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.
Read more
Reply
2346 Replies
Sort by :Filter by :
  • not so good

    Originally Posted by fomrahousing
    It is nice post. Thanks for sharing this information. Fomra Housing also provides the good projects. We provides ongoing projects are Tribhuvan, Celebration, Colors, Jardin and Bay pristine.

    Thanks
    Fomra Housing



    Your projects cost high & not keeping up quality in promised amenities. Celebration project not even eligible for home loan in nationalised bank due to legal issues. I.E SBI
    CommentQuote
  • Do we have a chart with prevailing rates for all localities in this thread?
    CommentQuote
  • North and south;never the twain shall meet???

    FIRST POST



    Backed by demand from the IT/ITes sector, India's Silicon Valley— Bangalore— has taken the lead in showing signs of a revival in the real estate market. But when it comes to artificial inflation of prices, Delhi shows all that is flawed in India's real estate sector.
    According to data provided by real estate consultancy firm Liases Foras, Bangalore witnessed 10 percent growth in sales for the first quarter of the current fiscal while all other major cities — Kolkata, Chennai, Mumbai, National Capital Region (NCR). Hyderabad, Pune— saw a decline in the same period. . This s because Bangalore's real estate market caters to 80 percent end-users, many of them working professionals and NRI clients.
    Ironically, when it comes to appreciation, prices remained stable in Bangalore while Chennai saw the highest appreciation of 4 percent quarter on quarter.
    NCR (which includes New Delhi as well as its suburbs Gurgaon and Faridabad in Haryana, and Noida, Greater Noida and Ghaziabad in Uttar Pradesh) led the laggards with a 20 percent decline in sales quarter on quarter, followed by Chennai and Hyderabad with 18 percent and 13 percent decline each. Mumbai Metropolitan Region, however, was almost stagnant with a meager 2 percent drop in sales.
    But here's why the NCR's data shows what's wrong with real estate: falling demand should mean prices should come under pressure. But despite a 22 percent drop in NCR sales, the average price of property in NCR has risen by 10 percent. This could mean black money is being pumped into the sector to keep prices artificially high.
    "The price-supply situation in NCR clearly implies that home prices are being kept high artificially. The price depreciation is only being witnessed in the secondary market while builders are refusing to bring down prices in the primary market," said Pankaj Kapoor, MD of Liases Foras, a real estate consultancy firm.
    And here's the real kick: The current level of unsold inventory in the NCR stands at 303.66 million square feet and is worth Rs 8,402 crore, thus implying that realtors will take another 53 months (four-and-a-half years) to just sell all current listings at the current sales pace! Inventory of eight months shows a healthy real estate market.
    With a weighted average cost of Rs 75 lakh for a 1,200 sq ft apartment in NCR, prices are still being kept high because investors are holding on to properties while end-users are still staying away. This also creates barriers for new launches/construction at lower prices in these areas.
    According to an industry expert who did not want to be named, 80 percent of the inventory in Delhi-NCR's under-construction projects is bought by speculators. When units in new projects are sold to investors, these generally change hands multiple times during the construction period, which is generally three-four years.
    Heavy churning implies faster price appreciation.
    And while the level of monthly inventory has increased from 41 months in the second quarter of 2014 to 53 months in the first quarter of the current fiscal for NCR, the Mumbai market has somehow stabilised in the last few quarters. Monthly inventory is down from 58 months in Q2 of 2013 to 45 months in Q1 of 2014. Also prices and sales have more or less remained stagnant in the June quarter. While sales declined 2 percent quarter on quarter, prices only increased by 2 percent.
    Thirdly, among all the six cities, NCR has the highest quantum of unsold inventory at 124 .21 million sq ft in the Rs 25-50 lakh range. ( See table below)
    CommentQuote
  • Income Tax Department proposes to tax realtors, developers on unsold inventory ---Will it bring down prices? Will it be implemented??
    Read more at:
    http://economictimes.indiatimes.com/articleshow/39580955.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
    CommentQuote
  • ^^

    This will never happen as we think.

    Even if did:

    1. Builder will be given a reasonable time to sell completed units, Ie: 1 year or 2 years after completion certificate.

    2. Builder will get around it by delaying the completion certificate.

    I am against hording for long term but 1-2 year after completion will not be considered hoarding.
    CommentQuote
  • In my recent visit to Chennai, I noticed heaps of flats everywhere.

    In the past boom time there used to be layouts in far away areas but these days it appears that flats have taken that space.

