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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 infoseek View Post
    nabhishek, but principal is part of 80C and capped to 1 lac which has many other items as well like PF, PPF etc. Interest is the bigger component anyways in the amort chart.
    Looping back to SRaj's question.. does this play a part in renting in desired locations and letting out own properties in not so desired locations.
    You are right. But considering the fact that no one intentds to pay the loan for entire 20 years and will be prepaying the loan wherever possible,one can start showing greater amount of the EMI towards principal+interest that works out higher than just interest alone. In second house, With additional costs of showing rental income, wealth tax and high interest rates and low rents, high maintainence etc..doesnt make it very lucrative in my opinion. Buying on a spouse name or joint loan would be better if buying is a must. Most use second house to only show "loss from property". Generally Banks give loans at a lower interest rate if its only self occupied first home. This is to encourage new buyers. Once you have multiple loans to service, you no longer are eligible to such rebates, you may be denied Pre-EMI, asked for additional down payment etc and it affects ones credit worthiness too.

    It surely is beneficial to stay on rent while letting out the house only IF you are saving more on tax benefit than the rent expense and earning more than EMI+rent which is a huge cost. Additional savings are not always the case with single home, with a second home too its only maybe.

    Heres a good article on this subject

    A second house can reduce your tax burden - Economic Times

    Comment


    • Re : Property Price Trends in Chennai

      Renting is always better and best at times for many . But who is the Investor for such properties?

      Invetsors who buys property and let's out are smart or Tenant who occupies at low rent is smart.

      Both are smart as long as Math is working out in economical way . But owners always win with Capital Appreciation for the deployed Capital

      One can own 2 properties in

      A .residing area ( with low interest outgo towards home loan ) where he is working with highest rent

      B. another property in home town or other location ( with high interest outgo) with low rent

      and claim IT rebate by using B by living in A .

      As simple as that .

      One has to choose the amount of loan, desired location and Rental pattern while in employment to reap such benefits .

      RE gives nice return in 10-15 years cycle in our economical condition steadily

      Comment


      • Re : Property Price Trends in Chennai

        Is the rate 3900 per sq feet worth in thirumudivakkam area in navin's hill view project/amarprakash project near ORR.How about the locality and quality of drinking water in this area?Will there be any appreciation in this area?

        Comment


        • Re : Property Price Trends in Chennai

          Originally posted by priya80 View Post
          Is the rate 3900 per sq feet worth in thirumudivakkam area in navin's hill view project/amarprakash project near ORR.How about the locality and quality of drinking water in this area?Will there be any appreciation in this area?
          Priya.. each project usually has a separate thread in this forum and you can post your queries in that thread to get the the quickest response. Navin Hill view was discussed in https://www.indianrealestateforum.co...hennai?t=51044 however it is not active for a while now. You can still post your queries there and get your responses

          Sent from my GT-I9505 using Tapatalk

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          • Re : Property Price Trends in Chennai

            The general price trend is up in the city. Specifically the areas like alwarpet, RA Puram, Numgampakkam, Mylapore, T Nagar the new projects are priced 20k/sq.ft and above irrespective of brand. The price of resale apartments are catching up with in relation to new projects. I do not see any speculation and it seems to be end user driven market when comes to apartment. On the other hand large speculation going on plot investments in extended suburbs like Chengulput, guduvanchery, Maruvathur and beyond.

            The price trend of new projects are in line with cost of material and land. The new trend is emerging among youngsters who buy apartments before they get married. Also previously left out NRIs are major contributors for high end properties in the city.

            Over all 2013 seems to be year of survival for big realty firms. As people expects change of govt in 2014 and move towards more of capitalistic govt. 2014 also bring new set of challenges to Emerging markets as Fed started unwinding its massive QE, but still owe to keep long term rate low. However India may see revived economic upswing if govt changes.

            I expect in 2014 nifty would return far better than RE. Gold has been in absolute turmoil in 2013 and represent good opportunity to grab some for better return in 2014.

            Comment


            • Re : Property Price Trends in Chennai

              Overview of the real estate sector in 2013: It’s that time of the year when I look back at the months gone by and analyze events which may have leveraged the prospects of the Indian economy and the progress seems manifold in almost all sectors. Real Estate and Infrastructure too, is an area that has witnessed unprecedented growth in the last two decades. However, with growth comes the slack, and with the economies facing a slump in the past few years, no sector has been left unscathed. Monetary tightening resulting from RBI’s measures to control inflation was the major macro influence on the real estate business in India, through most part of the year. High interest rates, spiraling vacancy levels and lower margins arising from inflationary pressures too, led to a slowdown of construction activity leading to a drop in new launches, and also delayed project delivery by several months. Developers with exposure to residential projects are particularly worried, with slowing sales leading to a situation of oversupply in many parts of the country.

