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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 everybody can buy Rs.2 crore+ apartments inside Chennai city. Now even outside city in name of ultra luxury projects some builders are constructing Rs.3 crore and above apartments.

    But Chennai is not Dubai (where the local native people are just 10% of population and all are well to do).

    There are lots of local people in Chennai itself who are struggling to meet the needs like Children's expensive college education etc. In rest of Tamil Nadu situation is even more difficult & dire for lot of people.

    I think government should impose restrictions on these kind of ultra luxury projects and even stop such projects.

    Infact I am not a socialist, one of the investors in suburbs.

    Atleast in Bangalore, I am happy that there is equal development of both city and outside city. Of course there are 30-40 malls and hypermarkets in Bangalore's new outside suburbs today in all directions, with all facilities to take care of daily needs.
    Last edited November 24 2012, 01:22 PM.

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    • Re : Property Price Trends in Chennai

      Originally posted by trk2012 View Post
      That's the irony. In Chennai city power cuts are 2 hours, in rest of Tamil Nadu power cuts are most vulgar 16 hours. Its vulgur, in 21st century people are living without government supplied power for 16 hours a day, and its not free power - people pay their bills, even the electricity charges have seen a drastic increase.

      So can we say in 4-5 years, dollar millionaires and crorepatis who own property inside "the Chennai city" will live in the moon happily enjoying all luxury of Rs.4-5 crore flats and Rs.10 crore plots. And people in rest of Tamil Nadu where property prices cost a fraction will suffer because these "dollar millionaires of Chennai" who are fastest growing millionaire breed in the world will live in luxury.

      There will be a revolution if this impartiality continues, between haves and have nots. It's already happening, lawyers in Coimbatore have taken to streets.

      Now come on some bloke here will say Coimbatore people got used to using Gensets & Inverters, They don't care and simply use Gensets & inverters.

      How many thousands of workers are getting jobless and not getting diwali bonuses in Coimbatore & Tirupur because of 16 hour power cuts per day. Who will answer them.
      You are raising many important points. I have highlighted similar concerns. This can only be changed only when importance of chennai gets reduced to the level of rest of the state. But there are outside interest groups(this is my theory of course) who do not wish to remove or only interested in increasing importance of Chennai only to deny equal opportunity across the state.

      Right now income level in Chennai and rest of the state, development(simple broad gauge conversion between Trichy & Dindukkal is taking forever same was with Tanjore - Villupuram)

      This has crippled development across and reduced importance of other prominent due to power Centers are comfortable only in Chennai. Infact the place where I live started seeing power cut only recently, when the whole TN was having power cut we were given 24 x 7 !!! How this is acceptable?


      Only when the government rules for everyone these infrastructure and other basic problems can be addressed. Now there is a tendency growing that anything and everything can be achieved with money. This gives rise to corruption, inefficiency and inequality. Now in OMR there is a big mafia controlling sewage disposal & water tanker - these forces will ensure none of the buildings would get water connection nor sewage connection though panchayat received enough money at the time of registration.

      There is nothing wrong if you are a socialist so long your interests are good for common man.

      Comment


      • Re : Property Price Trends in Chennai

        Originally posted by k11 View Post
        The number of 'few people' are growing day by day. India has the fastest growing dollar millionaires.

        Gone are the days where 1C was big amount. Now it is the base price for a apt in suburbs, even sometimes in extended suburbs.
        These numbers obviously grow in line with population explosion there is nothing new about it. But same is with people who do not have, their number is also growing giving raise to crime and other anti-social activities.

        One Crore may be small amount for NRIs or people with inherited properties but for 95-98% of the common man this is an elusive figure. On paper anyone can say they own 10 Crore property that does not mean one crore is easy to "create".

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        • Re : Property Price Trends in Chennai

          I have been observing for some months in this forum.

          Some members, on one hand speak about investing in land/flats with the intention of appreciation and making huge profits in future. they already have huge investment in suburbs, live in city (have flats in city).
          On the other hand, they now are concerned about the city being costly and feel for the public who can no more afford flats even in the suburbs.

          So why didnt such people decide, to have only 1 flat and 1 piece of land as property and decide "enough for me, let me leave something for the others". Many people known to me have atleast 2-3 flats, and keep 1 of them locked. Many have lands in suburbs and never wanted to live there in future and now are disposing them off and huge profits! This is like hoarding. If people had been content with limited investment, builders would have had to really control prices for them to "Sell out"!