    Flats galore everywhere, weather it is central city area, City fringe, outer suburbs and even nearby towns (Chengai, Kanchi,Mahabs) etc etc.

    The rental market must fall drastically one would think.

    I visited a friend in Cythanya Ayanavaram, 3BHK (1500sqft) apparently now worth around 1.5C according to him. No pool, Gym etc but they pay 5K maintenance monthly.

    The old sky scraper flat in front of Koiyambedu, there is some big problem with concrete plaster cracking and falling off, they were doing some serious sky high maintenance with scaffolding and re cement rendering.

    How is the current supply situation maintenance cost & association situation?

    Any inside knowledge of the new living trend.
    CommentQuote
  • Asking view about the new "flats culture" of Chennai is like asking opinion about Gandhi's death. apartment culture has become so entrenched as is apparent in several movies starting with Anjali till recently released Manjappai.
    CommentQuote
  • Originally Posted by Economist

    The old sky scraper flat in front of Koiyambedu, there is some big problem with concrete plaster cracking and falling off, they were doing some serious sky high maintenance with scaffolding and re cement rendering.


    I live right behind this old Sky scrapper, the quality of this building is pathetic and atleast 30% of the flats are vacant in this building, I don't know why
    CommentQuote
  • Someones intellectual short coming is legendary.

    I am surprised the shortcomings are displayed consistently even after multiple reprimands.

    Nobody has asked about " Flats Culture".

    The question relates to over supply and maintenance issues.
    CommentQuote
  • Originally Posted by sridharchennai
    I live right behind this old Sky scrapper, the quality of this building is pathetic and atleast 30% of the flats are vacant in this building, I don't know why


    Seeing the massive repairs going on I asked the watchman, he said internal plumbing water leak may have resulted cement render cracking. I don't think he knew the real problem.
    CommentQuote
  • This was published on Hindu sums up real estate in India avoid this investment class for time being at 5 to 7 tears
    With reference to the article, “What drives property prices,” property prices are high because most of the black money is invested in real estate. Property prices have gone beyond the purchasing power of the middle class. Look at the inventory levels in big cities — they are extremely high. No one lives in most of these apartments.

    In any other business, prices would have fallen to a level where liquidation of these inventories would have allowed the working capital to recycle in the system. Since the sources of black money are perennial and the owners have no compelling reasons to cash out the return (where else will they invest this cash?), real estate prices keep rising. Such bubbles would have burst in most markets but the real estate bubble in India is made of black money, so it will not burst. It will just make finding housing more difficult for the people.

    I have the following reasons for not buying property: Prices are much higher compared with what you pay in developed countries; if you could buy there. Even in places such as Dubai, which has got excellent infrastructure, the cost of real estate is much cheaper than my place (Chennai). At least in Chennai — I think the same holds good for most other cities — there is absolutely no infrastructure and amenities to support such a huge growth in high-rise buildings. It may come in future but it will take another 10 to 15 years.
    CommentQuote
  • Only black money hoarders can buy in such markets just to "maintain" the price levels. There are such transactions in all major projects (about 10-20 such transactions to consolidate market price) which are normally born by the proxies of builders (most likely the Marketing Directors or Project Managers - their relatives etc...). But the price can crash only when the genuine end use buyers stop buying properties for the next 10 years.I am sure they can rent far cheaper than the EMIs and can freely move from one place to other. People must stop buying apartments and go only for individual houses so that market can correct themselves. Apartment prices are skewing the market rates with FSI and other parameters which are typically exploited by big time builders.
    CommentQuote
  • The TN government earned a record revenue of Rs 8,055.74 crore in 2013-14 in stamp duty. Which equate to 100000 cr total transaction white so black could be another 50000 cr so total 1.5 lakhs cr really surprised by the figure
    CommentQuote
  • IMO the best factor to determine if we r in bubble factor in an asset DSCR ( Debt service coverage ratio).

    First I will discuss Sydney market which saw a property bubble in 2005. In 2014 media is saying Sydney is in bubble phase. Now lets do some analysis in 2005 Sydney median apartment price was around 375000 mean rent was 220 per week and interest rate was 7.5% so let's calculated DSCR total annual rent is 220*52 = 11440/375000= 3% so DSCR is 7.5/3= 2.5 ratio so Sydney market hit bubble by 2005 price drop to on average 30% to 40% apartment sold in 2005 for 375000 was available for 225000. Today Sydney median unit price is 525000 rent is 475 per week interest rate is 5.2%. So let's calculate DSCR total annual rent is 475*52 = 24700/525000= 4.7% so DSCR is 5.2/4.7 = 1.10. So IMO Sydney market in 2014 is nowhere near bubble phase.

