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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  • Originally Posted by sethugm
    Cheers Guys Good News

    DLF revising the Garden City Price ....(Appreciate DLF...Not Appreciation in RE)

    Early bird offer of Rs 2,650 a sq.ft up to May 31.(which was priced @ Rs 3200 / SQFT)

    http://thehindubusinessline.com/2009/02/24/stories/2009022451031300.htm

    According to officials, DLF is “readjusting to market realities.”

    When the 53.5-acre project was launched on Old Mahabalipuram Road, about 20 km south of Chennai, a year ago the economic scene and the sentiment in the market were radically different, apart from the costs involved. But now with the slowdown, along with the drop in the cost of construction following the drop in commodity prices, the company is passing on the benefit to the buyers and doing its bit to stimulate the market.

    Cheers Guys , Dont fall prey . Be patient & you will be rewarded & you will have ample choice.


    What good is 300-600/sqft(10-20%??) reduction for a project that will break even, even if they manage to sell 50% of the flats.

    And the condition that its only till May 31st had me laughing out loud..

    Though it is claimed that final approval is done and the drawing has been passed and have been stamped.

    Large projects need approvals/NOC from atleast 10-11 different departments/authorities.

    Are they sure they will get all of them in their hands by May 31st?

    Maybe the buyers should force such conditions back on them.

    Most of these large projects are not approved yet..The completion date is not known.

    Everyone knows inflation is low.Construction cost has come down.The market is stagnating and needs a sharp correction.

    It just seems to be a last desperate attempt to hold back their profit margin and keep the buyers/investors who have booked with them and attract further advance booking in their pre-launches for liquidity.

    Quoting from article in TOI

    Raman said: "With unprecedented events in the world economy affecting the real estate sector here, bringing changes in input cost and interest rates, DLF went back to the drawing board and created further efficiencies. These benefits are being passed on to consumers."

    What do they mean by going back to the drawing board and creating further efficiency?

    are they going to use a different construction methodology?Make changes in specification?

    It may also suggest - more number of floors, adding a new block where there used to be park earlier, Five star serviced apartment/hotel etc.

    Since they havent registered the UDS yet, they can keep changing what they want to do.

    These builders may never clarify them transparently, and the buyers(speculators) would be happy if someone said to them that the property they bought for 2650/sqft today is worth 6000/7000/10000.. when ever they get it handed over....

    Genuine Buyers..WAKE UP..
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  • redundant!

    Originally Posted by sethugm
    Cheers Guys Good News

    DLF revising the Garden City Price ....(Appreciate DLF...Not Appreciation in RE)

    Early bird offer of Rs 2,650 a sq.ft up to May 31.(which was priced @ Rs 3200 / SQFT)

    http://thehindubusinessline.com/2009/02/24/stories/2009022451031300.htm

    According to officials, DLF is “readjusting to market realities.”

    When the 53.5-acre project was launched on Old Mahabalipuram Road, about 20 km south of Chennai, a year ago the economic scene and the sentiment in the market were radically different, apart from the costs involved. But now with the slowdown, along with the drop in the cost of construction following the drop in commodity prices, the company is passing on the benefit to the buyers and doing its bit to stimulate the market.

    Cheers Guys , Dont fall prey . Be patient & you will be rewarded & you will have ample choice.


    here is your post in thread'reasons for fall in OMR...."
    it is not news sethugm

    Originally Posted by sethugm
    “The areas around the IT Corridor were among the first to experience an escalation in land prices. It is also the first to experience a considerable reduction in the prices following the economic crisis,” said M.K.Sundaram, Chairman of the Builders Association of India-South Centre.

    “We have to accept that it is a time for inflated land prices to come to reasonable levels,” explains Mr.Sundaram.

    “Around 30 per cent of the land near the IT Corridor is available for sale. But there are no takers,” said G.Mohan, Secretary, Federation of Tamil Nadu Flat and Housing Promoters Association.

    When more and more percentage of lands are available , more will be the crash.
    Cheers
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  • Here are the answers ...

