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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  • Originally Posted by bear_baiter
    I request all the people to read all the previous posts of wiseman. This man is knowledgeble no doubt. However he uses his knowledge to send wrong propaganda. He said share market is going to 8000 levels again and Chennai real estate prices will reduce 50% etc. Nothing happened. Even he knows that wont happen. then why he is spreading always somthing when he intend to create panic among people.

    All dear members: please do not panic while reading his posts. you do what you intend to do before reading posts.

    Again, if chennai real estate prices are going to reduce by 50%, I will leverage myself fully with all possible loans and keep on shopping.

    But now market is not going to give " V " shaped recovery either.

    take your own decision.

    Looks like Wiseman has vested interest in panic creation.
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  • Originally Posted by BigBear
    Wiseman prediction might have gone wrong with Chennai but can you disagree with the fact that prices have fallen drastically in many places of India particularly in Bangalore,NCR and some parts of Mumbai.

    Wiseman has been only wrong always. Incidentally price fall in other markets are also a myth!
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  • Glad I'm not reading them! Don't have time and patience to read pages from him. And I don't even know how to validate many of his claims.
    No reading! Less confusion!!
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  • Please be patient

    Wiseman is talking about once in a century issue.Guys ,please be patient and watch.Don't expect everything will happen the next day.

    I am sure about one thing. RE prices may not go down, But buying RE at current level is not going to give any good returns in the medium term(5 years).You need to wait for longer term (10 years or even more) to get some good returns.

    The golden days for RE is over.It will take at least 2 decades to see another RE boom in indian metros.

    I would buy in this market only If

    1.I have a urgent need for living purpose
    2.I can able to pay my EMIs for next 20 years with out any trouble(even in the worst case scenarios).
    3.I don't want to miss any specific project/location for personal reasons.


    Wiseman ,

    Please ignore these bulls and keep sharing your views.

    Thanks
    Venkit.
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  • Originally Posted by venkit
    Wiseman is talking about once in a century issue.Guys ,please be patient and watch.Don't expect everything will happen the next day.

    I am sure about one thing. RE prices may not go down, But buying RE at current level is not going to give any good returns in the medium term(5 years).You need to wait for longer term (10 years or even more) to get some good returns.

    The golden days for RE is over.It will take at least 2 decades to see another RE boom in indian metros.

    I would buy in this market only If

    1.I have a urgent need for living purpose
    2.I can able to pay my EMIs for next 20 years with out any trouble(even in the worst case scenarios).
    3.I don't want to miss any specific project/location for personal reasons.


    Wiseman ,

    Please ignore these bulls and keep sharing your views.

    Thanks
    Venkit.

    By continously lying a lie cannot become a truth or truth become a lie. RE prices in UK incidentally have gone beyond 2006-7 peaks (refer Bloomberg). Only the dreamers on this forum including your Wisey boss can continue to lie blatantly on this forum.
    PS. SOmeone quoted a price of 1cr for a ground in Ambattur. That stunned even me!
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  • Hello Friends,

    Wishing you all very happy and prosperous New year 2010.

    A great way to start the year I suppose, with so much debate going on regarding future of Chennai RE.

    I had stated earlier that at the end of December '09, I would take stock of the situation and revisit my decision whether to continue my wait further for saner prices or not.

    I would like to list out the factors favoring for and against buying now in Chennai.

    For Chennai RE

    1.Announcements regarding various infrastructure developments like 2nd master plan,restoration of cooum etc and expansion of corporation limits by the government.

    2.Huge opportunity for Chennai to attract investments from FII into various industries like Auto, Banks, IT, Healthcare etc setting up shops here due to demographical advantages and conducive environment created by innovative initiatives of the government like lobbying at various developed/developing countries and going the internet way.

    3.World economies losing confidence in debt-based paper currency and turning to true tangible assets like gold,real estate,commodities for sustainable return on investment.

    4.Positive news in the media and around on the conservative,steady nature of chennai RE, which saw only minimal correction of 10-15% even when other cities had crashed 40-50% creating a mood that now that India is on a growth path Chennai RE has only one direction to move-upwards.

