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
2357 Replies
Sort by :Filter by :
  • Originally Posted by Haojin
    Are you first member and first poster of this forum? Seeing your profile number of posts!! Did not see you much in Chennai RE? Might be sagalaarea vallavan senior guruji?


    RA normally posts in Pune forum. He just posted here because HH also posted about Chennai topping the NHB charts. I dont think he is a chennai expert but I like his posts. A bit bearish tone but we do need saner real estate prices for our countrys wellbeing.
    CommentQuote
  • Greetings to all. I am visiting this forum after a gap of many months.

    Just wanted to share some thoughts - currently though not widely spoken there is a severe slowdown in Chennai RE over last few months. In my exposure for last 14 years i beleive this is beginning to look like the deadly slowdown of 2001-03 except that prices are at extremely high levels (even after adjusting for huge surge in liquidity).

    The question is where do we go from now.

    Unlike in previous slowdowns (1997-99) and 2001-03 period, liquidity per se is very high thanks to liberalization of capital flows plus endless QE by Fed and other developed nations. The real issue is - last two years, all asset classes in India except Stock markets have done badly.

    RE has severly underperformed last 24 months. Gold also has underperformed. Adjusting for inflation Fixed income has given negative returns except select basket of products like tax free infra bonds (which anyway are not widely available). Stock market in contrast has done exceedly well especially for anyone who invested in 2013 disregarding the doomsayers and all that is thanks to the change of guard in Delhi.

    Going forward what happens is the key.

    Let us discuss on our views on that.

    I will start by just telling one point - We need a decent rate cut for RE to get back to life and looks like that is going to happen after February budget but can be pushed behind or ahead too
    CommentQuote
  • >> Pankaj Kapoor, chief executive of property research firm Liases Foras, believes both investors and buyers are not participating in the market due to unaffordable prices and downward pressure on prices.

    There are other reasons also which are not openly discussed in media/public domain:

    * Black money/illicitly earned money is big way channelled into RE. We had a huge burst of scams during UPA2 and lot of regime change and while it maybe too sweeping to say all corruption is ended, fact is doing big volume scam has become tough and so less availablity of illicitly earned money to chase RE.

    * Decisions such as making PAN Number declaration mandatory and now NaMo govt planning to make aadhar card declaration necessary for RE Transactions will substantially reduce benami transactions.

    * The huge spurt in RE prices even in USD terms in Indian big cities in 2003-2012 period did not follow up with improvement in physical infrastructure and as a result Indian RE market seems overpriced relative to many other international cities so the investment appeal of Indian RE among one demographic segment called NRIs may have diminished, from investment perspective

    * And fact that last 24 months alternative investment esp equities has done exceedingly well; If gold prices drop further the equity avoiding cash (black) economy dealing small business owners may prefer gold to RE. Remember that investing in gold or shares/MFs/ULIPs the advantage is small ticket size deals are possible and risk of dispossession is near zero.

    All this makes me think that the kind of RE outperformance btw 2003-2012 may not repeat in near future unless we have some terrible developments to favour it (like say 5-6% home loan rates or 1 USD for < 40 INR).
    CommentQuote
  • The classic example of price stagnancy in Chemna, specific GST is Akshya Meteopolis 3250 in 2008, 3400 in 2009, after completion(?) 3500 today. 2008-2014 price increse 250 per sqft. The most dead investment in Chennai. However medium properties, in nearby area are comparitively doing well, reasonable price increase. Big scale, execution issues, delay, specific builder faults, affect the projects in big way. Good price, medium scale, good execution still keep moving sales and price in nearby areas.
    CommentQuote
  • CommentQuote
  • Shift to budget homes

    As apartments sales in the middle and high income segments are showing no signs of improvement, many builders are seriously scouting for small parcels of land to promote budget housing units in the sub – 20 lakh segment.
    This is a segment which most builders have ignored, but those who have ventured into it say they have nothing to complain. “Identifying developable land at the right price in the right place is the key to success of a budget housing project,” said a builder looking for land for a new project.
    All developers doing big projects in the suburbs are stuck owing to poor sales and they are looking at alternatives to sustain the business, said Rajesh Babu, partner, Recs Group, a Chennai-based realty firm.
    Going by the experience of developers who promote budget housing projects, they are by and large cash-surplus projects as long as the promoter sticks to medium sized developments in the range of 2-3 acres. International realty consultant Jones Lang LaSalle MD Sarita Hunt said many new entrants may be getting attracted by this cash flow.
    “You can raise funds from the market (customers) and do projects. As long as the budget housing segment is treated as a separate entity and the money collected for it is used for the same project, it will work. But if the money is diverted to service bad loans or to complete other stuck projects, then things will miserably go wrong,” she said.
    Most builders have not shown interest in the affordable housing segment for years as margins are low in such projects. Hence, high volumes are required to make a significant profit, comparable with projects of higher capital values and larger unit sizes. Builders have gone wrong in the past by jacking up prices abnormally and keeping apartment sizes unwieldy, said Hunt.
    Slow pace of employment generation in the IT sector and retrenchment of several thousand people in the manufacturing sector, especially in the Sriperumbudur belt, have badly affected Chennai realty. A city-based builder said, “Chennai was the first market to turn around after the 2008 fall. But the current slump may have a longer effect because the investment climate in the state is pretty bad.”
    Source: The Times of India, Chennai
    http://content./industry-news/chennai-real-estate-news/builders-skip-big-projects-go-for-budget-housing/79118.html
    CommentQuote
  • from the above news what may be the areas where the builders can make a 20 lakh homes..

    discuss the areas so that it may be useful for investors to park the money hoping price escalation based on this strategy by developers.....
    CommentQuote
  • Originally Posted by subramania
    from the above news what may be the areas where the builders can make a 20 lakh homes..

    discuss the areas so that it may be useful for investors to park the money hoping price escalation based on this strategy by developers.....


