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RE business in Chennai collapsing

Last updated: August 17 2009
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  • Re : RE business in Chennai collapsing

    Originally posted by sethugm View Post
    The Arasi madam can only feed the relative from US and how long she can feed the family...for weeks...? DGP madam cant even help the family to buy an affordable house for Rs 20 Lacs ..leave alone the apartments priced above Rs 40 Lacs/independant houses.

    Govt/PSU employees may not able to afford the high priced houses above Rs 40 Lacs even with his/her retirement benefit.Will he be spending all the retirement benefits on housing ? May be they will be spending 50-60 % on housing..What he will do for the medical and other expenses ?

    If someone can throw some light on how much an IAS officer would be getting as retirement benefits ...it would be a good to know the affordability...

    Cheers..
    Arasi madam may not gift a apartment to US relatives who don't have any rights anyhow. However regarding affordability of Arasi madam, She has property of Rs.300 crores. She inherited this from her late parents whose ancestors had for generations invested in acres and acres of land (real estate) in Tamil Nadu without listening to some bears.

    Coming back to the real world on a more serious note, retired IAS officers and IPS officers that I know stay in individual houses and not in apartments and their houses occupy 2 grounds usually and so they don't have to worry about Rs.40 lakh apartments.

    During his/her working career, IAS officers get government accomodation and hence invest in land early. After retirement they only have to construct on the land they already own. They deserve such a good lifestyle as they decided to use their intellect to serve the country.

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    • Re : RE business in Chennai collapsing

      Originally posted by contra View Post
      You forgot the Central government employees, PSU employees, local family business communities like marwaris, sindhis, jains. Do not underestimate the power of domestic consumption. Ofcourse filmstars will continue to purchase RE, film industry is doing well in India. Films made in India have a good market both domestically and in arab countries, north africa and south east asia. I would love to invest in stocks of indian film productions, Sun TV networks has a P/E ratio of 20 which shows potential of indian entertainment. Yes I am happy as more and more filmstars, mega serial actors, producers invest in Chennai RE, they have more holding power then salaried IT employees. Now don't tell Sun TV and AVM studios will slowdown because IT employees don't have disposible income to watch movies and mega serials.

      Even in Arasi serial in Sun TV, some US based relatives of Arasi madam have come back to Chennai, after they lost everything in US due to economic drepression in US. Now Arasi madam who is Tamil Nadu DGP is feeding them with her salary paid by Tamil Nadu government. That serial shows things to come .

      Real estate in Kodambakkam, Saligramam always look good.
      Dear Sir,

      I know some people in the field of entertainment{ to be precise in the Post Production Company}.The truth is that they are also struggling.

      You only talk about SUN TV.Well there is a co.called Pyramid Saimira which at its peak was quoting at Rs.700 - 800 per share but now is languishing at less then Rs.10 per share.Let me tell you this industry is also suffering as much as other industries are.And the advertising budgets of most of the companies have been slashed and internmally even SUN TV might be facing the heat.

      Yes PSU and Govt staffs salaries have been revised but then how many Central Govt employees do we have in whole of Chennai ??? Not more then 10,000 staff.And at least 5000 of them will be in Class III or IV grade.That leaves another 5000. If 50% of them are in Dept's like Customs ,Excise ,Incoem Tax ,Police they donot really need their salaries to buy the good things in life.
      Yes to some extent the Central Govt employees can amke a difference but only margianlly.

      Talking about Marwaris/Jains etc. their businesses are also down .But some of them who are doing well are aggressively buying land {at leat the people I know}.They will not impact the residential market as they donot want to go out of the Parrys/Choolai/Puruswalkam/Kilpauk/Shenoy Nagar/Annanagar belt.