    5.Bank interest most likely having bottomed out attracting buyers who are looking to leverage during high inflation times.

    6.Increase in NRI's/Expats remmitance hoping to capitalize increasing dollar rate and aiming to protect their money by buying at home, and hoping it would facilitate their R2I after couple of years when they can settle themselves or their parents currently.

    7.Reputed Builders pre-launching new projects and increasing prices every fortnight claiming good sales.

    8.Chennai land prices cheap compared to other cities with similar infrastructure and facilities.

    9.Conservative nature and pshycology of chennaites and people belonging all over the state and even abroad to want to buy only in chennai even if it means selling other assets elsewhere to afford demanded price or slaving entire life paying of debt even its high, just for the pride.Though exagerrated, its true that growth of Chennai feeds growth of entire state.

    10.We are in a stage similar to 2005, when the 2005-2008 bubble was formed.Many are expecting that another asset bubble is set to form resulting in rise in price again raising the base far higher beyond reach.

    Against Chennai RE

    1.Real estate investment being a long term investment depends largely on location and affordability.In Chennai rates are such that good locations are not affordable and affordable locations are not good.

    2.Crucial announcements, orders and plans are being announced by government without any indication when it will be implemented causing uncertainity regarding when and whether if it will be ever executed.

    3.Though banks are lending, they are all small ticket loans which can only allow buyers to afford flats in suburbs and outskirts.

    4.Builders focussing on launching new projects before approvals while they are struggling to deliver the project they commenced 2 years back which is still not completely sold out raises doubts on their financial position and commitment to deliver.

    5.Builders, esp part of CREDAI opting to hold on to existing inventory which didnt sell at X price, but raising the prices and marking them up as 1.10X and claiming sold out doesnt seem believable.Only seems as a industry understanding to do so to goad buyers into purchasing fearing they will miss the boom again.This is further strengthened when small/medium builders are maintaining the same price and behaving soberly and willing for negotiations and offering good discounts.

    6.Indicators such as rental yield, flat cost-land cost mismatch and other methods discussed in this thread indicates that we are on top of the RE cycle.

    7.While people/companies from other towns/cities in tamilnadu are preferring to come towards chennai,Threat of cash flow from outsiders of other states/countries who had invested for returns and are working here getting withdrawn when they are shifting back everything to places where they belong looms large.

    8.Salary as such being low and competitve in Chennai, with low or less hike this year and increasing interest rates would make cost of living a burden and paying off EMI unmanageble which could make people opt to rent instead of buying.

    9.Huge number of people waiting for the market to revive to come back to sell and book profit.This could result in re-sale market becoming very attractive.

    10.No real-estate sector regulator,ambigous and confusing rules and guidelines,huge black money, higher number of frauds, cheating and less transparency are major detterents.All sale currently being made are on the basis of find the next greater fool.Should be cautious and careful enough not to end up being the last one.

    With inflation rising, rupee depreciating and dollar appreciating would mean Indian economy would have to allow and concentrate to attract FDI/FII and money from external countries and concentrate on exports for GDP growth than catering to domestic demand.With developed countries still limping it means only slower rate of growth.When government may decide to exit stimulus due to deficit pressure it would mean lesser liquidity and higher bank interest rates which is when focus will be back to restoring the balance towards domestic demand.

    India are facing a double whammy situation, whether to contain inflation or boost growth.Either way I feel Its not advisable to hold cash and wait.Either split portfolio and invest into various assets identifying which are more productive or atleast have one part invested in real estate,bullion or commodities always to have a hedge over troubled times ahead.

    Based on all the above points, I am of the opinion that Chennai undoubtedly is a great place to invest and live.But, the caveat remains at what cost?

    If one comes across clean,approved,livable and affordable land within suburbs nearby to all essential facilities and protected by guideline value.Its always a right time to buy as it will surely give handsome returns in the long term.

    I am still of the opinion, buying a flat in chennai at such huge price and low rental yield and rising interest rates is not at all attractive even for self use.In coming months when market seemingly would look up we can hope to see lots of new supply chains opening and great deals coming by in form of first sales from ready-to-occupy projects, investor flats, and re-sales.The rates may be at steep discounts to what's being advertised in the media now.

