Hi Friends,

I had been to the FAIRPRO '09 Fair.My Impression after seeing, is that prices are stagnating for all ongoing projects and builders are trying hard to hold them up.

Prices are 10-20% lower for new projects in the pipeline and for ready to occupy flats.

The discount offered at the stall was very less and were in the range 150-500 Rs/sqft max.

For the benefit of fellow members I am posting the project/price details of some of the properties.



Akshaya Foundations

Adora - OMR - 3750/sqft
Aikya - Adyar - 12500/sqft

Alliance Group - Orchid Springs - 3199/sqft

Arihant Foundations

Heirloom - Thalumbur - 2499/sqft
Escapade - Thoraipakkam - 4150/sqft
Villa Viviana - Maramalai nagar - starting from 1 Crore

Asvini Foundations

Amarisa-phase1 - Ramapuram - 4500/sqft
Amarisa-phase2 - Ramapuram - 4250/sqft
Akshita - Madipakkam - 3800/sqft

Casa Grande

Riveira - Palikkarnai - 3450/sqft - before discount 3600/sqft
Silver Oak - Perungudi - 4300/sqft - before discount 4500/sqft
Madhuban - Madipakkam - 3300 /sqft - before discount 3500/sqft
Mylapore - R.K.salai - 12500/sqft
Plots
Ponmar -785/sqft - before discount 825/sqft
Maraimalainagar - 790/sqft - before discount 825/sqft

CeeDeeyes - Chenni Pattinam

Basic Rate - 1600/sqft All Inclusive - 2075/sqft

Chaitanya shanthiniketan

Sunnyvale - Ayanavaram - 4850/sqft
Serena - Rajkilpakkam - 2550/sqft
Gardenia - OMR - 1900/sqft
Green Park - Chitlapakkam - 3300/sqft

DLF

Gardencity - 3200/sqft - was told slash in prices expected in coming weeks.

Doshi Housing

Etopia I and II - Perungudi - 3895/sqft
Nakshatra - Tambaram - 2995/sqft - Completion May 2010
Tranquil - Velachery - 5500/sqft - Completion February 2010
Trinity park - Santhoshpuram,Vengaivasal - 3195/sqft - Completion April 2009
Serene Couny-Villas - Santhoshpuram,Vengaivasal - 2200,2600/sqft
LlanStephan - Chetpet - 9000/sqft - Completion May 2009
Sri Mahalakshmi - Ayanavaram - 4495/sqft - Ready to Occupy

ETA

Rosedale - OMR - 3100/sqft
Le Chalet - Villas - Sriperambudhur - 26 Lakhs - 37 Lakhs

Hiranandani Upscale - 4200/sqft

Hiranandani Palace Gardens - 3475/sqft

Indus Housing

anantya - Navalur,OMR - 2299/sqft + 400(other charges)
riviera villa - Navalur,OMR - 90 Lakhs onwards
habittera - urapakkam,GST - 2399/sqft + 400(other charges)
amber - Saidapet - 4750/sqft

Jain Housing

Ankush Prakas - Kilpauk - 7500/sqft - Ready to occupy
Amrit Kailash - Strahns Road - 4500/sqft - Ready to occupy
La Gardenia - Nungabakkam - 7500/sqft - Ready to occupy
Ansruta - Valluvarkottam, nungabakkam - 10000/sqft - Ready to occupy
Antariska - Kodambakkam - 4500/sqft - Ready to occupy
Eiffel Garden - Vadapalani - 4250/sqft - Ready to occupy
Saagarika - M.R.C Nagar, sea facing - 10000/12500 - Ready to occupy
Green acres - Pallavaram - 3900/sqft - Ready to occupy
Abhishek - Selaiyur - 3500/sqft - Ready to occupy.

Jamals

Orchid - Palikkarnai - 3500/sqft
Palazzo - keelkattalai - 3700/sqft
Grandeur - Velappanchavadi(near saveetha dental college) - 3200/sqft

KGEYES

3 Projects on L.B.Road, Thiruvanmiyur - 6650/sqft
Delmare - Beach road,Thiruvanmiyur - 7000/sqft
Carolina - Velachery,Taramani - 4500/sqft
Swathi - Sastri Nagar,Adyar - 8500/sqft
Kalakshetra - 8000/sqft

