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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 s.sath View Post
    As per page-23 of this link, the total PBV size is 5 million sqft (Prestige has 60% interest in the JV): http://www.prestigeconstructions.com...esentation.pdf

    So your calculations need to be slightly updated by 2.5x factor.


    As per page-25 of this, PBV has achieved total sale of 822.8 crores so far (probably share for just the 60% JV interest of Prestige):
    http://www.prestigeconstructions.com...esentation.pdf

    If you compare with Q3-FY13 presentation, the sales on PBV during Q4 FY13 has been about 50 crores only.


    Personally, I don't mind paying up to 10% of the maintenance fee for the management to run it.
    Thanks i know my sqft calculations was wrong hence i conservatively figured it,also the end maintenance may only be 2.5rs per sqft im hearing
    Im not a buyer so real buyers can update regardless, 7C to 10C association revenue if not managed professionally will cause wasteful spending, kickbacks, free favors, corruption is my point
    i have no doubt that it will be case. Once the vendors get a smell of the association they will start to pay "visits" with gifts this is very usual

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    • Re : Property Price Trends in Chennai

      I always feel people should first zero in on location and then choose whether to buy plot/build house or just buy apts. Choosing an asset class and then choosing location is not the right way. There are cases in which the first option is better (landed property is better in ECR) and in some locations apts is better (can you take advantage of oversupply).

      In location where both options are available, you might need to decide on funding options. Cash investors or people who can borrow through some other sources (under 12% rate) can look at buy plot/build house.
      For people who tied to a home loan, do not have other funding sources or cannot get money through mortgaging other property, you do not have much choices than looking at a Apt or a Villa development.

      Chennai is always about location, location and location.
      Everything else comes after location.

      If a micro locality gets hyper speculated, you need to evaluate for yourself whether the location is good. Potential of the location is more important than the price trends from the past. Lets do not go into GV values over a time period. GV does not mean much. If you know a actual buy and a sell then we can discuss.

      Buying an apt building just for amenities/builder-love in an bad location or buying a plot just becasue it is cheap in a particular location is not the right way to go. Location needs to be zeroed out first.

      Location will make the decision for you or give you options.
      When you have the option, funding source will seal the decision.

      95% of the people should not be in dilemma.
      Decision is made for you, once you figure out location and funding.
      Last edited June 13 2013, 06:06 PM.

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      • Re : Property Price Trends in Chennai

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        Please Don't Re-post ya it is Boring, if you can post the Fair pro 2013 rates. I have read this post 3 years back.

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        • Re : Property Price Trends in Chennai

          Sorry to say after investing in GC that in Chennai massive GC are big failures NOT because of Associations, because of builders and pathetic infrastructure beyond CBD. You cant run a mini town with sophisticated people using high power electrical equipment, no regulated water supply, zero drainage system and slow picking up of social infrastructure is really pushing the limits of association and residents who had to shell out fortune to even to keep it locked, forget alone using it....

          In Chennai GC is gone case....until they divert Ganges to Chennai in the next century...

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          • Re : Property Price Trends in Chennai

            Chennai realty prices soften; gives boost to home buyers


            Chennai realty prices soften; gives boost to home buyers - CNBC-TV18


            For the last three years, home buyers in Chennai have been putting off purchases due to sky rocketing prices. But that's now set to change, report CNBC-TV18's Poornima Murali and Farah Bookwala.

            Also Read: Draft realty bill buyer-friendly, builders unhappy

            Chennai's residential landscape is changing. After three years of rising prices, homes are becoming affordable again. Some areas of the city like Adyar, Mylapore, Velachery and Thiruvanmayur have seen prices drop by as much as 11 percent. The NHB Residex - an index used to track price movements in the residential segment, slipped to 310 in Chennai over the January-March quarter from 314 in the previous quarter.

            N Hariharan, office director (Chennai), Cushman & Wakefield says "It has fallen down marginally but it has fallen. In 2007, it was 100, last quarter it was 314 and now it is 310"

            Experts point to excess supply for this slide.

            T Chitty Babu, MD, Akshaya Homes says, "The concern about price coming down is happening in certain locations where the stocks are coming up more than the demand."

            But this excess supply is less about strong construction activity, and more about falling demand due to higher interest costs and builders have turned to slashing prices to boost sales. But there is hope that demand will pick up soon.

            Badal Yagnik, MD, Jones Lang Lasalle says, "Chennai is seeing a reverse trend. Everybody is talking about rate cuts. People have been looking at the easing of interest rates."

            Builders are hoping that cheaper mortgages will boost demand, and help stem the tide of falling prices, but for now, lower prices are already having some effect.

            Data from the state's registration board shows that registrations in Jan-march stood at 1.28 lakhs, nearly 12 percent higher than the 1.15 lakhs registrations seen in Oct-Mar 2012

            Property registrations in April-May stood at 4.47 lakhs, nearly 11 percent higher than the 4.03 lakhs registrations seen a year ago. If this holds, property prices may begin rising once again.

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            • Re : Property Price Trends in Chennai

              Originally posted by Love4land View Post
              Ramki, all along you have been very firm in your belief that people who buy apartments are those who want to save time and money. I agree with former, but not latter. It is not true that people who are short of funds are the ones who buy apartments. Care to explain why these people buy apartments?

              Diamond-studded flat in Chennai for Rs 8 cr - Economic Times



              Flats in premium Adyar project go for Rs 5 crore - Times Of India

              Boss, good that you brought the example of Pepsi CEO Ms Indira Nooyi. She is good example of a person 1) Who has extremely limited time 2) Who is not interestedin buying RE purely from ROI point of view,since she is a well paid CEO of a company whose ESOPs will be making much of her Net worth.