    Personally, am not in a hurry or under compulsion to buy now hence am choosing to wait till I come across one such fulfilling deal.I still feel 2007 year price is the right price for current market, factoring inflation may agree to pay marginally higher.

    Looking at land prices in the city, Real estate has stagnated post 2008 and may not breach the previous top(year 2008-2009 price) easily as most of the factors that fuelled the previous boom like rising salaries and easy credit are not seen everywhere today.Most likely this is a false bottom call.Even if it does rise, At best apartment rates are going to stagnate in real terms i.e. rise keeping up with inflation.

    kindly excuse me for the long post.Have a great year all of you.my hearty wishes again.
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  • Thanks for nice post

    Thanks for the nice post Nabishek.
    Originally Posted by nabishek

    India are facing a double whammy situation, whether to contain inflation or boost growth.Either way I feel Its not advisable to hold cash and wait.Either split portfolio and invest into various assets identifying which are more productive or atleast have one part invested in real estate,bullion or commodities always to have a hedge over troubled times ahead.


    Given that governments are printing money left, right, and center, keeping cash is not a good idea. Quoted above are golden words.
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  • To and Fro on Chennai property

    Well done Abishek, a very moderate analysis looking into the 2 sides of the coin. While the list against the Chennai property is longer, I liked the phrase' good locations are not affordable and affordable locations are not good'.
    While I still believe the property prices in Chennai is very high for living standards and compared to average wages for a common man and only time will say whether Chennai property and land prices will hold its value. May be it is cycle like other places or it is an exception, I am not presently in the mood to take risk investing in Chennai.
    Originally Posted by nabishek
    Hello Friends,

    Wishing you all very happy and prosperous New year 2010.

    A great way to start the year I suppose, with so much debate going on regarding future of Chennai RE.

    I had stated earlier that at the end of December '09, I would take stock of the situation and revisit my decision whether to continue my wait further for saner prices or not.

    I would like to list out the factors favoring for and against buying now in Chennai.

    Against Chennai RE

    1.Real estate investment being a long term investment depends largely on location and affordability.In Chennai rates are such that good locations are not affordable and affordable locations are not good.1.Real estate investment being a long term investment depends largely on location and affordability.In Chennai rates are such that good locations are not affordable and affordable locations are not good.
    CommentQuote
  • Happy new year Nabhishek. There used to be an astrological journal by one Sowma in good old days (ethirkala vilakkam). The joke was that he will say "thana labam pana nashtam", meaning wealth will gain and money will be lost for that particular sign. Your message is certainly long interesting but are you bullish or bearish?
    BTW, if you are telling people to buy from foolish cheap sellers then I got your point.
    Have a great year.
    ....natarajg007
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  • Great post Nabhishek!

    Completely agree with your points and conclusion... very well articulated:)
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  • post of 2010

    nabishek - i know its early but this might be the post of 2010...
    CommentQuote
  • Well structured. A few questions ...

    Originally Posted by nabishek
    Hello Friends,

    Wishing you all very happy and prosperous New year 2010.


    I am still of the opinion, buying a flat in chennai at such huge price and low rental yield and rising interest rates is not at all attractive even for self use.In coming months when market seemingly would look up we can hope to see lots of new supply chains opening and great deals coming by in form of first sales from ready-to-occupy projects, investor flats, and re-sales.The rates may be at steep discounts to what's being advertised in the media now.

    Personally, am not in a hurry or under compulsion to buy now hence am choosing to wait till I come across one such fulfilling deal.I still feel 2007 year price is the right price for current market, factoring inflation may agree to pay marginally higher.

    Looking at land prices in the city, Real estate has stagnated post 2008 and may not breach the previous top(year 2008-2009 price) easily as most of the factors that fuelled the previous boom like rising salaries and easy credit are not seen everywhere today.Most likely this is a false bottom call.Even if it does rise, At best apartment rates are going to stagnate in real terms i.e. rise keeping up with inflation.

    kindly excuse me for the long post.Have a great year all of you.my hearty wishes again.



    Abishek,

    Well organised list of pros and cons.

