoted as the prevailing land price.

    Current Price = ( Actual Price + Actual Price * % Profit Margin) ^ (No of transaction + No of Bs)

    (Again I mean Brokers for Bs here as Short Code/acronyms are best in formulae )

    And the apartments are little organised as few big corporates are involved , these price rigging by brokers are not prevalent with apartments. As its very evident from very Bull's statement (???) , land prices are manipulated to more extent , land prices will be the first to fall second to none.

    Apartments have already started to reduce the price and still dont find customers and will see more correction .

    I could see that only less than 3 % of the plot were transacted during the last 2-3 years and rest 97 % people seeing the price hike ,were of the opinion/thinking that their property will appreciate another 200-400 % in the next 3-4 years. Who will be the buyers if it becomes 3 times as of now ? If the salary also goes 3 times in 3-4 years ,some fools will buy...But many companies have announced there is no hike in 2009 .And there is a possible job loss and salary cut...

    Realising the fact , more and more lands will be on sale and you know what happens during more availability and less buyers.

    I would not say the land prices will go back to 2002-2003 prices but it will go back to the level of (2002-2003 price + 10 % ) ^ Years ...which makes more people to afford to buy.

    Wiseman has stated the other possible reasons why there will not be any appreciation on both land/apartment in the next 4-5 years.But you seem to know nothing but saying "1 Crore 2 crore 3 crore 4 crore " .

    Kindly have an aptitude to understand the reality and learn something when its free (from wiseman).

    Wiseman , Your postings are really informative/educative. Thanks
    CommentQuote
  • Chennai RE

    Originally Posted by sethugm
    Helo ks2071746 ,

    Its nice that you are sharing very valuable information.

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

    Cheers.


    Dear sethugm, I fully agree with you. None should use this platform either to promote any specific builder or throw mud on any one else. The members should share their rather real experiences than hearsay type views for the benefit of all the members and guest viewers, be it a good or bad experience.

    ks2071746:p
    CommentQuote
  • Originally Posted by whatheheck
    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??


    Good question.

    I should have asked this question.

    Let the one man army in this forum anser for this

    thanks

    chataara
    CommentQuote
  • It is not PTC dricer or auto driver but the common public who drive the boom
    CommentQuote
  • Could be. IT work force is young. But who bought it ?

    Thanks,
    Salim.
    CommentQuote
  • IT force is young by agewise.

    But physically they are old becuase of hectic work & time schdule.

    They are not bale to allocate time even for wife.

    Pathetic situation. Their sexual life is like old men's
    CommentQuote
  • So, you have 2 logins now. It wouldn't take long for us to recognize if both long and short version are the same. :D

    You are stretching my premise a bit too much. I suggest let's stick to the point here.
    CommentQuote
  • Chennai RE

    Originally Posted by sridharchennai
    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
    CommentQuote
  • Builders

    Originally Posted by 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


    Thanks KS for your insightful post especially knowing more from a builders poit of view.

    Builders buying lands on higher price , is not the buyers problem . so its unwise to pass the bug on the customers.So if the builder has commited a mistake let him suffer . Buyer pls dont bear the high EMIs for builders mistake ie buying the land at high price.

    Re Quality , More than 90 % builders are more interested in minting money and not much bothered about quality whether you high or low SQFT Prices.So the customers has to ensure that the builders provide the quality materials and also at the correct SQFT Price.Its you the customer who has to ensure quality otherwise the builder will try dumping inferior materials.

    Itstead of shouldering 15-25 years loans , Pls wait for the correct bargain . Waiting for good deal for another 6-12 months will reduce our 6-12 years burden .

    Wait and Win.
    CommentQuote
  • Originally Posted by ks2071746
    Originally Posted by sridharchennai
    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.


    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.
    CommentQuote
  • Originally Posted by Natarajg007
    Originally Posted by ks2071746

    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
    CommentQuote
  • Flat price should be equal to rent

    Originally Posted by Natarajg007
    Originally Posted by ks2071746

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


    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?
    CommentQuote