      Comment


      • Re : RE business in Chennai collapsing

        BT cuts 10000 jobs ,will it affect tech mahindras jobs as well since most of the contract for Tech mahindra is with BT only

        Comment


        • Re : RE business in Chennai collapsing

          Originally posted by sethugm View Post
          The slowdown in IT industry will definitely bring down disposable floating money with the public..And the big budget movies are produced with the hope that they will get back the money in the first few weeks during which unregulated pricings are allowed.Am sure IT employees/families constitute atleast 20-30 % and sure there will be slowdown everywhere.

          The Arasi madam can only feed the relative from US and how long she can feed the family...for weeks...? DGP madam cant even help the family to buy an affordable house for Rs 20 Lacs ..leave alone the apartments priced above Rs 40 Lacs/independant houses.

          Govt/PSU employees may not able to afford the high priced houses above Rs 40 Lacs even with his/her retirement benefit.Will he be spending all the retirement benefits on housing ? May be they will be spending 50-60 % on housing..What he will do for the medical and other expenses ?

          If someone can throw some light on how much an IAS officer would be getting as retirement benefits ...it would be a good to know the affordability...

          Cheers..
          Dear friend

          IT employees have lost confidence in their future. There is no guarantee that they will get fat salary for another 20 years without any fall in their pay. When it was peak time, These youngsters were the driving force in hiking the RE price.

          At present situation they will not dare to purchase any property.

          Thanks

          chataara

          Comment


          • Re : RE business in Chennai collapsing

            Originally posted by contra View Post
            Arasi madam may not gift a apartment to US relatives who don't have any rights anyhow. However regarding affordability of Arasi madam, She has property of Rs.300 crores. She inherited this from her late parents whose ancestors had for generations invested in acres and acres of land (real estate) in Tamil Nadu without listening to some bears.

            Coming back to the real world on a more serious note, retired IAS officers and IPS officers that I know stay in individual houses and not in apartments and their houses occupy 2 grounds usually and so they don't have to worry about Rs.40 lakh apartments.

            During his/her working career, IAS officers get government accomodation and hence invest in land early. After retirement they only have to construct on the land they already own. They deserve such a good lifestyle as they decided to use their intellect to serve the country.
            Its true that high profile civil servants and highly currupted beaurocrats would like to live in individual houses and not buying apartments.Speculators already to have exited & IT/ITES employees in a dilemma due to the uncertainty of the jobs , RE is in dire strait which will bring down prices atleast by 40 % & more in far away places.

            40-50 % percent of the RE projects developed since 2007 are still being unsold & given the huge availability of land in Chennai . No CivilServants/PSU are buying...No Speculators are alive(active)..No IT/ITES Emp are buying RE .... Do you still think RE in Chennai will give the minimal resistance before crashing ...leave alone the appreciation ?

            Cheers.
            Last edited April 18 2009, 09:24 PM.

            Comment


            • Re : RE business in Chennai collapsing

              Originally posted by sethugm View Post

              40-50 % percent of the RE projects developed since 2007 are still being unsold & given the huge availability of land in Chennai . No CivilServants/PSU are buying...No Speculators are alive(active)..No IT/ITES Emp are buying RE .... Do you still think RE in Chennai will give the minimal resistance before crashing ...leave alone the appreciation ?

              Cheers.
              There were a lot of value buyers/investors who were waiting on the sidelines with cash. Ranbaxy's ex-owners have almost 8000 crores in cash they got after selling their company to Daichi, even if 20% of it comes to real estate there should be major impact. Infosys has a cash chest of 10,000 crores. If Infosys lays off staff, doesn't hire freshers, or doesn't give hikes it is actually good because that cash would be deployed into real estate instead to salaries.

              No body cares about employess or IT people losing jobs. Entrepenuers who made a war chest of money during the past decade like Ranbaxy founders, Anil Ambani from Reliance Power IPO or Infosys founders will not care about people, they will still put most of the money they have made into indian real estate.

              A few people with 15000-20000 crores cash amongst them are enough to drive up real estate and hold it there on the high. You don't need remaining thousands of people who cares. Wealth is always at the top of the pyramid with few people. As long as this is true Real estate will never fall.

