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RE business in Chennai collapsing

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RE business in Chennai collapsing

Last updated: August 17 2009
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  • #91

    #91

    Re : RE business in Chennai collapsing

    Today's news is TCS chennai has fired some 200 people.

    Out of these atleast 50 have take housing loans and would want to sell their house at lower cost to avoid further loss..

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    • #92

      #92

      Re : RE business in Chennai collapsing

      Originally posted by Nataraajg007 View Post
      Today's news is TCS chennai has fired some 200 people.

      Out of these atleast 50 have take housing loans and would want to sell their house at lower cost to avoid further loss..
      'some' 200 --'atleast ' 50 ---'would want'

      very conclusive statements natraaaaaj.

      as always.

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      • #93

        #93

        Re : RE business in Chennai collapsing

        TCS likely to lay off 1,300 staffers in the coming Months !

        Wages at IT multinationals start melting down
        Last edited March 9 2009, 12:45 AM.

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        • #94

          #94

          Re : RE business in Chennai collapsing

          Dear friend,

          True. The wages either remain stagnant with minimum increases or even coming down by way of nil variable or reduced vartiable pay. But, those getting fired are comparitively new chaps who joined within 2 years period and most of them would not have gone for house purchase or loans. Even those who have gone for loans, for cotsly flats, may only, unable to manage the large repayment, may come in for sale now and not the ones who have gone in for medium or low budget flats/houses in the range of Rs. 15 to 25 lakhs etc. They may somehow manage out of the earnings of both the husband & wife or parents help etc. Whereas, high value flat ers like Rs. 35 lakhs plus may be the sufferers.

          ks2071746

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          • #95

            #95

            Re : RE business in Chennai collapsing

            Let us look at the bigger picture now ...

            Originally posted by REGuru View Post
            TCS likely to lay off 1,300 staffers in the coming Months !

            Wages at IT multinationals start melting down

            Let us now turn the camera to the bigger picture. Turning Nats own words upon himself, forget IT/ITES. Today the news is that around half a million - thats 500000 - jobs have been lost in the last 3 months alone!!!

            How many of those job holders do you think were on an EMI they could barely afford in some exorbitantly priced home?

            And this slop is only getting steeper. So, you could probably expect that - assuming around 20% of those were holding EMIs and around 25% of the ones holding EMIs are getting into distress, then around 25000 homes are in distress.

            Assuming the same trend for the year 2009 (neither worse nor better) you can expect (following this argument) around 100000 homes will be in distress. With the current oversupply, add this excess supply coming to market in distress and here are 2 things I expect to happen:

            1. Home prices will fall by at least the same amount as last year. If last year there was a 15% - 25% fall, this year you will find it falling an additional 15% - 25%. So by end-2009 you can expect anywhere from 30% to 50% from 2007 peak - not doing any inflation adjustments here.

            2. At least a few builders of the medium size will go bankrupt as they cannot support their debt load. I expect even a bigger one can go bust at this rate. This will add the the supply of distressed properties coming to market.

            Another factor we cannot now calculate - but will surely have an impact - is the one where NRIs/Indian Americans who already have loans may also be getting into distress as they lose jobs and their ability to pay. What would be the effect of this on our supply?

            cheers

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            • #96

              #96

              Re : RE business in Chennai collapsing

              Originally posted by abk View Post
              'some' 200 --'atleast ' 50 ---'would want'

              very conclusive statements natraaaaaj.

              as always.
              ABK,

              Whether you like or not, good % of IT guys shown the door have taken loans and they are in trouble.

              Probabily you might have been hit. That is why you are in denial phase

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              • #97

                #97

                Re : RE business in Chennai collapsing

                Originally posted by Nataraajg007 View Post
                ABK,

                Whether you like or not, good % of IT guys shown the door have taken loans and they are in trouble.

                Probabily you might have been hit. That is why you are in denial phase

                Dear friend

                If you watch newspaper closely you will come to know that lot of

                properties are under auction sale because of defaulters in RE sector.

                In the coming months this trend will increase. The more and more auctions, the lesser price ers will quote.

                thanks

                chataara

                Comment

                • #98

                  #98

                  Re : RE business in Chennai collapsing

                  Dear friends

                  Today In virugambakkam Arcot Road I saw a black board in front of a brokers office.

                  He has written some 6 or 7 properties for sale. One among them was about indira nagar (virugambakkam).

                  There 600 sft land with building that broken has written Rs. 16 as the quoted price.

                  When it was peak time in and around virugambakkam they were quoting around Rs.25L for 600 sft. without house.

                  thanks

                  chataara

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                  • #99

                    #99

                    Re : RE business in Chennai collapsing

                    Originally posted by chataara View Post
                    Dear friends

                    Today In virugambakkam Arcot Road I saw a black board in front of a brokers office.

                    He has written some 6 or 7 properties for sale. One among them was about indira nagar (virugambakkam).

                    There 600 sft land with building that broken has written Rs. 16 as the quoted price.

                    When it was peak time in and around virugambakkam they were quoting around Rs.25L for 600 sft. without house.

                    thanks

                    chataara
                    you cannot get approval for 600 sq ft.it was never sellable easily peak or slump. it is a waste piece of land and still being quoted 16 l i.e 64l/gnd

                    where is the fall.

                    Comment


                    • Re : RE business in Chennai collapsing

                      Originally posted by abk View Post
                      you cannot get approval for 600 sq ft.it was never sellable easily peak or slump. it is a waste piece of land and still being quoted 16 l i.e 64l/gnd

                      where is the fall.
                      Chatara has clearly stated prices have come dowm from 25 L to 16L. If this is not a fall, then what is a fall.

                      By the way there are thousands of houses in chennai which are built in 600 sqft. If you demolish all, the half of chennai wil go

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