          We are greedy at one hand to keep buying things since we can afford, and on the other hand we safely criticize "rich" people, politicos and builders for the price rises. Then we feel for people who cannot afford.

          Hmm strange!

          This is not to start a boring war of words, nor to pinpoint someone, but an honest observation. Some might not understand this but this is what it is!

          Lets accept, as long as "Greed for more" exists, there will be builders/developers and mainly resellers(who sell at the most unrealistic prices and are one of the major factors for uneven increase in land price) to make money out of it. I agree that I too am not a saint, but neither do I speak like one and neither do want more than 1 flat and 1 piece of land.
          Last edited November 25 2012, 12:56 AM.

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          • Re : Property Price Trends in Chennai

            The angst is universal and visible- Arab spring, in PIGS (Europe)... probably we are stepping into ideology terrain. Irrespective of all its flaws- current system (Free market) is best amongst worse. In 80s/90s- 10L flat wasn't affordable when salary was Rs 3000/-..which meta-morphed into 3Cr flat and salaries hovering around Rs 30,000/-.

            We cant deny how quality of life had improved in past decade or two- if you look around, majority are first gen who have opportunity, unlike their ancestors- to shape up their life, rather than on dole out or at mercy of Govt Sahebs. Well it's easy to romanticise govt regulated period (Taxes hovered at 80 - 400 %) as utopian where everyone remained needy and hoarding which is being referred, is direct descendant and viewed as social security- when rule of law is malleable and ductile.

            In RE forum you will find different opinions around investments and today's net worth is one's credit worthiness and most of investments are credit-led and it meant nothing just intangibles. Let's not be clouded on our views and be judgemental- regulation is essential but not at the cost of meritocracy.

            Comment


            • Re : Property Price Trends in Chennai

              I think we should be discussing as in OP about the price trends. Lately the subject has been steered towards one's philosophy. Though philosophy is good this is not right forum for it.

              Please post facts on recent price trends and pros & cons of particular area

              Comment


              • Re : Property Price Trends in Chennai

                For new Buyers and Visitors ( not for seasoned Investors and Well informed Members)

                At times Price trend topic tends to go along with Mindset with lot of gyrations.

                Coming back to the topic, Builders started adopting Product mix and affordable Pricing model according to the Market dynamics amidst abundant supply and cut throat competition .

                Hira adopted premium price model for Upsclae and launching Economical Urbania , Akshaya too started with Uber rich at 10 cr and Afforadbale Today's at 2800

                L&T having started with 3600-3750 pricing model for Phase 1 is starting Phase 2 at 5100-5500 ranges

                Premium FSI is being sought in all submitted files for full utilization of maximum 3.5 FSI by all builders

                KF report on Medavakkam and Pallikaranai which are located in between GST and OMR/ECR with nerve linking is getting absorbed faster by customers through quick sale ( only concern is absence of big Pan India builders except Purva in Windermere Project to quote) .

                Increase of FSI beyond 3.5 to 5 mulled by CMDA in CITY due to Metro may bring down cost per sqft and will pull out suburban Investors ( Going to be deadly once this happens in RE ) and create perfect balance between CITY and SUBURBS .

                This may repel small & medium builders away from Market due to cut throat competition and sustainability like how it has happened to IT after Y2K and NBFC in late 90s and fall of RE volume builders like Si, KG, RAMS, DEV, ALACRITY, ALSA, CHAITANYA, VASANTH, GOKUL, etc.

                RE market is deep devil sea and only muscled Whales will survive by pushing out all small fishes .

                Hence investing in established builders project who are financially and technically strong by keeping up Brand Image is a must before burning fingers as we had bitter experience in partly abandoned projects like ALSA in Gandhi Nagar Adyar and ALACRITY in Chetpet

                More than price trend ,one must see Sustainabilty trend in the event of such crash in this cut throat competition market .

                Established players like L&T,DLF,HIRA,GODREJ,PRESTIGE,SOBHA,PURVA ,AKSHAYA,CEEBROS,AREL to name a few are good picks and MARG,PACIFICA,CASA (PE and tied up ) are best avoidable .

                Better enter into long gestation projects running 3-5 years in mid way or nearing for completion rather than plunging into launching date

                Opinion is mine and Decision is yours



                Originally posted by sunr2i View Post
                I think we should be discussing as in OP about the price trends. Lately the subject has been steered towards one's philosophy. Though philosophy is good this is not right forum for it.

