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Property Price Trends in Chennai

Last updated: July 14 2020
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  • Re : Property Price Trends in Chennai

    FYI, biggest reason why economy boomed is becasue of Port and the manufacturing base.
    Having port with largest coal imports help to get electricity needed to run the economy. Rains has been good down in the southern region in the last few years.

    I do agree politics do contribute, the dravidian two party system take turns in getting a bulk of the seats. If Nitish Kumar with paltry 20 odd seats does so much drama, then imgaine how much power Jaya with projected 35+ seats hold. Way to CG does go through Chennai.

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    • Re : Property Price Trends in Chennai

      Originally posted by blogger View Post

      Chennai projects with HIGHEST price tag (projects in Nungambakkam/Poes Garden pale in front of above prices. Do we foresee Chennai price hitting 50K range... If yes by when.
      I suggest you head to Pandiyan Lodge near Egmore Railway station to see Kumaraguru Jhodida Maharaj and pay him Rs 300 and ask the above question.

      He will answer with exact date and time when chennai RE price will hit 50K psqft.

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      • Re : Property Price Trends in Chennai

        Now we know where most of your advice in this forum come from :-)

        Originally posted by Economist View Post
        I suggest you head to Pandiyan Lodge near Egmore Railway station to see Kumaraguru Jhodida Maharaj and pay him Rs 300 and ask the above question.

        He will answer with exact date and time when chennai RE price will hit 50K psqft.
        Last edited November 10 2013, 07:08 PM.

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        • Re : Property Price Trends in Chennai

          Wise points.

          I always looked at Bombay when I felt RE price in Chennai is exorbitant. It might sound funny but just 10 years ago I found it hard to accept Rs 25K/Yr as apartment maintenance charges. I couldn't accept 35L price tag for an apartment in Alwarpet when I can buy one ground land for 40-50L around Kilpauk and build a bungalow later. I laughed at apartments priced at 1Crore in Bangalore wondering who will pay 1C for an apartment and how will they find buyers when they decide to dispose it with a profit. Hope I was not the lone person with such thoughts 10 years ago.

          What gave me a better perspective at that time was the pricing in Bombay and how this city was holding much higher price tag for years. Bombay has since then been my benchmark when I looked at headroom for Chennai RE.

          3 Years later I was stunned when Vijayshanthi carried a first page ad for apartments priced at 4.5C @10K/SQFT at Nungambakkam and the VERY NEXT day thanked buyers on the 1st page again for the overwhelming response! Whole project was sold out in 24 hours! I begun to understand the reality slowly...

          Now we are seeing 15C+ projects 32K/SQFT.

          Not saying Chennai is Bombay/Delhi but with current Bombay pricing as benchmark, Chennai with a diversified industries, port, ever growing population/rich people, black money, I wouldn't be surprised to see 50K/SQFT mark. Let us see how many years it takes to hit it from here.


          Originally posted by k11 View Post
          Chennai is not Bombay/Delhi. They are in completely different segment with big cities, big economy, lot of people with money.

          Chennai is in the next segment. But I feel we are the leader in this segment.

          For me,
          Tier 1 - Bombay/Delhi
          Tier 2 - Chennai, Kolkata, Bangalore, Pune, Ahmedabad, Hyderabad, Satellite Cities(Gurgaon, Noida, Navi Mumbai,etc)
          Tier 3 - In no particular order,Vizag, Jaipur, Gwalior, Kochi, Trivandrum, Coimbatore, Nagpur, Vijaywada, Lucknow, Surat, Chandigarh, etc.

          Kolkata prices are also pretty high in some high end streets though very few people realise it.
          But I think Chennai city (old limits 174sqkm) has much higher prices. Extended suburbs pull down the avg prices in Chennai, make it look artificially lower than Blore, Kolkata, Gurgaon or even Pune.
          Last edited November 11 2013, 07:35 AM.