    IMO it was more hinting on developers ropeing new set of Bakara to finance its project or pay loans VGN did have two full page ads for few days catering to this budget however given its debt position I will stay away.... If it park ur money as investment why it should be real estate for time being I think it is sensible to park cash in another asset class
    CommentQuote
  • Originally Posted by ramki830
    Greetings to all. I am visiting this forum after a gap of many months.

    Just wanted to share some thoughts - currently though not widely spoken there is a severe slowdown in Chennai RE over last few months. In my exposure for last 14 years i beleive this is beginning to look like the deadly slowdown of 2001-03 except that prices are at extremely high levels (even after adjusting for huge surge in liquidity).

    The question is where do we go from now.

    Unlike in previous slowdowns (1997-99) and 2001-03 period, liquidity per se is very high thanks to liberalization of capital flows plus endless QE by Fed and other developed nations. The real issue is - last two years, all asset classes in India except Stock markets have done badly.

    RE has severly underperformed last 24 months. Gold also has underperformed. Adjusting for inflation Fixed income has given negative returns except select basket of products like tax free infra bonds (which anyway are not widely available). Stock market in contrast has done exceedly well especially for anyone who invested in 2013 disregarding the doomsayers and all that is thanks to the change of guard in Delhi.

    Going forward what happens is the key.

    Let us discuss on our views on that.

    I will start by just telling one point - We need a decent rate cut for RE to get back to life and looks like that is going to happen after February budget but can be pushed behind or ahead too


    @ramki830 - I agree with your view point for the below reasons on your evaluation on the current RE trend in Chennai and how it's going to be in the long run:

    1. US Fed will any time increase their interest rate given that their unemployment levels are coming down drastically which leads to substantial money outflow from Emerging Markets including India.

    2. Crackdown on Black Money and digitization of monetary process will avert those who normally invests through this route

    3. As announced in the last central government budget, where they announce housing for all Indians which may lead to significant growth in "Affordable Housing" scheme whereby the existing inventory needs to be sold out without which the RE developer cannot plunge in to the new projects

    4. Lastly, I'm not very sure on the impact in RE sector, if RBI decided to cut the interest rates early next year..

    It's good to debate on these view which may give a clearer and broader perspective for all the members..

    Cheers.
    CommentQuote
  • Interesting article in The Economist about Chennai's Urban sprawl.

    A planet of suburbs | The Economist

    THIRTY kilometres south of central Chennai, just out of earshot of the honking, hand-painted lorries roaring up Old Mahabalipuram Road, you seem to have reached rural India. Farmers dressed in Madras-checked dhotis rest outside huts roofed with palm leaves. Goats wander about. Then you turn a corner, go through a gate, and arrive in California.

    Between 2001 and 2011 Chennai added just 7% more people while Chengalpattu swelled by 39%. In developed and developing worlds, outskirts are growing faster than cores”

    “Information technology has grown to the south. The World Bank calculates that, between 1998 and 2005, the number of IT jobs within 25km of the centre of Chennai increased by 27%. In the same period, 47% more IT jobs were added in an outer ring between 25km and 50km from Chennai. In high-tech manufacturing, the urban core lost about a quarter of its workers, while the outer ring gained 23% more jobs.”

    “The biggest and most spectacular IT campus in Tamil Nadu belongs to Tata Consultancy Services (TCS). It looks like Optimus Prime taking a nap. The 60,000 people inside the Transformer lookalike do back-office tasks for Western firms and governments.

    One of them, taking a lunch break, is Karbagam Chandrasekaran. She lives at home with her parents in Chennai, and takes a bus to the campus each day—a journey of about an hour and a half. She likes city living for its convenience, but has heard that the schools are better in the suburbs, and would prefer to live closer to work. When she marries (young Indians almost always say “when”, not “if”) she expects to move out, particularly if her husband also works in the IT Corridor”


    “Ravi Viswanathan, TCS’s president for growth markets, says that new employees are more likely to live in the suburbs. Buildings are newer, rents are lower and well-regarded private schools have appeared, along with new hospitals and restaurants. At the weekend, Mr Viswanathan says, the main roads around TCS’s campus used to be almost deserted except for cattle. Now they are thick with cars and motorbikes.”
    CommentQuote
  • CommentQuote
  • Porur Prestige bella vista project new tower release price increased to 7500 as per proptiger rep. need to reconfirm.
    CommentQuote


  • Difficult to see these types of news. People wont buy now; they will only buy after the prices have gone up in early 2016. In 2002 and early 2003 the situation was similar with feeling of bearishness very similar to 2013-2014. Then in Bangalore prices of land almost went up 4 to 8 times in 2003-2004. A property I missed for 1400psft in a BDA auction went to 6000psft in just an year and another in AECS layout at 26lakhs cost 1.8crores in 2004. The same road another piece of land. Prices then stayed put for years.
    In Chennai prices rose more slowly but in 2006 they were almost in similar levels. Now people will ask questions and questions when prices are reasonable and will buy when the prices finish shooting up. So no point what ET writes nobody with sense(perceived sense or can I say nonsense) will buy in 2015. They will do in 2016 after a 2 or 3 times rise.
    Ofcourse many will question me for 2 or 3 times exactly like in 2003! God bless them.
    CommentQuote
  • Porambokku....sorry I mean...I wanted some advice from senior RE kings to decide on buying some PORAMBOKU land..if u r not a porampokku specialist then pls ignore..
    CommentQuote
  • Thanks for Post

    ByProperties in Chennai,Bangalore,Hyderabad,Cochin Exploreviews Property
    CommentQuote