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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 nabishek View Post
    Friends,

    please assume that the locality has all basic infrastructure and amenities and good future growth prospects and the plot is CMDA/DTCP approved.

    1.Whats the ideal plot size, extent, frontage etc to look while buying keeping in mind future prospects like possibility of joint venture, part sale etc?

    ABK:
    the ideal size would depend on the road width, wider the road larger the plot size.smaller the road smaller the plot size.either case the frontage should be 40 feet for 1 gnd and about 100 for more than 4 gnds.or you can go for continous plots.see there are possibilities of indp villas or row houses too. it will depend on your budget. my take would be to invest in more than one area as you are never know which area will develop faster.

    2.Does a larger plot mean more returns because of more FSI allowed? or less returns because its comparitively difficult to sell?

    ABK
    you can always subdivide a larger plot.larger is better if road is wide and MSB is allowed.

    3.What should be the road size preferred?Is it advisable to look for a corner plot?

    ABK
    10 m and above, small corner plots abutting wide roads is not advisable as rules require you to leave a splay.

    4.Is a plot on the main road better or one thats peacefully inside on one of the cross streets?

    for living -peacefull-- for invstmnt main road.again adequate depth of the plot is required to manage road widening

    5.After buying a plot, what precautions needs to be taken to prevent encroachment and being misused by others, like being sold to someone else etc.

    change patta,compound,and regular visits.take a gift for the neighbour and keep good relationship with him and ask him to keep ypu informed, pray to god.

    By raising these questions I am trying to understand if there is any pattern why different plots in the same locality sell at different rate?why one area in a locality becomes posh while others attract middle and lower income people?Why does some area become a commercial hub while other becomes residential?

    ABK :
    POSH means POSH(rich & famous) people move in. commercial bcoz a good estb moves in and others follow. even a temple ,bus stop a bank,post off.registrar off or any other public bldng coming there would create a potential commercial hub

    I am sure it will be useful to all, If we could get some answers.

    Thanks all of you in advance.
    my views pls post yours
    Last edited May 8 2009, 05:19 PM.

    Comment


    • Re : Property Price Trends in Chennai

      Thanks for posting abk, with your knowledge and experience in chennai real estate you are an asset to this forum.

      Let me share my views and thoughts.My opinions are only within the capacity of an observer of chennai RE and nothing more.

      please assume that the locality has all basic infrastructure and amenities and good future growth prospects and the plot is CMDA/DTCP approved.
      I believe for any locality to have sustainable appreciation; development of infrastructure and ameneties should also happen at uniform speed.

      Some possibilities how this could happen are as follows

      i) The locality falls within the ambit of local governing bodies and civic authorities and in the scope of latest development plans announced by the central/state authorities.
      ii) Big township planned by private Builders/Promoters independantly or in partnership with government/CMDA/TNHB
      iii) New SEZ,Industries,Companies creating job opportunities and creating new demand for housing in the vicinity.Can hope that the speculative interest would fuel rapid growth of all facilities.

      Observing how chennai has developed over the years, The appreciation seems to have followed the political will to develop a location by announcing lots of infrastructure and development plan.

      Each time a different political party comes to power,ongoing development is stalled or happens at snail's pace.The new government launches new development scheme in another location which is more aligned with their interest and agenda.

      This scenario of shift in focus during each term forces investors to hold land atleast for 10-15 years to see good appreciation.

      Today even though we have big players in RE who are capable of another powai or gurgaon, I am skeptical how successfull they will be with the huge township projects without support from the local government/authorities.I feel they will be reduced to the stature of any other builder who constructs good quality apartment with all amenities.Public/Private partnership in this front would be healthy.

      My bet on location for investment would be within CMDA/New Corporation limits and areas like GST road/Avadi/Kolkata Highway where satellite township has been planned and connectivity is well established and lots of new developments planned by the government.

      Chennai has huge scope to develop horizontally, Within the city with the possibility of increase in FSI we can expect higher buildings, widening of existing roads,better landscaping, decongestion of population density etc.

      I believe We can see lots of self sustained localities forming and adjacent towns become the nucleus for independant CBD's in future years.

      Following is my order of preference in selecting a layout

      i) Layout formed by government entities like tamilnadu houing board(TNHB), city improvement trust(CIT) etc
      ii) Layouts formed by companies and banks for their employees like AGS/TANSI/LIC/SBI etc
      iii) Layouts formed by co-operative societies.
      iv) Layouts from independant plot developers.