    I had a few questions on how you arrived on some of the highlighted points above (which match some of the "so-called" bearish, "but what I call realistic", conclusions I have come to with entirely different reasoning :D).

    You mentioned, when market seemingly would look up and then also mentioned The rates may be at steep discounts to what's being advertised in the media now.

    How so? While I agree with rates being steep, wouldn't market opening up lift prices, rather than depress them?

    Second, you mentioned I still feel 2007 year price is the right price for current market. Aren't 2007 prices (I assume that was the peak based on the prices provided some time ago) the peak which are the prices which we presume will take a longer time to come?

    Third, you mentioned this is a false bottom, Most likely this is a false bottom call (which I agree with completely). What brought you to this conclusion? What does the real bottom look like to you (around when and around what levels of prices)?

    A very Happy New Year to you!

    cheers
    CommentQuote
  • Originally Posted by asi_7
    Completely agree with your points and conclusion... very well articulated


    Originally Posted by sri_idea
    nabishek - i know its early but this might be the post of 2010...


    Thank you for your generous comments.

    Requesting all of you to also share your views on the factors that you feel are vital and that we are missing out or overlooking in our discussions.It shall be useful for all to arrive at an informed decsion.

    Originally Posted by wiseman


    I had a few questions on how you arrived on some of the highlighted points above (which match some of the "so-called" bearish, "but what I call realistic", conclusions I have come to with entirely different reasoning ).

    You mentioned, when market seemingly would look up and then also mentioned The rates may be at steep discounts to what's being advertised in the media now.

    How so? While I agree with rates being steep, wouldn't market opening up lift prices, rather than depress them?



    Just like how many people missed out their opportunity to buy before the boom time, similarly there are also many people(including builders) who have missed out their opportunity to sell during the peak when the market was flooded with buyers and liquidity.

    Unlike the big builders who have various resources, contacts and marketing capability to identify select target segments and sell.These individuals, investors and small/medium builders depend solely on domestic market demand and liquidity.When they couldnt find buyers at their quoted price, many of them have decided put off their idea to sell and are holding on waiting to sell when the market revives to book profit and cash out.

    As I had opined earlier, Pricing is always fixed relatively.There are many price centre's and When rates are increased at a centre then the price is fixed proportionally decreasing radially outwards to other localities nearby.

    When the market seemingly looks upwards near a particular centre, I expect new supply chains to be opened.The other unsold new properties, investor flats, re-sale flats nearby whose sale were put on hold to come for sale again at attractive discounts to market price looking to quickly sell and cash out.

    I expect these properties to be quoted around their cost price with acceptable profit margin as It would be a win-win situation for the seller to quickly liquadate their holding and move on to buy a bigger home or finance their next project meanwhile the buyer gets a good deal which is lesser than the market rate.

    Originally Posted by wiseman


    Second, you mentioned I still feel 2007 year price is the right price for current market. Aren't 2007 prices (I assume that was the peak based on the prices provided some time ago) the peak which are the prices which we presume will take a longer time to come?



    I believe the correction happens in phases, and each phase correction takes its own time to be reflected in market prices.

    Phase 1- Correction of Fancy Prices
    Phase 2 - Correction to Market Price
    Phase 3 - Correction to Right(Real) Price

    When I say year 2007 price, I meant inflation adjust 2005 price +/- 10-15% which I feel rightly reflects the current market price and provides value buy for self use.

    In my below 2 earlier posts, I have explained how and by what depth I expect the correction to pan out.





    So, the point is If the prices were to continue stagnating like it happened since 2007/8 until now and for further more years eventually considering latent demand and inherent appreciation of RE.The phase 3 and phase 2 correction would coincide a point in future making even todays rate an attractive buy in the future.

    I believe RE keeps appreciating even if it doesnt sell because only the government can zone a land as usable-thus producing RE.With increasing population and density etc demand to own a home rather than rent will keep increasing latently.Once the point is reached when it becomes more attractive to buy than rent or gentrification sets in, it results in boom in prices.This is the reason why I believe RE appreciates in spikes and gives very less returns during rest of the cycle.