              City Wise Classification: My interactions with developers, clients and in-house experts have shaped my understanding of the top six residential markets of the country namely Mumbai, NCR, Bengaluru, Chennai, Hyderabad and Pune. Mumbai and Chennai, which are land locked from one side by the sea, have the highest weighted average price of ` 5,900/sq. ft. and ` 4,700/sq. ft. respectively. Their unique topography has ensured restricted supply of land resulting in high prices for residential properties. While the weighted average price in Mumbai city is much higher at ` 15,000/sq. ft., it goes down to ` 5,900/sq. ft. for the entire Mumbai Metropolitan Region which also includes areas such as Thane, Navi Mumbai, Mira-Bhayandar and Vasai-Virar. Cities such as Bengaluru, Pune and Hyderabad have a relatively lower weighted average price of ` 3,800/sq. ft., ` 4,500/sq. ft. and ` 3,450/sq. ft. respectively.
              Emergence of the peripheral markets in these cities on the back of large scale development of the IT/ITes sector, has managed to keep prices to more reasonable levels. Bengaluru remains the most affordable residential market with more than 77% of its total under construction units falling below the ticket size of ` 50 lakh. This is followed by Chennai at 75%. The deliberate strategy on part of developers in these cities has been to focus on the peripheral areas and offer the right sized apartment which has ensured that the new supply does not breach the affordability level of the target segment. In contrast, Hyderabad has only 51% of its total under construction units below the Rs.50 lakh price bracket despite the city having the lowest weighted average price among the top six metros. Since majority of the new projects are skewed towards larger sized apartments, the ticket size breaches the 50 lakh mark despite the lower per sq. ft. price. Mumbai remains the most unaffordable market with 29% of the city’s total under construction units surpassing the ` 1 crore mark as compared to 11% and 5% for the NCR and Bengaluru markets respectively. Current scenario & Future At 5% GDP growth in FY13, the Indian economy grew at the slowest pace during the last decade. Besides, policy inconsistency and apathy towards the sentiments of the international and domestic business community have aggravated the agony. Hopefully, the policy makers realize that relaxing FDI norms alone will not attract foreign investment. Conducive business environment promoting transparency and policy consistency is a greater prerequisite.

              n a bid to achieve the same, the Securities and Exchange Board of India (SEBI) also revived the process of introducing real estate investment trusts (REITS) in the country. However, these regulations couldn’t take shape due to a number of factors, including the global economic slowdown, which also impacted real estate markets. In a welcome move, SEBI once again brought out Draft REITs Regulations, 2013, which were made public on October 10, this year for inviting stakeholders’ views. The underlying reason for all these moves is that the Indian real estate story continues to be tremendously attractive. While, there is a sort of saturation in the Tier 1 cities, the good news is that Tier II cities have started growing with the IT and industrial sectors investing in such places. Thus, Indian real estate is poised for a boom, taking the rest of the economy with it. The notion that Indian real estate is expensive is based more on the cost of undeveloped land, which is becoming a scarce commodity, than finished residential or office space, which is still available at reasonable prices in most places. The momentum remains positive, if we can get the investment story right, lower the fiscal deficit and have more progressive monetary policies being drafted by the RBI, there’s nothing which can refrain us from coming back on the growth track by the second half of 2014.


              Checkout: How India's realty sector performed in 2013 - Moneycontrol.com

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              • Re : Property Price Trends in Chennai

                Happy new year guys.

                Comment


                • Re : Property Price Trends in Chennai

                  I came across few projects at astounding rates in the last two months. 35K for high end projects like Akshaya and VGN in Nungambakkam, Villa project in College Rd, Nungambakkam I think 12 units only, small apt project in PG.
                  High end is not 20K any more. 20K is the starting price of projects in central chennai.

                  High end luxury projects would mostly be pursued by end users not return chasers or speculators.
                  Also I do not think these are bought by young first time buyers or normal NRIs. There is a section of population who buy these. It is normal to see those people buying a 75L-1Cr SUV/car, I see many Bentleys nowadays, they are like 2Crs or more. So buying a 15Cr house is not a big deal for some of these folks.

