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Property Price Trends in Chennai

Last updated: September 4 2017
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  • Re : Property Price Trends in Chennai

    Originally posted by Rangadorai
    Dear Mav
    I have lots of respect for you and your knowledge on RE as you are a Vetran.I am a new comer with just few years in this field after retirement and as there is no other business to do I watch very carefully the RE on a regular basis only in Chennai.All I wanted to convey in this forum to the prospective buyers(not investors- I keep away from them) based with facts is do not wait for the prices to fall which is not going to happen and if you are planning to buy for end use be it a flat or a piece of land do it at once.
    Veteran status in IREF is posts-count based. Treat all members posting based on the merit of what they share and how they reason. No halo around anyone - that only allows blind followership and numbs one's reasoning.

    I give reasons for what I say. You give reasons for what you say. Both are needed to see the meat under the skin. Let the readers be the judge and choose based on what they see fit and decide. For instance, rather than saying don't wait and price fall is not going to happen - say why you feel so. Reasoning of that's how it has been - is no reasoning. Let others' conclude and make decisions. Why decide for others?
    Last edited by maverick007; April 13 2017, 01:46 PM.

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    • Re : Property Price Trends in Chennai

      Rangadorai
      I have been in the market looking to buy for the past 2-3 yrs. Prices were flat or slowly trending down till Q4 last year. Since then theres been significant downward pressure. Sellers are holding unless they have a specific trigger event - marriage, college and so on. I personally know of deals in some of the hot areas that are 20-30% below last years prices. Builders going under, RERA rules, demonetization, TN politics, oversupply in certain sectors, economic uncertainty, etc. all add to it. As of now, upside seems rather limited.

      Some of the arguments for RE here seem to center on past performance. Thats only one of the data points to look at. Historic returns are not a predictor of future performance.
      Chennai in 2017 is dramatically different from 1997. Demographics, opportunities, resource availability - everything has changed.
      Depends on time horizon as well. With a carefully chosen time horizon any asset sector can be made to look good. Vis a vis what?
      I am not saying RE is dead. Just that we are in for a tumultuous few years with appropriate price correction.
      Last edited by fortuna; April 14 2017, 05:39 PM.

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      • Re : Property Price Trends in Chennai

        I am sorry to state that you are just shooting in the air with no support.I proved what has happened between 2013 and present to that too a flat which has returned two times the original investment in four years time span .So what are we looking at.I feel sorry i missed the boat and do not want the Members of the IREF to do the same mistake.Price correction ahh thats a good one.we are not living in utopia,even when the price of oil is regulated one does not get the benefit,what ever goes up one can expect a minor adjustment not a miracle of 50 %down the price.Say the max is 5 -7 % if the seller is want of funds.so we need to be cautious when comes to investment or end use

        Comment


        • Ramchi
          Ramchi commented
          Editing a comment
          I have bought an apartment in 2009 in OMR if I could get twice the price of 2009 I am willing to sell! Believe me, so far I could not get one! This is not a run in the mill apartment, it is a well finished, completely handed over and efficiently functioning gate community! As far as I could see RE going nowhere in terms of appreciation but that doesn't mean RD is dead!! There very very few select projects (of this 90% may be luxurious with very high price tags located in prime areas) are probably going well.

        • RE King
          RE King commented
          Editing a comment
          Apartment is Land + Building. Land appreciates, Building depreciates. Price of Apartments hardly grow especially if bought from big builders as they have robbed all the premium for years. So doubling of apartment in 5 years is too difficult. Apartments give you about 8% growth rate. Ofcourse you should count the rental value that you gained. Add this and 8% is quite likely the figure. For land the price appreciates at around 15 to 30% depending on the years.Last couple of years land price was stagnant but is picking up in the past 8 months or so.

      • Re : Property Price Trends in Chennai

        Originally posted by Rangadorai
        I am sorry to state that you are just shooting in the air with no support.I proved what has happened between 2013 and present to that too a flat which has returned two times the original investment in four years time span
        How did the 'flats in general' did since 2013? Or you believe you have the secret sauce to identify that 'flat' which can defy the general trend is what IREF members want to know. Pl share.

        Harping on one instance when most who bought in 2013 are suffering, do not make a case. And to use that as a basis to suggest everyone not to wait - is even more ludicrous.

        Comment


        • Re : Property Price Trends in Chennai

          Doshi Risington was launched in Oct 2015.

          At Rs 4850 psft launch price, it was quoted as a great value - 25% discount to prevailing prices: Check here

          In today's property Plus - Doshi claims Price rose to Rs 5050 - whopping 4% in 19 months. Very tough to do a bar chart for Rs 100 rise and they managed to do it with four bars graphically - nice try to claim 'Rising Prices'. For observers, the only thing that is rising remarkably faster is the - ignorance of the gullibles.

          All the floors structure seem complete from the images - so, 60-70% of the total price may have been taken by the builder. Yikes!

