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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  • Originally Posted by k11
    I do not think you have ever rented house/flat in India.

    Renting in India is a pain. Similarly the renters/tenants also do not maintain the property well.
    It is a big effort for both tenant and house owner.
    Our rental markets are not mature.
    So for some this might be only a temporary option.


    I disagree. Most of our previous generation rented for 10 or more years until they settled down or could afford a house. Something may have gone wrong recently in this equation more recently, but it is incorrect to say the rental market is immature.
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  • Originally Posted by househero


    "People pay higher price for RE in good location to out buy other potential buyers before it gets sold and not just because the asset is valued more and offers better quality or RoI"

    You are describing the irrational actions of individuals in a bubble, all assets are rational in the Med/long term. Nobody has a divine right to own a property. There is nothing wrong with renting. The Indian RE market has been irrational for too long and the lowest common denominator has been exhausted, every* property owner in India thinks they are RE investors after seeing over a decade of increases. Only time will tell if holding on to Indian RE will result in a 45% gain over the next three years, or a 45% loss.

    Unfortunately losses don't care if you live in the property, or if its just an investment. Economics are indiscriminate and emotionless. Its sad and I truly hope that Indian families do not experience the trauma of loosing their homes like so many in the West.


    Nabishek's quote is indeed the definition of bubble as far as I understand.

    However, I think there will only be prolonged stagnation - no crash - as Indian families live multi generation in the same house, have other resources such as gold etc to protect real estate, and usually don't move all that much necessitating a move.
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  • Originally Posted by chennaidude
    I disagree. Most of our previous generation rented for 10 or more years until they settled down or could afford a house. Something may have gone wrong recently in this equation more recently, but it is incorrect to say the rental market is immature.


    When I say immature, I am comparing against western countries.

    There are strict laws revolving around tenants/landlords. Legal disputes are handled easily.
    Even in India it is there but people are ill informed.

    They have professional property managers, sometimes people register companies and manage the whole building.

    Easier for tenants to find standardized rates based on location, amenities, etc.

    We never had furnished apts, it is becoming common only now.
    Even now it is even hard to find apt in many locations with standard fixtures like AC, geyser, etc.

    Checking tenant history is a issue. Trusting someone with house is a gamble.
    Landlord hence do not prefer bachelors, some do not like minority communities, some do prefer veg people, it goes on and on.

    I myslef have lived in rental houses for many years in my childhood. We did not have any problem too. My parents manage multiple residential/commerical in three different big cities and one tier iii city.

    Renting in India vs Developed countries, there are many differences.
    Expectation are different nowadays.
    People are well informed, they need many amenities, things have changed.
    Hence I call it immature.
    It is changing, Chennai is kind of behind other bigger cities.
    It will catch up, but it is nowhere close to western standards.
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  • Originally Posted by k11
    When I say immature, I am comparing against western countries.

    There are strict laws revolving around tenants/landlords. Legal disputes are handled easily.
    Even in India it is there but people are ill informed.

    They have professional property managers, sometimes people register companies and manage the whole building.

    Easier for tenants to find standardized rates based on location, amenities, etc.

    We never had furnished apts, it is becoming common only now.
    Even now it is even hard to find apt in many locations with standard fixtures like AC, geyser, etc.

    Checking tenant history is a issue. Trusting someone with house is a gamble.
    Landlord hence do not prefer bachelors, some do not like minority communities, some do prefer veg people, it goes on and on.



    I myslef have lived in rental houses for many years in my childhood. We did not have any problem too. My parents manage multiple residential/commerical in three different big cities and one tier iii city.

    Renting in India vs Developed countries, there are many differences.
    Expectation are different nowadays.
    People are well informed, they need many amenities, things have changed.
    Hence I call it immature.
    It is changing, Chennai is kind of behind other bigger cities.
    It will catch up, but it is nowhere close to western standards.


    I do agree that requirements have definitely changed. Now days most people prefer to buy properties which have pool, gym etc. It's becoming a trend. Older properties with no amenities are not in much demand and hencevthey will be stagnant or escalate very very slowly in price appreciation Reason I say is there is one property of 1000 Sq feet available in 20 year old building in chetpett area and asking price is 75 lakhs. Whereas properties 3-4 years older with amenities is appreciating much better. Guess it's the mindset of the new generation..who knows
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  • Originally Posted by navink
    I do agree that requirements have definitely changed. Now days most people prefer to buy properties which have pool, gym etc. It's becoming a trend. Older properties with no amenities are not in much demand and hencevthey will be stagnant or escalate very very slowly in price appreciation Reason I say is there is one property of 1000 Sq feet available in 20 year old building in chetpett area and asking price is 75 lakhs. Whereas properties 3-4 years older with amenities is appreciating much better. Guess it's the mindset of the new generation..who knows


    Actually older properties are even worse if you want to rent it out.
    Nobody wants to rent without amenties. I mean getting good tenants is possible only if you have a nicer flat at good location.

