Hi Friends,

I had been to the FAIRPRO '09 Fair.My Impression after seeing, is that prices are stagnating for all ongoing projects and builders are trying hard to hold them up.

Prices are 10-20% lower for new projects in the pipeline and for ready to occupy flats.

The discount offered at the stall was very less and were in the range 150-500 Rs/sqft max.

For the benefit of fellow members I am posting the project/price details of some of the properties.



Akshaya Foundations

Adora - OMR - 3750/sqft
Aikya - Adyar - 12500/sqft

Alliance Group - Orchid Springs - 3199/sqft

Arihant Foundations

Heirloom - Thalumbur - 2499/sqft
Escapade - Thoraipakkam - 4150/sqft
Villa Viviana - Maramalai nagar - starting from 1 Crore

Asvini Foundations

Amarisa-phase1 - Ramapuram - 4500/sqft
Amarisa-phase2 - Ramapuram - 4250/sqft
Akshita - Madipakkam - 3800/sqft

Casa Grande

Riveira - Palikkarnai - 3450/sqft - before discount 3600/sqft
Silver Oak - Perungudi - 4300/sqft - before discount 4500/sqft
Madhuban - Madipakkam - 3300 /sqft - before discount 3500/sqft
Mylapore - R.K.salai - 12500/sqft
Plots
Ponmar -785/sqft - before discount 825/sqft
Maraimalainagar - 790/sqft - before discount 825/sqft

CeeDeeyes - Chenni Pattinam

Basic Rate - 1600/sqft All Inclusive - 2075/sqft

Chaitanya shanthiniketan

Sunnyvale - Ayanavaram - 4850/sqft
Serena - Rajkilpakkam - 2550/sqft
Gardenia - OMR - 1900/sqft
Green Park - Chitlapakkam - 3300/sqft

DLF

Gardencity - 3200/sqft - was told slash in prices expected in coming weeks.

Doshi Housing

Etopia I and II - Perungudi - 3895/sqft
Nakshatra - Tambaram - 2995/sqft - Completion May 2010
Tranquil - Velachery - 5500/sqft - Completion February 2010
Trinity park - Santhoshpuram,Vengaivasal - 3195/sqft - Completion April 2009
Serene Couny-Villas - Santhoshpuram,Vengaivasal - 2200,2600/sqft
LlanStephan - Chetpet - 9000/sqft - Completion May 2009
Sri Mahalakshmi - Ayanavaram - 4495/sqft - Ready to Occupy

ETA

Rosedale - OMR - 3100/sqft
Le Chalet - Villas - Sriperambudhur - 26 Lakhs - 37 Lakhs

Hiranandani Upscale - 4200/sqft

Hiranandani Palace Gardens - 3475/sqft

Indus Housing

anantya - Navalur,OMR - 2299/sqft + 400(other charges)
riviera villa - Navalur,OMR - 90 Lakhs onwards
habittera - urapakkam,GST - 2399/sqft + 400(other charges)
amber - Saidapet - 4750/sqft

Jain Housing

Ankush Prakas - Kilpauk - 7500/sqft - Ready to occupy
Amrit Kailash - Strahns Road - 4500/sqft - Ready to occupy
La Gardenia - Nungabakkam - 7500/sqft - Ready to occupy
Ansruta - Valluvarkottam, nungabakkam - 10000/sqft - Ready to occupy
Antariska - Kodambakkam - 4500/sqft - Ready to occupy
Eiffel Garden - Vadapalani - 4250/sqft - Ready to occupy
Saagarika - M.R.C Nagar, sea facing - 10000/12500 - Ready to occupy
Green acres - Pallavaram - 3900/sqft - Ready to occupy
Abhishek - Selaiyur - 3500/sqft - Ready to occupy.

Jamals

Orchid - Palikkarnai - 3500/sqft
Palazzo - keelkattalai - 3700/sqft
Grandeur - Velappanchavadi(near saveetha dental college) - 3200/sqft

KGEYES

3 Projects on L.B.Road, Thiruvanmiyur - 6650/sqft
Delmare - Beach road,Thiruvanmiyur - 7000/sqft
Carolina - Velachery,Taramani - 4500/sqft
Swathi - Sastri Nagar,Adyar - 8500/sqft
Kalakshetra - 8000/sqft

Landmark Constructions

Tiara - Perungudi - 4000/sqft - Completion on August 2009
Aston Ville - Vadapalani - 5500 sqft - Completion on July 2009
Tudors Place - K.K.Nagar - 6500/sqft
The Address - Adyar - 11500/sqft
The Grange - Palavakkam - 7500/sqft
Cenralia - Chrompet - 2950/sqft - prelaunch
Gem Towers - AnnaNagar - To be launched.
Mahalakshmi Heights - Ashok Nagar - To be launched

