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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  • See I follow only CBD and my opinion is based on CBD. Land is scarce. There is a reason why CBD important. All good schools and recreations such as good restaurants, malls, transportation facilities, amenities such as GYM, hospitals, swimming pools, beach etc are only in CBD. Anything coming to suburbs are only in dreams. So the price impact in CBD area is important for rest of chennai. I am not seeing price correction anything in CBD!

    Once economy revives you never know where the RE in CBD would be! You can compare south Korea which appreciated 100 times in last 20 yrs.

    Originally Posted by k11
    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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  • Originally Posted by chennaidesi
    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?

    Getting 10+% returns in India is very easy.
    Even a simple FD can give 10% return - a little bit of effort will get you high yield.
    I am into FDs and Stocks. Have not looked into bond funds, but there are good choices available.

    I am staying away from RE, no purchases for last two years. No purchases for next two too. RE has underperformed for last 1-2 years, will remain so for next two easily - that's what I think. When it is easy to get high returns in other vehicles I do not see a need to get into RE. Keep your capital, grow it. You can always deploy in a growing market.

    Originally Posted by sunr2i
    See I follow only CBD and my opinion is based on CBD. Land is scarce. There is a reason why CBD important. All good schools and recreations such as good restaurants, malls, transportation facilities, amenities such as GYM, hospitals, swimming pools, beach etc are only in CBD. Anything coming to suburbs are only in dreams. So the price impact in CBD area is important for rest of chennai. I am not seeing price correction anything in CBD!
    Once economy revives you never know where the RE in CBD would be! You can compare south Korea which appreciated 100 times in last 20 yrs.

    Yes, I agree that Suburbs are worse.
    But I do not think City prices are going to go up either. Market is slow everywhere.
    Suburbs will under perform City, but I think overall RE is under performing for sometime now.
    You have more end users in city so demand side might be better.

    Many suburbs are overvalued.
    Actually being overvalued is not a big deal, but there is no demand.
    Example is the TNHB Shols flat project - I was predicting very few takers. Some here thought it is a deal of a century. Forum member's perspective and actual demand in ground is far apart.
    Not only this, most builders are having huge oversupply with few takers. Market is flooded.
    I do not see discounts. It will be cut throat market.

    Land Owners in JV will have to live with lesser money or share.
    Contractors will have to build with narrower margins.
    Builders will have to sell with good marketing, payment plan and good offer strategy.
    Smaller units, efficient low loading floor plans, clear transparent pricing would be key.
    Then the last thing would be luck to make money or even break even in this market.
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  • Yes. The demand is subdued due to not so realistic price. TNHB apt proposal in MRC Nagar - Pattinambakkam drew big plank. Some small time builders in RA Puram are having liquidity crunch and delaying the project and it goes beyond 3 yrs. I think at this time if you are a end users going after ready to move in/resale apartments are wise choice.

    RE is barely beating inflation for last 3 years. But even after post election rally equities may be trusted with only selective picks. The valuation is above avg and it is due to euphoria and big relief rally. It will subside once dust settles and again may rise depend on the global factors. But I am optimistic on the equity market for long term investing
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  • Many suburbs are overvalued.


    Another anecdotal broad brush statement. Suburbs RE has land and apartments. Which is overvalued? Land has been making money in all cycles and one has to know.

    Actually being overvalued is not a big deal, but there is no demand.


    Another shoot from the hip. Demand is also a function of price. If the price is right, demand will come.

    Example is the TNHB Shols flat project - I was predicting very few takers. Some here thought it is a deal of a century.


    Your predicted Shols to hit Rs 7500 psft 2 years ago when it was around Rs 5000-5500. You also predicted posh areas in City is cheap and will hit $1000 USD psft soon. On the cost side, you also predicted labor costs will shoot to Rs 1000 per person from Rs 600 18 months ago. Among these random darts and where it ended up, one thing is clear: we as a market participant live in denial and often carry the crystal ball, continue to make short term predictions when the market has a way of humbling all the time. We need to listen and learn. We continue to hold the crystal ball and predict which will perform/under perform this year or in few years. This is a futile exercise which has no value to long term investment. Predicting what RE will do in 1 or 2 or 3 years years is a meaning less exercise and accordingly suggesting pre-tax returns like FD to make it look good on paper is equally nonsensical.

    Forum member's perspective and actual demand in ground is far apart.


    No different than what you thought market would do and what it finally did.
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  • Compact homes model picks up...