    Originally Posted by wiseman


    Third, you mentioned this is a false bottom, Most likely this is a false bottom call (which I agree with completely). What brought you to this conclusion? What does the real bottom look like to you (around when and around what levels of prices)?



    Looking at the market using various methods that we have like rental yield, per-capita income based RE returns, Tax benefits, leverage and arbitrage opportunities,building inventory, absorption rate, liquidity position, value for money etc it is clear that we are still at the top of RE cycle and eventually prices have to correct to more affordable terms to saner levels and stabilize.

    Around when that would happen, I dont have the experience or insight to predict that.I understand in RE, boom and bust are compensated by stagnation cycles so the correction may or may not happen at all if price continues to stagnate for couple of years more.

    Neverthless, I believe the governments guideline value and FSI applicable provides a major support level against price correcting beyond a level.

    Even if the market corrects upto the guideline value and demand and affordability still suggests that there could be a further lower bottom, I feel prices will only stagnate at that level for many years with RE industry remaining dormant with only distress sale and necessity buys happening.

    To me, stagnation cycles are not indication of bottom.Its indication of stabilization during when latent demand keeps building up in the market.The stagnation would continue until peoples affordability catches up enabling them to buy at that price or when gentrification sets in bringing in new people with lots of money replacing existing residents.

    I dont buy the media hype and reports that all is well.I feel its too early to conclude that the correction/stagnation phase is over and price will continue moving upwards.The factors that fuelled the last boom like increasing salaries, easy credit and foreign investment and interest that seem to be back now are temporary and not inherent and sustainable one.I am of the opinion that balance has not fully restored in our economy.

    Inflation is being cited as reason for the price rise, but rapid increase in inflation is not a good sign for positive appreciation.Government has to pull the reverse plug sometime sooner or later to address the risk of pushing the country to hyperinflation or stagflation leading to unrest and chaos.

    Let me explain, The liquidity that we see in the market is due to the excess money pumped in the market by the government and from foreign investors who see India as a better place for return on their investment.Its expected that the industries pull up together using the newly infused liquidity and turn profitable leading to rising salaries thus leading to increase in affordability of public to sustain current prices.

    Government is under huge pressure to keep the stimulus on and also keep the inflation under check.They have taken huge bets hoping foreign money invested in our markets through FDI/FII and NRI's will stay for some years and meanwhile domestic demand and rise in export will propel growth of the economy while they exit stimulus gradually.

    Government was hoping to restore the balance of demand-supply by empowering and encouraging people to borrow and spend by lending at low interest rates.Despite cost of borrowing being low, the general price of products being high and salaries stagnating and even diminishing they still remain unaffordable.

    Most are still digging into their savings and seeing it get eroded not being able to put up with the cost of living expending of their salaries.Its further getting worsened with companies reducing their supply as its not viable for them to sell at lesser price.Most of the stimulus money has been used only to absorb losses and bail out companies that were in distress and allowing them to hold on longer.

    The general public are starting to feel the pinch of increasing price and the disappointment is further compounded by the fact that its their own money and fixed deposits and equity investments thats supporting these companies to hold on to such insane price.

    The increasing demand for controlling inflation could seriously affect the governments fiscal plan.It could lead to government tightening credit and liquidity again if their method of importing supplies doesnt work.In our debt-based currency economy non-availabiliy of easy credit and less liquidity in the market means that our economy is back on a deflationary path.

    The only working way the world has seen economies come out of deflationary path is to generate liquidity by selling their over priced assets/commodities at prices thats a direct function of demand-supply.

    Till India's economic path and liquidity position is not clearly evident, I feel convinced to believe prices can only at best stagnate or rise keeping up with inflation briefly.
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  • 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.



    Friends,

    The list of people for whom land has been alloted under M.M.Nagar and Manali schemes have been put up on cmda website.

    please find the link below



    Also, the site now carries a wonderful new feature that shows the zonal classification of each area in Chennai as per second master plan.



    Its a very handy tool and can be very useful to know, understand and gauge the growth we can expect for chennai in future and the infrastructure developments and kind of neighbourhood we can expect at the places we invest today.
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  • What is difference between primary and mixed residential?

    Thanks for the info Nabishek. What is the difference between primary and mixed residential?
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