Landmark Constructions

Tiara - Perungudi - 4000/sqft - Completion on August 2009
Aston Ville - Vadapalani - 5500 sqft - Completion on July 2009
Tudors Place - K.K.Nagar - 6500/sqft
The Address - Adyar - 11500/sqft
The Grange - Palavakkam - 7500/sqft
Cenralia - Chrompet - 2950/sqft - prelaunch
Gem Towers - AnnaNagar - To be launched.
Mahalakshmi Heights - Ashok Nagar - To be launched

L&T Estancia
Construction in Progress
1st-3rd Floor - 3950/sqft
4th -12 floor - floor rise charge of 20/sqft for each floor
13th - 17th - 4450/qft

L&T Eden Park - 3600/sqft

Mantri Synergy - OMR
2800/sqft - with 20/floor rise
Special offer - First Floor - all inclusive
1140 sqft - 33,67,000
870 sqft - 28,50,000

Navin Housing

Dayton Heights - Nelson Manickam road - 6500/sqft + 30/sqft floor rise from 2nd floor
Subha Mangala - Ramapuram - 4200/sqft
Brookfield - Nanmangalam - 3500/sqft
Merrylands - Medavakkam - 3500/sqft

Olympia Opaline - 3441/sqft - spl budget flats available

PACE Builders

Anna nagar west - 4195/sqft - before discount 4495/sqft
Selaiyur - 3195/sqft - before discount 3495/sqft
Valasarvakkam - 2795/sqft - before discount 3295/sqft

PS Srijan

The Grand - Velachery - 5250 sqft - before discount 5500/sqft - Floor Rise applicable from 4th floor

Rajparis

Harmony - Medavakkam - 3100/sqft

Rajarathnam Constructions

RC Prince Gardenia - Perambur redhill road,Kolathur - 3600/sqft

Rajkham

Independant houses - Ayyapathangal - 2600/sqft

Real Value

Sai Skanda - Velachery - 4200/sqft
Sai Surya - Palikaranai - 3800/sqft
OMR opp SIPCOT - 13.20 Lakhs onwards

Shriram Properties

Trishakti - SIPCOT - 2750/sqft
Shankari - 1990/sqft

Sidharth foundations

Tulip - k.k.nagar west - 4800/sqft - completion march 2009
Natura - medavakkam - 3100 /sqft - completion july 2009
Visvaleela - Annanagar - 8500 /sqft - to be launched
Dakshin - Urapakkam - price TBD - to be launched
upcoming projects in porur, thoraipakkam, rajkeelpakkam, mogappair.

SIS

Safaa - Urappakam - 3150/sqft

SSPDL

Crescent - Kelambakkam - Vandalur Road - 2500/sqft
Upcoming 2 villa project one in OMR and one in Sriperambathur.

Sumanth & Co

Thiruvanmiyur - 6000/sqft
Besant Nagar - 11500/sqft

TVH

Lumbini square - Pursaiwalkam - 5500/sqft + 30/sqft floor rise from 5th floor
Ouranya Bay(Premium) - OMR,Padur - 3100,3200 + 25/sqft floor rise from 5th floor
Ouranya Bay(Budget) - 2bhk - 20 Lakhs
3bhk - 30 Lakhs
Ekanta - Coimbatore - 3100/sqft
Revata - Mogappair east - 4500/sqft
Kamya - K.K,Nagar - 7000/sqft
Metro Golden Nest - Sriperambathur - 1bhk - 15 Lakhs
2bhk - 22 Lakhs
3bhk - 28 Lakhs

VGN Group

Minerva - Mogappair,Nolumbur - 2975/sqft
3 in 1, 4 in 1 - 3800/sqft
Mahalakshmi Nagar,Thiruverkadu - 3500/sqft
Plots
Mugalivakkam - 52 Lakhs/grnd
Selaiyur - 50 Lakhs/grnd
SPKoil - 34 Lakhs/grnd
Katankulathur - 22-27 Lakhs/grnd

Yuga Homes

Shem Park - chemmenachery - 3300/sqft
Upcoming in Koyambedu, R.A.Puram(8000/sqft)



There are lots of properties and also lots of potential buyers.There is sure a sense of uncertainity among the builders and also the buyers on when to make the next move.It was evident that correction in RE prices have started to happen.

Requesting members to respond with their thoughts on the current trend.
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  • Chennai

    I am looking for a flat in chennai along OMR. I was told that MARG's Pushpadruma is upcoming and also Arihant Heirloom was there. Any thoughts on these or better properties? I really appreciate anybody's thoughts.
    CommentQuote
  • In my opinion, people do not buy property just on the calculation of a rental yield. The main driving force for the RE market is the expectation of further appreciation.

