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Property Price Trends in Chennai

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

    Originally posted by nabishek View Post
    My thoughts regarding the trend reflected in the fair.

    Chennai Proper - Area within corporation limit

    Premium High end apartments are seeing less demand and significant correction.

    Project at gandhi nagar adyar, ready for occupation available at 8000/sqft as against the earlier quoted price of 11000/sqft a significant fall of ~ 30%

    Project at anna nagar,adyar, besant nagar etc avaialable for 1000-1500/sqft lesser.

    Correction of ~10-20%.

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

    Price are stagnating, not many new projects.Oversupply building up due to huge availability in existing projects.

    Projects in velachery, mogappair, porur etc being offered at around 3500/sqft aginst earlier price tag of 4000-4500/sqft.

    Correction of ~25%

    Chennai Suburbs - Areas outside corporation within CMDA limits.

    Lots of new projects being announced aiming at the affordable housing category, price range around 1500-2500/sqft.

    Projects in Pallikarnai, Selaiyur,medavakkam etc which had the price tag of arnd 3500/sqft is down now to 2500-3000/sqft level(negotiable).

    Heard from other sources that some projects inside jeyachandran nagar,Pallikarnai are being offered at less than 2800/sqft.

    Correction of ~30-40%

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

    Lots of new projects being launched at attractive rates, existing projects slashing price by more than 40%.

    Outskirts are seeing significant correction yet minimal booking.
    Pricing is around 2000/sqft against the earlier price of 3500+/sqft.

    Plot developers offering 100-250/sqft less than their earlier price.Additional sops like free registration etc.

    Correction of > 30%

    In a nutshell, Price has been stagnant and invariably most of the builders mentioned "This is the quoted price, please come for discussion we can offer for much(read as 10-15%) lesser".
    Thanks a ton for the snapshot, Nabishek...You are adding a lot of value to this forum.

    QQ: If the forum agrees with the view given above, my instinct is that RE correction had already happened. Also either these rates might be stagnant for a year or so OR might have a negligible reduction (<5%).

    Bottom line - have we bottomed out in RE prices in Chennai ??

    Comment


    • Re : Property Price Trends in Chennai

      Dear friend,

      Good feed back for those wanting to go in for their flats for own living, with further hard negotiations. I feel, the time is not still ripe for invesments in flats.

      ks2071746

      Comment


      • Re : Property Price Trends in Chennai

        nabishek,

        thank you very much for the inputs. your posts are definitely worth reading.

        Comment


        • Re : Property Price Trends in Chennai

          Excellent work Nabishek. This kind of real market facts is what I am looking for and really makes me want to visit this form. I was almost driven away by some people hitting each other with their personal views. This really helps in the knowing the current price trend before doing any negotiations with the builders and dealing with the cut throat brokers in the highly unregulated Real estate market place.

          Thanks.


          Originally posted by nabishek View Post
          My thoughts regarding the trend reflected in the fair.

          Chennai Proper - Area within corporation limit

          Premium High end apartments are seeing less demand and significant correction.

          Project at gandhi nagar adyar, ready for occupation available at 8000/sqft as against the earlier quoted price of 11000/sqft a significant fall of ~ 30%

          Project at anna nagar,adyar, besant nagar etc avaialable for 1000-1500/sqft lesser.

          Correction of ~10-20%.

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

          Price are stagnating, not many new projects.Oversupply building up due to huge availability in existing projects.

          Projects in velachery, mogappair, porur etc being offered at around 3500/sqft aginst earlier price tag of 4000-4500/sqft.

          Correction of ~25%

          Chennai Suburbs - Areas outside corporation within CMDA limits.

          Lots of new projects being announced aiming at the affordable housing category, price range around 1500-2500/sqft.

          Projects in Pallikarnai, Selaiyur,medavakkam etc which had the price tag of arnd 3500/sqft is down now to 2500-3000/sqft level(negotiable).

          Heard from other sources that some projects inside jeyachandran nagar,Pallikarnai are being offered at less than 2800/sqft.

          Correction of ~30-40%

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

          Lots of new projects being launched at attractive rates, existing projects slashing price by more than 40%.

          Outskirts are seeing significant correction yet minimal booking.
          Pricing is around 2000/sqft against the earlier price of 3500+/sqft.

          Plot developers offering 100-250/sqft less than their earlier price.Additional sops like free registration etc.

          Correction of > 30%

          In a nutshell, Price has been stagnant and invariably most of the builders mentioned "This is the quoted price, please come for discussion we can offer for much(read as 10-15%) lesser".

          Comment


          • Re : Property Price Trends in Chennai

            Originally posted by nabishek View Post
            My thoughts regarding the trend reflected in the fair.


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

            Price are stagnating, not many new projects.Oversupply building up due to huge availability in existing projects.

            Projects in velachery, mogappair, porur etc being offered at around 3500/sqft aginst earlier price tag of 4000-4500/sqft.

            Correction of ~25%

            .
            velacherry is within chennai corporation limits pls modify your post accordingly

            Comment


            • Re : Property Price Trends in Chennai

              Originally posted by newboy View Post
              velacherry is within chennai corporation limits pls modify your post accordingly
              I have corrected it.

              To my knowledge, many places called and sold as velachery do not fall under chennai city corporation limits.It comes under the attached adambakkam,alandur,madipakkam,ullagaram puzhuthivakkam municipality/panchayats purview.

