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Are Property Price Going Down Drastically in Chennai?

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Are Property Price Going Down Drastically in Chennai?

Last updated: December 1 2010
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  • #11

    #11

    Re : Are Property Price Going Down Drastically in Chennai?

    Very nice forecasting !! Thanks.

    Comment

    • #12

      #12

      Re : Are Property Price Going Down Drastically in Chennai?

      Don't worry Jaya. If it is in the range of Rs. 4000 to 4200/ sq. ft. or so, the prices may not come down appreciably. At best it can be down by 5 to 10 %. Which you can make up in another year or so. Velachery flat is always a good investment.

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      • #13

        #13

        Re : Are Property Price Going Down Drastically in Chennai?

        Originally posted by vensun999 View Post
        If they cannot sell the proerty at a particular rate they say they could not sell but they never keep reducing prices until it is saleable. This is the nature of real estate and so this is different game. .
        It is not the case. They can not keep holding the flats for ever. They need cash at some point of time to pay back loans or for turn over.

        So at one point, distress sale will happen

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        • #14

          #14

          Re : Are Property Price Going Down Drastically in Chennai?

          Hi

          Wiseman, A very nice and careful post indeed!. Also appreciate your call of saving the hard earned money of middle class.

          A careful look into some websites of premier builders will clearly show that prices have already fallen. I have seen prices coming down by 2 ~ 5 Lacs in East tambaram, Mogappair etc.

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          • #15

            #15

            Re : Are Property Price Going Down Drastically in Chennai?

            How about people who can handle the deal in cash. Whether they can buy now or wait and then buy

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            • #16

              #16

              Re : Are Property Price Going Down Drastically in Chennai?

              Someone sane on this board. I appreciate what you write. Wiseman is the typical bear and he will have to say what he is saying. Ofcourse one NRI from USA telling me that price falling to 2004 levels since that is the case in USA does not understand anything. In India, in Bangalore in 2004 prices of land shot almost 5 times in NO TIME. Salaries in India have gone up almost 2 to 4 times in last 4 years. So for 2004 prices to reappear in India salary of fresh software engineers has to come to Rs 2K to Rs 5K. If that happens then all this logic can happen. A physician in India in 2003 would earn a salary of Rs 10K to 15k, not sure what it is today. It wont matter if realestate crashed to 2004 levels if salaries crashed that way.
              Unfortunately all these USA, Australia and INDIA comparisons are terribly wrong. In India during crashes, rupee will be depreciated badly. So I will imagine a land costing 1crore today will probably fall to 80L but in USD terms will come crashing. That is because 1:40 has become 1:50 in just 1 month and I wont be surprised by 1:200 in 5 years if Indian govt does not manage it. So Indian Indian Investor meaning Indian living in India investing in India will not have much to worry. Ofcourse my friendly NRIs whose behaviour is unpredictable can always confuse themselves and others in their own special style.

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              • #17

                #17

                Re : Are Property Price Going Down Drastically in Chennai?

                I missed it. I was referring to HARRY 1979 for his sane views in my earlier post.

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                • #18

                  #18

                  Re : Are Property Price Going Down Drastically in Chennai?

                  Hi Natrajg007,

                  Everybody has their views, so as Mr. Harry 1979. Well, I have certain things to confirm with you.

                  1. I have never heared of software engg earning 2K - 5K in 2004. I myself a MBA passout in 2004, whereas we are earning 7k/month and software guys 14k/month. I think 2k should be salary of 90's

                  2. Now it's official that there will be no bonus, no increments and promotions for next 1 year in corporate India. Do you think people will invest in this uncertain times. If there is no demand, how do you expect prices to be stable without falling?

                  3. Unitech India's second biggest real estate firm has put their delhi office and their hotel projects on sale. Does this mean a possitive move? Please correct if I'm wrong.

                  Comment

                  • #19

                    #19

                    Re : Are Property Price Going Down Drastically in Chennai?

