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?
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  • 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.
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  • 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.
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  • 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
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  • 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 %.
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  • Price correction

    Originally Posted by sethugm
    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.
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  • Good Builders

    Originally Posted by ks2071746
    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
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  • 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.
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  • natarajg007 & nataraajg007

    Originally Posted by kayaareem
    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
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  • Originally Posted by Nataraajg007
    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.:)
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  • Good builders

    Originally Posted by sethugm
    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


    Dear sethugm,

    I am sorry. I do not know much about the current BAD builders at Chennai. I can say, most builders today are not good, not looking from the quality of construction point of view, but their over all performance including on genuine cancellations. Even reputed builders like Do.... are not treating the customers the way they need to be treated, afterall, these builders exist and grow only because of the customers, as could be seen in some other posts in this site that this builder is asking for 10% cancellation charge etc. even on genuine cancellation requests. You ask me, I can mention about good builders past and present by the quality of construction and probably not with regard to their dealing with the customers at this stage of RE downtrend. I can't even vouch for them with regard to their timely execution today. That is why I have been on the view that people who are in real need of the flats, should go in for almost ready flats which they can have a look and take some good civil enigineer to see the materials being used, plan compliance, quality of construction etc. One can buy today only in case of personal and urgent need. Better wait for atleast another 6 months or so for investment purpose or personal use a little later. One can aslo think of buying now with hard negotiations, if the location, nearness to important places, market, railway station, schools etc. of course no water problem during summer and no water logging anytime and with good quality contruction.

    ks2071746:p
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  • Expert

    Originally Posted by metroplots
    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.:)


    Thanks for your "Expert" comment.

    Probably you are the only "Expert" to have positively diagnosed RE.

    Natraj can quote your "Expert" comment and can increase his plot value by another crore .

    Hoppy Newyear 2009.
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  • Originally Posted by Nataraajg007
    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?

    The above writer is a PATENT VIOLATOR...LOL! He is Wiseman's new method to counter the truth from me. Thanks to the bombay gentleman bringing this to the notice on this board.
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  • Originally Posted by metroplots
    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.:)

    Thanks for bringing out the anamaly. It looks like if I take a week off and visit Chennai, Wiseman racks up his brain and his cartel creates fake ids to counter the truth from me.
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  • Originally Posted by sethugm
    Thanks for your "Expert" comment.

    Probably you are the only "Expert" to have positively diagnosed RE.

    Natraj can quote your "Expert" comment and can increase his plot value by another crore .

    Hoppy Newyear 2009.

    Well I can sell my property at any price I want to and this forum does not help me anyway. So your comment is highly prejudiced and shows u as an abject piece of nonsense.
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  • Originally Posted by wiseman
    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

    Wiseman, I wont shamelessly create an account called as Wiseeman. So better reign in your silly coterie.
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