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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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  • #31

    #31

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

    I witnessed the downfall

    Hi,

    This is Raj, very new to the forum and I would like to make a comment on my experience (very recent) on the Downfall market of RE. I was in a search of a land or an good apartment (I mean to say with better landscape) but was finally not Convinced to go for an apartment in and around Velachery. 2 months back we saw a piece of land very close to the Velachery By-pass as well as to the Vijaya nagar bus stand which was over priced as 110 Lakhs for a 3950 Sqft land (3 of us were planning to share the land and construct in it) but then we realized that we are in the verge to enter into the recessionary period and the idea has just stepped out of our mind in the whole thinking about the financial difficulties. Now after more than 2 Months we got a call from broker with an asking price of about 75Lakhs who roughly said it more than 1.5 grounds near to 1.75 Ground and gave a different address (brokers address). So we again had a thought of visiting their which made us to get surprised that we were visiting the same place which we visited before 2 months(To exactly say it was on October 18th or 19th) because the broker gave us his address we didn’t have any clue that we are heading towards the same land. We are again considering the purchase but seems like we are officially going to enter the recessionary period only after the second Quarter of 2009 .


    This really shows the downtrend of the RE and the brokers boost up value in the RE. I have myself witnessed at least of 32% down trend towards the plot cost.


    My kind advice for some of the well wishers here would be, please wait for a year or so and then think of buying an asset let it be house or an appartment or an Plot. From a reliable source of mine I have got an information that the Flat promoters (Big ones) have plans to increase 100rs/sqft just to fakely cook up the notebooks so that they can falsely and even if it takes a Little more time to sell the apartments this extra 100/sqft will help them in paying their excess Interest towards the bank loans caused towards the delayed sales. So They think they will get the same amount on money what they were planning to get earlier as well as the excess interest will be pushed on to the heads of the Buyer.

    Only if there is a No Buyers Sign to this cooked up price for a handsome period (Say for about a year) can bring the cost down to earth, until then there will be many buyers loosing their hard earned money to the Greedy RE or Brokers.

    Comment

    • #32

      #32

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

      Originally posted by rajjelo2000 View Post
      Hi,

      This is Raj, very new to the forum and I would like to make a comment on my experience (very recent) on the Downfall market of RE. I was in a search of a land or an good apartment (I mean to say with better landscape) but was finally not Convinced to go for an apartment in and around Velachery. 2 months back we saw a piece of land very close to the Velachery By-pass as well as to the Vijaya nagar bus stand which was over priced as 110 Lakhs for a 3950 Sqft land (3 of us were planning to share the land and construct in it) but then we realized that we are in the verge to enter into the recessionary period and the idea has just stepped out of our mind in the whole thinking about the financial difficulties. Now after more than 2 Months we got a call from broker with an asking price of about 75Lakhs who roughly said it more than 1.5 grounds near to 1.75 Ground and gave a different address (brokers address). So we again had a thought of visiting their which made us to get surprised that we were visiting the same place which we visited before 2 months(To exactly say it was on October 18th or 19th) because the broker gave us his address we didn’t have any clue that we are heading towards the same land. We are again considering the purchase but seems like we are officially going to enter the recessionary period only after the second Quarter of 2009 .


      This really shows the downtrend of the RE and the brokers boost up value in the RE. I have myself witnessed at least of 32% down trend towards the plot cost.


      My kind advice for some of the well wishers here would be, please wait for a year or so and then think of buying an asset let it be house or an appartment or an Plot. From a reliable source of mine I have got an information that the Flat promoters (Big ones) have plans to increase 100rs/sqft just to fakely cook up the notebooks so that they can falsely and even if it takes a Little more time to sell the apartments this extra 100/sqft will help them in paying their excess Interest towards the bank loans caused towards the delayed sales. So They think they will get the same amount on money what they were planning to get earlier as well as the excess interest will be pushed on to the heads of the Buyer.

      Only if there is a No Buyers Sign to this cooked up price for a handsome period (Say for about a year) can bring the cost down to earth, until then there will be many buyers loosing their hard earned money to the Greedy RE or Brokers.
      Dear Rajello,Please let me know where exactly is this 3950 sqft of land available at 75lakhs in Velachery. I would love to grab it. Now dont take me to pallikaranai or madipakkam and call it Velachery. So if this place is really close to Vijaya Nagar bus stand, please let us know where exactly it is and I can think of GRABBING IT.
      Now if you dont respond it shows you are lying!

      Comment

      • #33

        #33

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

        Besant nagar,chennai

        What is the price of 17 year old flat in this area...its 760sqft....And what is the price i shouls quote for this??

