Hi,

I heard through my friends that property price is chennai is going down drastically. Does any one have an idea about this. I am a NRI. I recently bought a flat in Velacherry. Will the price go down more?

Thanks.
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  • Reality

    Originally Posted by vens
    I have been one of those who fell that real estate prices in Chennai are unjustifiably very high. At BSE index 15000, I felt it was absurdly high but it reached 20000 in very short time although it fallen down to below 10000 now. .


    Good observation and You are one of the 99.5 % of the people who beleive that the housing prices have been ridiculously inflated by greedy promoters/builders and uneducated brokers.

    Originally Posted by vens
    First, Chidhamabaram hell bent on propping up real estate prices and extending privileges and tax exemptions to IT companies.


    PC is under pressure by RE lobby to announce stimulous package and RE companies are begging the Govt to buy their flats at the market price and bring down the interest rate to 6-7 percent and more ridiculous demand which will further propel the fuel.

    These guys when amassed/looted public money never bothered about Govt but now demands Govt to intervene.

    Originally Posted by vens
    So there is a danger of RE price increase before the ultimate crash below the current level may be in 2 to 4 years. .


    Yes . It may be possible only after 2-4 years which means they have to comedown now and make affordable to people and builders/brokers has to understand they can no longer rig the price.
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  • Originally Posted by ks2071746
    Who knows? There can be another "wiseman" with new id - wiseeman- or wisemaan or- wisemann -or wisemman etc. to confuse us till we identify the new member.

    ks2071746

    KS, I think that wont happen as Wiseman must be the one behind the name slander on me! It is very clear Wiseman has all the qualities of a mercenary. He might act smart on this board, but Whatheheck is one of his friendly ids, which not only argues on this board with me but posts almost the best of Madras Cheri Basha on Private messages to me. It is not that I will anyway throw stone at shit. So never imagine Wiseeman appearing, and well if it does that might be a Wiseman's way of trying to act honest! LOL!
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  • Originally Posted by sethugm
    Good observation and You are one of the 99.5 % of the people who beleive that the housing prices have been ridiculously inflated by greedy promoters/builders and uneducated brokers.



    PC is under pressure by RE lobby to announce stimulous package and RE companies are begging the Govt to buy their flats at the market price and bring down the interest rate to 6-7 percent and more ridiculous demand which will further propel the fuel.

    These guys when amassed/looted public money never bothered about Govt but now demands Govt to intervene.



    Yes . It may be possible only after 2-4 years which means they have to comedown now and make affordable to people and builders/brokers has to understand they can no longer rig the price.

    Chidambaram did do everything unethical to get the Stock market up and well he did it to please folks like you and other NRIs. Now when u guys sold out, it does not mean market should fall. NRIs are greedier than the worst political pigs in this country. That explains why they want a crash in INdia. Local Indians always had a problem with the rise from 2004 and they bought because of low interest rates. Also RE went up due to availability of lots of cash with big hands and Black money.
    Where were you and your bear cartel fuming during the rise in 2004 to 2006. When u sold out in 2006-7 you want others to lose their money? So dont bother about PC, all you NRIs make PC look like an angel.
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  • Originally Posted by vens
    I have been one of those who fell that real estate prices in Chennai are unjustifiably very high. At BSE index 15000, I felt it was absurdly high but it reached 20000 in very short time although it fallen down to below 10000 now. The problem now is not whether the value is worth or not but whether it will still go up another 50% in 2 years or not. Now it may be. Like foreign fund flow was responsible for BSE index jump rather than fundamentals, RE prices may go up for some reasons.
    First, Chidhamabaram hell bent on propping up real estate prices and extending privileges and tax exemptions to IT companies. It is ridiculous that he doesn't even tax the profits on the other hand all over the world petrol prices are half that in India and he deosn't have the decency to reduce the prices to the levels it was when Crude prices were at US$36/barrel. And good for nothing opposition parties (bigger theievs) do not raise a voice.

