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Property Price Trends in Chennai

Last updated: May 20 2021
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  • Re : Property Price Trends in Chennai

    thanx a lot

    Hi Nabishek,

    Thanks a million for your exhaustive inputs.In addition to your
    rational and balanced opinions you have exibited that you are a
    valuable asset to this forum.thanks once again.
    regards
    unlikely

    Comment


    • Re : Property Price Trends in Chennai

      Originally posted by elite View Post
      Nataraj,

      What you said is partially true by having a PM who acts a World Bank rep which is totally controlled by US. Otherwise why should we get loans from world bank and invest in US T-Bonds at a lower rate?

      Also all our policies are to replicate western corporate culture including the new pension scheme, which is same as 401k in US. In US, everyone's 401k became 4k during the burst. Even after that experience, if our idiot politicians want to implement it in India, we are considered a 51st state of US.

      Also till today there are no proper regulations to check who owns P-Notes which are used by FIIs to invest in India. I seriously doubt that its all Sonia's (+other politicians') swiss money.
      U betcha got it. Check out Wiseman if he is some henchman of Sonia! LOL!

      Comment


      • Re : Property Price Trends in Chennai

        Originally posted by wiseman View Post
        Actually Contra in the last 1 year there has been a decline of between 10% to 30% in prices as it is widely known and therefore the so-called contrarian predictions were quite on the ball!

        On the contrary, Nats predictions that prices will shoot up do not seem to have materialised over the last 1 year and so it is he who so far seems to have got the timing wrong!!!

        Just wanted to clear up some misunderstanding Nats has in his mind that somehow he has been right last one year! Mind can really play tricks on you, right?!

        cheers
        Just to clear your ludicrous thoughts.
        a. I talk about Land in particular. Even now land prices have not fallen and worse still u dont get land to buy. Ask Wiseman why he has not sold out his supposedly owned RK Salai land.
        b. RE having fallen 20-30% is an imagination. I have discussed how our wonderful builders have made 400-500% profits and that reducing price by 20% is just a joke. So if Wiseman is saying that the fool who went to DLF (u r fool anyday if u go to such fellas...DLF et.al.) got a deal of 3600psft last year and 3200psft this year, and that is fall, then Wiseman be blessed with his conceit! LOL! THe truth is even at 3200psft it is super duper profit for the DLFs.
        Wiseman, u certainly want to tell stories. Go ahead and enjoy. Ur grandchildren will love it.
        ROTFL.

        Comment


        • Re : Property Price Trends in Chennai

          Originally posted by contra View Post
          In the last one year technically the Chennai real estate has stagnated with neither a rise nor a crash. Hence the game is still open between the bulls and the bears.
          Contra I disagree. IT is yet bullish. Remember RE is a long term game. If prices stagnate and if u r able to find sellers then u can argue as u said. There are no sellers. There are buyers who want prices to fall. THe truth is even in Stock market, u cant buy at the bottom, given the huge ticker volatality. In RE where a deal takes atleast 3 months to complete, u cant buy at the bottom or sell at the top beyond a yearly or mostly 5 yearly basis. So if prices stagnated (and to me I talk of land as RE..not some dud buying some flat where some builder cons him and prices fall!) then it means that it is set up for a mighty rise and bulls are in great shape. Now these Wiseman logic of selling RE and investing other ways say in Bank FDs and then returning when it has bottomed out etc is a myth ONE JUST CANT EXECUTE. So in RE you buy and you hold and sell when u want to.
          So Bulls win if RE does not fall badly. BEars in RE actually dont exist beyond such forums as these. They are nothing but people who missed the bus and are cry babies.
          Ask WIseman how to short in RE! He will tell buy puts. So much for his views on RE.
          Contra I thought u knew better! Cheers.

          Comment


          • Re : Property Price Trends in Chennai

            Originally posted by nabishek View Post
            Rail Connectivity

            1.Metro Rail Project

            [ATTACH]103[/ATTACH]

            2.Mass Rapid Transit System(overhead train)

            [ATTACH]104[/ATTACH]

            planned to extend and connect all parts of the city.

            3.Suburban Railway line till cuddalore via ECR/OMR

            [ATTACH]95[/ATTACH]

            Air Connectivity

            1.Airport expansion plan

            [ATTACH]101[/ATTACH]

            2.Greenfield airport at sriperambathur

            Sea Connectivity

            1.Chennai port and harbour Renovation and expansion.
            2.Ferry service to coastal areas of Tamilnadu.

            and so many lots more.

            Welcome members to share the other development plans they are aware of.

            The authorities have come up with lots of visionary plans, at world class level.If things happen as planned, we can expect Chennai to become one of the most sought after cosmopolitan/metropolitan cities.
            As usual Nabhishek you provide stellar DATA unlike anyone else.
            PS. Data is useful, Interpretation distinguished between the wise and those who think they are wise!

            Comment


            • Re : Property Price Trends in Chennai

              why doesnt the govt or iaa anounce a layout showing the area extent of acquisition.

