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What is the Impact of IT Sector Downfall on Real Estate?

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What is the Impact of IT Sector Downfall on Real Estate?

Last updated: February 25 2009
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  • What is the Impact of IT Sector Downfall on Real Estate?

    Friends,

    Pl discuss how much down fall is expected in IT sector and its impact on real estate.

    2008 saw about 20 to 30" downfall. How much will be in 2009?
  • #2

    #2

    Re : What is the Impact of IT Sector Downfall on Real Estate?

    Who said there has been 20-30% downfall in Chennai ? Where did you get this data from ? Can I have some pointers please ?

    Seeing is believing.

    Comment

    • #3

      #3

      Re : What is the Impact of IT Sector Downfall on Real Estate?

      Second version of Nataraj appears like not the same Nataraj who belongs to bull cartel. I guess someone else is posting with the mask nataraj007.

      Comment

      • #4

        #4

        Re : What is the Impact of IT Sector Downfall on Real Estate?

        Let us give him the benefit of doubt

        Natraj is probably not the same as Natraaj.

        Let us assume this is the case and not beat them up, please? To each his own opinion!

        cheers

        Comment

        • #5

          #5

          Re : What is the Impact of IT Sector Downfall on Real Estate?

          RE Slowdown

          Though we cant generalise the price drop across Chennai , Am sure the price correction will be more in OMR as

          1. IT slowdown and the job losses , YDay economic times says 50 K IT and ITES jobs will be lost in first 2 quarters of 2009.

          2. The prices have been inflated heavily may be 10 times in 4 years(on land).

          3. The supply is more given the open space south of Sholinganallur and near Tamiladu Hospital and ECR.

          4. More and More builders are coming up with new projects with competitive price (still could not close the book .Expecting more corrections ? ).

          So we can expect minimum of 25 % price correction and maximum of 50 %.
          Last edited December 26 2008, 10:42 PM. Reason: Correction

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          • #6

            #6

            Re : What is the Impact of IT Sector Downfall on Real Estate?

            Price correction

            Originally posted by sethugm View Post
            Though we cant generalise the price drop across Chennai , Am sure the price correction will be more in OMR as

            1. IT slowdown and the job losses , YDay economic times says 50 K IT and ITES jobs will be lost in first 2 quarters of 2009.

            2. The prices have been inflated heavily may be 10 times in 4 years(on land).

            3. The supply is more given the open space south of Sholinganallur and near Tamiladu Hospital and ECR.

            4. More and More builders are coming up with new projects with competitive price (still could not close the book .Expecting more corrections ? ).

            So we can expect minimum of 25 % price correction and maximum of 50 %.
            I expect a price correction of upto 10 % in areas in and around places like- Saidapet, T.Nagar, Ashok Nagar, Vadapalani, Perambur, Tambaram, Annanagar, Adyar, Velachery etc. In other outskirt places, it may even go to, say 15% to 20 % from current levels and the rates what the promoters indicate in their new projects or slow progress projects. But the Chennai Builders are hard nuts to crack, they are guys who have seen large profits and so easily they will not like to lose their high profits. They may hike up the rate and then reduce, offer lower ratio of carpet area to super built up area, go in for compromise in quality of materials and construction, delay the project progress, ask for exhorbitant rates for any additions one may need, etc. etc.
            I was also told that there are specific Builders who control the rates in their specific locations and do not allow any other builder in the locality wanting to reduce the rates in order to quickly dispose of the unsold flats. If this is true, it is really bad for the Chennai RE.
            Last edited December 27 2008, 09:29 AM. Reason: spelling

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            • #7

              #7

              Re : What is the Impact of IT Sector Downfall on Real Estate?

              Good Builders

              Originally posted by ks2071746 View Post
              I expect a price correction of upto 10 % in areas in and around places like- Saidapet, T.Nagar, Ashok Nagar, Vadapalani, Perambur, Tambaram, Annanagar, Adyar, Velachery etc. In other outskirt places, it may even go to, say 15% to 20 % from current levels and the rates what the promoters indicate in their new projects or slow progress projects. But the Chennai Builders are hard nuts to crack, they are guys who have seen large profits and so easily they will not like to lose their high profits. They may hike up the rate and then reduce, offer lower ratio of carpet area to super built up area, go in for compromise in quality of materials and construction, delay the project progress, ask for exhorbitant rates for any additions one may need, etc. etc.
              I was also told that there are specific Builders who control the rates in their specific locations and do not allow any other builder in the locality wanting to reduce the rates in order to quickly dispose of the unsold flats. If this is true, it is really bad for the Chennai RE.
              Thanks KS for letting us know all the dirty tricks of the Builders.

              Inspite of knowing all these infomation many fools fall prey to these non-standard builders and each and every customer should share about the bad experiences they had faced with these non-standard builders so that these guys are eliminated (They may comeback in wildcard round and again we have to eliminate them) .

              As you have bought an apartment in South Madras ,you would have analysed the market well and be aware of the bad boys .

              If you can name the 5 worst builders , people will shun them and its good for the buyers and good-builders.(I know that we cant name them directly ...but you can indirectly say ...like you have told earlier about a good builder.... South Madras ...www.r......com )

              Cheers

              Comment

              • #8

                #8

                Re : What is the Impact of IT Sector Downfall on Real Estate?

                Yes, expect builders to play all the tricks in the book. By the end of the day, it is their asset. Do not expect them to bring it down unless they decide to do it for their own reasons.

                For many builders it is the first time (i.e., to live through a full bull and bear cycle). Going up during bull run is easy and probably anybody can do it. Downhill is indeed very difficult. If you don't get the strategy right, tomorrow it may not exist. (See what is happening with Satyam now, although for completely different reasons). They have taken such risks and it is the first time they have launched mega projects, even they have lots of learning to do.

                I doubt we will see the end of all the projects in the OMR area. If we did, it is not going to be without a lot of pain (from both customers and builders alike). All this may take anywhere between 12-24 months. There is no quick fix.

                I will know what is the fair value of the property - but only when the dust settles. Otherwise, I am going to get the tail end of the boom with serious financial obligations.

                Thanks,
                Salim.

                Comment

                • #9

                  #9

                  Re : What is the Impact of IT Sector Downfall on Real Estate?

                  natarajg007 & nataraajg007

                  Originally posted by kayaareem View Post
                  Second version of Nataraj appears like not the same Nataraj who belongs to bull cartel. I guess someone else is posting with the mask nataraj007.
                  Dear All,

                  I think, these 2 persons are different ones. Their views are very much different and the way they write also. Let them not confuse the members and the guests with similarity in their names. Administrator may have to intervene so that we do not get confused with conflicting views on the same subjects with the similar or almost same names. It is better that the New - nataraajg007 may better change his name/id and save us from getting confused often, ultimately forcing us to seldom visit this otherwise very useful and activel site.

                  ks2071746

                  Comment

                  • #10

                    #10

                    Re : What is the Impact of IT Sector Downfall on Real Estate?

                    Originally posted by Nataraajg007 View Post
                    Friends,
                    Pl discuss how much down fall is expected in IT sector and its impact on real estate.2008 saw about 20 to 30" downfall. How much will be in 2009?
                    There is no such Real-Estate crisis in chennai as compared to mumbai. The situation here is pretty strong actually. We discuss this everytime at this forum and you guys should take into account that this guy Natraaj is someone who wants to tarnish the image of the real Natraj. So lets not bother about these so called "Experts" who predict downfall percentages.

                    Cheers to one and all. Happy Newyear 2009.

                    Comment

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