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Realestate Scenario in Chennai

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Realestate Scenario in Chennai

Last updated: February 3 2009
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  • #41

    #41

    Re : Realestate Scenario in Chennai

    [quote=sethugm;11827]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.

    Comment

    • #42

      #42

      Re : Realestate Scenario in Chennai

      [quote=ks2071746;11842]
      Originally posted by sethugm View Post
      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.
      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 ?

      Comment

      • #43

        #43

        Re : Realestate Scenario in Chennai

        Originally posted by ks2071746 View Post
        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 ?

        Cheers.
        Last edited January 28 2009, 02:51 PM.

        Comment

        • #44

          #44

          Re : Realestate Scenario in Chennai

          Originally posted by sethugm View Post
          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.
          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.

          ks2071746

          Comment

          • #45

            #45

            Re : Realestate Scenario in Chennai

            It 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.

            Comment

            • #46

              #46

              Re : Realestate Scenario in Chennai

              [QUOTE=ks2071746;11842]
              Originally posted by sethugm View Post
              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.
              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.

              Comment

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