Realestate Scenario in Chennai
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gone_mad
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Started 11 years ago
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- Originally Posted by ALICIA21great tips. I enjoyed reading this
SPAMMER or a BOT! Advertising some stupid soapstone link? get outta here! Mod, kick her out.CommentQuote0Flag - Originally Posted by Natarajg007If you are so wishful i thinking why not say it will drop to 50K in a couple of years! ROTFL
I too wish so. But, don't even see a minute hint of prices going that cheap!CommentQuote0Flag - Originally Posted by gone_madI too wish so. But, don't even see a minute hint of prices going that cheap!
It may not be that much.
But 20% drop is expected in Nanganallur in 2009CommentQuote0Flag - I personally feel chennai prices will go down by 70-80% when the economy melts ......but thats me...CommentQuote0Flag
- Originally Posted by jinga31I personally feel chennai prices will go down by 70-80% when the economy melts ......but thats me...
What a dream? Prices going down by 70-80%?
Is this closing down of a cloth shop under loss who will dispose of whatever is left out at hefty discounts? This is real estate and the downtrend is bound to be there and not liike the percentages you dream off.
ks2071746CommentQuote0Flag - Originally Posted by ks2071746What a dream? Prices going down by 70-80%?
Is this closing down of a cloth shop under loss who will dispose of whatever is left out at hefty discounts? This is real estate and the downtrend is bound to be there and not liike the percentages you dream off.
ks2071746
i concur KS.
like i have been saying far away places like sripermbundur,orgadam,OMR beyond sholinganallur, will definitely see a big correction and that may not be more than 40%.but within CMDA limits i dont see a correction beyond 10-20% depending on locality.CommentQuote0Flag - Originally Posted by jinga31I personally feel chennai prices will go down by 70-80% when the economy melts ......but thats me...
Agree with you ... But its difficult to predict the bottom.
Many developed countries have endorsed the recession and India is still 'defiant' to say its not .The Singapore Korea Japan US and UK have announced to the recession and started taking corrective measures.
Seeing
1.The economic conditions and the job losses among the IT-ITES Employees
2. Automobile Industry getting into recession
3. Our textile industry losing competitiveness due to minimum support price for cotton by Govt announcement (CII came with 25% job loss in India in the next 10 years and Govt asked to take back the report)
4. Fear of job loss is worser than job loss
5. Many potential people have lost their money in stocks and not able to invest in RE rather divest from RE ...
Looks like RE would come down by 40-60 % from its ridiculously peak prices.
I would expect the prices to correct to 2004 Price + 10-20 CAGR based on location.
Am 100 % sure that the interest rate coming down by 1-3 percent cant even attact 1-3 percent buyers in this situation.CommentQuote0Flag - Originally Posted by jinga31I personally feel chennai prices will go down by 70-80% when the economy melts ......but thats me...
Agree with you to some extent... But its difficult to predict the bottom.
Many developed countries have endorsed the recession and India is still 'defiant' to say its not .The Singapore Korea Japan US and UK have announced to the recession and started taking corrective measures.
Seeing
1.The economic conditions and the job losses among the IT-ITES Employees
2. Automobile Industry getting into recession
3. Our textile industry losing competitiveness due to minimum support price for cotton by Govt announcement (CII came with 25% job loss in India in the next 10 years and Govt asked to take back the report)
4. Fear of job loss is worser than job loss
5. Many potential people have lost their money in stocks and not able to invest in RE rather divest from RE ... etc
Looks like RE would come down by 40-60 % from its ridiculously peak prices.
I would expect the prices to correct to 2004 Price + 10-20 % CAGR based on location.
Am 100 % sure that the interest rate coming down by 1-3 percent cant even attract 1-3 percent buyers in this situation.
Jinga , You will see few people would be in denial phase and the job scenario will play a vital role of RE Boom or Bane.CommentQuote0Flag - I completely agree with you. Now its getting to the wire and IT industry is started seeing some lay offs and more to come in near future...
who knows..in the next couple of years ppl might be worried for locking their money in RE with out liquid cash in handCommentQuote0Flag - Originally Posted by sethugmAgree with you to some extent... But its difficult to predict the bottom.
Looks like RE would come down by 40-60 % from its ridiculously peak prices.
(quote)
I don't think the prices can come down so much,. There can be corrections to the tune of 10 to 15%. The interest rates may come down to 7.5% levels in anoher 12 months time and this will be a booster to the RE. New projects may not start much till then. Please do not forget, people have quite a good money saved here in India and still there are a large number of Indians not having their own place to live. They will go in for their own places to live when the interest rates come down.Agree with you to some extent... But its difficult to predict the bottom.
Looks like RE would come down by 40-60 % from its ridiculously peak prices.
(quote)
I don't think the prices can come down so much,. There can be corrections to the tune of 10 to 15%. The interest rates may come down to 7.5% levels in anoher 12 months time and this will be a booster to the RE. New projects may not start much till then. Please do not forget, people have quite a good money saved here in India and still there are a large number of Indians not having their own place to live. They will go in for their own places to live when the interest rates come down.CommentQuote0FlagOriginally Posted by ks2071746Originally Posted by sethugmAgree with you to some extent... But its difficult to predict the bottom.
Looks like RE would come down by 40-60 % from its ridiculously peak prices.
(quote)
I don't think the prices can come down so much,. There can be corrections to the tune of 10 to 15%. The interest rates may come down to 7.5% levels in anoher 12 months time and this will be a booster to the RE. New projects may not start much till then. Please do not forget, people have quite a good money saved here in India and still there are a large number of Indians not having their own place to live. They will go in for their own places to live when the interest rates come down.
