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Property Price Trends in Chennai

Last updated: May 20 2021
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  • Re : Property Price Trends in Chennai

    Realtors Offer 40% Discount To Buyers
    To perk up the sluggish realty market, Unitech, DLF, HDIL, BPTP and others are offering a 30-40% discount on ongoing projects. Analysts assert that such projects will facilitate demand and bring in much-needed liquidity in to the industry. In the last few months, DLF has launched a project each in Hyderabad and Bangalore, totalling close to 4,000 units. DLF executive director, Mr. Rajeev Talwar said that of these, about 500 units have already been sold in the price range of Rs 1,850-1,890 per sq ft. "These prices are lower than prices in 1998," he added. Unitech has also launched a few projects in the last two months. Unitech's Uniworld Garden II in Gurgaon’s Sector 47 has been launched at Rs 3,250 per sq ft.
    17 March 2009 google.com

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    • Re : Property Price Trends in Chennai

      Originally posted by vkpraba View Post
      Realtors Offer 40% Discount To Buyers
      To perk up the sluggish realty market, Unitech, DLF, HDIL, BPTP and others are offering a 30-40% discount on ongoing projects. Analysts assert that such projects will facilitate demand and bring in much-needed liquidity in to the industry. In the last few months, DLF has launched a project each in Hyderabad and Bangalore, totalling close to 4,000 units. DLF executive director, Mr. Rajeev Talwar said that of these, about 500 units have already been sold in the price range of Rs 1,850-1,890 per sq ft. "These prices are lower than prices in 1998," he added. Unitech has also launched a few projects in the last two months. Unitech's Uniworld Garden II in Gurgaon’s Sector 47 has been launched at Rs 3,250 per sq ft.
      17 March 2009 google.com
      1998 prices???? the places they are building now never existed in 1998 as residential localities,they were jungles or swamps or may be farmlands.
      these places never had any infrastructure in 1998.they are costly even at these rates.(OMR beyond sholinganallur) and sripermbudur flats being built there would be available at less than construction cost in a couple of years.
      no doubts about this.DLF and the biggies have 1000s of acres of land banks
      which they are converting to cash now(liquidity). tell me why these builders dont reduce prices in projects in the city?.
      if you guys get a 30% discount in areas like velachery(proper) tambaram,
      chromepet,mogapair, pls let me know.

      Comment


      • Re : Property Price Trends in Chennai

        Originally posted by abk View Post
        1998 prices???? the places they are building now never existed in 1998 as residential localities,they were jungles or swamps or may be farmlands.
        these places never had any infrastructure in 1998.they are costly even at these rates.(OMR beyond sholinganallur) and sripermbudur flats being built there would be available at less than construction cost in a couple of years.
        no doubts about this.DLF and the biggies have 1000s of acres of land banks
        which they are converting to cash now(liquidity). tell me why these builders dont reduce prices in projects in the city?.
        if you guys get a 30% discount in areas like velachery(proper) tambaram,
        chromepet,mogapair, pls let me know.
        DLF has already announced price reduction in their existing projects at Chennai, Bangalore and Delhi. 2 weeks back there was an article in dailies for this. If you remember, few months back the Builders Association of India has advised their members to reduce the flat prices by 20%. In Mumbai, there are 20,000 defaulted properties coming for auction in first phase (April). Chennai's defaulted property status is yet to come out... expected in April.

        Home Buyers Expect More Price Cut
        Around 90 per cent home buyers in Mumbai, National Capital Region, Bangalore and Hyderabad, where property companies like DLF, HDIL and Unitech have launched their projects with 20-25 per cent price cuts, expect prices to fall further by around 20 per cent, a survey by an international brokerage shows. Home buyers, who are currently facing the problems of dwindling incomes and job cuts, are yet to make up their mind on buying new homes despite the price cuts and lower interest rates, the survey, conducted by CLSA, has found.
        16 March 2009 Business Standard

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        • Re : Property Price Trends in Chennai

          Denial continues ...

          Originally posted by ks2071746 View Post
          Dear friend,

          Your detailed analysis is worth reading. However, in the case of Adyar, getting 2006 price + 10-15% i.e., Rs. 5000 to 5250/sq. ft. will not be possible. At best against Rs. 10000/sq. ft. it may come down to Rs. 7500 level.

          ks2071746

          Remember the Tsunami? When people were told to run, they simply said, such a thing is not possible and continued to not only stay, but went in to investigate when the water go sucked out to sea!!!