                Please post facts on recent price trends and pros & cons of particular area
                Last edited November 25 2012, 11:05 AM.

                Comment


                • Re : Property Price Trends in Chennai

                  Originally posted by trk2012 View Post

                  I think government should impose restrictions on these kind of ultra luxury projects and even stop such projects.

                  Infact I am not a socialist, one of the investors in suburbs.

                  Atleast in Bangalore, I am happy that there is equal development of both city and outside city. Of course there are 30-40 malls and hypermarkets in Bangalore's new outside suburbs today in all directions, with all facilities to take care of daily needs.
                  I am also not a socialist and believe in freedom of enterprise but at same time government should do something on this. NO, NOT BY restricting luxury apartments and 4BHK flats with pools and special gyms - but by encouraging more 1BHK and 1HK apartments espically in CBD. Government can declare by giving special concessions on such projects which have say 20% of apartments as 1BHK apartments (just like our movie theaters are asked to have 10% of tickets as low priced).

                  Alternatively government can push for 1BHK based apartment projects in the plentiful government owned RE in prime cities...

                  But all this wont happen unless voting public unites and demand it. Our ruling elite and the media which represent it are not going to yield so soon.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Originally posted by trk2012 View Post
                    That's the irony. In Chennai city power cuts are 2 hours, in rest of Tamil Nadu power cuts are most vulgar 16 hours. Its vulgur, in 21st century people are living without government supplied power for 16 hours a day, and its not free power - people pay their bills, even the electricity charges have seen a drastic increase.

                    So can we say in 4-5 years, dollar millionaires and crorepatis who own property inside "the Chennai city" will live in the moon happily enjoying all luxury of Rs.4-5 crore flats and Rs.10 crore plots. And people in rest of Tamil Nadu where property prices cost a fraction will suffer because these "dollar millionaires of Chennai" who are fastest growing millionaire breed in the world will live in luxury.

                    There will be a revolution if this impartiality continues, between haves and have nots. It's already happening, lawyers in Coimbatore have taken to streets.

                    Now come on some bloke here will say Coimbatore people got used to using Gensets & Inverters, They don't care and simply use Gensets & inverters.

                    How many thousands of workers are getting jobless and not getting diwali bonuses in Coimbatore & Tirupur because of 16 hour power cuts per day. Who will answer them.
                    Relax my friend, the good news is this is India and we will never have a revolution. because all these kind of "extreme" trends are self correcting..

                    To put it this way, w.r.to power issue, if the current situation persists, a lot of industries will close down in Coimbatore and elsewhere. The old days of unemployment for the working class will return . And this itself will trigger some industrialisation and correction in high prices.

                    Not too much should be made into the crorepathis and neo crorepathis of 2012 who are so because of RE. A very average lower middle class man/woman who just bought a plain 2BHK flat in 1970s and 1980s in chennai (then today's CBD was only Chennai and vengaivasal and medavakkam were villages) is technically a crorepathi but it means nothing because one crore today has same money value as 5-10 lakhs in early 1990s.

                    All that we need is one economic slowdown (domestic) which is already happening and one overseas slowdown (which will happen) that affects IT Industry and we will be back to old days , the late 1990s when RE market was dead and projects were dropped.

                    Yesterday Times of India was telling how Pallikaranai will become Rs 8K per sqft in 2017 and so will medavakkam in 2017. In 2002 and 2007, the Times did not say how RE prices will be up many fold in next 5 years. So this itself is a indication that 2017 will be very different.

                    And the difference will be natural and not due to some revolution for sure.

                    Comment


                    • Re : Property Price Trends in Chennai

                      Not diverting from topic again. We are discussing latest price trends in Chennai alone. But somewhere job opportunities are needed to be created in Coimbatore, Trichy, Tanjavur etc. To me these other cities represent the true culture of my native and not Chennai.

                      Coimbatore has a rich history of business people and enterpreneurship, and is a major educational, health care centre. Trichy and Tanjavur are educational centres, get clean cauvery water and are cultural centres. Somewhere we need development of infrastructure, industries in these cities also instead of just focus on Chennai.

                      This will reduce burden on Chennai also, and not stretch it too much. Just want to add this, in Trichy independent house with your own land will be available for Rs. 50 to 60 lakhs, and good quality cauvery water is also available, but no job opportunity. In Chennai, for same amount only a flat will be available, independent house will cost min Rs.85 lakhs and still desalinated salt water. Is this what we want for future?

                      Comment

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