L&T Estancia
Construction in Progress
1st-3rd Floor - 3950/sqft
4th -12 floor - floor rise charge of 20/sqft for each floor
13th - 17th - 4450/qft

L&T Eden Park - 3600/sqft

Mantri Synergy - OMR
2800/sqft - with 20/floor rise
Special offer - First Floor - all inclusive
1140 sqft - 33,67,000
870 sqft - 28,50,000

Navin Housing

Dayton Heights - Nelson Manickam road - 6500/sqft + 30/sqft floor rise from 2nd floor
Subha Mangala - Ramapuram - 4200/sqft
Brookfield - Nanmangalam - 3500/sqft
Merrylands - Medavakkam - 3500/sqft

Olympia Opaline - 3441/sqft - spl budget flats available

PACE Builders

Anna nagar west - 4195/sqft - before discount 4495/sqft
Selaiyur - 3195/sqft - before discount 3495/sqft
Valasarvakkam - 2795/sqft - before discount 3295/sqft

PS Srijan

The Grand - Velachery - 5250 sqft - before discount 5500/sqft - Floor Rise applicable from 4th floor

Rajparis

Harmony - Medavakkam - 3100/sqft

Rajarathnam Constructions

RC Prince Gardenia - Perambur redhill road,Kolathur - 3600/sqft

Rajkham

Independant houses - Ayyapathangal - 2600/sqft

Real Value

Sai Skanda - Velachery - 4200/sqft
Sai Surya - Palikaranai - 3800/sqft
OMR opp SIPCOT - 13.20 Lakhs onwards

Shriram Properties

Trishakti - SIPCOT - 2750/sqft
Shankari - 1990/sqft

Sidharth foundations

Tulip - k.k.nagar west - 4800/sqft - completion march 2009
Natura - medavakkam - 3100 /sqft - completion july 2009
Visvaleela - Annanagar - 8500 /sqft - to be launched
Dakshin - Urapakkam - price TBD - to be launched
upcoming projects in porur, thoraipakkam, rajkeelpakkam, mogappair.

SIS

Safaa - Urappakam - 3150/sqft

SSPDL

Crescent - Kelambakkam - Vandalur Road - 2500/sqft
Upcoming 2 villa project one in OMR and one in Sriperambathur.

Sumanth & Co

Thiruvanmiyur - 6000/sqft
Besant Nagar - 11500/sqft

TVH

Lumbini square - Pursaiwalkam - 5500/sqft + 30/sqft floor rise from 5th floor
Ouranya Bay(Premium) - OMR,Padur - 3100,3200 + 25/sqft floor rise from 5th floor
Ouranya Bay(Budget) - 2bhk - 20 Lakhs
3bhk - 30 Lakhs
Ekanta - Coimbatore - 3100/sqft
Revata - Mogappair east - 4500/sqft
Kamya - K.K,Nagar - 7000/sqft
Metro Golden Nest - Sriperambathur - 1bhk - 15 Lakhs
2bhk - 22 Lakhs
3bhk - 28 Lakhs

VGN Group

Minerva - Mogappair,Nolumbur - 2975/sqft
3 in 1, 4 in 1 - 3800/sqft
Mahalakshmi Nagar,Thiruverkadu - 3500/sqft
Plots
Mugalivakkam - 52 Lakhs/grnd
Selaiyur - 50 Lakhs/grnd
SPKoil - 34 Lakhs/grnd
Katankulathur - 22-27 Lakhs/grnd

Yuga Homes

Shem Park - chemmenachery - 3300/sqft
Upcoming in Koyambedu, R.A.Puram(8000/sqft)



There are lots of properties and also lots of potential buyers.There is sure a sense of uncertainity among the builders and also the buyers on when to make the next move.It was evident that correction in RE prices have started to happen.

Requesting members to respond with their thoughts on the current trend.
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  • Originally Posted by lovebirds43k
    I don't think so.

