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Property Price Trends in Chennai

Last updated: July 14 2020
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  • Re : Property Price Trends in Chennai

    Not many may know - A lot of prime urban land is held by various government and quasi government agencies (Central/State/Local). BSNL and Doordarshan have lot of land. The land may house some building on paper but overall utilization is very poor. If some effort is done by government to exploit all that land, the urban housing shortage can be mitigated. But again this wont happen easily, since a lot of vested interests in India benefit from high RE prices.

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    • Re : Property Price Trends in Chennai

      Originally posted by ramki830 View Post
      Not many may know - A lot of prime urban land is held by various government and quasi government agencies (Central/State/Local). BSNL and Doordarshan have lot of land. The land may house some building on paper but overall utilization is very poor. If some effort is done by government to exploit all that land, the urban housing shortage can be mitigated. But again this wont happen easily, since a lot of vested interests in India benefit from high RE prices.
      That prime urban land held by govt and q-govt agencies is what is providing the little green cover, or what is left of it, in the city. Adyar has been consistently the coolest part of chennai for years simply because of the number of educational institutions there. If the govt is so socially concerned about housing affordability, then it will not be demanding a share in redevelopment of TNHB tenements.

      Property market has seen a rapid unregulated growth in the last decade or two. But
      is there really a housing shortage in chennai, I wonder!?

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      • Re : Property Price Trends in Chennai

        Originally posted by murugesh View Post
        That prime urban land held by govt and q-govt agencies is what is providing the little green cover, or what is left of it, in the city. Adyar has been consistently the coolest part of chennai for years simply because of the number of educational institutions there. If the govt is so socially concerned about housing affordability, then it will not be demanding a share in redevelopment of TNHB tenements.

        Property market has seen a rapid unregulated growth in the last decade or two. But
        is there really a housing shortage in chennai, I wonder!?
        I guess you are referring to CLRI, IIT Campus and related areas which are with green cover. I am not referring to these places, and BTW the land area occupied by IIT Campus is also a Deer Sanctuary and so under Department of ENv. A lot of land in all big cities is held by govt agencies be it BSNL or AIR/DD or LIC or Banks or State departments and much if it is underutilized and most of them are not having any green cover either, unless you consider the thorny bushes as green cover. Exploiting this land bank is critical to control urban land prices but I believe there is lot of vested interest against using it.

        And Yes there is acute shortage of "Quality /Affordable " Housing in Chennai CBD and many other cities (Most importantly Mumbai) and that is also the reason why prices have gone up since supply is a fraction of demand and net result is people will be forced to shift to far away suburbs and exurbs with poor infrastructure.
        Last edited November 3 2012, 05:08 PM.

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        • Re : Property Price Trends in Chennai

          I am noticing that since last 2 months, Hindu property plus which once used to have 3-4 pages of Ads for New projects, hardly contains 2 pages. resales are 1-2 pages .

          Times property and the Hindu fill pages with unitech and North town Ads alone!

          So i guess there has definitely a cool down since 2-3 months and I am getting many frantic calls from someone like AGP. When i used to speak to AGP 8 months back they never had the time to show me the project and used to say "come back only if u can afford"!

          But prices will never go down from local/reputed builders. May be some independent JV kind of props might give 100 Rs discount!

          Also resales for 20 yr old properties inside city are still going strong! may be due to UDS and hope of redevelopment!

          What do all of u feel?
          Last edited November 17 2012, 09:42 PM.

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          • Re : Property Price Trends in Chennai

            Calling the peak

            Clearly, we have hit the peak in this cycle. Every bus, auto, and everyone's brother is advertising land sale as well as apartment sale. The euphoria has reached peak. The definite signal for peak is when the tallest tower in any region is announced. Abov now has the dubious distinction of calling the top of the market

            I have Ramaniyam calling me for sales in CBD. Even Chaitanya is finding it difficult to sell some developments and is willing to reduce prices. Ceebros does not get sold out within a day and is advertising. If someone were to buy, please buy for your living and not buy for investment. If you have an investment, sell and come back after a few years.

            I think that the massive developments in the suburbs will suffer. Some developers will be broke and some developments will have extraordinary delays. Hold on to your seatbelts.

            Thiruporur, Thirumudivakkam, Gerugumbakkam, Mambakkam, Sembakkam, Kazhipattur and other exotic locales will remain exotic for sometime

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            • Re : Property Price Trends in Chennai

              When supply gets cut, prices will still remain stable and increase in some cases too for ready to occupy homes. Too many projects have been launched fine, many new infra projects have been announced fine. But these are still in ADs only or in paper only. It will take many years for them to become live. Until those many years there will still be demand for ready to live homes due to limited supply of such stock, with increase in job opportunities in suburbs. Too early to call it a peak.

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              • Re : Property Price Trends in Chennai

                reChennai is absolutely right. Let me just narrate a few examples.In last couple of months,I overheard very random conversations in MTC Bus, in restaurant, in a medical shop about how real estate has appreciated so much, how people missed bus in investing in a flat or plot in chennai in last few years. Now just roll back to 2010 November, we had everyone talk about the share market and MOIL public issue and then in 2008 January (when everyone was talking about Reliance Power IPO). And these were times when the share markets peaked.

                I am convinced that RE has peaked for now in Chennai. How it will play out is simple - the economy is not doing so well - we have so much inflation and with severe power cuts, there will be less recruitment in this year and after. Even IT Companies are not going to recruit with same strength this year. All this will reflect in lesser purchasing power down the line and end result is people will refuse to buy RE at higher prices. We wont realize this right now but by next year (2013) this will be apparent.

                Again, I would also like to say that like in past, the correction in RE Prices will hit some areas more than others. In 2007, OMR kind of peaked and 2008-09 was bad for OMR. In 1997-2001 period, CBD saw most slowdown. Now I suspect that GST Road beyond Tambaram - Oragadam, Vandalur, East Tambaram and beyond are priced to perfection . Not saying these places are bad, there is no doubt that in next 10 years and beyond these places will flourish as wonderful residential areas, but it is also likely that we can have a sharp correction in these places. As always, this is my personal view,do exercise due diligence.

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                • Re : Property Price Trends in Chennai

                  The reason I bought this topic was, I am finding resale ADs which i keep bookmarked, display "This property not listed any more" when I access them by next week. I guess the steady power cuts in the suburbs+ stagnant infra is causing people to opt more for resale flats within the city limits even it its 25 yrs old!

                  A builder in Kovilambakkam openly told me that he started his project and priced it at 4.5 instead of 3.8-4k relying on NRI investment, since his previous project was a success due to the same reason. He was telling me how the cool down is affecting his sales and was ready to negotiate upto 4L on the total price, now!

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                  • Re : Property Price Trends in Chennai

                    All this talk about a RE cooldown and here I thought it was it was going up looking at the number of builders on OMR and GST. Does this mean that it would be wiser to refrain from buying property and expect a decline in price? (At least in OMR).

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                    • Re : Property Price Trends in Chennai

                      Originally posted by sarevok View Post
                      All this talk about a RE cooldown and here I thought it was it was going up looking at the number of builders on OMR and GST. Does this mean that it would be wiser to refrain from buying property and expect a decline in price? (At least in OMR).
                      Nothing like that atleast in Chennai.

                      I was also expecting the same " cool down" in the year 2008-2010. But it remained steady. Infact from 2010 to 2012, there was further increase in prices of the apartments in the chennai core city areas and in OMR as well.

                      Yes areas like sriperumbudur,Oragdam,MWC and beyond kelambakkam/tiruporur in OMR prices will not see any sharp increase in another couple of years

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