          Well, I do see that, even in the face of something that has not been seen in over 70 years, and probably something which will be finally seen as probably the worst depression in modern times, we are all still talking about 20% and not less than 30% - as though the world is a normal place like it used to be in 2007!!!

          It appears that, not having experienced financial tsunami, even people who are normally prudent and cautious, continue to not only stick around on the beach, but are even venturing into the sea (b.uying property) as the water gets sucked out!!!

          Well, I can only do what saves my life. Pick up footwear and run like h*ll in the opposite direction and onto high ground (savings in cash and hard assets)!


          Here are some examples of Denial:

          1. Nats agrees with me that RE Market lags Stock Market by 1 to 1.5 years. Therefore, he says, I was early in calling the RE peak (in Aug 2008) when it actually is going to happen in mid-2009.

          Ok Nats. Even if I was early in calling it (and I consider a 6-month-ahead warning to be timely and not early for RE as it enables one to get out when there is liquidity and s.elling is easy), by your own logic, why are you asking people to b.u.y property at the peak (mid-2009) which you agree is around now? Something shady?

          2. Someone else argues that prices will not s.ell below guideline value. Which guideline value? I ask! The one in 2004 at 1500 per SFt? Or the one for the same area in 2008 at Rs.15000? Please note that as this boom was used by vested interests to pull up guideline value, the fall below current GL value will pull it back down to sane levels. Don't bet on prices not coming down below insane (and manipulated) guideline values!!!

          3. Even after I point out that to merely come down to 2004 levels, prices must fall 60% to 85%, thereby showing how far away from the mean growth rates prices have shot up, people still talk as though a 400% jump in 5 years is normal and these prices will hold. WOW!

          Wake up!!!!

          cheers
          Last edited March 24 2009, 09:05 PM.

          Comment


          • Re : Property Price Trends in Chennai

            Dear Friends,

            Prospective buyers often face a dilemma whether to buy flats/independant house or land.

            I thought we should discuss this very important aspect of realestate.So that one can decide and be focussed in pursuing what they want to purchase.

            Though everyone agrees that land value appreciates and building depreciates.Individual preferences vary for various reasons like community living, security, facilities etc.

            The line demarking necessity and luxury has become rather fudged nowadays.We are being sold forcibly what we dont want and need.These are ill effects of consumerism and gloablization.

            Most people including me just want "value for money" .

            In one of my earlier posts in another thread I had opined how I feel about chennai.Restating them again.


            Chennai Proper - Area within corporation limit - possible correction 10-15%

            Chennai proper would be the least affected.The reasons are it being well connected and all infrastructure is readily available.proximity to business establishments,educational instituitions.Main factor is that Supply of worthy property is very less.Frankly I dont see any issues with the land price here, my complaint is only that the flat price from the builders is not inline with the land price.

            Fit for flat purchase for middle/higher middle income class people and land purchase for the rich.

            Chennai Suburbs - Areas within the proposed new corporations and CMDA limits - possible correction 20-30%

            During this boom we saw the suburbs seeing development at a rate which was not witnessed before.For example velachery, mogappair, tambaram is completely self sustained today.These locations are serving as hubs for people from various professions.In these location the price rise was long due and it happened.Here lands are available between houses.

            It will make sense only to buy an independant house or land here than going for a flat and paying for the high construction/builders cost.Flats with good UDS is worth pursuing.

            Chennai Suburbs - Areas outside corporation within CMDA limits. - possible correction 30-50%

            There are lots of areas whose price rose as collatarel benefit along velachery, Porur, Tambaram etc.

            These locations have decent infrastructure but not complete in anyway.People who are living here are still original residents and vacant plots are available in plenty.

            Fit for only land purchase and independant house.

            Chennai Outskirts - Areas adjoining OMR/GST/Bangalore and kolkata Higways. - Crash >50%

            These areas are pure speculation.Only certain areas will flourish and live to the hype.

            Fit for only land purchase as investment for long term.

            OMR - Tightly coupled with IT industry

            For example in siruseri out of all the big projects coming up, Only 2 projects have proper approvals and are in line to completion in time.With IT seeing slump most would want only to rent these flats.

            I am expecting these unsold flats to be rented out by the builders themselves when completed or available at subsidised rent through the companies.