    Now India I will do the same analysis in market which I am familiar with in this case chennai suburb nungambakkam. Now nungambakkam is top suburb in chennai in 1984 unit cost per sqft was around 250 per sqft rent was around 3 per sqft PM and interest rate was around 18% So let's calculate DSCR total annual rent 3*12 = 36 per sqft 36/250 = 14.4% so DSCR is 18/14.4 = 1.28 Ratio in 1994 unit cost per sqft was 1200 rent was around 8 per sqft and interest was 14% so annual rent was 96 per sqft so DSCR was 96/1200= 8% so DSCR was 14/8 = 1.75 Ratio in 1995.
    Now 2004 rent per sqft was 15 pm price was 3000 per sqft and interest rate was 8.5%. DSCR in 2005 is 15*12= 180/3000=6% so DSCR was = 8.5/6 = 1.41 ratio better then 1995 now 2014 rent is around 30 per sqft price per sqft is 18000 interest rate is 10.5% so DSCR is 30*12= 360 so rental yield is 360/18000 = 2% so DSCR is 10.5/2 = 5.25 Ratio.

    So healthy DSCR is around 2 we r at 5.25 so IMO RE overpriced and asset is in bubble phase big time.

    I challenge all RE bulls debunk my analysis
    CommentQuote
  • Originally Posted by Septaa
    IMO the best factor to determine if we r in bubble factor in an asset DSCR ( Debt service coverage ratio).

    First I will discuss Sydney market which saw a property bubble in 2005. In 2014 media is saying Sydney is in bubble phase. Now lets do some analysis in 2005 Sydney median apartment price was around 375000 mean rent was 220 per week and interest rate was 7.5% so let's calculated DSCR total annual rent is 220*52 = 11440/375000= 3% so DSCR is 7.5/3= 2.5 ratio so Sydney market hit bubble by 2005 price drop to on average 30% to 40% apartment sold in 2005 for 375000 was available for 225000. Today Sydney median unit price is 525000 rent is 475 per week interest rate is 5.2%. So let's calculate DSCR total annual rent is 475*52 = 24700/525000= 4.7% so DSCR is 5.2/4.7 = 1.10. So IMO Sydney market in 2014 is nowhere near bubble phase.

    Now India I will do the same analysis in market which I am familiar with in this case chennai suburb nungambakkam. Now nungambakkam is top suburb in chennai in 1984 unit cost per sqft was around 250 per sqft rent was around 3 per sqft PM and interest rate was around 18% So let's calculate DSCR total annual rent 3*12 = 36 per sqft 36/250 = 14.4% so DSCR is 18/14.4 = 1.28 Ratio in 1994 unit cost per sqft was 1200 rent was around 8 per sqft and interest was 14% so annual rent was 96 per sqft so DSCR was 96/1200= 8% so DSCR was 14/8 = 1.75 Ratio in 1995.
    Now 2004 rent per sqft was 15 pm price was 3000 per sqft and interest rate was 8.5%. DSCR in 2005 is 15*12= 180/3000=6% so DSCR was = 8.5/6 = 1.41 ratio better then 1995 now 2014 rent is around 30 per sqft price per sqft is 18000 interest rate is 10.5% so DSCR is 30*12= 360 so rental yield is 360/18000 = 2% so DSCR is 10.5/2 = 5.25 Ratio.

    So healthy DSCR is around 2 we r at 5.25 so IMO RE overpriced and asset is in bubble phase big time.

    I challenge all RE bulls debunk my analysis


    Septaa,

    Whichever yardstick you use, Its clear that RE is over priced. It is not just now, but has been overpriced for the past 5-6 years. Lets take nungambakkam for example - I hear the current rate for new lanuches is around 22K/sqft. Just two years back it was 12K/sqft and that itself was highly priced comparatively at that time. The problem with such analysis is no one knows whether now is the peak or if there is higher top. The dilemma is always will the bubble burst now? or will it grow even bigger? When one waits for the price to reduce but sees it moving upwards for no reason, isnt it natural tendency for a buyer to feel its better and less risky to ride the bubble than miss the bus?

    Would like to know from you if you have any method to identify a burst is imminent? Thanks.
    CommentQuote