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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  • http://www.joneslanglasalle.co.in/ResearchLevel1/Pulse_Mar2014.pdf

    Chennai appears to be performing well overall when compared with other major Indian cities.
    Attachments:
    CommentQuote
  • Battling Black money in Real Estate

    Article quote:
    Despite that, if the gap between the two rates is reduced, the proportion of genuine buyers with clear, accounted money entering into transactions will increase significantly. It may reduce transaction velocity but it also reduces the incidence of black money being parked in real estate.

    Another downside of this increased 'velocity' of buyers(aka momentum or movement) in areas with higher GV-MV differential is that prices become irrational. Hard earned salary sourced capital and people who take loans to get in to this 'high velocity' areas, should steer clear and save their money. Velocity can come to standstill for no fault of yours as soon as GV-MV differential reduces. GV-MV differential is not a life-long attribute for this area and I know of many areas where the prices moving at 'escape velocity' came to standstill and poor buyers who joined the party at the peak of the GV-MV differential got suckered.
    CommentQuote
  • Price Trends in Chennai

    Originally Posted by maverick007
    Battling Black money in Real Estate

    Article quote:
    Despite that, if the gap between the two rates is reduced, the proportion of genuine buyers with clear, accounted money entering into transactions will increase significantly. It may reduce transaction velocity but it also reduces the incidence of black money being parked in real estate.

    Another downside of this increased 'velocity' of buyers(aka momentum or movement) in areas with higher GV-MV differential is that prices become irrational. Hard earned salary sourced capital and people who take loans to get in to this 'high velocity' areas, should steer clear and save their money. Velocity can come to standstill for no fault of yours as soon as GV-MV differential reduces. GV-MV differential is not a life-long attribute for this area and I know of many areas where the prices moving at 'escape velocity' came to standstill and poor buyers who joined the party at the peak of the GV-MV differential got suckered.



    Very true observation and ponmar is going to be an example for this post April 2014 revision ....
    I also bought recently in a layout whose GV is 500 RS where named nearby layouts such as MM vamanan estates are selling at 2000 RS a sqft posted by a few buyers recently. The large differential keeps acquiring cost low but one has to keep in mind when the GV raises the transaction rates just drops and the momentum vanishes and speculators flee.
    CommentQuote
  • How does 70:30, 80:20 kind of schemes works?

    For example I received a mailer from a Mumbai builder on 70:30 scheme, he says pay 30% now and balance on possession. No bank tie up required, I am wondering how does it works for the builder and the buyer?

    Mailer:

    30:70 Scheme. Only 1 day left!

    Pay only 30% now and 70% on possession.

    This offer is applicable on select apartments till March 25th 2014 only. With this, now you have better flexibility of making payments for your dream home.

    PAY 30% NOW
    70% ON POSSESSION
    NO BANK TIE-UP REQUIRED*
    OFFER ON SELECT APARTMENTS
    HURRY! OFFER CLOSES ON MARCH 25TH, 2014

    **Limited period offer. *Conditions apply

    Exclusive gated community • Spread across 29 acres • Clear land title • Amidst approx. 14 acres of open green landscape in the heart of Mumbai • Private roads • Luxury residences • Apartment designed to allow privacy and exclusivity • Separate staff entrance • Floor-to-ceiling glass • Concierge and travel desk • Mini theatre • Golf-putting green • Swimming pool • Jogging track • Discover an unending list of privileges when you visit us.
    CommentQuote
  • Originally Posted by Economist
    Absolutly incorrect.

    I know Kilpauk, Annanagar East, West, Extention and Mugaperu for over 25 years.

    1. Kilpauk - Is,Was & always will be expensive than Annangar East & Shenoy Nagar. Kilpauk Was a VIP area since 1940s.

    2. BTW the pricing you have quoted for Annanagar East & West are way too low for current market reality.

    3. Annanagar East ( Area before rountana) at 12K is not reality mate. You would be lucky to get at 16K

    4. Real Annanagar West (area before 100ft Inner ring road) is going at 14K new projects from local builders. Shanthi Colony at 16K new projects (Color homes)

    I am speaking to few builders, JV partners & owners in the area on a montly basis.

    your pricing is way too out -of-sync to market movement.

    What a change now these price in the same market look high given the market condition
    CommentQuote
  • ^^

    Context??


    My post you have quoted appears to be many months old,wouldn't it be helpful to explain the context around that quote so readers (including me) can understand what you are trying to say.
    CommentQuote
  • This was the post I was responding to in June 2013.

    Originally Posted by k11
    What I have observed is Kilpauk had a tremendous run.
    Kilpauk was at 6500-7500 even till early 2010.

    Today, Kilpauk is trading at 16K for even mid grade projects.

    Kilpauk has definitely overtaken Anna Nagar East. Kilpauk is 25-30% more expensive than Anna Nagar, it used to be bit less or similar to Anna Nagar East before. Egmore is the same, but supply in Egmore is very less becasue of limited residential areas. Purasawakkam also is going up.

