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Property Price Trends in Chennai

Last updated: 4 weeks ago
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  • Re : Property Price Trends in Chennai

    Originally posted by SRajagopalan View Post
    Another data point - in 1997 the same college the highest money earner was making 2.5L, now 18L just a comparison im not suggesting RE should grow so many folds to match
    18/2.5 = 7.2

    I am quite sure RE has grown on average lot more than 7.2x between 1997 and 2013...

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    • Re : Property Price Trends in Chennai

      Back in 90's, every few people used to do Engg and MBAs. The number of colleges itself were 100 or so. I think the min was 70% to get a seat in those days.

      So every tom, dick and harry does Engg. All you need to pass your 12th and you get a seat.
      There are 400+ colleges now in the state. So you cannot equate a Engg guy from 90's to guy getting out now.
      Standards have taken a nose dive.

      Of course there are smarter people in colleges, but there are lot more below avg people, who would never get into even an arts college get in to Engg college today.
      I can even stretch out and say even IITs have gone down in standards, IITian of yesteryear's are much smarter than guys who are getting out today. They focus so much on getting in that now the candidate development is left out. But still IITs are best of the Engg colleges anytime.

      Many people getting out of Engg colleges today cannot even write a sentence in English. Most are unemployable.

      Top mgmt consulting firms do not even hire Engg students anymore.
      They are taking people in commerce, arts, law, etc from top universities.

      I am seeing even tech companies like Google, Facebook are moving to non-engg streams to get better talent. There are a lot of people who are avoiding Engg and Medicine today.
      Last edited June 10 2013, 09:06 PM.

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      • Re : Property Price Trends in Chennai

        Well written K11... its not anymore about what you are studying. It is a combination of what you are studying and where you are studying. A BE/BTech from IIT has more weightage than an ME from IIT. Students are getting placed in top companies based not only their scores, grades, percentage and percentile. It is much beyond that. We are rigorously trained on how to pick college grads. It is far tough to get an admission for LKG today rather getting an admission in BE. 12th you pass and then you get into an Engineering college.

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        • Re : Property Price Trends in Chennai

          Usdinr = 58.13 -

          What is the read on the devaluing rupee its effect on Chennai RE
          More rupees for USD means more residual investment INR for NRIs to help pick up value deals

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          • Re : Property Price Trends in Chennai

            The state has more than 500+ colleges and the number of placements a year easily crosses over 1Lakh on a good year, so it all boils down to number of candidates being employed and gross salary they draw and its impact on affordability towards buying RE,
            You can be smart, dumb, or a use less, unable to write a sentence of english does not matter.
            Actually when i went to school, all the english speaking chennai vaasis flunked in all the Labs whereas the tamil speaking folks from south of madurai did really well in all our programming labs. we all are in IT and can clearly say a lot of times empty vessels make a lot of noice. so quality is in the eye of the judge.
            But bottom line is more engg graduates from TN means more engineers which means more potential candidates for job opportunities
            I dont beleive IT and INDIA has taken a sea of change to prefer non engg grads over arts/science college folks,

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            • Re : Property Price Trends in Chennai

              Originally posted by SRajagopalan View Post
              What is the read on the devaluing rupee its effect on Chennai RE
              More rupees for USD means more residual investment INR for NRIs to help pick up value deals
              Get used to USD over Rs 60.

              That is were I see it sitting in the future.

              In couple of years USD in high 50s will be a fading history.

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              • Re : Property Price Trends in Chennai

                Originally posted by SRajagopalan View Post
                What is the read on the devaluing rupee its effect on Chennai RE
                More rupees for USD means more residual investment INR for NRIs to help pick up value deals
                Debt funds - yield machine for FIIs - are redeeming and finding its shore back to US. What gives? They don't think the juicy yield of 8-10% can even compensate for the currency depreciation in the near future.

                Yes, USD can buy more today. It can buy much much more down the line is the current mood and the direction it is taking. RBI stance of not arresting the rise through artificial means is not helping as well. RBI must be aware that fighting the trend through artificial means is a losing battle at this juncture.

                I know a few who took home equity loan last year to make cash down purchases in RE and my prayers are with them.

                Mav
                Last edited June 10 2013, 11:00 PM.

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                • Re : Property Price Trends in Chennai

                  Originally posted by maverick007 View Post
                  Debt funds - yield machine for FIIs - are redeeming and finding its shore back to US. What gives? They don't think the juicy yield of 8-10% can even compensate for the currency depreciation in the near future.

                  Yes, USD can buy more today. It can buy much much more down the line is the current mood and the direction it is taking. RBI stance of not arresting the rise through artificial means is not helping as well. RBI must be aware that fighting the trend through artificial means is a losing battle at this juncture.

                  I know a few who took home equity loan last year to make cash down purchases in RE and my prayers are with them.

                  Mav
                  USD can always buy much more if you wait down the line from today to 5 years from now or from 5 years prior to today, thats a given.
                  RBI's stance is a bit surprising the widespread rumour yesy was that RBI will intervene when 58 is yet, but yet no real signs of it, i feel they are a bit too late to the party. like our indian police in movie climax
                  But i want to point out some good hard numbers to ponder upon
                  as much as INR devaluing is an alarming fact as perceived , let me know if your views are any different after you see the numbers.

                  To make it more interesting i took the lowest point 39.11 and extrapolated over 10 years to make the worst case
                  IF you would want you should consider the 10 year with 2003 pricing at 46 and change

                  EDIT - added the chart for 39.XX pricing for 5 years still 8%

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                  Last edited June 10 2013, 11:54 PM.

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                  • Re : Property Price Trends in Chennai

                    Tamilnadu
                    " state’s economy or Gross State Domestic Product (GSDP) decelerated from 7.3 per cent in 2011-12 to 4.6 per cent in 2012-13, which was lower than national average of 5 per cent."
                    Link: Planning body approves Rs 37K Cr outlay for TN | The Hindu


                    Could this impact realty prices?

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                    • Re : Property Price Trends in Chennai

                      Originally posted by maverick007 View Post
                      Debt funds - yield machine for FIIs - are redeeming and finding its shore back to US. What gives? They don't think the juicy yield of 8-10% can even compensate for the currency depreciation in the near future.

                      Yes, USD can buy more today. It can buy much much more down the line is the current mood and the direction it is taking. RBI stance of not arresting the rise through artificial means is not helping as well. RBI must be aware that fighting the trend through artificial means is a losing battle at this juncture.

                      I know a few who took home equity loan last year to make cash down purchases in RE and my prayers are with them.

                      Mav
                      Minor point here is that FIIs when they investin equities or debt in any market will hedge the underlying Fx value to their base currency. So in India they will book forward hedge or INR/USD and hence there is no Fx depreciating risk to them - the only cost the forward premium.

                      The reason funds are moving out by FIIs is a different issue in combination of our debt limits allocation methods, offshore demand for redemptions & other more lucrative markets releasing investment limits to FIIs.

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