    Also other income may include tax benefits. Also safe heaven for black money

    Originally Posted by nabishek
    Hi,

    Rental Yield = (monthly rent * 12)/House price * 100%

    Considering a 1500 sqft 3BHK which costs 8500/sqft and fetches a rent of 25000 per month including maintainence and other expenses.

    Cost of House = (8500*1500) = 1,27,50,000

    Rental Income per year = 25000*12 = 3,00,000

    Rental Yield = 3,00,000/1,27,50,000 * 100 = 2.35%

    The optimum rental yield is believed to be around 4-5%.

    i.e. Cost price of house should not exceed 200-240 times the monthly rent.
    CommentQuote
  • Originally Posted by antonyprakash
    In my opinion, people do not buy property just on the calculation of a rental yield. The main driving force for the RE market is the expectation of further appreciation.

    Also other income may include tax benefits. Also safe heaven for black money


    Though people dont take into account the yearly rental income while planning a purchase.I believe they do take it into account rental prospects and the current rent outgoing while calculating their affordability for any loan obligation.

    According to me when a flat is bought taking loan

    1.Yearly rental income should be treated as the returns on the downpayment towards the loan.
    2.Returns from RE due to leveraging taking into account repayment capability and discounting borrowing cost should be treated as profits.

    If people take time and do the maths right, I am sure they will instantly realize the one-sided ness of the process.

    Rental yield shouldnt be confused with rental income.One of the movers of RE is the increasing demand for a particular locality.

    If we probe why demand would increase.Some of the reasons maybe

    1.It would be because of new people wanting to reside and rent there due to proximity to work, schools, facilities etc
    2.People already renting there, wanting to buy as rent is increasing which can be diverted towards EMI and a place can be called home.
    3.Investors buying to book profits as rates are increasing.

    looking at the reasons, It would be evident that everyone is buying because they expect someone to rent their house or want to stay themselves.The expect the flat to be occupied, not lie vacant.

    Pure investment is only land, which is held till some development happens and people start living with basic facilities available.

    All of the above is fine until the happens

    1.The rent reaches a level when it fails to attract new demand.
    2.Prices reach a level when for people who are currently renting find that the house is not affordable to buy.
    3.Investors find that the rates are not increasing any further, because new flats are not selling and vacant flats already available without takers for rent.

    This when the downslide for RE starts.The rental and price starts correcting and continues till a balance is reached when the locality starts to attract new people again.

    This balance is what the rental yield indicates.
    CommentQuote
  • This is not an Ego trip ...

    Originally Posted by Economist
    What ever crisis and crunch that can happen has happened already, there will be no more shock.
    Without any caveat I can stake my reputation to say that "There will be no crash in RE asset prices in India"
    The projection Chennai RE market is falt to moderate gross growth of up to 4% in the next 12 months.
    The next 12 month’s growth will be based on Core Inflation, Followed by real growth (Net of Inflation) in 2011.
    I am not hiding behind any Caveat; My projection is based on thorough assessment of global and Indian macro economic situation.
    What else can go wrong when the global credit wheel came to a grinding halt in Nov 2008? Nothing worse can happen.
    OECD interim economic report today predicted swift recovery and end of GFC
    I think OECD knows better than myself, Wiseman and Unlikely.
    Don’t beat around this bush and unleash bearish views just for the sake of it.



    Dear Economist,

    I'm not getting into an ego fight with you.

    But having said that, like Abishek says, you might just be jumping the gun with a lot of feel-good stuff. Let me explain ...

    You have said that after a thorough analysis of the economy you have come to a definite conclusion that the bottom is already in and we are running upwards now! And the source of that analysis is OECD.

    Simple bunch of questions ...

    - Source of the whole mess is the Investment Banks in the US. When they themselves do not know for sure how much of the mess is still undiscovered, how is anyone so sure of their analysis? In other words, if the data itself is not clear, how can anyone be so sure of the analysis and conclusions?

    - Where was OECD before this mess started? When the analyst had no clue about the impending disaster in 2007, how is he now so confident that the worst is past?

    I have been in this analysis business to know that no analyst worth his/her salt would ever venture out to state things so boldly about a situation about which there is so much uncertainty - without a caveat!!! The guy who actually predicted this decline in 2006 (and who was laughed at at that time, but is now sought after), Roubini says he believes that there is a 50% chance of a double dip. Let me tell you hat he has more credibility than the OECD because he was one of the very few to do a highly accureate prediction of the recession before it happened!!!