    Anyway, the government has to reduce petrol prices slowly and inflation will keep coming down and so the interest rates. Interest rates can come down to the level of year 2003 when bank interest will no longer be attractive and domestic funds also may target real estate once again.
    So there is a danger of RE price increase before the ultimate crash below the current level may be in 2 to 4 years. We have no other way but o play along this speculative life with the government itself being responsible for letting speculators and cartels play with the lives and savings of common public.

    U have explained why I am bullish. RE Market wont fall now, it will actually shoot up especially with the next cycle of interest cut. Infact that is how Japanese boom happened in 1980s. In other words RE prices today look too high for anyone who came in a Timecapsule from 2003, but then the same wonder will happen if you travelled to the future, say 2011. In 2003 there were no buyers for 1000psft rate of flat in Mylapore, and when I asked a relative what makes them (the same folks) to buy in 2005-6 property at 6kpsft for old flats he said "they could not do it then, so atleast they want to do it now". That cycle has just not ended. So there are 10 buyers waiting for 1 seller today. ONly that the buyers want a lower price and so are waiting. Now when the cycle turns up again there will be a mad rush and the fellow who did not buy at 10kpsft will buy it at 40kpsft WHATEVER BE HIS MEANS as long as some FOOL is ready to fund it as loans. That will take the current value up another N fold times before it actually hits the roof.
    With one property of mine in Madras in 2004 it was worth 40L and I would have got 100 US grands. Now it is worth even at no haggling at 2C, and it means it is worth almost half a million US dollars. Now it might reach 2million US dollars with Dollar collapse and RE rise by 2011-12. Then I might rather switch it to dollars.
    I have had an NRI fighting over email with me when I asked 1.2C for this property in 2006. He was talking more CRAP then any of the bears on this board could and WIseman will look like a BACHA in front of him. TOday he must be eating his thumb. So dont worry, RE market has to make one big move up again. It is just consolidating and there are many buyers onthe sideline and with interest rate collapsing again, it will be no time before they hit the sky.
    For the Wisemen, the reality is that those who could afford 1200sft flat today, they will be glad to pick up 600sft in 2012 happily cursing that they followed the bear idealogy!
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  • Hope the rates are decreasing in chennai.Any comments....
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  • Panic situation In Gulf countries

    Some facts about the panic situation In Gulf countries.

    1) There is a panic situation in Gulf countries about the layoffs amongs the expatriates. All major projects are on hold and thousands of labours and engineers recruited for these projects are got terminated.

    2) In a 3 months time traffic in UAE reduced atleast 30 % due to slowdown.

    3) 60 % of the real estate sales in Kerala is from NRI community from GCC.

    4) Recently, sobha developers called me and offering 30% discount for their ready to occupy luxuary flat in bangalore.

    5) Because of high exchange rate most of the people to loans in last 6 months and most of them trapped in the layoffs happed in last 2 months.

    In this panic situation, who will think about to invest 30 lakhs rupees in 1100 sq. ft apartment.

    Now here , we are thinking only about survival.

    Regards,
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  • Nero fiddled when Rome burned :)

    Originally Posted by BIJUG9
    Some facts about the panic situation In Gulf countries.

    1) There is a panic situation in Gulf countries about the layoffs amongs the expatriates. All major projects are on hold and thousands of labours and engineers recruited for these projects are got terminated.

    2) In a 3 months time traffic in UAE reduced atleast 30 % due to slowdown.

    3) 60 % of the real estate sales in Kerala is from NRI community from GCC.

    4) Recently, sobha developers called me and offering 30% discount for their ready to occupy luxuary flat in bangalore.

    5) Because of high exchange rate most of the people to loans in last 6 months and most of them trapped in the layoffs happed in last 2 months.

    In this panic situation, who will think about to invest 30 lakhs rupees in 1100 sq. ft apartment.

    Now here , we are thinking only about survival.

    Regards,



    While many people on this forum are slowly - though late - turning around to face reality, some are still in deep denial, like Natraj.