    Originally Posted by abk
    wiseman,
    apparently i repeat apparently what you say is a possibility(for the record everything is a possibility)
    my simple question is if the US is embarking on the 'massive excess credit"

    is it without proper application of mind.
    - No, it is done with full knowledge of the ones doing it (Paulson, Geithner, Benanke, Bush and now Obama!

    is there nobody in the team who understands this?
    - Everybody understands it. But the situation is so DIRE that the only alternative is to allow the collapse of the Banks and other Institutions and recapitalise them and sell them back to the private sector. This is what works and everybody knows it. Only, they are so scared that it will simply collapse the system that they are doing exactly what they adviced Japan and the East Asians (1998) NOT to do.

    is there a hidden agenda?
    - Obviously. Andits so apparent that they (all ex-Wall Streeters) are there to bail out their pals on Wall Street

    will obama at the start take a un or miscalculated move,would he not have consulted a host of experts?
    - Who are the ones calling the shots? As pointed above ex-Wall St guys trying to bail out their buddies who took such criminal and then want to protect their bonuses. Besides, you will note that Obama has substantially changed his poll promises and is now doing exactly what Paulson and Bush did earlier. The guess among the people in the know is, he got (or was influenced into being) so scared that he is now toeing the line of the insiders and doing exactly what they are telling him to - in the hope that it will keep his second term prospects intact.

    are there no wisemen in US
    - There are many (and many more wise than me :D). But none of them are in charge!!!

    cheers

    cheers
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  • Originally Posted by abk
    here is your post in thread'reasons for fall in OMR...."
    it is not news sethugm

    Originally Posted by sethugm
    “The areas around the IT Corridor were among the first to experience an escalation in land prices. It is also the first to experience a considerable reduction in the prices following the economic crisis,” said M.K.Sundaram, Chairman of the Builders Association of India-South Centre.

    “We have to accept that it is a time for inflated land prices to come to reasonable levels,” explains Mr.Sundaram.

    “Around 30 per cent of the land near the IT Corridor is available for sale. But there are no takers,” said G.Mohan, Secretary, Federation of Tamil Nadu Flat and Housing Promoters Association.

    When more and more percentage of lands are available , more will be the crash.
    Cheers


    Thanks for reiterating the points discussed earlier.

    The earlier post was the opinion on the RE developments by an RE Experts M.K.Sundaram & G Mohan(though many(blindly) claim to be in that industry not knowing the trends).

    Today's news is first-ever incidence a promoter reducing the price even for the old bookings and you could infer the real need of the hour & trend.

    Where do you see the redundancy ? You are in front of a mirror ?

    All other companies are bound to respect the buyers ..Blindly cant claim the high prices as they were foolishly claiming all these days.(Some are foolish even after reading this announcement).

    More availability in OMR will decelerate the price & will get the development in 3-4 years time there by crashing the prices in now-prime areas.The places 'quoted' 1-2 crores today will fetch half in Q3-09 & either stabilise or depreciate further based on outcome/turnaround of recession.
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  • I guess we have started seeing the price decline officially now.
    DLF-cuts-rates

    It starts with flats and plots will soon follow whether you like it or not.

    Thanks,
    Salim.
    CommentQuote
  • Originally Posted by sethugm
    Thanks for reiterating the points discussed earlier.

    The earlier post was the opinion on the RE developments by an RE Experts M.K.Sundaram & G Mohan(though many(blindly) claim to be in that industry not knowing the trends).

    Today's news is first-ever incidence a promoter reducing the price even for the old bookings and you could infer the real need of the hour & trend.

    Where do you see the redundancy ? You are in front of a mirror ?

    All other companies are bound to respect the buyers ..Blindly cant claim the high prices as they were foolishly claiming all these days.(Some are foolish even after reading this announcement).

    More availability in OMR will decelerate the price & will get the development in 3-4 years time there by crashing the prices in now-prime areas.The places 'quoted' 1-2 crores today will fetch half in Q3-09 & either stabilise or depreciate further based on outcome/turnaround of recession.


    redundancy in stating price crash at far off places
    everyone on the forum agreed to it sethugm it will fall further there are no doubts. you know this place is behind satyabama univ.where there is a layout called harrisons,and one promoted by owners of venketeswara engg college and there is vast land there where the land is cheap and lot of tranquility nobody to disturb you . it is for people who want to 'rest in peace'
    you cant sell a 'jungle resort' as a home can you?
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  • t was launched at 2800/- only and as usual calling it pre launch price, just a gimmick and poor buyers who thinks he is getting a discount is duped. here is a post from another forum
    PEOPLE DONT REACT TO ANY NEWS ANALYZE IT AND GET YOUR FACTS STRAIGHT BEFORE FORMING AN OPINION. posters dont just post anything which suits your perspective or outlook
    all are here to know the real situation dont mislead them by overstating claims by builders(whom most of us shun)

    01-10-2008, 12:30 PM
    kumarramu *
    Member Join Date: Jul 2007
    Location: USA, NJ
    Indian City: DEL
    Posts: 318

    OMR-Sholinganallur: DLF Garden city
    I heard that DLF is going to launch township project in Chennai, near sholinganallur for prelaunch price of Rs.2800/

    Any one enquired or booked it?

