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Property Price Trends in Chennai

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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).
    What we are seeing in Chennai is not a slowdown, but stabilization and Oversupply.Every few years after hectic increase in price comes a period of profit booking, which will be followed by stabilization period .There will not be any heavy decline, not atleast in OMR. The rates here has been stagnant for a couple of years and due to higher supply, the rates might not increase for some more time. You might see many offers like modular kitchens, Fully furnished kitchens, Fully furnished homes, free car parking, etc in the near future. You can also see the builders' attitude change from being arrogant to being ready for negotiation.

    If You are looking for end-use, You can still go ahead and buy. You wont see much of a difference in the long-run. If You are interested only in investment, expect more lock-in periods and lower returns.
    Last edited November 19 2012, 12:37 PM.

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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).
      In Chennai infrastructure has broken for any substantial new development.

      You need to look at OMR, GST, Oragadam, Poonamallee High Road. Are there any big builder has successfully delivered and operating 1000 plus dwelling communities ? So far I have not seen any successfully operational communities of big scale in Chennai.

      Only small and medium scale projects are operating. All new projects are having cramped (10 acres 800 dwellings) layout which creates problem for living.

      In the absence of any credible large community projects, people are skeptical about RE investments. Some NRIs caught off guard; since they are not affected by delays or infrastructure issues, they just ignore these problems. But speculators are not finding Chennai market attractive since rates are stagnant for 3-4 years.

      Only builders proxies(typically Marketing teams, relatives) pretending like end use buyers purchasing at higher rates so that market gets an illusion that RE prices are increasing.

      Of course this is also based on my first hand experience where my builders Marketing head along with his relatives bought 6-8 units at a higher rates to keep up the rates.


      Sent from my iPad using Tapatalk HD
      Last edited November 19 2012, 03:36 PM.

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      • Re : Property Price Trends in Chennai

        One more price increase is likely by 250-300 in OMR by many Builders once the EP Phase 2 by L&T is announced in soft launch at 5100

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        • Re : Property Price Trends in Chennai

          Originally posted by RaviCbe View Post
          One more price increase is likely by 250-300 in OMR by many Builders once the EP Phase 2 by L&T is announced in soft launch at 5100
          Are You sure that is the launch price? Seems very expensive for non-Villa apartments in that location.

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          • Re : Property Price Trends in Chennai

            Yes,5100 at Siruseri is high

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            • Re : Property Price Trends in Chennai

              They maintained 3600-3750 for 4-5 years in Phase 1 and considering the current GV increase payable for premium FSI, they may have to factor in this at price with different spec or maintain lower or equal price with completely different spec . They may adopt former one by pricing at 5100 and maintain it until the phase 2 gets completed for having established the township already .

              Originally posted by cruise_1982 View Post
              Are You sure that is the launch price? Seems very expensive for non-Villa apartments in that location.

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              • Re : Property Price Trends in Chennai

                Originally posted by RaviCbe View Post
                They maintained 3600-3750 for 4-5 years in Phase 1 and considering the current GV increase payable for premium FSI, they may have to factor in this at price with different spec or maintain lower or equal price with completely different spec . They may adopt former one by pricing at 5100 and maintain it until the phase 2 gets completed for having established the township already .
                When I factor in the Land rates in Siruseri(which is around 25-35 Lakhs/ground around EP), L&T rate seems too high. Their rate seems to be on par with Sholinganallur, where a 2400 Sq.ft plot sells for 80L-1C. Hope L&T comes up with great specs to justify the base price for Phase II.

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                • Re : Property Price Trends in Chennai

                  Originally posted by cruise_1982 View Post
                  When I factor in the Land rates in Siruseri(which is around 25-35 Lakhs/ground around EP), L&T rate seems too high. Their rate seems to be on par with Sholinganallur, where a 2400 Sq.ft plot sells for 80L-1C. Hope L&T comes up with great specs to justify the base price for Phase II.
                  Giving great spec on paper is easy for any builder (with finer prints). I know the builder I have invested gave "Luxury" grade specs when he started in 2007 (around 4400 Psqft then) but slowly when market started going south (until Rs 2800 psqft including fully furnished one), the spec also carefully reduced and became budget flat.

                  I have seen this happening in most of the builder - otherwise builder would delay your possession (after having paid nearly 90% and keep you waited for 3 years) indefinitely like in 99% of the OMR projects.

                  Buyer must be extra careful, prudent and extra conservative (especially those who do not have inherited properties or wealth, and solely dependent on their own white income). I know many investors of 2007 based on hearsay invested Crore later backtracked and lost quite a bit.

                  Low entry point is the best bet.

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                  • Re : Property Price Trends in Chennai

                    Originally posted by Ramchi View Post
                    Giving great spec on paper is easy for any builder (with finer prints). I know the builder I have invested gave "Luxury" grade specs when he started in 2007 (around 4400 Psqft then) but slowly when market started going south (until Rs 2800 psqft including fully furnished one), the spec also carefully reduced and became budget flat.

                    I have seen this happening in most of the builder - otherwise builder would delay your possession (after having paid nearly 90% and keep you waited for 3 years) indefinitely like in 99% of the OMR projects.

                    Buyer must be extra careful, prudent and extra conservative (especially those who do not have inherited properties or wealth, and solely dependent on their own white income). I know many investors of 2007 based on hearsay invested Crore later backtracked and lost quite a bit.

                    Low entry point is the best bet.

                    Please don't make subjective allegations like this about all builders or about a particular location like OMR.

                    Many good projects like Hiranandhani upscale( to me, it is one of the best townships in whole of Chennai), L&T, Akshaya etc in OMR have been completed with good quality and delivered. The L&T Eden park is a very well planned township in heart of Siruseri, right next to top IT campuses.

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                    • Re : Property Price Trends in Chennai

                      Originally posted by RaviCbe View Post
                      They maintained 3600-3750 for 4-5 years in Phase 1 and considering the current GV increase payable for premium FSI, they may have to factor in this at price with different spec or maintain lower or equal price with completely different spec . They may adopt former one by pricing at 5100 and maintain it until the phase 2 gets completed for having established the township already .
                      I feel L&T's pricing of Rs 5,100/sq.ft for Eden Park phase 2 if correct, is justifiable.
                      1. L&T is a professionally run company, with consistent track record in real estate and big infrastructure projects. They own the biggest cement firm in the country as well, and it is among top 5 most valuable firms in the country.
                      2. Good resale value. L&T brand name will do that for you.
                      3. Quality finish, most of their existing customers are satisfied customers.

                      Most importantly location is very good, right inside Siruseri IT SEZ. Getting tenants from day 1 is easily possible since its right next to TCS biggest campus anywhere. IT Biggies like TCS, Cognizant are right next door. Siruseri is one of largest IT SEZs anywhere. 70 thousand to 1 lakh white collared jobs will be present in that location.
                      Last edited November 19 2012, 08:55 PM. Reason: grammer

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