              Comment


              • Re : Property Price Trends in Chennai

                Originally posted by nabishek View Post
                Its a premium project offering on raghavaiah road, t.nagar.It has two attached stilt+4 blocks with seperate lifts.The completion date is December 2009.

                you can get more information from their website lancor.in
                I visited their website. They seem to be an old builder in Chennai, they have given nice photos of some apartments they completed in mylapore Dr.R.K Salai all the way back in 1992.

                Comment


                • Re : Property Price Trends in Chennai

                  Originally posted by nabishek View Post
                  My thoughts regarding the trend reflected in the fair.

                  Chennai Proper - Area within corporation limit

                  Premium High end apartments are seeing less demand and significant correction.

                  Project at gandhi nagar adyar, ready for occupation available at 8000/sqft as against the earlier quoted price of 11000/sqft a significant fall of ~ 30&#37;

                  Project at anna nagar,adyar, besant nagar etc avaialable for 1000-1500/sqft lesser.

                  Correction of ~10-20%.

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

                  Price are stagnating, not many new projects.Oversupply building up due to huge availability in existing projects.

                  Projects near velachery, mogappair, porur etc being offered at around 3500/sqft aginst earlier price tag of 4000-4500/sqft.

                  Correction of ~25%

                  Chennai Suburbs - Areas outside corporation within CMDA limits.

                  Lots of new projects being announced aiming at the affordable housing category, price range around 1500-2500/sqft.

                  Projects in Pallikarnai, Selaiyur,medavakkam etc which had the price tag of arnd 3500/sqft is down now to 2500-3000/sqft level(negotiable).

                  Heard from other sources that some projects inside jeyachandran nagar,Pallikarnai are being offered at less than 2800/sqft.

                  Correction of ~30-40%

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

                  Lots of new projects being launched at attractive rates, existing projects slashing price by more than 40%.

                  Outskirts are seeing significant correction yet minimal booking.
                  Pricing is around 2000/sqft against the earlier price of 3500+/sqft.

                  Plot developers offering 100-250/sqft less than their earlier price.Additional sops like free registration etc.

                  Correction of > 30%

                  In a nutshell, Price has been stagnant and invariably most of the builders mentioned "This is the quoted price, please come for discussion we can offer for much(read as 10-15%) lesser".
                  Friends,

                  I interpret What we are seeing now as the acceptance of correction that happened in phase 2 and not as bottoming out of prices.

                  In one of my earlier posts in this thread I had stated

                  "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."

                  The first part of it has happened, and the rentals are beginning to come down all over the city.There are reports of to-let boards hanging as people are unable to find tenants.

                  An Interesting thing I am observing is people are swapping to locations which are equidistant to their workplace for lesser rent and where it is more affordable.For instance People from thiruvanmiyur are moving to velachery and vice versa.After sometime at both places rental will come down significantly even when supply remains and demand is the same.

                  With huge oversupply building up at several pockets in the city the P/E ratio for the house will make it more unattractive for buying at such high costs.

                  I believe we are in the outset of another wave of 15-30% correction.I expect this will be reflected in the prices within the end of year.

                  i.e.
                  Phase 3 - Correction to Right(Real) Price - Falling back to the inflation/returns adjusted project launch price(read as 2004/2005) with acceptable builders margin and correct FSI factoring.

                  I have shown earlier that after phase 3 correction, The price to expect is year 2006 price + 10-15%.

                  People who are serious about buying and have cash, should use this time till the correction to identify the location and project they are interested in and keep pursuing it for better deal.

                  I would like to emphasize again that one should not exert beyond their capacity and should not be deterred and carried away by the downmoves and upmoves.

                  The builders cannot keep going about only catering to the target segment of NRI/R2I/Businessmens/Self employed people.Though, they are able to sell the volume would not tick as fast as they expect.

                  They desperately need People who have cash and wanting to take home loans to end the wait and watch and enter the market.

                  Price correction and offering value for money is the only way to revive demand from this segment, not sales gimmicks.

                  I request forum members to share their opinion and experiences regarding the trend they are facing while dealing with builders/land owners.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Dear friends,

                    Any one has details of the current prices negotiated with Ruby Builders/Selayur ( a good builder ) who has got more than 15 projects concurrently running now and under progress in areas like Perungalathur, Durga Road/Pallavaram, Chrompet, Hastinapuram, Selayur different areas, Irumbuliyur, Camp Road etc. Their high end area is Rs.3500/sq. ft and it ranges between Rs. 2600 to 3200/sq. ft. in other area projects as could be seen in their web site. Any recent deals settled by members/guests who can share their experiences of settled cases and even no agreement reached yet cases. I am looking for a flat in their projects for one of my friends.

                    ks2071746
                    Last edited April 30 2009, 12:56 PM. Reason: spell

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by ks2071746 View Post
                      Dear friends,

                      Any one has details of the current prices negotiated with Ruby Builders/Selayur ( a good builder ) who has got more than 15 projects concurrently running now and under progress in areas like Perungalathur, Durga Road/Pallavaram, Chrompet, Hastinapuram, Selayur different areas, Irumbuliyur, Camp Road etc. Their high end area is Rs.3500/sq. ft and it ranges between Rs. 2600 to 3200/sq. ft. in other area projects as could be seen in their web site. Any recent deals settled by members/guests who can share their experiences of settled cases and even no agreement reached yet cases. I am looking for a flat in their projects for one of my friends.

                      ks2071746
                      one of my friends finalised everything then took one of his relative to see his previous projects, this friend works in CMDA and said 'NO' point blank on inspection of his projects says he deviates blatantly. the setbacks of 5 ft from the boundary are not even 3 ft.

                      Comment

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