                  Coming to suburban areas, the slowdown might not affect the realty companies a lot.
                  Builders mostly nowadays do not keep landbanks. They do JVs mostly, they make money as land owner absorbs interest impact and the builders get the money from buyer for building the project.
                  So builders will survive, though will see much smaller revenue.

                  Like all other cities, builders will keep building in suburbs, pushing massive inventory to market.
                  Prices will be kept in check through competition and inventory. It is a good thing for end users as long as there are flats available for 4-5K budget. Slowdown is a blessing for first time buyers.

                  Most plot buyers in suburbs buy with cash, not with leveraged or borrowed money. They will hold on to them, most do not know how to use the capital anyway if they sell. So the slowdown or stagnation will not impact them either.

                  After the crazy run we had in the last four years or so (tripling in most areas), it is not bad to see stagnation for few years.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Originally posted by k11 View Post
                    I came across few projects at astounding rates in the last two months. 35K for high end projects like Akshaya and VGN in Nungambakkam, Villa project in College Rd, Nungambakkam I think 12 units only, small apt project in PG.
                    High end is not 20K any more. 20K is the starting price of projects in central chennai.

                    High end luxury projects would mostly be pursued by end users not return chasers or speculators.
                    Also I do not think these are bought by young first time buyers or normal NRIs. There is a section of population who buy these. It is normal to see those people buying a 75L-1Cr SUV/car, I see many Bentleys nowadays, they are like 2Crs or more. So buying a 15Cr house is not a big deal for some of these folks.

                    Coming to suburban areas, the slowdown might not affect the realty companies a lot.
                    Builders mostly nowadays do not keep landbanks. They do JVs mostly, they make money as land owner absorbs interest impact and the builders get the money from buyer for building the project.
                    So builders will survive, though will see much smaller revenue.

                    Like all other cities, builders will keep building in suburbs, pushing massive inventory to market.
                    Prices will be kept in check through competition and inventory. It is a good thing for end users as long as there are flats available for 4-5K budget. Slowdown is a blessing for first time buyers.

                    Most plot buyers in suburbs buy with cash, not with leveraged or borrowed money. They will hold on to them, most do not know how to use the capital anyway if they sell. So the slowdown or stagnation will not impact them either.

                    After the crazy run we had in the last four years or so (tripling in most areas), it is not bad to see stagnation for few years.

                    I need advice on how best to avail of the quoted rates. Ours is an apartment complex (G+4, plot size 3 grounds) of 15 flats of various sizes and a few garages, bang on the convergence of Adyar, Santhome, Mandaveli, off Greenways Road, on a 30' road. It is over 25 years old and some of the residents want to sell if they get real good rates and some want to rebuild considering the worth of a new apartment here.

                    1. How much can we expect to get per apartment (GV of land here is Rs.16000) if we sell?

                    2. What is the FSI here including premium FSI?

                    2. Who is the best builder to approach to give us the best deal either way?

                    Any input will be greatly appreciated.

                    Happy New Year!

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by ferret View Post
                      I need advice on how best to avail of the quoted rates. Ours is an apartment complex (G+4, plot size 3 grounds) of 15 flats of various sizes and a few garages, bang on the convergence of Adyar, Santhome, Mandaveli, off Greenways Road, on a 30' road. It is over 25 years old and some of the residents want to sell if they get real good rates and some want to rebuild considering the worth of a new apartment here.

                      1. How much can we expect to get per apartment (GV of land here is Rs.16000) if we sell?

                      2. What is the FSI here including premium FSI?

                      2. Who is the best builder to approach to give us the best deal either way?

                      Any input will be greatly appreciated.

                      Happy New Year!

                      Two options:

                      1. The Assn can sell the land and everyone gets their share according to UDS. If majority wants to sell then do this.

                      2. Get a building contractor to build new building. Existing owners can either pay for construction cost for their unit or sell off their UDS to neighbours or to the builder who can inturn sell it to third party. Common amenities are included in the construction cost.

                      FSI is 1.5 max.
                      Premium FSI is not used in most projects, especially on smaller ones. So this can be crossed off.

                      In option 2, people who are looking to sell will not get flat rate they will get land rate (UDS) only. If sellers want to take a gamble, they can pay for construction out of their pocket and sell it themselves later.

                      For construction you can approach multiple contractors and take quotes/compare.

                      If you guys sell the whole land parcel, just put ads on newspapers. Brokers will take notice too. Buyer pays commission, you do not have to.

                      Comment

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