    I got more information, but not checked yet...

    We would like to bring to your kind notice that India's leading builder DLF is about to launch an integrated township on OMR in Chennai. The project will have apartments - 2 / 3BHK / school / hospital / mini mall / guest rooms / 125000 SFT Clubhouse with indoor and outdoor games facility - among many more luxury amenities.

    DLF group, the leading real estate developer in India, with over 224 mn sq ft of existing development and 738 mn sq ft of planned project. The group which has set standards in real-estate industry with mega-township projects like 3000 acres DLF city. After NCR the developer has entered other markets in the country with successful launches in Kochi and Kolkata. The same expertise and technical finesse is now being bought in Chennai.


    Project details:
    Total land extent of 58.5 acres.
    32 blocks with Stilt+19 floors, Basement and surface car parking.
    4-6 flats per floor.
    4 apartment types
    Type I ( 2 bedroom 2 toilet ; area around 1200 sft )
    Type II (3 bedroom 2 toilet ; area around 1480 sft ),
    Type III (3 Bedroom 3 Toilet ; area around 1680 sft )
    Type IV ( 3 bedroom 3 toilet with servant quarter ;area around 1980 sft )
    Each block will have 3 lifts including 1 with stretcher duty
    Project Location: The project is tucked away in neat corner of Semancheree, on OMR. Behind Sathyabhama University. Convenient to the entire IT destinations TIDEL PARK / SIPCOT IT PARK Siruseri / ASCENDAS / Infosys / Wipro / TCS / Cognizant etc.



    Amenities:
    The project will have a school by the Padmaseshadri institutions- who run some of the finest schools in Chennai.
    A Mini mall with department store, washing facility.
    A health care centre run by Fortis group. It will also feature a ten bed mini hospitals for medical emergencies with ambulance facility.
    A top end clubhouse of 125000 sft ( largest in South India ) with all modern facilities. It will feature 75 room guest house ( 4-5 star category ).Among the facilities the most notable is the availability of trained servants / cooks / drivers for household.
    It will also have tenant service by DLF as per client choice.
    Completion: The project completion will be 24-30 months from launch. The booking amount will be 15% of total property cost.


    Price: The expected launch price for Phase 1 ( first 700 flats ) is around 2800-3000/sft. A premium of Rs. 100/sft will be applicable for flats facing landscaping. Floor rise of Rs. 30/sft will be applicable from 4th floor onwards. This pricing is nearly Rs. 700- Rs. 1000/sft less compared to other similar projects on OMR.

    Approx 2bhk will start Rs. 35L onwards and 3BHK will start Rs. 45L onwards.


    Booking procedure: You need to pay Rs. 500000/- ( RS. 5 lacs ) in favour of DLF SOUTHERN HOMES PVT LTD. Please indicate the flat area / premium or non premium pacing / floor range so that a tentative booking can be done in this soft launch scheme. The exact unit can be freexed once the plans are available.

    Please let us know if you would be interested in the project.In that case pl reply to me so that once we have complete details we can get back to you with exact pricing / plans etc. Also pl let us know if you have any friends / colleagues who would be interested in the same.

    Best Regards,
    Thanks & Regards
    Jai Ganesh.A


    official website:
    http://www.dlf.in/wps/portal/homes?j...i/overview.jsp

    DONT BE MISLED
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  • Originally Posted by abk
    here is your post in thread'reasons for fall in OMR...."
    it is not news sethugm

    Originally Posted by sethugm
    “The areas around the IT Corridor were among the first to experience an escalation in land prices. It is also the first to experience a considerable reduction in the prices following the economic crisis,” said M.K.Sundaram, Chairman of the Builders Association of India-South Centre.

    “We have to accept that it is a time for inflated land prices to come to reasonable levels,” explains Mr.Sundaram.

    “Around 30 per cent of the land near the IT Corridor is available for sale. But there are no takers,” said G.Mohan, Secretary, Federation of Tamil Nadu Flat and Housing Promoters Association.

    When more and more percentage of lands are available , more will be the crash.
    Cheers

    Looks like G.Mohan is not able to find FOOLISH LAND OWNERS to sell to him for a song! G.Mohan of Bhuvaneswari Constructions prefers FOOLISH LAND OWNERS!
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