    In OMR prices are still at 6500 to 8000 per sqft


    I dont think it is appropriate to generalise a 30 km stretch as one area with only one half of it with in corp limit AND supply-demand varies at different pockets. By the way, where in OMR, they are selling at 8000 rs/sqft and who is buying it. please dont include projects like Hira in to this where price rise is notional. Going fwd if there is any price correction in Chennai RE, few pockets along OMR will be hit first.
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  • Is the NHB index a bucket of RE prices in a location with a mix of plots & apartment prices ? the reason I am asking that is between 2007-13 the zone 4 covering aynavaram, pursai, kolathur shows a 7 fold increase? Have the apartment price gone up by 7 times or has the plot rate gone up by only 7 times during this period? Or if you take Zone 7 - chetpet, egmore has the price increased by ony 1.8 times during this 2007 -13 period? And if 2007 is taken as base year with 100 points does it mean prices in chetpet/egmore in 2007 was same as in places like zone 4 areas like kolathur or kolathur in 2013 is more costly than chetpet/egmore in 2013 or for that matter zone 10 areaas like adyar,, T'yur, velachery? Confused with these numbers and how to interpret and read it correctly...Can somebody who knows this explain please?
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  • Originally Posted by Rameshr49
    Is the NHB index a bucket of RE prices in a location with a mix of plots & apartment prices ? the reason I am asking that is between 2007-13 the zone 4 covering aynavaram, pursai, kolathur shows a 7 fold increase? Have the apartment price gone up by 7 times or has the plot rate gone up by only 7 times during this period? Or if you take Zone 7 - chetpet, egmore has the price increased by ony 1.8 times during this 2007 -13 period? And if 2007 is taken as base year with 100 points does it mean prices in chetpet/egmore in 2007 was same as in places like zone 4 areas like kolathur or kolathur in 2013 is more costly than chetpet/egmore in 2013 or for that matter zone 10 areaas like adyar,, T'yur, velachery? Confused with these numbers and how to interpret and read it correctly...Can somebody who knows this explain please?


    To my knowledge

    NHB Index is currently only for residential property and not for commercial or lands.

    When they say chetpet was 100 in 2007 and now it is 180. Then it means a total return of 80% over 6 years and an annual return of 9.6%. It is a simple rate or return calculator.

    Coming to Kolathur it is around 34% return annually as per index. And not to be surprised some parts of that area have really gained and I have seen one such transaction of a relative selling an land. But that is history.

    Formula for annual rate of return

    ((sold price/investment price) to the power (1/no of years)) -1 *100 (in %)
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  • Originally Posted by srivat
    To my knowledge

    NHB Index is currently only for residential property and not for commercial or lands.

    When they say chetpet was 100 in 2007 and now it is 180. Then it means a total return of 80% over 6 years and an annual return of 9.6%. It is a simple rate or return calculator.

    Coming to Kolathur it is around 34% return annually as per index. And not to be surprised some parts of that area have really gained and I have seen one such transaction of a relative selling an land. But that is history.

    Formula for annual rate of return

    ((sold price/investment price) to the power (1/no of years)) -1 *100 (in %)


    So if i understand it right, the base of 100 (in 2007 ) across various zones in a city for a year should not be read as same price. It could be Rs.2000/Sqft in one zone and Rs.9000/Sq.ft in some other zone. And individually each of the current index in a zone is more to determine the price appreciation within a zone.

    Any reason why some specific zones have seen 7 times appreciation while some zones less than twice over this 6 years? Is it new infrastrcuture, metro/mono or any development that can be attributed to this significant difference in appreciation apart from the reason like the base price in areas like adyar, T'yur was already higher in 2007 itself(higher base price) Or was it the north chennai was catching up with the rest of chennai due to builder interest?
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  • I think the NHB index is calculated only based on official transaction rates. The black money component in any resale transaction will probably not be accounted in getting the index. So, if a year has more resale transactions and good part of them involve a decent amount of black component, then the index will be skewed lower for the period. If another year has mostly non-resale transactions, then comparison between the earlier year might show better increased index numbers. But, overall the index points to the increase or decrease trend....
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  • Originally Posted by Rameshr49
    So if i understand it right, the base of 100 (in 2007 ) across various zones in a city for a year should not be read as same price. It could be Rs.2000/Sqft in one zone and Rs.9000/Sq.ft in some other zone. And individually each of the current index in a zone is more to determine the price appreciation within a zone.



    Yes


    Originally Posted by Rameshr49

    Any reason why some specific zones have seen 7 times appreciation while some zones less than twice over this 6 years? Is it new infrastrcuture, metro/mono or any development that can be attributed to this significant difference in appreciation apart from the reason like the base price in areas like adyar, T'yur was already higher in 2007 itself(higher base price) Or was it the north chennai was catching up with the rest of chennai due to builder interest?


    I would call it as ignored in past due to being outskirts and seen value later. Infastructure or other things can also be a primary driver.

    Second is low base effect. Chetpet and other area were already having high base cost. Buyers affordability % decreases.