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          • Re : Property Price Trends in Chennai

            Originally posted by blogger View Post
            I was looking at apartment prices in Mumbai. Here is how it looks.
            Parel - 50K per SQFT,
            Tardeo - 60K
            Colaba, 46K
            Worli Hill 43K
            Kemps Corner - 65K
            Shivaji Park 37K
            Prabhadevi - 40K
            Andheri - 22K to 30K
            Bandra - 37K+
            Mahalakshmi, Powai, - 35K

            Chennai projects with HIGHEST price tag (projects in Nungambakkam/Poes Garden pale in front of above prices. Do we foresee Chennai price hitting 50K range... If yes by when.
            Few small areas can hit in 10 years time but even for some other posh areas like Adyar since the area is big for median price to hit around 45-50 it will take about 3 decades even with a growth of avg 6% for next two decades. If you look at big areas like Andheri or Greater kailesh in Delhi it is only around 20K even some south delhi areas are hitting 80K.

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            • Re : Property Price Trends in Chennai

              Originally posted by blogger View Post
              Wise points.

              I always looked at Bombay when I felt RE price in Chennai is exorbitant. It might sound funny but just 10 years ago I found it hard to accept Rs 25K/Yr as apartment maintenance charges. I couldn't accept 35L price tag for an apartment in Alwarpet when I can buy one ground land for 40-50L around Kilpauk and build a bungalow later. I laughed at apartments priced at 1Crore in Bangalore wondering who will pay 1C for an apartment and how will they find buyers when they decide to dispose it with a profit. Hope I was not the lone person with such thoughts 10 years ago.

              What gave me a better perspective at that time was the pricing in Bombay and how this city was holding much higher price tag for years. Bombay has since then been my benchmark when I looked at headroom for Chennai RE.

              3 Years later I was stunned when Vijayshanthi carried a first page ad for apartments priced at 4.5C @10K/SQFT at Nungambakkam and the VERY NEXT day thanked buyers on the 1st page again for the overwhelming response! Whole project was sold out in 24 hours! I begun to understand the reality slowly...

              Now we are seeing 15C+ projects 32K/SQFT.

              Not saying Chennai is Bombay/Delhi but with current Bombay pricing as benchmark, Chennai with a diversified industries, port, ever growing population/rich people, black money, I wouldn't be surprised to see 50K/SQFT mark. Let us see how many years it takes to hit it from here.
              Chennai city prices were relatively undervalued compared to overall suburbs until three years ago. From 07-10 prices in city were very low, while projects in OMR were going strong at 3-4K psft.

              Demand just took the prices up in the city. That is why certain areas such as Nungambakkam and all went up 6+ times from 2007 (NHB data). Kilpauk, Egmore, etc shot up from 2011 or so.

              By the way you are not alone, all the guys looking at buying land and building have missed getting the cheaper flats.

              Also you missed one important point, 50K was a lot of money back in 2004 but now 50K cannot even get you a month's expense. Market is slow now, but if it picks up after election we might see it sooner than later.

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              • Re : Property Price Trends in Chennai

                Originally posted by k11 View Post
                Chennai city prices were relatively undervalued compared to overall suburbs until three years ago. From 07-10 prices in city were very low, while projects in OMR were going strong at 3-4K psft.

                Demand just took the prices up in the city. That is why certain areas such as Nungambakkam and all went up 6+ times from 2007 (NHB data). Kilpauk, Egmore, etc shot up from 2011 or so.

                By the way you are not alone, all the guys looking at buying land and building have missed getting the cheaper flats.

                Also you missed one important point, 50K was a lot of money back in 2004 but now 50K cannot even get you a month's expense. Market is slow now, but if it picks up after election we might see it sooner than later.
                Very true. Rupee value and inflation is a big concern; now hearing new projections on USD/INR...although this is a sad news it could spur-up RE on the other hand.
                Last edited November 14 2013, 07:16 PM.

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                • Re : Property Price Trends in Chennai

                  A good report about Luxury clusters of India by Jones Lasalle.

                  http://www.joneslanglasalle.co.in/Re...y_Quotient.pdf

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                  • Re : Property Price Trends in Chennai

                    Originally posted by chennaidesi View Post
                    A good report about Luxury clusters of India by Jones Lasalle.

                    http://www.joneslanglasalle.co.in/Re...y_Quotient.pdf
                    Many in this forum will not like this report, it doesnt say about OMR.

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by iceemani View Post
                      Many in this forum will not like this report, it doesnt say about OMR.
                      The write-up about Velachery refers to OMR quite a bit. Due to Adyar (established) and Velachery (growing), OMR itself will not be a shopping destination.

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