        Comment

        • #34

          #34

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

          Originally posted by deepika View Post
          What is the price of 17 year old flat in this area...its 760sqft....And what is the price i shouls quote for this??
          is it really worth buying such an old apt ?

          Comment

          • #35

            #35

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

            location, location, location

            Originally posted by abk View Post
            this thread is about how much downfall in RE from peak prices(obviously).
            everybody can calculate "if it falls by 20% it has to gain 25%".
            my point is if you want to buy a house(for living) you should buy if your preferred location has corrected by about 15%. living is not about the price alone it includes your preferences,fancies,your dear ones near,temples,schools,entertainment,established neighbourhood,security etc.
            a diff of 10-15% is overlooked for places of preference.
            you should look for 3 things when buying a house

            1)location 2)location and 3)location
            Dear abk,

            I fully agree with you. If it is for living by self, please go in for a location best suited, In addition to what -abk- has added in the above quoted message, please see the water logging aspect as well as water availability aspect as well connecting to Railway Station and Bus stand, preferably a Bus & Rail terminus. The recent rains and water logging has given us a clear picture on the water logging aspect. It should not matter much if one considers paying 10 to 15% more for the locational advantages. Regards.

            ks2071746

            Comment

            • #36

              #36

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

              Originally posted by rajjelo2000 View Post
              Hi,

              after more than 2 Months we got a call from broker with an asking price of about 75Lakhs who roughly said it more than 1.5 grounds near to 1.75 Ground and gave a different address (brokers address). So we again had a
              .
              dear rajjelo pls give me the brokers number.
              as you have seen it is it near mgr nagar which has slums with people sitting in the middle of the street and children shitting on the streets,i saw a few places there behind vijaynagar bus stand which brougth an "oh shit!" from my friend.
              if the location is decent enough pls let me know of the details,i would be gratefull.

              Comment

              • #37

                #37

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

                True as Rajello said prices in velacher area also has come down dueto eceonomic situation and also due to water logging problem

                Comment

                • #38

                  #38

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

                  Originally posted by abk View Post
                  this thread is about how much downfall in RE from peak prices(obviously).
                  everybody can calculate "if it falls by 20% it has to gain 25%".
                  my point is if you want to buy a house(for living) you should buy if your preferred location has corrected by about 15%. living is not about the price alone it includes your preferences,fancies,your dear ones near,temples,schools,entertainment,established neighbourhood,security etc.
                  a diff of 10-15% is overlooked for places of preference.
                  you should look for 3 things when buying a house

                  1)location 2)location and 3)location
                  abk,

                  Its nice to see the seller/builders point of view.

                  Location can make fraction of people to overlook the price.

                  From a buyers view point, Value for money and the ability to repay will take precedence than any other factor.

                  Think of the people who buy land/apartment which had been already inflated to sky-high price(300 to 400 % in 2-3 years). Will they be able to pay the EMIs for decades where there is no security for jobs/salary . It will only inflate the EMIs .

                  Probably those who have taken house loans during the peak days ,will throw some light on the EMI/repayability . What was their perception when they have taken the loan and how do they feel now ?. Growing family/medical/educational expenses and interest rate really affect the ability to repay ?

                  BTW , All those high-end projects and Plots in OMR have the location advantage ?

                  Do they have our dear ones near, temples,schools, entertainment, established neighbourhood,security etc.

                  Do you think they are correctly priced based on Location ? If not what they are worth of ?

                  Cheers..

                  Comment

                  • #39

                    #39

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

                    natraaj i have been speaking with advtsrs of velachery this saturday,the rates coming out for flats are 4300/- for selva nagar 4800/- for rajalksmi nagar and there are few advtsing at 4100 and 3900 they either are fully deviated or the location is not good but on the whole nobody is willing to negotiate for a discount of more than 5%(max)
                    rejello i am interested to look at the 1.5 grounds at 75 L pls give me the address or phone no.
                    thanks

                    Comment

                    • #40

                      #40

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

                      brokers

                      Originally posted by Nataraajg007 View Post
                      True as Rajello said prices in velacher area also has come down dueto eceonomic situation and also due to water logging problem
                      Please remember, today's brokers are tomorrow's promoters & builders. Unlike the marriage brokers who do not make big money, but for their living. I know of brokers who have become crorepathis as well as some staff of some builders like TLV Builders who were famous in Perambur area about 8 years back who are middle class now. Some of hose who were working with them then are crorepathis now dealing with plots and projects.

                      ks2071746

                      Comment

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