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Property Price Trends in Chennai

Last updated: 3 weeks ago
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  • Re : Property Price Trends in Chennai

    People now a days becoming smarter. They all know very clearly IT Job and its location is not permanent and you can't make your house purchase based on that.

    There are three types of buyers I know of, 1. Bachelors or Young Couples(25-35) 2. Middle Aged People (40-55) 3. Retired Segment (55-65) - of which different varieties such as resident, non-resident, first home buyer, full cash, 90% loan etc...but I am purely focusing only on EMI category (high risk group)

    # 1 category looks for 2 bed mostly for rent (since they may move out of job frequently)
    # 2 category looks for 3 bed but mostly for investment (most of them settled abroad at this point)
    # 3 residents looking for 3 bed or bigger

    # 1 category is in large number and the entire RE, IT Park etc...only targeting them, even prospective tenant seekers

    Right now Category # 1 finding it tougher to buy 1 Cr apartments (not house or land) and shelling out high interest rates, maintenance charges, lack of completed infrastructure is pushing them to go for rent.

    Category # 2 people will take the complete risk (Non-Residents) and make unit available for Category # 1 people for rent at much cheaper rates. In OMR rent will not go up unless there is a significant increase in the work force along with social infrastructure(which normally takes decades). Infact, OMR Rent might be a very good option for tenants who may get very good bargain.

    Category # 1 people will be experiencing 1-2 Crore apartment at a fraction of its value and still retain the advantage to move in and out (choose their future home at their own convenience) of various communities at the cost of Category # 2 people's hard earned money.

    Now the point is how long Category # 2 people can stay invested when their rental returns are bottomed out and creates heavy strain on their investments through inflation, higher interest rates, hefty maintenance etc... To top it all, their building value goes down the moment new tower gets built next to their community!

    This is real catch 22 situation - So many might look for rented units!

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    • Re : Property Price Trends in Chennai

      Originally posted by Ramchi View Post
      Right now Category # 1 finding it tougher to buy 1 Cr apartments (not house or land) and shelling out high interest rates, maintenance charges, lack of completed infrastructure is pushing them to go for rent.
      I completely agree to this perspective. I opted out of townships because of the hidden cost of maintenance. For a 2000 Square feet Apartment, people are paying around Rs.5000 as maintenance charges. Due to the shortage of power, Residents in one of townships outside city are paying around Rs.2500 -3000 additionally towards diesel for Gensets and around 1500-2000 for Water tankers. These costs easily add Rs.10000 towards monthly expenses and put additional strain for people paying EMIs.

      I am not against townships and maintenance costs collected or trying to start a flame war, but in my opinion, an apartment or township should actually bring down the expense over an equivalent independent home (in both owning and maintaining) and not increase the same.
      Last edited November 20 2012, 04:24 PM.

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      • Re : Property Price Trends in Chennai

        [QUOTE=cruise_1982;632827]
        Originally posted by Ramchi View Post
        Right now Category # 1 finding it tougher to buy 1 Cr apartments (not house or land) and shelling out high interest rates, maintenance charges, lack of completed infrastructure is pushing them to go for rent.QUOTE]

        I completely agree to this perspective. I opted out of townships because of the hidden cost of maintenance. For a 2000 Square feet Apartment, people are paying around Rs.5000 as maintenance charges. Due to the shortage of power, Residents in one of townships outside city are paying around Rs.2500 -3000 additionally towards diesel for Gensets and around 1500-2000 for Water tankers. These costs easily add Rs.10000 towards monthly expenses and put additional strain for people paying EMIs.

        .
        Power cut time is same in areas like OMR and city areas. May be power cut is more in areas like Urapakkam and Guduvancheri etc.

        Water & sewage connection to the OMR will be provided by the corporation in 1 or 2 years as lot of ground works already done.

        With all these, maintenanace charges for the apartments either in core city area or in area like OMR will become same

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        • Re : Property Price Trends in Chennai

          Originally posted by lovebirds43k View Post
          Power cut time is same in areas like OMR and city areas. May be power cut is more in areas like Urapakkam and Guduvancheri etc.

          Water & sewage connection to the OMR will be provided by the corporation in 1 or 2 years as lot of ground works already done.

          With all these, maintenanace charges for the apartments either in core city area or in area like OMR will become same
          Even today, there are many pockets in Annanagar that do not get metro water and connections were given just a year back. Basic Metro water infrastructure may be created in OMR, but for complete coverage, it will take a decade or two looking at the past record.
          Last edited November 20 2012, 04:19 PM.