    He would continue to put up such utterly banal and inconsequential stuff like Wiseman's friendly other login is Whattheheck and he talks shit, throwing stones at shit and suchlike nonsense which only panders to issues related to his ego!

    Consider this Nats. With the kind of vocabulary I have demonstrated in the many posts - which I pride myself upon - why would I resort to vocabulary of the kind only the likes of you turn to with such great alacrity?

    Hope you understood that! :D

    Maybe, if you stopped thinking only about yourself and your twisted logic - which is slowly putting you and your "investments" in deep trouble - and start looking at reality all around the globe - in fact the Gulf was the last bastion of wealth and that too is crumbling - you might still escape with your shirt on your back.

    Meanwhile, for the others, the job-loss winddown scheduled for 2009-10 has started in all seriousness. Besides not taking on big loans and debt, also try to actively get rid of debt asap.

    You can come back in 2012 at maybe half the price, and not double as Nats would have you believe!!! ;)

    cheers
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  • Hi,

    What a way to get the year started : 7000 Crore Lie

    With the Satyam Scam haunting the Stock & IT Market, RE will get the burnt finally and get roasted.The Satyam scam has tarnished the Indian IT Image !

    Greedy & Speculative people have killed the goose and tried to get all the golden eggs at once ! End of Indian IT Dream

    Coming to real estate

    Real estate majors are pulling out of most projects and it is feared that the realty market will collapse in six months. Several giants are about to be wiped out. May be the true impact of the crisis will be felt after the Parliamentary elections. Real estate majors are rumoured to be pulling out and putting a stop to most of their ongoing housing projects. The reason is simple. The flats and offices they built are not selling and the consumers and housing loans they banked upon are ending up in default. The whole sector is in turmoil because there are instances where one person has invested in up to six to seven flats in the hope of making a killing by selling them and has now defaulted on the loans he took because the flats are not selling. The middle class dream of sudden riches is now over in India.

    Now the same flats which were going for a crore are available for lakhs and worse is about to come. In six months the market despite the currency flow from banks will come under selling pressure and will also come face to face with the fact that people tried to speculate beyond all imagination in this sector. In this case the market will see the artificial demand generated by speculation vanish and be replaced by simple economic sense. The prices will fall. The boom will end in a bust.
    While in the metros Mercedes, BMW and gold medallions are failing to lure home buyers this season, resulting in a 50 per cent dip in purchases in both premium and mid segments with experts predicting distress sales in six months.

    The high cost of home loans, land acquisitions at high prices, a dip in demand from non-resident Indians and the general liquidity crunch are also compounding the woes of realty majors. In places where realty developers were quoting as much as Rs.4 million/Rs.40 lakhs for mid segment housing which was quite unrealistic. Now, the same flats may see distress sales in the next six months. According to sources in the construction business builders who bought steel at Rs 55 kg are now refusing to honour their payments to suppliers, as the same material is available for Rs 35 kg. Prices of land, cement, steel and flats all are expected to halve very soon. The worst is yet to come. May be the true impact of the crisis will be felt after the Parliamentary elections.

    Adding fuel, the number home loan defaulters are on the rise which will also push the market, if the banks took possession and put for auction.

    2009 - 2010 does not seems to be favorable years going along !
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  • Yes, there is panic situation in gulf countries due to lay offs.

    Satyam scandal is adding woes.

    Real estate market is going to face further down fall in 2009
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  • Originally Posted by Nataraajg007
    Yes, there is panic situation in gulf countries due to lay offs.

    Satyam scandal is adding woes.

    Real estate market is going to face further down fall in 2009


    Real fall in RE is going to start now.
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  • Originally Posted by wiseman
    While many people on this forum are slowly - though late - turning around to face reality, some are still in deep denial, like Natraj.

    cheers



    Hey Wiseman, how are you? Where is our friend Nats? Did u chase him away from this forum with your facts. Anyway good to join this forum with my original user name again. Year 2009, that no one can miss. What a way to start a year with 8000C scam.