      I prefer wide roads and all infrastructure like water tank, school, drainage all well planned out.Sticking with government allocation eliminates the possibility of future acquisation or de-notification to a large extent.

      1.Whats the ideal plot size, extent, frontage etc to look while buying keeping in mind future prospects like possibility of joint venture, part sale etc?
      I completely agree that the larger the road, the bigger should be the plot bought.My take is 1 ground plot if its on the cross streets and 1.5-2 ground plot if its on the main road.

      If one is deciding to buy multiple plots, I feel buying as 2Xn matrix blocks(two plots one behind the other with each row facing differnt roads) is better considering future JV or part-sale possibilities.

      Regarding, TNHB plots I would prefer HIG VIP allocations.

      2.Does a larger plot mean more returns because of more FSI allowed? or less returns because its comparitively difficult to sell?
      Though I cant say with certainity, I still believe FSI allowed is being used largely to mark the price of a plot.Within the city larger plots fetch higher price while outside the limits larger plots are priced cheaper compared to individual plots.I am still lost here.

      3.What should be the road size preferred?Is it advisable to look for a corner plot?
      For me, any road smaller than 40' feet doesnt suit my taste.I wonder how for a metropolitan city like chennai approval is given for small roads like 16'.All the approval commitee seems to verify is whether all plots are accesible and is the plot size in proportion to the road size.Surprisingly these roads dont even include footpath, drainage or shoulder width.

      I also feel corner plots should be avoided.If one wants to buy it, they should consider only if its a large plot minimum 2 grounds.

      4.Is a plot on the main road better or one thats peacefully inside on one of the cross streets?
      Something that I have observed is that plots on the roads along the border of any locality, along the cooum or canal or dead ends attracts lower income people who work as domestic helps and doing small jobs in the locality.

      Main roads over a period of time attract commercial interest due to better visibility and frequency of vehicles passing, My choice would be plot thats hustled quitely farther but yet near to the main road.To be more clear, like one or two cross streets parallel to the main road.

      5.After buying a plot, what precautions needs to be taken to prevent encroachment and being misused by others, like being sold to someone else etc.
      This is a nightmare, and one of the main reason why I dont want to buy land and am looking for a flat with high UDS on min 40' road as a tradeoff.

      My advise would be to put up a board saying "this land belongs to", If could afford construct a compound and appoint someone to look after it or construct a small house and let it out.Threat of land grabbing and encroachment is really high and chance of getting conned is very high.

      By raising these questions I am trying to understand if there is any pattern why different plots in the same locality sell at different rate?why one area in a locality becomes posh while others attract middle and lower income people?Why does some area become a commercial hub while other becomes residential?
      An area becoming Posh, is because of high profile people coming and settling there.I notice that most posh locations are tucked away quitely from all congestion and activity.They arent the best connected places in terms of bus/rail, near to school/shops etc.Those peoples have cars and many people to run for them.

      These places offer privacy, good luxurious environment for living.The posh locations are pure residential hubs.A pointer to identify where the next posh location could be is to follow the grapevine on where politicians/businessmen/NRI's/IAS officers etc have invested.

      The other places in the locality which is nearer to all facilities like bus/train attract the middle and upper middle class people who are cost conscious and live on a budget and prefer everything to be available at the stretch of their hand.

      Please excuse me for the long post, Thanks for your patience.

      I Request other members who have succesfully invested and benefited to also share their experiences regarding RE investing.
      Last edited May 9 2009, 03:58 AM.

      Comment


      • Re : Property Price Trends in Chennai

        Dear friend,

        A good and valuable post.

        ks2071746

        Comment


        • Re : Property Price Trends in Chennai

          Originally posted by nabishek View Post
          Please excuse me for the long post, Thanks for your patience.

          I Request other members who have succesfully invested and benefited to also share their experiences regarding RE investing.
          It was not a long post, it was a fantastic post.

          Comment


          • Re : Property Price Trends in Chennai

            Dear friend,

            Can I say, though a long post, it is an excellent post?

            ks2071746

            Comment


            • Re : Property Price Trends in Chennai

              In an attempt to create India's first housing index, RBI has come up with NHB Residex.

              It's a good reference to know which direction the trend is moving.

              Following is the link to Chennai price indicators.

              Its interesting to note, that the base year is 2007 which is the same year when the guideline value was revised.