    Substantial amount of investors are buying today, causing a bigger oversupply in rental market especially in suburbs. It might get even worse for landlords, it is good for renters.

    Problem is there is not enough good buildings with amenities inside the city.
    Redevelopment trend is there but slow. It needs to pick up and add more quality units.
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  • At this point of time which is good place to invest vadapalani or velachery.
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  • Originally Posted by chennaidude
    I disagree. Most of our previous generation rented for 10 or more years until they settled down or could afford a house. Something may have gone wrong recently in this equation more recently, but it is incorrect to say the rental market is immature.


    @HOUSEHERO assertion was if valuation is high - sit in sidelines - use your wise money to rent at 2 to 3% of property values - and when valuations correct - use capital to buy.
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  • I am noticing some stagnation in the market for the past 6 months.

    Many properties I was shown in the last 6 months are still on the market.

    Does others feel the same?
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  • Originally Posted by Economist
    I am noticing some stagnation in the market for the past 6 months.

    Many properties I was shown in the last 6 months are still on the market.

    Does others feel the same?


    Yep, but the rates are hardly reducing for re-sales. They are quoting the same rate even after keeping it locked for months but the average rate of the area - thiruvanmiyur which I am tracking has come down.
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  • With IT Industry taking back seat, crumbling infrastructure, not sufficient potable water source, still unaddressed power situation, extremely pathetic roads (approach roads, link roads, quality of roads), people will not go mad in buying RE properties unless the price is really attractive. Some people who have made fortune in selling their properties during upward market, may try to hedge on few good ones but beyond that, mass scale market movement will be very muted for the next 2 years.

    Typically, NDA Government invests on Infrastructure later, the other governments reap the benefit. Until Infra gets established, it will be just up and down more or less for the next 5-10 years IMO.

    If stock market boom continues, people may not look at the RE instead go after Stocks for the next 5 years to accumulate enough wealth to invest on RE since, RE is completely unaffordable for the 90% under current domestic market conditions.
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  • Economist


    I am quite fresh to RE but am curios to know if you see any pattern among those unsold inventory?

    a. were they all from the same area?
    b. were they all scattered all over chennai (different demographics)?
    c. were the prices still the same as 6 months back?
    d. any common characteristics that caught your discerning eyes ?
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  • The current scenario in Chennai CBD is best described as stagflation. Some of the areas like west mambalam new projects are priced at 12K. They are small in size and no amenities. There are takers albeit slow. Upto 15K getting absorbed. Areas like RA Puram where new projects are priced 22K and few takers. Resale apartments are only choice for most of the chennaities.
    The increase in guideline value combined with stamp duty on ticket price rather than UDS for new bldgs make resale apartments more attractive. New govt is proposing massive infra projects nationwide which boost economy but increase in material cost.

    So there is no scope of price reduction but lack of buyers enthusiasm curtail any massive increase as well. However if there is any oil shock due to geo political tension, material cost along with construction cost would sky rocket! Economy eventually get revived but when that will be is up to everyone's guess.
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  • Originally Posted by nilanadukkam
    Economist


    I am quite fresh to RE but am curios to know if you see any pattern among those unsold inventory?
    a. were they all from the same area?
    b. were they all scattered all over chennai (different demographics)?
    c. were the prices still the same as 6 months back?
    d. any common characteristics that caught your discerning eyes ?


    Mostly I have been looking at induvidual houses & plots.

    I have been looking in a wide area from Ambathur areas,Thiruverkadu, ORR/Royappa nagar Manapakkam to Porur & Girugambakkam belt and Vellachery.

    Almost all the properties I saw In Dec/Jan are still on the market except a couple of them.
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  • Originally Posted by sunr2i
    The current scenario in Chennai CBD is best described as stagflation.

    So there is no scope of price reduction but lack of buyers enthusiasm curtail any massive increase as well. However if there is any oil shock due to geo political tension, material cost along with construction cost would sky rocket!


    Material cost and labor has to increase due to Inflation.
    Whether people buy or not, irrespective of demand the construction cost would go up.

    However land prices might be suppressed, might not decrease in prices, but being flat in a inflationary environment is kind of correction.

    Everyone knows market will be flat, why risk capital unless there is a pick up.
    So most folks I assume are waiting to see.
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  • Please tell me guys in MF or any financial vehicle is it easy to get 10% returns in India. If so what are the options?
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