KS,
Am 100 % sure that the interest rate coming down by 1-3 percent cant even attract 1-3 percent buyers in this situation.
Pls keep in mind that the basic issue for the RE Slump is the exorbitant prices . Interest rate may come down or go up due to the macro economic conditions perceived by the Govt/RBI.
Mine is from a buyers point of view . Whats of yours ?
KS,
Am 100 % sure that the interest rate coming down by 1-3 percent cant even attract 1-3 percent buyers in this situation.
Pls keep in mind that the basic issue for the RE Slump is the exorbitant prices . Interest rate may come down or go up due to the macro economic conditions perceived by the Govt/RBI.
Mine is from a buyers point of view . Whats of yours ?CommentQuote0FlagOriginally Posted by ks2071746I don't think the prices can come down so much,. There can be corrections to the tune of 10 to 15%. The interest rates may come down to 7.5% levels in anoher 12 months time and this will be a booster to the RE. New projects may not start much till then. Please do not forget, people have quite a good money saved here in India and still there are a large number of Indians not having their own place to live. They will go in for their own places to live when the interest rates come down.
KS,
Am 100 % sure that the interest rate coming down by 1-3 percent cant even attract 1-3 percent buyers in this situation.
Pls keep in mind that the basic issue for the RE Slump is the exorbitant prices . Interest rate may come down or go up due to the macro economic conditions perceived by the Govt/RBI.
Mine is from a buyers point of view . Whats of yours ?
Cheers.CommentQuote0FlagOriginally Posted by sethugmKS,
Am 100 % sure that the interest rate coming down by 1-3 percent cant even attract 1-3 percent buyers in this situation.
Pls keep in mind that the basic issue for the RE Slump is the exorbitant prices . Interest rate may come down or go up due to the macro economic conditions perceived by the Govt/RBI.
Mine is from a buyers point of view . Whats of yours ?
Cheers.
Dear Friend,
Mine is also from the point of view of buyers. I never look from the angle of a seller as I cannot be one in this - not full of ethics - RE field with so much of nontruths to be told to the poor buyers to sell properties.
ks2071746CommentQuote0FlagIt is amusing to see someone talk of 70% correction. And another (Sethu) talking of India, Malaya, Singapore (matrum pala nadugalil) as if it is GOpal Palpodi advt. I bet Sethu would not have travelled even to the next city!
In US, price of a house I know of and am tracking has fallen from about 680K USD to 520K USD in the past 2 years and I am talking of LA suburb. THat is hardly 25% in a terribly recessionary market.
In India that number will be the maximum fall of LAND PRICES in prime localities, read cities. SO in Mylapore if price in 2008 April was X, it will atbest fall to .75X. Infact I think it might actually only go to .9X. OFcourse unlike in US there are no genuine evaluators in India so prices can be extremely different in the same street.
Now if you want to genuinely buy property then you can use above thumb rule. If you want to genuinely sell property again use the above rule. If you want to just hope that Maligai (Palace) will be made available to PItchakaran (Beggar) then believe Sethugm!
IN the outskirts prices will stabilise and will probably go to -30% for land. NOw for flats prices can fall much more as the builders have TOO MUCH PROFIT In India. So a fall of 50% is not ruled out.
NOW DID IT SAY IT WILL FALL? NOT AT ALL. I said if it falls these will be the highest values. As far as I know land value in MYlapore or prime places h as not fallen one bit, rather has been increasing slowly. In developing places like Saligramam or KOttivakkam they are shooting up. In URapakkam and Tiruvallur they are stabiising. Even this Sunday I saw someone quoting 580psft for land almost somewhere in Chengalpet. PRices fallen is a myth, falling is a want. However if it does fall then my limits might be the test.
Finally dont forget. If prices fall then your salary will also CRASH. So dont pray for the fall as you will not h ave a salary to pay for it even then, if you cant do it today. Dont aspire for what you aint worth! LEave that to jokers like WIseman and Sethugm. Cheers.CommentQuote0FlagOriginally Posted by ks2071746Originally Posted by sethugmAgree with you to some extent... But its difficult to predict the bottom.
Looks like RE would come down by 40-60 % from its ridiculously peak prices.
(quote)
I don't think the prices can come down so much,. There can be corrections to the tune of 10 to 15%. The interest rates may come down to 7.5% levels in anoher 12 months time and this will be a booster to the RE. New projects may not start much till then. Please do not forget, people have quite a good money saved here in India and still there are a large number of Indians not having their own place to live. They will go in for their own places to live when the interest rates come down.
When the interest rates were keep increasing for the past few years, real estate prices and sales volume did not come down... then how can you expect the reduction of interest rate will be a booster to RE... Issue is not the interest rate ... Price reduction due to economic slowdown, unreasonably inflated RE prices, affordability and repaying capacity... All the layoff announcements are being executed now. Actual recession starts now only...People have money for another few months to spend.. if they don't get another job to pay their EMI, those properties will come back to the market thro auction.
When the interest rates were keep increasing for the past few years, real estate prices and sales volume did not come down... then how can you expect the reduction of interest rate will be a booster to RE... Issue is not the interest rate ... Price reduction due to economic slowdown, unreasonably inflated RE prices, affordability and repaying capacity... All the layoff announcements are being executed now. Actual recession starts now only...People have money for another few months to spend.. if they don't get another job to pay their EMI, those properties will come back to the market thro auction.CommentQuote0Flag