    Now all these 1C, 2C, 3C scam will come out and we are going to witness this soon.

    But where did Strongsville go all these days? Whatheheck, who cares?????
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  • Magnitude of Impact

    The big question on survival of Satyam Computer is giving anxious moments not only to its over 50,000 employees but also to over half-a-million people, who would get impacted indirectly if the IT firm does not come out of the trouble, CII President K V Kamath said on Saturday.
    Kamath said each of over 50,000 Satyam employees supports a family of four.

    "Every white collar job creates four another jobs. (So) you are talking about anything between half-a- million to a million people, who could directly or indirectly have been impacted by this single event," Kamath said.
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  • Only Half a Million ?

    Originally Posted by test1234
    The big question on survival of Satyam Computer is giving anxious moments not only to its over 50,000 employees but also to over half-a-million people, who would get impacted indirectly if the IT firm does not come out of the trouble, CII President K V Kamath said on Saturday. Kamath said each of over 50,000 Satyam employees supports a family of four.


    So he is talking about the 450 K people who invested in Satyam.

    What happened to those equity investors who lost their money in 2008 leaving those lost in Satyam in 2009 ?

    Sensex has lost 55 % of its peak value .

    I know few of my colleagues who invested to the tune of 10-12 Lacs are reduced to 3-4 Lacs now. And one of those guys wants to construct a house in the land he owns with a budget of 20 Lacs. He is not able to start the construction as he does not even have 5 Lacs in hand though he can save more than 1 Lac a month. He does not want to exit now from market as he will face huge loss(loss of 70 percent because of his portfolio).

    Only few FIIs invested in 2004-06 had exited with good profit but many investors have lost their money because they entered when the price were high(inflated & artificial) and still hesitating to exit.

    Am not sure about the number of investors in India. Sure 99 percent of the equity investors would have lost their money . Only few FIIs and savvy investors would have exited at the correct time.
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  • Not entirely correct!

    Originally Posted by test1234
    The big question on survival of Satyam Computer is giving anxious moments not only to its over 50,000 employees but also to over half-a-million people, who would get impacted indirectly if the IT firm does not come out of the trouble, CII President K V Kamath said on Saturday.
    Kamath said each of over 50,000 Satyam employees supports a family of four.

    "Every white collar job creates four another jobs. (So) you are talking about anything between half-a- million to a million people, who could directly or indirectly have been impacted by this single event," Kamath said.



    The norm for multiplier effect is around 1:1 or at most 2:1. So, if say 50,000 people lose jobs (I still believe the Satyam saga would probably effect 10000 -15000 actual job losses, because, though Satyam may lose more jobs, other companies may add people to provide the underlying service; therefore it can only be considered a transfer of job from one company to another), then the number of other jobs lost in the support economy (lower paying jobs, mind you) will be another 50000 to 100000. So lets take a midpoint of 75000.

    So, we will have actual 125000 jobs lost.

    Assuming a 4:1 ratio of people supported to actual job holders, we may see around half a million people affected.

    Based on my belief, the actual number of people affected (say 10000 Satyam jobs lost and therefore 25000 total jobs lost) will therefore be 100000 people affected.

    After all this Math, it is still a tragedy. But in this long winter of the bear market (and it will be loooong), expect more such situations. This market will persist till all optimism is squeezed out and only pessimism prevails. Then - and only then - will the market turn. When only pessimism prevails major assets will have declined to unforeseen levels (say 50% - 80% declines from peak) and supply will be far in excess of demand as most people will not have any financial strength to go in for adventurous loans and highly leveraged plays). Even after turning, it will take a while for the 2007 super-bullishness to return.

    So, batten down and learn to live in low-cost mode for quite some time to come.

    cheers
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  • So what is the actual situation of satyam employees right now.

    Whether the company is in the process of terminating employees or reducing salaries
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