    "As I have said earlier it is easier for a company in short duration to make another million from a million but once it enters billion dollar club to make an another billion will take its own time."
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  • Originally Posted by sundarjp
    I dont think it is appropriate to generalise a 30 km stretch as one area with only one half of it with in corp limit AND supply-demand varies at different pockets. By the way, where in OMR, they are selling at 8000 rs/sqft and who is buying it. please dont include projects like Hira in to this where price rise is notional. Going fwd if there is any price correction in Chennai RE, few pockets along OMR will be hit first.


    Excatly. We can not generalise the whole 30 KM stretch as one zone.

    Some people are doing it. That is why I made it as counter.

    Madyakailash to Kottivakkam/Kandanchavadi is one price zone ( Appasawmy projects city side in kottivakkam on OMR,rate is at present 8000), Perungudi/thoraipakkam is another zone. Karapakkam/Shol is another. Navalur/siruseri is one more. Kelambakkam/padur/Thaiyur is another one. Beyond thaiyur till mahab is next one.

    Different zones command different prices and price upward/correction/ 2 hour power cut or 12 hour power cut like rest of TN are all not common for all these zones.

    People should not just comment OMR is like this and like that etc for the whole zone.

    It is like some from Patna commenting in chennai you can get apartment for 3500 per sqft thinking Guduvancheri is chennai
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  • Originally Posted by maverick007
    IMO, this time looks different to me and here is why. Short term rates is likely to remain elevated for foreseeable time. Interest rates of 8-9% is history - till we bring growth and inflation under control. What brought the rental yield from 4-5% of 90s to 2% in the next decade is the interest rate. We have been in a low interest rate regime for too long a period like Western world despite a spiraling inflation. Currency paid for it recently and in order to stabilize the currency, they have to do what they should have done long time ago in the first place - raise interest rates or elevated interest rates for 3-4 years is likely to remain. Some of the reports I read and recent Morgan Stanley report likens the current period to be that of '98 where we got the tail wind of US slow down in 2001 and that brought down the interest rate overall.

    If investors can get 12% in a relatively risk free debt instrument and with liquidity, our RE yield cannot remain at 2-2.5% and it is unsustainable. I don't see rental rising to catch up to 3% yield. Given the run we have had, aided by so many sanguine factors of the last decade, RE capital prices are very vulnerable given the level of value destruction seen in most respected companies which can be a portent of how it sees the economy in the future. General argument that RE will have to rise with inflation cannot apply to any price levels. Because, the last 10 year rise did not account for just inflation. Interest rate played a very big role and if that raises and remains at an elevated level, inflation argument is unlikely to hold. Why are the companies with tremendous pricing power which are getting killed today? Demand destruction is inevitable at certain prices and Cos cannot keep on increasing prices just because they can. Same hold with RE rentals and prices.

    I strongly believe people need a home to live and one cannot time the market. While you do that, do not stretch your affordability extrapolating the last 10 year pattern to continue, throwing the caution to wind. For investors, you may find very select value if you comb but at broader price levels I see, there is a greater disconnect to the economy and the situation we are in. This too shall pass cannot save your investment if there is no adequate discounting.

    Disclaimer: Above are purely my opinion - needless to say. Do not base your buying/selling decision based on above and use your judgement and take the right level of risk that you can handle.


    Thank you mav, I share a very similar view and also wrote in another thread

    https://www.indianrealestateforum.com/forum/city-forums/pune-real-estate/181-real-estate-prices-in-pune-soars-70?p=116427#post116427

    I am expecting our new RBI governer to increase intrest rates and also allow the rupee to slide even more till its natural resistance..There is news that we are going to pledge gold with IMF and rating agencies are going to downgrade very soon..Things are not rosy..The government may open up all markets including retail very soon as a desperate measure..but we may have to depend on post elections for FDI/FII investments to return..The markets are not assuring enough now..Till then we have to grapple with the slow economy with high cost.
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  • There might be no more 20:80 schemes. Real estate might take another hit.