              Comment


              • Re : Property Price Trends in Chennai

                Originally posted by unlikely View Post
                Hi Nabishek,

                Thanks a million for your exhaustive inputs.In addition to your
                rational and balanced opinions you have exibited that you are a
                valuable asset to this forum.thanks once again.
                regards
                unlikely
                Thanks for your kind words, I am glad and honoured you feel that way.

                Comment


                • Re : Property Price Trends in Chennai

                  Originally posted by anandxx View Post
                  why doesnt the govt or iaa anounce a layout showing the area extent of acquisition.
                  They must have surely released a list mentioning the survey numbers that are to be acquired.May be its not available online.Search news archives, you might find some press releases.

                  I remember reading somewhere that the acquisition for airport expansion is already complete and compensation has been settled and the area demarcated by a compound.

                  AAI also seem to have started work on building a runway over adyar river, first of its kind.

                  Comment


                  • Re : Property Price Trends in Chennai

                    Friends,

                    Our discussions, so far has been very pro-buyer.I thought we should also address about people who want to sell.

                    Buying gold and RE has fortunately been part of the Indian culture,More people have become wealthy by this buying decision than by working their whole life in private/public companies.

                    There are people among my relatives, who have invested during the last 3-4 years, and wanting to sell now and are not able to sell at their quoted price.Just like the buyers who have chosen to wait, they have also put off their decision to sell expecting higher offers later in the future.

                    I notice that people who are serious about selling, are quoting a price upto 30% less than the market price to exit quickly.

                    RE are generally sold only when in dire need of money or in light of a crisis or dispute.Unless one is overleveraged and cash starved, one shouldnt sell at a discount to market price is my advice.It is right to hold on to the investment as RE grows long term.

                    Builders and plot promoters are the only people, who buy land and build with the intent to sell.They will be the first to panic in case of downturn, They cannot hold on to their inventory too long and can surely afford another wave of reduction in prices.

                    While trying to understand how price was being fixed, and whether its purely demand/volume based.I find that pricing in chennai is not proportional to the demand.Pricing is always tied to the location.

                    We have lots of price centres that have evolved in these years of boom.

                    for example

                    If Thiruvanmiyur is getting sold at 1.5C/grnd, the price is proportionally fixed radially to other locations like palavakkam/kottivakkam-1.25C,neelangarai-1C,uthandi-50L etc based on the distance from the centre.

                    Point to note, Real demand was only for Thiruvanmiyur, the rest of the places are spill outs for which demand is anticipated to grow in the future.Benchmarking is being adopted as strategy to fix prices.

                    People who would have interacted with RE agents will know what I am saying, when asked why its priced this much, they will immediately quote that in the location adjacent it is being sold for 4000/sqft that is why we are quoting 3500/sqft or they will build castles in the air like that SEZ/IT park is coming up etc.There isnt any rationale.

                    How long will it take for this seller to also reduce, when 4000/sqft becomes 3000/sqft in the other location?If it happens builders would lose control over pricing.This situation is what the builders are trying very hard to avoid.It will be catastrophical for many of them.

                    RE is not something that you go to a supermarket, decide that you want a chocalate, go to the shelve and pick any chocalate bar that has your favourite brand on it and pay the maximum retail price at point of sale.

                    It is only recently there has been an attempt to commoditize RE, Selling building spaces as if they were all one and the same.

                    We need lots of regulation to implement control and a common trading platform to realize this dream.If only, RE buying/selling was so simple.Life would have been lot easier.

                    In RE, I observe every location with the same name are not the same, and every location doesnt come with a retail price fixed.Pricing of properties are relative.

                    Would request members to share if they are aware of any pricing instruments available and that are being used by land surveyors and valuators.

                    Thanks in advance.
                    Last edited June 7 2009, 06:18 PM.

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by nabishek View Post
                      Friends,

                      Our discussions, so far has been very pro-buyer.I thought we should also address about people who want to sell.

                      In RE, I observe every location with the same name are not the same, and every location doesnt come with a retail price fixed.Pricing of properties are relative.

                      Would request members to share if they are aware of any pricing instruments available and that are being used by land surveyors and valuators.

                      Thanks in advance.
                      As usual your posts have been very informative about the chennai real estate situation.

                      I can only say i agree with all the points you have raised above
                      • yes, prices are fixed. If tirumanmiyur is fixed for 1.5C/grd...palavakkam will be fixed for 1 c/grd and so on. Even a slight correction at one place would affect the price equation along the entire strech. In other words for example they would not let prices at Tiruvanmiyur to drop as that would impact prices even in neelangarai and perhaps even in OMR side and velachery.
                      • yes, no individual (who is not a highly leveraged speculator category) should sell land desperately. Land is long term asset and one should hold.
                      • yes, transperent land market should be available with clear prices both to sellers and buyers.
                      But unlike in many other industries where subsidies, price controls have made them unprofitable and destroyed shareholder wealth; atleast in urban residential real estate market prices are fixed by market players and not by government which itself is good news for investors ears to invest in the residential land market. Atleast in Chennai where CMDA is only a approval agency and itself not acquiring/developing land, investment in RE land can be done in open market conditions.

                      Comment

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