    Another point. The Credit markets did come to a grinding halt in Nov 2008. But the only reason they did not collape is the insane amount of money thrown into the economy by the US, UK and others; even China besides India. When all this credit is reversed, do you think the economies will shrink a little? :)

    Also, US and other banks are sitting on TRILLIONS of CDSs and other derivatives (the value of which is anybody's guess) and no one can guarantee what will happen when one of these parties goes under. The estimated size of that market is a gross of over $600 Trillion which is 15 times the size of the entire planet's economy. This problem has not gone away. It has simply been postponed to a later date. Under these conditions, recovery is definitely uncertain and even a small shake in any major economy might unleash a tsunami of cascading defaults running into amounts so large that even all the Govts of the world combined may not be able to throw enough money to save the situation. So, what happened in Nov 2008 was a small thing and much bigger problems can happen!

    Lastly, I have skin in the game. I'm an active seller in the market. And in the last 6 months I have seen how difficult it is to sell. We have had at least 40 people come and show interest in the property (pretty prime area and all interested parties with loads of cash) and go back and not return.

    I have never seen a bull market where there is also so much disinterest among buyers. In normal bull markets buyers are fighting with each other to grab assets. In addition, with bull markets in the last 25 years driven by easy credit, how can today's situation with such tight credit markets ever hope to be a bull market?

    Therefore, in conclusion, my so-called bearish statements (and I also stated in the post that I was not trying to unnecessarily frighten people) has several sound reasons for them - besides the kind of reasoning brought up by Abishek.

    Anyways, let us wait and see which way the wind blows!:D

    cheers
    CommentQuote
  • In India the wind is blowing north

    Originally Posted by Economist
    What ever crisis and crunch that can happen has happened already, there will be no more shock.
    Without any caveat I can stake my reputation to say that "There will be no crash in RE asset prices in India"
    The projection Chennai RE market is falt to moderate gross growth of up to 4% in the next 12 months.
    The next 12 month’s growth will be based on Core Inflation, Followed by real growth (Net of Inflation) in 2011.
    I am not hiding behind any Caveat; My projection is based on thorough assessment of global and Indian macro economic situation.
    What else can go wrong when the global credit wheel came to a grinding halt in Nov 2008? Nothing worse can happen.
    OECD interim economic report today predicted swift recovery and end of GFC
    I think OECD knows better than myself, Wiseman and Unlikely.
    Don’t beat around this bush and unleash bearish views just for the sake of it.



    I am not sure about the US and european economy but you are absolutely right about the indian economy and RE.

    India is a growing economy is not solely dependent on exports.
    it has the added advantage of a robust banking system.
    what used to be the criteria for the world accepting dollar as a hard currency was the political stability and US policy which were intact for nearly 200 years. now the indian financial system has earned the reputation of nearly foolproof system. this alone is enough to attract FDI in all sectors in India spurring growth.

    In India the wind is blowing north
    CommentQuote
  • Originally Posted by wiseman
    Dear Economist,

    The estimated size of that market is a gross of over $600 Trillion which is 15 times the size of the entire planet's economy. /QUOTE]

    This is a often quoted m is representation. The amount is not the ctaul amount but a notional amount. when SWAPS on interest or credit defaults are entered into they are based on a notional base value. The actual underlying asset is probably a fraction of th above.
    CheersDear Economist,

    The estimated size of that market is a gross of over $600 Trillion which is 15 times the size of the entire planet's economy. /QUOTE]

    This is a often quoted m is representation. The amount is not the ctaul amount but a notional amount. when SWAPS on interest or credit defaults are entered into they are based on a notional base value. The actual underlying asset is probably a fraction of th above.
    Cheers
    CommentQuote
  • Price of flat in thiruvanmiyur

    This is a great thread with lot of food for thought. I have waited more than 7 years to see if the prices of flat will stabilize or come down. Lately, I have done some research and found that most properties in the City are selling well. For example in Thiruvanmiyur the going rate is between 6000 to 7000 rupees per sq ft.

    I have checked out few properties by Ramaniyum, Land Marvel, Casa Grande etc in the Besant Nagar/Thiruvanmiyur region and it is in this range.

    Is this a good time to take plunge into the Market or do you guys think the price will go down further? The builder is not willing to reduce the price by more than 200 rupees.
    CommentQuote
  • I am not expecting a very bullish and sky high RE market between now and the next 2 years, BUT we have hit the bottom and THERE WILL BE NO MORE DOWN WARD PRICE MOVEMENT" (It does not mean that it will go sky high).

    You will see mild/moderate growth in RE prices from now to next 24 months.