    Link home loans to stages of construction: RBI to banks
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  • from an investment point of view..is'int a smaller builder apartment flat better than these huge gated communities? welcome your views..
    1. smaller apartments should be more closely linked to land prices since there is the option of reconstructing 20-30 years down the line. What are the odds of 500 ppl coming together and reconstructng a GC? what will even happen 30-40 years down the line?
    2. If there is relaxation of FSI, which is strict in Chennai compared to other metros, you can play the arbitrage much better in a smaller builder floor apartment vis-a-vis a GC.
    3. Lastly, these apartments should be available at a good 10-20% disc compared to big GC's. from a rental yield perspective, might be better..these could even be avlbl ready to occuoy to minimize builder risks..
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  • agree with above points on small builders vs GC from a investment prespective, may be this discussion requires a separate thread! Senior members, pls share your comments.
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  • Originally Posted by Rameshr49
    Is the NHB index a bucket of RE prices in a location with a mix of plots & apartment prices ? the reason I am asking that is between 2007-13 the zone 4 covering aynavaram, pursai, kolathur shows a 7 fold increase? Have the apartment price gone up by 7 times or has the plot rate gone up by only 7 times during this period? Or if you take Zone 7 - chetpet, egmore has the price increased by ony 1.8 times during this 2007 -13 period? And if 2007 is taken as base year with 100 points does it mean prices in chetpet/egmore in 2007 was same as in places like zone 4 areas like kolathur or kolathur in 2013 is more costly than chetpet/egmore in 2013 or for that matter zone 10 areaas like adyar,, T'yur, velachery? Confused with these numbers and how to interpret and read it correctly...Can somebody who knows this explain please?


    NHB Residex started with 2001; and eventually moved into 2007 as the base year on weighted average. The prices are indexed based on WPI and CPI. It's definitely a good start, but IMHO it's generation away to get the credence, or as comprehensive like other countries Land Registry index. (Mainly due to India's skewed inflation index, deals with grey components and even guidance revision may have major impact).

    Another important data-set I believe it's been overlooked is Repeat Sales Regression (RSR)- which gives true value on appreciation for re-sale homes. So I wouldn't ponder too much on NHB Residex valuation (at-least for few more years).
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  • IT panic is over...good days ahead for RE too

    CHENNAI: Early placement trends from top campuses in the state indicate that the appetite to recruit large numbers remains continues. However, entry-level salaries for graduating engineers remain unchanged for the fifth year in a row at Rs 3 lakh to Rs 4 lakh.

    Vellore Institute of Technology (VIT) on Thursday announced that 3,934 offers were given to its students by three companies — Accenture, Wipro and Cognizant. This is higher than 3,603 jobs offered last year during a three-day placement process. "The salary offered by three firms was in the range of Rs 3.5 lakh to Rs 4 lakh, which has not changed much in recent years," said G Viswanathan, VIT chancellor. Last year, 225 recruiters visited VIT. This year, 40 to 50 have completed placements and 150 are expected over the next few weeks.

    At VIT, Accenture offered to recruit 1,688 students, Wipro gave offer letters to 1,162 and Cognizant 1,084. Some students also got multiple offers; therefore the actual number of students placed will be less than number of offers.

    Among departments of Anna University, Accenture recruited 204 students and offered to pay an average of Rs 3.5 lakh per annum. Infosys is visiting on September 14 (Saturday) and early indications suggest they may recruit nearly 200 from this campus at the same pay structures. Microsoft offered the highest on the Anna University campus with Rs 16.5 lakh per annum.

    "I can't say the placements are better but they are peaking. Bulk hiring no longer means numbers in thousands but hundreds," said T Thyagarajan, director of Centre for University Industry Collaboration (CUIC) and oversees placements at Anna University. "We have around 3,700 registered students for placements including postgraduates. Many may go for higher studies. Around 350 have been placed," he said.

    This year, campus recruitment by tech companies started in September while 'dream' companies came in few weeks before. At VIT, DE Shaw recruited two students while eBay offered jobs to 15 students and Flipkart gave job offers four students. All three companies offered more than Rs 11 lakh per annum. Accounting and consulting giant Deloitte, analytics firm Musigma and Schneider Electric were 'dream' recruiters at VIT this year.

    Placements are currently on at PSG and Amrita universities in Coimbatore with Wipro, Accenture, IBM, Cognizant and Infosys sharing the first day slots at PSG. Campuses like SRM and SASTRA in Thanjavur are preparing for placements in the coming weeks, with tech titan TCS expected to recruit large numbers from both. TCS may also visit Government College of Technology in Coimbatore.

    The early encouraging numbers come on the back of software industry association Nasscom's prediction of a 17% drop in IT hiring this year. Nasscom said the slowdown as well as companies focusing on non-linear growth with increasing standardisation and automation of work were key reasons for lower staff intake by its member firms. Non-linear implies that workforce need not be increased proportionally to increase revenue.

    Large recruitment numbers like at VIT might mean smaller recruitment numbers at lower tier campuses. The manpower requirement of IT firms has come down significantly and it is more efficient and cheaper for them to hire more at fewer campuses than spreading their recruitment over a large number of large and small campuses.
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  • Good go..chennai corportation

    change for good
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