              She would probably see Chennai RE as her second home in India during those winter/january holiday visits so makes perfect sense for her to buy into expensive flats/GCs in city for her and for all her family members.

              Comes again to same point - In the Flat Vs plot argument, we must understand that each person has his or her own specific needs. A decision is to be made only based on that. And i would say K11 is also right in that - whether flats or plots, give importance to location also. Though I argue that plots give better ROI generally, there are situations where Plot investing can be giving poor ROI - like buying in far off villages over 100 miles from city, or buying into overhyped layouts that do not stand the test of time.

              Likewise, buying high rental yielding flats in secondary markets at bargain prices, can also give as much good ROI (and if you leverage, it can be even higher) , but that is IMHO requiring more time, effort and Talent (and some luck) than buying a plot !!!

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              • Re : Property Price Trends in Chennai

                Originally posted by SRajagopalan View Post
                Thanks i know my sqft calculations was wrong hence i conservatively figured it,also the end maintenance may only be 2.5rs per sqft im hearing
                Im not a buyer so real buyers can update regardless, 7C to 10C association revenue if not managed professionally will cause wasteful spending, kickbacks, free favors, corruption is my point
                i have no doubt that it will be case. Once the vendors get a smell of the association they will start to pay "visits" with gifts this is very usual
                Very Important point here - These maintenance costs (Whatever absolute numbers) for GCs are not static numbers. They keep increasing with time and more so in recent periods. Here lies the rub. Not all residents of GCs are ready to bear that increasing costs. That is why I belive that - the successful GCs are the ones where residents have very high net worth and use the GC as their primary residence. They are like those rich daddys in movies who carry a cheque book to write a cheque to anyone and everyone for what they need.

                Today maintenance costs run into a couple of thousands in many GCs.. 15 years back, that was the money you needed to rent a decent flat in city. THINK !!!

                Comment


                • Re : Property Price Trends in Chennai

                  Originally posted by s.sath View Post
                  Personally, I don't mind paying up to 10% of the maintenance fee for the management to run it.
                  Problem is - not everyone is interested in that. In GCs, not everyone is interested in those expensive amenities like swimming pools and gyms and whatever. And if you are a tenant, your interest in spending for upkeep of the common area is near zero. All that you care is some place to park your vehicle(s) safely land some sunny place to dry clothes that is all.... This is the inherent flaw in GCs and one must live with this.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Excellent compilation covering almost whole of Chennai! And as usual a very informative post from Nabhishek.
                    May I know if this was done by a RE firm or done independently. Also can you help us understand the criterias considered for Budget projects... haven't come across any projects in 9K range in Adyar, Besant nagar areas. Also I guess 16K price range may apply to very few projects in thease areas...similarly haven't seen any Thiruvanmiyur project at 14K price range...I'm sure I'm missing something here.


                    Originally posted by nabishek View Post
                    Hi Friends,

                    It has been a while since I updated this thread.

                    Let me start by posting the prices for 2012-2013

                    [ATTACH]29046[/ATTACH]

                    [ATTACH]29047[/ATTACH]

                    [ATTACH]29048[/ATTACH]

                    A Brief history of this thread

                    Chennai RE market had a bull run from 2003/2004 onwards and peaking during 2007/2008..The apartment and land price had reach unsustainable levels riding on the availability of liquidity in the market and good sentiments. Then We had 2008..sentiments became bad, noone was interested in RE..people were more worried about retaining their job first. We saw prices crashing as much as 30-40% in many places from the peak 2008 price in 2009/2010 (https://www.indianrealestateforum.co...486#post116486). Many of us had expected the trend to continue for couple of more years, but that wasnt to be..Government infused liquidity in the already over-leveraged market and inflation fuelled the slowing RE wheel to rotate again. Coupled with the revision of guideline value and easing of FSI rules, Chennai RE witnessed a bounceback of sorts. We are now in a situation where the prices have recovered and in some places are 15-20% more than the earlier peak price and in many places unaffordable even to local popualtion. In short we have come full circle and are in exact situation when I had started this thread. But we are at a different time and different price point. Though the fundamentals have not changed..the situation has.

                    I would like to hear your opinions on future trend of Chennai RE prices.Do you expect the cycle to repeat?or will the prices normalize towards the median income by correction or stagnation against inflation? Please share your views.Thank you.

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                    • Re : Property Price Trends in Chennai

                      Originally posted by blogger View Post
                      Excellent compilation covering almost whole of Chennai! And as usual a very informative post from Nabhishek.
                      May I know if this was done by a RE firm or done independently. Also can you help us understand the criterias considered for Budget projects... haven't come across any projects in 9K range in Adyar, Besant nagar areas. Also I guess 16K price range may apply to very few projects in thease areas...similarly haven't seen any Thiruvanmiyur project at 14K price range...I'm sure I'm missing something here.
                      This was done by a local Real Estate magazine called "Chennai Realty".
                      Source : http://www.chennairealty.biz/residential-rate-watch.php

                      I think the actual market value lies somewhere in between the rates quoted for budget and premium apartements. This data is collected from 2012, I suppose so it may have the price of end 2011 too included which can explain the variance and as usual adyar will include areas like Pallipattu and besant nagar will include vannanthurai etc.For analysis, It will be safe to assume budget and premium prices quoted refers to prices from small builders/ongoing projects and big builders/future projects.
                      Last edited June 15 2013, 09:05 PM.

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