            Bangalore Highway - Electronic corridor and Proposed airport is the USP.

            If there is news that the proposed airport is dropped (I dont know till now, whether the project even actually took off).Then the price would plummet.I hear most of the industries there are laying off and cutting down on production.

            GST road - Has the potential, but no real developments yet.

            Very well connected by road/rail and the best bet for investment for long term in my opinion, any future township would come up only along here.I would ideally wait for TNHB to anounce some schemes and try to get a plot there.

            Kolkata Highway/Avadi Road - Outer ring road, connectivity to bangalore highway.

            Very well connected by road/rail, but Hasnt seen much development compared to other parts of Chennai.
            I thought I should explain why I feel that flats within city, independant houses in the suburb and plots in the outskirts can be bought as investment.

            Primary reason being, Affordability and value for money.

            Cost of a property = Land cost + construction cost.

            Today to construct a house the cost is min 800-1200/sqft for good quality and for premium construction 1000-1500/sqft.

            A builder would include the profit margin,investment, approval and marketing charges which would be another 500-1000/sqft.

            Assuming 1500/sqft as the construction cost.To buy a property of 2000 sqft built up would cost 30 Lakhs just for construction alone.This is the same whereever you buy across in chennai.

            I use the following thumbrule

            (cost of land per/sqft of built up / construction cost per/sqft of built up) should be > 1

            where
            cost of land per/sqft of built up = cost of land per sqft /FSI allowed

            Let me call it Value for Money Indicator(V.M.I).

            It will give an idea whether you are investing in appreciating land or in depreciating building.

            For those who dont know how much UDS to expect can use the following as a rough guide

            Independent house

            Allowed FSI - 1.5
            Achievable FSI - 1.25(due to restriction on plot coverage,set back restrictions)
            UDS for 1000 sqft constructed - 800 Sft.

            Ground + one building

            Allowed FSI - 1.5
            Achievable FSI - 1.35 to 1.45(reduction due to restriction on plot coverage, set back space, No. of Kitchen and carpark restrictions)
            UDS for 1000 sqft constructed - 710 Sft.

            Ground + 3 storied building (or) stilt + 4 storied

            Allowed FSI - 1.5
            Achievable FSI - 1.6 (increase due to non F.S.I. area like headroom, lumber room areas )
            UDS for 1000 sqft constructed - 625 Sft.

            Ground + 4 floors and above

            Allowed FSI - 2.5
            Achievable FSI - 2.6 (increase due to non F.S.I. area like headroom, lumber room and associate room areas etc.)
            UDS for 1000 sqft constructed - 385 Sft.
            To calculate share in a Joint venture.


            a/(100-a) = Floor Area ratio * Cost of construction per sqft/Cost of the land per sqft

            where
            a is the percentage builder will take.
            FAR = FSI + 10% FSI(common area) typical (expressed as in FSI)
            Cost of construction includes everything (planning,approvals, greasing etc)

            courtesy : Sigma from r2iclubforums
            For the calculations I am going to assume 1.5 FSI so UDS would be 1250/sqft

            Case I - Chennai Proper - Area within corporation limit

            Lets assume land value is 9000/sqft

            V.M.I = (9000/1.5)/1500 = 4 > 1

            Case II - Chennai Suburbs - Areas within the proposed new
            corporations and CMDA limits

            Lets assume land value is 3000/sqft

            V.M.I = (3000/1.5)/1500 = 1.34 > 1

            Case III - Chennai Suburbs - Areas outside corporation within CMDA limits

            Lets assume land value is 1500/sqft

            V.M.I = (1500/1.5)/1500 = 0.67 < 1

            Case IV - Chennai Outskirts - Areas adjoining OMR/GST/Bangalore and kolkata Higways

            Lets assume land value is 450/sqft

            V.M.I = (450/1.5)/1500 = 0.2 < 1

            I hope it is now clear that the lesser the FSI more is the land value, and more value for money.It is very evident even when we use the inflated prices, so if and when the price corrects the property will lose more value if the land share value is less.

            In simple words dont invest in flat when land is still affordable in a locality, unless its for living and self use.

            If one has invested more in building expecting only rental returns, it will be catastrophical when RE correction/crash happens.They will be left holding depreciating building with no land value.People will not want to buy it when such properties will be avaialbale at low rents.the worth of the property will be completely eroded.