              This is capitalism, embrace it or suffer in escapism.

              Comment


              • Re : RE business in Chennai collapsing

                Originally posted by contra View Post
                There were a lot of value buyers/investors who were waiting on the sidelines with cash. Ranbaxy's ex-owners have almost 8000 crores in cash they got after selling their company to Daichi, even if 20% of it comes to real estate there should be major impact. Infosys has a cash chest of 10,000 crores. If Infosys lays off staff, doesn't hire freshers, or doesn't give hikes it is actually good because that cash would be deployed into real estate instead to salaries.
                Agree that cash rich people are available in India and can make a big difference pumping just 10-20 percent . If the industry has future potential & decent growth rate, they would even pump 100 % .With the prevailing inflated prices ,the future looks bleak.So none of the cash rich people are doing it which is why 40-50 % of the RE assets are unsold.

                Satyam board of directors have rejected its RE diversification as they dont see any potential at the prevalent rates inspite of Maytas's huge land bank.

                No body cares about employess or IT people losing jobs. Entrepenuers who made a war chest of money during the past decade like Ranbaxy founders, Anil Ambani from Reliance Power IPO or Infosys founders will not care about people, they will still put most of the money they have made into indian real estate.
                Still there are ignorant people who say the prevailing IT/ITES job trends will not affect RE .But when there was a news on IT job trends , Purvankara CFO Mr Ravi Ramu is much concerned & accept the knock on effect it would have on RE.The people concerned are really concerned.

                http://www.economictimes.indiatimes....ow/4383402.cms
                Last edited April 19 2009, 08:43 PM.

                Comment


                • Re : RE business in Chennai collapsing

                  ]http://economictimes.indiatimes.com/Market-News/Low-rentals-to-hit-realty-projects/articleshow/4421261.cms[/URL]

                  Comment


                  • Re : RE business in Chennai collapsing

                    Dear friend,

                    It is a fact that IT downtrend has affected the RE market in India. If any one disputes this fact, it will be for the purpose of argument only.

                    ks2071746

                    Comment


                    • Re : RE business in Chennai collapsing

                      Originally posted by factsandfigures View Post
                      Dear Sir,

                      I know some people in the field of entertainment{ to be precise in the Post Production Company}.The truth is that they are also struggling.

                      You only talk about SUN TV.Well there is a co.called Pyramid Saimira which at its peak was quoting at Rs.700 - 800 per share but now is languishing at less then Rs.10 per share.Let me tell you this industry is also suffering as much as other industries are.And the advertising budgets of most of the companies have been slashed and internmally even SUN TV might be facing the heat.

                      Yes PSU and Govt staffs salaries have been revised but then how many Central Govt employees do we have in whole of Chennai ??? Not more then 10,000 staff.And at least 5000 of them will be in Class III or IV grade.That leaves another 5000. If 50% of them are in Dept's like Customs ,Excise ,Incoem Tax ,Police they donot really need their salaries to buy the good things in life.
                      Yes to some extent the Central Govt employees can amke a difference but only margianlly.

                      Talking about Marwaris/Jains etc. their businesses are also down .But some of them who are doing well are aggressively buying land {at leat the people I know}.They will not impact the residential market as they donot want to go out of the Parrys/Choolai/Puruswalkam/Kilpauk/Shenoy Nagar/Annanagar belt.

                      Failed companies like Pyramid Saimira are there in every industry, this should not be used to call the entire indian media sector as rubbish. Even Enron, which was a power and energy company failed, but the most valuable industry in the world in energy, power and their utilities. Will you call entire energy sector as rubbish?

                      Before making narrow judgements do a complete fundamental analysis and you will realize that underneath all this negative sentiment floating around there is value.

                      A real investor, a long term investor will buy when everyone is thinking negatively and making negative interpretations like now. There are not enough buyers now as people are scared to take loans. If you are a cash buyer like I am, this is the time to get a location and property of your choice.

                      This is value buying, bye for now.

                      Comment

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