    Anna Nagar E has 12K price. There is one luxury project (Ozone Gardenia) at Anna Nagar at 15K. Anna Nagar West has 8-9K price on Avg. MetroZone project is still trying to move the last few units at 8.5K now. They were trying to sell at 6.5-7K all throughout 2009-10. There is not much movement in Mogappair either.
    West Chennai has not seen much movement in the last couple of years.
    CommentQuote
  • Originally Posted by Economist
    This was the post I was responding to in June 2013.


    Actual I was saying in general the market is down especially luxury market with so much stock coming up in this segment stock we have not seen during bull run in chennai. Is the supply too much too late if this segment price band is 16000-25000 looks very very high price given the present market condition

    I see a the bear phase in RE will be long and slow minimum 5-7 years period
    CommentQuote
  • I see a the bear phase in RE will be long and slow minimum 5-7 years period


    Likes of the apartments at 16000 Rs psft with rental yield of Rs 30 psft (just to quote an example) is simply an expensive capital value which is highly unsustainable. Rental needs to catch up to at least 3% for the hardening interest rate environment. That is quite of lot of adjustment in this environment and only way it can attain is by stagnation in capital values and current rental values moving up with inflation to do the catch up or phenomenal increase in income levels when Rs 40 psft rental becomes affordable overnight. No easy way out this time.
    CommentQuote
  • Basically GDP growth should touch 7+ to increase consumer sentiment to further increase capital values.
    CommentQuote
  • Originally Posted by chennaidesi
    Basically GDP growth should touch 7+ to increase consumer sentiment to further increase capital values.


    It is not that people do not have money or the sentiment to invest in this luxury sector in India it is more the case of people do not want to invest at these price with such low rental yield when u have better opportunity in international market with yield around 6% to 8%.
    CommentQuote
  • Market is slow and stagnation ahead - totally agree. But do not agree on some of the above statements.

    Capital values on luxury housing do not depend entirely on rental values.

    Truly well do people do not care about rents or yeilds.
    They buy it for end use, 2/3/4/nth home. They will keep it locked, use it for holiday home, business trips, etc.

    Renting, yeild calculation and all, is what regular IT/NRI/Upper middle class people do.
    Most of this population do not buy luxury flats, they buy in suburbs or buy in cheaper apartments in city.
    Let's exclude people who have most of their portfolio in RE.

    There is a difference between regular people and actual rich people.
    There are many people who have money in businesses, stocks, career (sports/celebrity/politics), etc.

    Folks with money do not calculate yeild on expensive cars, foreign trips, jewellery, parties, weddings, etc.
    Luxury flats are sold as lifestyle choice not necessarily as investment.

    The number of people who are making the big money are increasing.
    It was a rapid increase in earlier years as the economy boomed. Once the economy improves, they will go up.

    India is new to this type of luxury housing. Chennai is well behind Mumbai and Delhi.
    There is a big demand, many people are moving up the ladder and there is a demand for such units.

    I do not think we call all the housing projects in Chennai as luxury.
    That is a wholly different topic. Let me not deviate.

    By the way, most high end Apts in growing markets like Hong Kong, Singapore, Shanghai, etc yeild under 2-4%.

    Let's not use rental yeilds as barometers.
    Use Economy, rising incomes, dispoable incomes, increase in number of rich people or ultra rich people.


    I might have used many confusing terms - semi rich, rich, truly rich, ulta rich, etc.......
    Putting a numerical bracket around these is very difficult and even I am having hard time even thinking about it.

    I think most expensive apts in the city cost around 10-15C.
    So if you do not have atleast 50C you cannot call yourself rich in Chennai. That number will keep on increasing.

    There are many politcos, movie stars, sports folks, industrialists, businessmen, etc who have 250-1000 crores(white/black) in every single city in India. There are people in villages with that much money.
    In Chennai, I think these guys must be 5000 or more.
    Politcos from various parties alone might make up a huge chunk.
    Adding rural surrounding areas, nearby states you might be looking at roughly double the number.

    Then you have certain people who are in thousands of crores.
    It would be a small number but they do play a big role too buying up entire buildings.
    CommentQuote
  • That is what I am saying why suddenly people hold their investment is if they dont see good yield or year on year at least 12% capital growth then they look for other investment options or just hold on to cash. That situation will change when 7-8% gdp growth returns.
    CommentQuote
  • Stagnant or falling Chennai RE market is the best time to buy properties (mainly land/plots/house) for long term investors.

    Speculators, delars, Switching brokers will be out and sellers expectations will be realistic.

    Closing decent deals will be a possibility.

    Buyers will have time to negotiate and arrange terms and finance.
    CommentQuote
  • Stagnant or falling Chennai RE market is the best time to buy properties (mainly land/plots/house) for long term investors.


    Above statement need not hold when you include Apartments in the list and your omission is unlikely to be accidental, I guess :).

    With 40-60% of the apartment cost representing the land share, the long term view becomes dismal - from the investment perspective. Much of the context in which Septaa brought in his views and where I added further, is for apartments.
    CommentQuote