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          • Re : Property Price Trends in Chennai

            [QUOTE=lovebirds43k;632863]
            Originally posted by cruise_1982 View Post

            Power cut time is same in areas like OMR and city areas. May be power cut is more in areas like Urapakkam and Guduvancheri etc.

            Water & sewage connection to the OMR will be provided by the corporation in 1 or 2 years as lot of ground works already done.

            With all these, maintenanace charges for the apartments either in core city area or in area like OMR will become same
            Not quit Sir. In OMR it is about 12-14 hours of power cut if the township is linked to the rural power grid. Only Siruseri IT park and units beyond Thoraipakkam (Tidel and Perungudi) are experiencing similar to City areas.

            Since high raise buildings require Elevator to be working all the time, whether you like it or not, your monstrous GenSet will goggle hundreds of liters per day. Sewage Treatment plant in most places do not work properly or designed properly. Since none of the builders allow the treated water to be linked to the canals, pumping water and hard-waste cost a fortune for any association.

            There is absolutely no potable water in OMR and every drop is being purchased through tanker lorries.

            In addition to Rs 2.5-3.5 psqft maintenance charges (I heard in HIRA it is Rs 5 psqft) you have to pay for Water & Diesel charges which costs nearly 1500 - 3000 PM. This is irrespective of the size of the apartment you own. No builder would say explicitly that your maintenance charges include Water and Diesel charges. You will be only find it as a surprise and they will give the invoice only after one year of using the facility (a big amount)!!!!
            Last edited November 20 2012, 04:05 PM.

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            • Re : Property Price Trends in Chennai

              Drainage connections takes time even after laying the ground work by civic corporation. For example in East Tambaram, the drainage works started back in 2007 and still not yet ready.

              Also gated communities are not well maintained after initial period of 1 or 2 yrs. The maintenance cost is killer and initial euphoria over having great clubhouse, S pool etc becoming nightmare to cope up with the maintenance cost. Also respective apt association gets little respect from all the owners and some of them simply refuse to pay which I have seen it many times which in turn spoils the eco system. Running a big gated community requires strong association and cooperation from all the owners which is impossible to get when general economy is not doing well.

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              • Re : Property Price Trends in Chennai

                Hi,Where did you hear that its Rs 5 per sq ft Maint .with Hira???Its Rs2.50.[QUOTE=Ramchi;632897]
                Originally posted by lovebirds43k View Post

                Not quit Sir. In OMR it is about 12-14 hours of power cut if the township is linked to the rural power grid. Only Siruseri IT park and units beyond Thoraipakkam (Tidel and Perungudi) are experiencing similar to City areas.

                Since high raise buildings require Elevator to be working all the time, whether you like it or not, your monstrous GenSet will goggle hundreds of liters per day. Sewage Treatment plant in most places do not work properly or designed properly. Since none of the builders allow the treated water to be linked to the canals, pumping water and hard-waste cost a fortune for any association.

                There is absolutely no potable water in OMR and every drop is being purchased through tanker lorries.

                In addition to Rs 2.5-3.5 psqft maintenance charges (I heard in HIRA it is Rs 5 psqft) you have to pay for Water & Diesel charges which costs nearly 1500 - 3000 PM. This is irrespective of the size of the apartment you own. No builder would say explicitly that your maintenance charges include Water and Diesel charges. You will be only find it as a surprise and they will give the invoice only after one year of using the facility (a big amount)!!!!

                Comment


                • Re : Property Price Trends in Chennai

                  Gated townships are new in Chennai. So it will take some time for people to understand and adopt - people will adopt eventually.

                  Also with schools, malls coming up, social infrastructure will get created in suburbs.
                  Last edited November 20 2012, 07:30 PM. Reason: grammer

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                  • Re : Property Price Trends in Chennai

                    [QUOTE=chandru_13;633097]Hi,Where did you hear that its Rs 5 per sq ft Maint .with Hira???Its Rs2.50.When the first 5 family started occupying one of my friend told me that the maintenance was Rs 5 - especially when these 5 buyers started cornering HIRA for delaying their possession beyond 3 years, they asked them to move with the mentioned maintenance charges. They were staying in Akashaya Adora as tenants paying Rs 25,000 as rent.

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                    • Re : Property Price Trends in Chennai

                      I saw Mantri synergy's omr resident blog, there were considerable number of Hira owners staying in Mantri on rent and celebration festivals as Hira owner group.

                      Ramchi can confirm this.

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