    In the lines of Arun Excello "VASANTHA" Padappai

    Mahindara launching compact homes of 400-600 sft (10 to 20 L) at AVADI

    Mahindra Lifespaces ventures into affordable housing segment - Moneycontrol.com

    Mahindra Lifespaces Developers, the real estate arm of the Mahindra group, today launched its new business vertical 'Happinest' that will focus on developing affordable housing projects. The first two projects under the new vertical will be developed at Avadi in Chennai and Boisar in Mumbai and would be priced between Rs 10-20 lakh. "Our commitment to sustainable urbanisation is to be in businesses and develop projects that promotes culture, connectedness and community. 'Happinest' epitomises the concept of shared value where companies seek to do business in a manner which combines profitability with advancing the economic and social conditions of the communities," Mahindra Group Chairman Anand Mahindra told reporters here. The two projects are expected to be completed in two years, Mahindra Lifespaces Managing Director and CEO Anita Arjundas said. "The Chennai project, which has received all approvals except from the municipal corporation, will be launched in July, while Boisar project is yet to receive environmental clearance and will be launched in August," Arjundas said. These apartments would have an area ranging between 400-600 sqft and will be priced between Rs 10-20 lakh, she said. Speaking at the occasion, company's Chairman Arun Nanda said the new project is company's strategic endeavour to address the large and under served home ownership market. The company, however, refused to give details about investment for the project but said it has invested in innovations to ensure speedy execution and lower costs. Arjundas said the investment in buying land and other works has been through internal accruals. She further said the company has tied up with credit scoring agencies like inventure and micro home finance companies like Mahindra Finance and Muthoot to reach out to right customers. When asked about Prime Minister Narendra Modi's vision of building 100 smart cities, Mahindra said, "Smart cities shouldn't only be IT enabled but should be planned smartly. If we have to provide affordable housing below Rs 20 lakh, then it is important to see the land is available at low cost. The land should be used for diversity."

    Read more at: Mahindra Lifespaces ventures into affordable housing segment - Moneycontrol.com

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  • Wow...its a medical miracle..promoter cares much abt homeless Chennai ppl....

    AmaZing...NRIs..local champions...let's start speculate north chennai...let south and west chennai take a breath for sometime
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  • If they build 10K Apt like this, it will greatly help us solve the housing crisis. 10K is nearly 5% of the homes in the city.
    There is plenty for all. So even if NRIs or Inverstors buy, this is good.
    They will have to eventually rent it out.

    So a 10L home would fetch 2K in rent, which is incredibly cheap. People who cannot afford homes will have dirt cheap rents. At 400-700rs a day wage, someone has to work only less than a 3 days to a week to afford this.

    It would be bad news for landlords at low end.
    Rental market will be flush with supply.

    By the way if Govt want to discourage NRIs or investors, they can always jack up stamp duties.
    I do not think it is necessary, cheaper rents are good.
    It is a win win for both investors and renters.
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  • This is how marketing starts. Start with 10L. Then there will be only four walls with neither flooring nor any basic amenities. They classify them delux, extra delux and then luxary. For each variation subsequently add 5L each. Including misc cost the total cost would come around 3 to 4 times more than original stated price!
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  • Came across this site. Has some interesting info on real estate. NHB
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  • @Nilanadukam,

    NHB Residex's Data has been around for a fee years now.

    In fact in this forum it had been discussed many times,Particularly every time when they update the info.
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  • Originally Posted by Economist
    Just messing with you mate, Keep contributing.


    NHB / GV / MV / GENTRY theories - Eco venaaamda saami
    Lessons / Lecture and Formulas to arrive at valuation
    IREF members break their brains to do this, when common man will walk and buy a plot / flat / villa and walk away :)
    CommentQuote
  • Originally Posted by SRaj001
    NHB / GV / MV / GENTRY theories - Eco venaaamda saami
    Lessons / Lecture and Formulas to arrive at valuation
    IREF members break their brains to do this, when common man will walk and buy a plot / flat / villa and walk away :)



    SR u r right. Even some people here talking about Economics, Science and Geography of RE might be doing that on the other side. Lectures are only for forum.....Most purchase decisions are made on instinct, purchase power, peer pressure, sentiments and valuation takes the last priority on decision, though we talk the other way, could be few exceptions, but those few's accumulation could be less or slow.
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  • Valuations should aid in elimination if not selection. Among those properties that pass basic valuation tests, there is no harm in letting the heart take over. Sticking to simple models would do ... As someone said, it is better to be approximately right than precisely wrong.
    CommentQuote
  • Originally Posted by SRaj001
    NHB / GV / MV / GENTRY theories - Eco venaaamda saami
    Lessons / Lecture and Formulas to arrive at valuation
    IREF members break their brains to do this, when common man will walk and buy a plot / flat / villa and walk away :)


    Hi SR,

    True.

    I have to explain why I chose my forum name as "Economist"

    Just after GFC Economist became big joke and were often compared with unreliable TV weather men (like Chennai's own Ramanan)

    If you called your self as an Economist in Australia/US/UK around late 2007 to 2009 it was a bit of joke.

    Therefore at that time I chose that name as a sarcasm, a Jibe or mild taunt.

    However no one in this forum took it that way, Many thought I am trying assert my authority on the knowledge of the economy by naming myself as Economist.
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  • Originally Posted by nilanadukkam
    Valuations should aid in elimination if not selection. Among those properties that pass basic valuation tests, there is no harm in letting the heart take over. Sticking to simple models would do ... As someone said, it is better to be approximately right than precisely wrong.


    NNadukkam - agree totally,
    I have highlighted this also in the forum a few times. I see you went into that spiral a little bit as well from my external viewing of your situation. may be not true - just my judgement.

    Many investors in this forum will tell you,

    Dont short list from the layouts a broker happened to show you because he has contacts and leads for plots - even though this is what happens most of the time

    Do your homework
    Location
    Area-sub-location
    short listed layouts
    Pricing in those layouts
    PLOTS in that layout

    if you approach in this order then the broker or broker(s) job is to find you plots in that location /layout of your choice not in the layout where he has an offer.

    Its hard to do when you are in a US to India summer trip

    But use Hindu saturday property plus ads and other paper ads

    most of us living outside of india have the 45$ annual subscription and use it to understand the market pulse.

    This is a direct quote to your MMpuram exploration, until last week i dont think you know the layout and you happen to look into this layout because your broker showed you
    I think thats ok , but if i were you i wont start out like that, fix your criteria , shortlist locations and then hunt for plots in that location.
    my 2 cents
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