                    Originally posted by Natarajg007 View Post
                    Someone sane on this board. I appreciate what you write. Wiseman is the typical bear and he will have to say what he is saying. Ofcourse one NRI from USA telling me that price falling to 2004 levels since that is the case in USA does not understand anything. In India, in Bangalore in 2004 prices of land shot almost 5 times in NO TIME. Salaries in India have gone up almost 2 to 4 times in last 4 years. So for 2004 prices to reappear in India salary of fresh software engineers has to come to Rs 2K to Rs 5K. If that happens then all this logic can happen. A physician in India in 2003 would earn a salary of Rs 10K to 15k, not sure what it is today. It wont matter if realestate crashed to 2004 levels if salaries crashed that way.
                    Unfortunately all these USA, Australia and INDIA comparisons are terribly wrong. In India during crashes, rupee will be depreciated badly. So I will imagine a land costing 1crore today will probably fall to 80L but in USD terms will come crashing. That is because 1:40 has become 1:50 in just 1 month and I wont be surprised by 1:200 in 5 years if Indian govt does not manage it. So Indian Indian Investor meaning Indian living in India investing in India will not have much to worry. Ofcourse my friendly NRIs whose behaviour is unpredictable can always confuse themselves and others in their own special style.
                    Nataraj, how ignorant you are?. Salary of SW Engineers has to come to 2K to 5K rupees in order to reach 2004 price??? Where in the world are you? Did you know the salary of SW engineers back in Mid 90's?

                    My first month salary back in 1997 was Rs 11,000 and slowly it has increased upto 22K by mid 2000. I was just a software consultant at that time. I hope you know the actual RE price at that time in Chennai. Also rupee vs dollar value was 1:48 during the 2001 and 2002 period. And you know the price of RE at that time also.

                    RE values peaked during 2003-2007 period. If you know the real reason for this exorbitant price please share with us. Please provide the logical/meaningful reason for this inflated price and tell us how this high price will sustain for ever. I would like to hear from you.

                    What extra ordinary thing happend in India during 2003-2007 in order to see such a huge growth in RE sector? What happend during this period that never happend in India before this boom?

                    Those who are bearish in this thread shown/explained why we can not sustain this growth. We have supported our theory by giving examples.

                    Can you do the same so that we can also learn/understand that we are missing. Please guide us.

                    Note: Every one is talking about development, this, that in India. Then why Tamil Nadu govt. is not able to fix the power shortage problem? What happend to the so called development? This is a small example of development in India. Forget about other infrastructure related issue.
                    Last edited November 18 2008, 09:12 PM. Reason: test

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                    • #20

                      #20

                      Re : Are Property Price Going Down Drastically in Chennai?

                      Originally posted by Natarajg007 View Post
                      Someone sane on this board. I appreciate what you write. Wiseman is the typical bear and he will have to say what he is saying. Ofcourse one NRI from USA telling me that price falling to 2004 levels since that is the case in USA does not understand anything. In India, in Bangalore in 2004 prices of land shot almost 5 times in NO TIME. Salaries in India have gone up almost 2 to 4 times in last 4 years. So for 2004 prices to reappear in India salary of fresh software engineers has to come to Rs 2K to Rs 5K. If that happens then all this logic can happen. A physician in India in 2003 would earn a salary of Rs 10K to 15k, not sure what it is today. It wont matter if realestate crashed to 2004 levels if salaries crashed that way.
                      Unfortunately all these USA, Australia and INDIA comparisons are terribly wrong. In India during crashes, rupee will be depreciated badly. So I will imagine a land costing 1crore today will probably fall to 80L but in USD terms will come crashing. That is because 1:40 has become 1:50 in just 1 month and I wont be surprised by 1:200 in 5 years if Indian govt does not manage it. So Indian Indian Investor meaning Indian living in India investing in India will not have much to worry. Ofcourse my friendly NRIs whose behaviour is unpredictable can always confuse themselves and others in their own special style.
                      Nataraj, Don't you think Wiseman is talking real wisely? Don't you think what he says is reasonable, acceptabale and logical with accurate data? Can you explain your opinion more logically and reasonably with accurate data?

                      In my opinion, Wiseman is really wise and he must be possesing excess knowledge and experience in the world economy.

                      I am sure he is not like us who just started learning economy 101.

                      Comment

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