            Its lot safer to hold and invest majority in the land which will at the least insulate against the losses partially and provide an opportunity to make up for the losses when the property is held upto through the next RE cycle and boom when it will appreciate again.

            First to witness correction would be the highrise on the outskirts and premium apartment segment within the city.The land prices in the speculative areas will also see sharp corrections.I feel the indication of next wave of price correction would be reduction in rentals.

            Requesting members to share their comments and opinions.
            Last edited April 5 2009, 11:58 PM.

            Comment


            • Re : Property Price Trends in Chennai

              Below article from BusinessLine proves that if price goes to 2004 level demand will come back.
              Could residential demand pick up if prices are rolled back to levels prevalent a few years back?
              Yes, seems to be the answer going by the experience of one of the largest developers in Mumbai — Housing Development and Infrastructure Ltd (HDIL).
              Property buyers in Mumbai appear to be looking for 2004 prices in the current economic scenario, going by the responses that HDIL got last fortnight.
              One of the large-scale real estate developers in Mumbai, HDIL has executed 32 projects spanning over 28 million sq.ft of saleable area, besides four million sq.ft under slum rehabilitation schemes in the city since 1996.
              Primarily into residential housing, HDIL priced its March launches, comprising one- and two-BHK (bedroom-hall-kitchen) apartments at Kurla, a central suburb in the city, at Rs 5,251 a sq.ft — a level of pricing that prevailed there in 2004. The response has been overwhelming and the company, which opened bookings on March 6, has sold over 85 per cent of the 756 apartments till date.

              Comment


              • Re : Property Price Trends in Chennai

                Originally posted by BigBear View Post
                Below article from BusinessLine proves that if price goes to 2004 level demand will come back.
                Could residential demand pick up if prices are rolled back to levels prevalent a few years back?
                Yes, seems to be the answer going by the experience of one of the largest developers in Mumbai — Housing Development and Infrastructure Ltd (HDIL).
                Property buyers in Mumbai appear to be looking for 2004 prices in the current economic scenario, going by the responses that HDIL got last fortnight.
                One of the large-scale real estate developers in Mumbai, HDIL has executed 32 projects spanning over 28 million sq.ft of saleable area, besides four million sq.ft under slum rehabilitation schemes in the city since 1996.
                Primarily into residential housing, HDIL priced its March launches, comprising one- and two-BHK (bedroom-hall-kitchen) apartments at Kurla, a central suburb in the city, at Rs 5,251 a sq.ft — a level of pricing that prevailed there in 2004. The response has been overwhelming and the company, which opened bookings on March 6, has sold over 85 per cent of the 756 apartments till date.
                what is the current prices in kurla ?(viz nov2008-feb2009). and as many others in this forum say 400&#37; hike in RE over 2004 then the prices should have been 17000-20000/sq ft for the 300-400% hike.
                Last edited April 6 2009, 01:37 PM.

                Comment


                • Re : Property Price Trends in Chennai

                  Originally posted by abk View Post
                  what is the current prices in kurla ?(viz nov2008-feb2009). and as many others in this forum say 400&#37; hike in RE over 2004 then the prices should have been 17000-20000/sq ft for the 300-400% hike.
                  Heard from my friend it was around 16000-20000 rs last year around BKC.

                  Comment


                  • Re : Property Price Trends in Chennai

                    friend is not truthfull big bear.
                    google and check it out rates vary drom 6000-8000 only[IMG]http://www.************/images/check.gif[/IMG]






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                    Posted Date: Mar 03, 2009
                    Last edited April 6 2009, 07:26 PM.

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by BigBear View Post
                      Heard from my friend it was around 16000-20000 rs last year around BKC.

                      again even in 2008 rates were not 16000-20000 . big bear -big lie?????????


                      1 bedroom Apartment / Flat for Sale in Kurla West, Mumbai (ID: 8539262)


                      garden flat room road facing 1st floor

                      52/1 L.I.G Colony vinobha bhave nagar kurla west, Kurla West, Mumbai (Maharashtra) - 400070
                      Property ID: 8539262
                      Posted: 133 Days Back
                      Available From: Jan 2, 2008
                      Area: 630 Sqft
                      Bedroom: One
                      Bathroom: One
                      Floor: First
                      Total Floors: 7
                      Facing: East
                      Furnished: Unfurnished
                      Built Year: 2008
                      Price Range: 25 lacs-40 lacs

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