              Comment


              • Re : Property Price Trends in Chennai

                Dear friend,

                It it is unbelievable as:

                01) For Chennai, it indicates reduction of about 7% from 2008 Jan-June to 2008 july-Dec. average. Some areas have shown increases also which is not true. All the areas have shown some reductions.

                02) It shows increase in places like Bangalore, Mumbai etc. where the prices have come down much. Almost all areas of Bangalore and Mumbai have shown increases, in some locations, high increases in the second half of 2008 which is not believable.

                ks2071746

                Comment


                • Re : Property Price Trends in Chennai

                  Friends,

                  List of projects from "South India Property Fair 2009".

                  The Fair largely featured small/medium sized builders and plot developers.

                  The mood was generally upbeat, with many hoping revival in coming months due to stable government at the centre and forthcoming Budget.

                  From what I noticed, people still felt the price was high and were looking for projects near the city while the ones featured were all in the outskirts.

                  It still is a market undergoing corrections, the prices have still not bottomed out.


                  Aadinath Homes

                  Madha Castle - T.Nagar - 9800/sqft
                  Daffodils - Thoraipakkam - 2900/sqft

                  BSCPL Infrastructure

                  Bollineni Hillside - Off OMR - 2500/sqft(apartments),3200/sqft(villas)

                  Himayam Builders

                  T.Nagar,Madley street - 6250/sqft
                  T.Nagar,C.I.T Nagar - 5800/sqft
                  Velachery,A.G.S colony - 3800/sqft
                  Kodambakkam,United India colony - 5800/sqft
                  Perambur - 3250/sqft

                  Macro Marvel Projects

                  Marvel shire - Sriperumbudur - 2350/sqft

                  Marutham Group

                  Marutham Orchid - Urapakkam - 2500/sqft
                  Marutham Residency - Guindy - 3900/sqft
                  R.K.Mejesty - Korattur - 3300/sqft
                  Marutham Thulasi - Pallikarnai - 3000/sqft
                  Marutham Mullai - Madambakkam - 2800/sqft
                  Marutham Gem - Madambakkam - 2600/sqft
                  Marutham Kurunji - Ambattur - 2800/sqft
                  Marutam Pearl - Vandalur - 2550/sqft

                  Mehta Havens

                  Gokulam - Velachery - 4200/sqft
                  Srinivasam - Madipakkam - 3200/sqft

                  Green Avenue Homes

                  Dhakshin City(Villas) - Vandalur - 2300/sqft

                  Shyams(S.P. Homes)

                  Radhae Shyam - Vanagaram - 3295/sqft
                  Shyams Riveara - Thirumullaivoyal - 2495/sqft
                  Shyams Chitra - Thoraipakkam - 4195/sqft

                  Vinoth Promoters

                  Vinoth Vetri - Aminjikarai - 4500/sqft
                  Vinoth Valencia - Mogappair - 4500/sqft

                  Winner Upscales

                  Sri Garudhadhri - Keelkatalai - 3000/sqft
                  Last edited May 24 2009, 11:55 PM.

                  Comment


                  • Re : Property Price Trends in Chennai

                    It is costing Rs.2350/sq.ft at sriperambadur and Rs.2300/sq.ft at vandalur zoo.

                    Can't understand how people are still expecting RE to bottom out.

                    Infact Rs.5800/Sq.ft at United India colony, kodambakkam in the heart of south madras looks underpriced when compared to Rs.2300/sq.ft at Vandalur zoo which is 70 kms from Anna Salai.
                    Last edited May 25 2009, 10:51 AM. Reason: proper arrangement

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by contra View Post
                      It is costing Rs.2350/sq.ft at sriperambadur and Rs.2300/sq.ft at vandalur zoo.

                      Can't understand how people are still expecting RE to bottom out.

                      Infact Rs.5800/Sq.ft at United India colony, kodambakkam in the heart of south madras looks underpriced when compared to Rs.2300/sq.ft at Vandalur zoo which is 70 kms from Anna Salai.
                      For last few days after election results we can hear stories of RE price going up again.These stories are mostly planted by RE owners or builders to push their unsold inventory to unsuspecting buyers.Can these people show proof of this.They think if they can create an false impresion that RE is going up buyers will buy in a haste without thinking much.

                      But sure it is going to backfire on them.Atleast now end users are slowly starting their enquires thinking prices have reduced.If you create false noise of price going up again they will not even care to enquire leave alone buying.Buyers have learnt their lesson and dont think you can cheat them this time.
                      Last edited May 25 2009, 12:37 PM.

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