          Comment


          • Re : Property Price Trends in Chennai

            Any members have info to share on the ongoing rate per ground (2400 sq ft) in Padmanabhanagar, Adyar. Even with old house is fine. Pl share - prefer 5th street, however happy to look at options

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            • Re : Property Price Trends in Chennai

              RERA, GST to escalate price of houses by Rs 500 a square foot


              Published: Apr 20,201705:45 AM

              Chennai:
              Confederation of Real Estate Developers’ Association of India (CREDAI) members told DTNext that the cost factor would considerably go up with the implementation of RERA as the builder must bear 70 per cent of the project cost till the time the property is handed over to the buyer. This could be again bad news, both for the buyer and the builder, as the real estate business has been badly hit for the last two and half years.

              “Definitely, there is going to be a huge increase, post RERA and GST. We are yet to exactly quantify the increase but sure, it is going to be huge. We are eagerly awaiting the GST tax bracket that the real estate segment is going to be factored in,” Suresh Krishnan, president of CREDAI, Chennai told this newspaper.

              http://www.dtnext.in/News/City/2017/...vpf?TId=112131
              Last edited by Cholan; May 1 2017, 08:25 PM.

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              • Re : Property Price Trends in Chennai

                “Definitely, there is going to be a huge increase, post RERA and GST. We are yet to exactly quantify the increase but sure, it is going to be huge. We are eagerly awaiting the GST tax bracket that the real estate segment is going to be factored in,” Suresh Krishnan, president of CREDAI, Chennai told this newspaper.
                Credibility of CREDAI is well known. Above is a scare-mongering tactic to make the buyers bite before June 30th. Why are buyers not biting today? Prices. If you raise it by Rs 500 psft, will they buy? Affordability do not care much about whether RERA or not.

                RERA needs to come from FAT margins of the builder. Builders need to use scale and engineering to eke out efficiency and absorb the hit. If one doesn't, those who 'engineer' and 'manage' projects with scale will take market share. Those who are small will suffer as they can't pass on.

                Bulk of the medium and small scale builders can rarely spell Civil Engineering right. They need to exit their business and better ones will gain scale and size at their expense. Builders margin needs to come from 20-30% savings over what it would cost for an individual to construct himself. Today, retail pays 20-30% more in land cost by buying 1G/2G. Similarly, the construction cost is exorbitantly higher as everyone in the chain squeezes/fleeces them - contractor/material vendor/plumber etc. Honest builders can create tremendous value to the consumers even after they comply with RERA. Instead, bulk of these morons have poor practices, lack of process, poor understanding of cash flow or rather they are poorly qualified to be in the business.

                RERA and GST is a huge positive for organized builders like Prestige/Sobha/Brigade/Kolte Patil etc.

                Read this article: No RERA for you: Chennai home buyers in limbo after Tamil Nadu fails to ratify act before deadline
                Last edited by maverick007; May 1 2017, 09:11 PM.

                Comment


                • Ramchi
                  Ramchi commented
                  Editing a comment
                  Cash mismanagement is not by accident, it is by choice and well thought out! Hope RERA State Bill does not dilute escrow provisions (related to withdrawal) which would enable builders to divert funds of one project to another, buyers face long drawn litigation process

              • Re : Property Price Trends in Chennai

                Originally posted by maverick007 View Post

                Credibility of CREDAI is well known. Above is a scare-mongering tactic to make the buyers bite before June 30th. Why are buyers not biting today? Prices. If you raise it by Rs 500 psft, will they buy? Affordability do not care much about whether RERA or not.

                RERA needs to come from FAT margins of the builder. Builders need to use scale and engineering to eke out efficiency and absorb the hit. If one doesn't, those who 'engineer' and 'manage' projects with scale will take market share. Those who are small will suffer as they can't pass on.

                Bulk of the medium and small scale builders can rarely spell Civil Engineering right. They need to exit their business and better ones will gain scale and size at their expense. Builders margin needs to come from 20-30% savings over what it would cost for an individual to construct himself. Today, retail pays 20-30% more in land cost by buying 1G/2G. Similarly, the construction cost is exorbitantly higher as everyone in the chain squeezes/fleeces them - contractor/material vendor/plumber etc. Honest builders can create tremendous value to the consumers even after they comply with RERA. Instead, bulk of these morons have poor practices, lack of process, poor understanding of cash flow or rather they are poorly qualified to be in the business.

                RERA and GST is a huge positive for organized builders like Prestige/Sobha/Brigade/Kolte Patil etc.

                Read this article: No RERA for you: Chennai home buyers in limbo after Tamil Nadu fails to ratify act before deadline
                cant agree more. credai is a cartel, they would say anything to favour their business. this price hike threat is to lure buyers to sell maximum inventories possible before RERA, once RERA is implemented they are going to struggle to meet the delivery deadlines. TN not implementing RERA yet, all it tells me is Credai Lobbying TN Ministers. we all know whom the ministers would favour.

                Comment


                • Re : Property Price Trends in Chennai

                  I remember few years back credit chitti babu saying if corruption can be reduced the project cost can be reduced 30 to 40%.Credai kind of association cannot fight corruption for its members then who will fight the individual who need to pay up for bad links...they all will find their own grave soon if they don't raise up to the change..

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