    I agree with wiseman that currently properties are not selling like hot cakes and neither it will for at least the next 12 to 24 months.

    Guys good properties and good location are now available and vendors are willing to listen, use this opportunity and get in.

    If you wait assuming there will be big correction, before you realize it will be too late.
    CommentQuote
  • Agreed,Anthony rental yield has been historically very low in Chennai.

    The net rental yield is not a major factor in most purchase decisions in Chennai.
    CommentQuote
  • Friends,

    List of projects from Prompt Property Fair 2009



    AA Constructions

    Ekkattuthangal - 4300/sqft
    Virugambakkam - 4500/sqft

    Anupam Homes

    Neelangarai - 75 Lakhs - 4400/sqft
    Thoraipakkam,Perungudi,Pallikarnai - 3000/sqft
    Pammal - 2850/sqft

    Cornerstone Foundations

    Park View Apartments - Selaiyur - 3900/sqft
    Lake View Apartments - Santhoshpuram - 2900/sqft
    Park Residency - Selaiyur - 3300/sqft
    Pearl Apartments - Mudichur - 2700/sqft
    Emarald Apartments - Mudichur - 2650/sqft
    Jasper Flats - Sembakkam - 3300/sqft

    Dhanishkha

    Allegria - Vandalur-kelambakkam road - 2300/sqft

    Kaiizenn

    Madipakkam - semi independant villas - 4000/sqft

    Roohi Construction

    Discovery - Pallikarnai - 3200/sqft
    Victory - Pallikanai - 3200/sqft

    S.A.P. Builders

    Venkata Bala - Pallikarnai - 2850/sqft

    Swamy & Iyer Home Creators

    Thiruvanmiyur - 7000/sqft
    Porur - 3300/sqft
    Madipakkam - 3300/sqft
    Thiruvidanthai(ECR) - 20 Lakhs(850 sqft)
    Pallikarnai - 3300/sqft

    Yuga Homes

    Niketan - Kottur - 7500/sqft

    Winner Upscales

    Sri Garudhadhri - Keelkatalai - 3000/sqft
    Lakshmi - Kolapakkam and gerugambakkam(near Porur) - 2800/sqft

    CommentQuote
  • Hi Friends,

    Here's an investment opportunity that you wouldn't want to miss.

    Out of the 3 satellite township that was planned along ORR by CMDA.I hear that they have started to recieve application for allotment of plots in

    Maraimalainagar township
    Manali new town



    Challans are being issued at Indian bank branch in CMDA office, Egmore.

    I request members to share their views on whether they would prefer government townships like the above or private townships from big realty players like hiranandani, dlf etc.
    CommentQuote
  • I feel, Govt. townships may not be as costly as private like Hirnandani etc.
    CommentQuote
  • I am a great fan of Government/TNHB layouts, Chennai’s top localities of Annanagar, KK Nagar,Asok Nagar, Beasent Nagar, Indra Nagar, Sastri Nagar etc was created 100% by TNHB.

    They don’t cut corners, TNHB plots come with wide roads, drainage, water, electricity, parks, Land for schools, Bus terminus etc.
    The title is 100% guaranteed and safe.

    TNHB has recently developed, Mugaperu (ERI Scheme Plot price was rs 3 lakhs now woth over 1C) Shollinganallur (Rs 13 lakhs now worth over Rs50 Lakhs) Cittalapakam and Amathur.

    My father bought from TNHB in Annanagar in 1981 for Rs 60,000 today it is worth 4 C.
    My uncle bought from TNHB Sashtri Nagar in 1984 for Rs 1 Lakh now worth more than 3.5C.

    I am surprised CMDA is selling this time, normally TNHB is the government organisations that sells plots and apartments.

    Anyway I support the investment in Government layouts 100%,They are any time better than private developers.
    Look at living examples of Anna Nagar and Beasent
    CommentQuote
  • Dear friend,
    Is Gudalur in Maraimalainagar anywhere near the train station ? If it is then this is a really interesting project....
    regards
    unlikely
    CommentQuote
  • Originally Posted by nabishek
    Hi Friends,

    Here's an investment opportunity that you wouldn't want to miss.

    Out of the 3 satellite township that was planned along ORR by CMDA.I hear that they have started to recieve application for allotment of plots in

    Maraimalainagar township
    Manali new town



    Challans are being issued at Indian bank branch in CMDA office, Egmore.

    I request members to share their views on whether they would prefer government townships like the above or private townships from big realty players like hiranandani, dlf etc.


    thank u, has been useful.
    CommentQuote