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 RE - my thoughts

    Having been a very passive observer of this forum for much of the last year or so, a few of my thoughts, that are GENERIC (--> exceptions, anomalies always apply!):
    1. Residential market is relatively more concentrated on the seller side in comparison to the buyer side, i.e of all land and flat ownership, as a general rule there are likely to be many more prospective buyers in India versus the number of sellers.
    2. The seller side in general is more sophisticated, organized and better informed than the buyer side on account of a variety of reasons. Coincidentally(!), they are also more affluent and less dependent on land investment performance for their day to day operations. In other words, they can hold onto the investments for a long , long , long time!
    3. Land and allied investments look to be one of the top recipients of black money inflow. Benami holders and family/ caste members help keep the ownership holdings 'within the family'/ and under the radar.
    4. Items 2 and 3 above also manifest in the seller's capability to influence applicable legislation, enforce their law and possibly drive then neighborhood's development. In other words, they are relatively 'well connected'
    5. All the above items, in MY OPINION, hold true across succeeding levels of the RE hierarchy as I see it, with decreasing strength as it moves closer to the buyer's side - Large land parcels > land plots (smaller size) > apartment blocks > individual apartments. In other words, whatever I think apply more in terms of large land parcels vs. individual apartment owners.

    Given the above premises of mine, my interpretation is as follows:

    1. The concentration and power of owners of large land tracts (along with extremely reduced dependence/ complete operational independence on RE generated cash flow) gives them the power to absolutely control land prices. There's always the friendly lawmaker / CMDA guy to help in case of unforeseen situations.
    2. (1) above implies low likelihood of reduction in land prices irrespective of larger economic context/ sentiment. However, upside potential always exists!
    3. Given the stickiness of land prices that happen to be the larger component of apartment prices, there is some scope for reduction in prices of apartments (to the extent of the component of RE price relating to construction price where a more meaningful scope for some kind of a free market exists).
    4. Accordingly, a 2-3% rental return can count as okay in Chennai RE since there is an unwritten rule that the remaining component of 'capital gains' always exists.
    5. The above pt (4) is likely to be true till the point 'Indians' consider Land/ house to be both financial and emotional investments and believe 'population increase' will always lead to increase in prices. I beleive pop increase/ migration to cities increases demand for RE in cities, however, in my opinion, prices have crossed an elasticity threshold to meaningfully be associated with the absolute population numbers!
    CommentQuote
  • Chennai RE - my thoughts

    Having been a very passive observer of this forum for much of the last year or so, a few of my thoughts, that are GENERIC (--> exceptions, anomalies always apply!):
    1. Residential market is relatively more concentrated on the seller side in comparison to the buyer side, i.e of all land and flat ownership, as a general rule there are likely to be many more prospective buyers in India versus the number of sellers.
    2. The seller side in general is more sophisticated, organized and better informed than the buyer side on account of a variety of reasons. Coincidentally(!), they are also more affluent and less dependent on land investment performance for their day to day operations. In other words, they can hold onto the investments for a long , long , long time!
    3. Land and allied investments look to be one of the top recipients of black money inflow. Benami holders and family/ caste members help keep the ownership holdings 'within the family'/ and under the radar.
    4. Items 2 and 3 above also manifest in the seller's capability to influence applicable legislation, enforce their law and possibly drive then neighborhood's development. In other words, they are relatively 'well connected'
    5. All the above items, in MY OPINION, hold true across succeeding levels of the RE hierarchy as I see it, with decreasing strength as it moves closer to the buyer's side - Large land parcels > land plots (smaller size) > apartment blocks > individual apartments. In other words, whatever I think apply more in terms of large land parcels vs. individual apartment owners.

    Given the above premises of mine, my interpretation is as follows:

    1. The concentration and power of owners of large land tracts (along with extremely reduced dependence/ complete operational independence on RE generated cash flow) gives them the power to absolutely control land prices. There's always the friendly lawmaker / CMDA guy to help in case of unforeseen situations.
    2. (1) above implies low likelihood of reduction in land prices irrespective of larger economic context/ sentiment. However, upside potential always exists!
    3. Given the stickiness of land prices that happen to be the larger component of apartment prices, there is some scope for reduction in prices of apartments (to the extent of the component of RE price relating to construction price where a more meaningful scope for some kind of a free market exists).
    4. Accordingly, a 2-3% rental return can count as okay in Chennai RE since there is an unwritten rule that the remaining component of 'capital gains' always exists.
    5. The above pt (4) is likely to be true till the point 'Indians' consider Land/ house to be both financial and emotional investments and believe 'population increase' will always lead to increase in prices. I beleive pop increase/ migration to cities increases demand for RE in cities, however, in my opinion, prices have crossed an elasticity threshold to meaningfully be associated with the absolute population numbers!

    So guys, while I don't know if it's for good or for bad, if you trust the continued power of corruption, black money, goondaism and other non market entities in Chennai (or for that matter India!), please worry not about prices falling. you can make a safe RE investment, particularly if it's your first house/ home!

    Regds
    CommentQuote
  • Originally Posted by futurecr
    Thanks for the info Nabishek. What is the difference between primary and mixed residential?


    Here's an excerpt from an article that was published in Hindu clearly explaining the various zones.



    Primary residential zone

    A notable inclusion in this zone are the corporate / institution guest houses, nursery schools, primary schools, high schools, higher secondary schools, library/reading rooms and the multi- storeyed car parking. The areas of school of commerce and tutorial institutions have been enhanced from 40 sq.m to 100 sq.m. Also, the permissible area of petty shops has been increased from 20 sq.m to 40 sq.m. and ATM and computer centres have been included in this category. It is to be noted that the restriction on maximum extent of 2 hectares for parks and playgrounds has been removed.

    Provision for hostel for working women and old age homes with floor area not exceeding 500 sq.m and government and semi government offices, banks etc with floor area not exceeding 300 sq.m, swimming pool, daily and weekly markets, touring talkies, air-conditioned cinema theatres, bus terminus, railway stations, crematoria and cemeteries are now permissible in this zone with special sanction from CMDA.

    Mixed residential use zone

    The important inclusion in this use zone are the clinics, hospitals and dispensaries occupying a floor area not exceeding 500 sq.m. It is observed that the restriction on floor area of non-residential activities such as petty shops, professional offices, schools of commerce etc., permitted in primary residential has been removed. Also, the maximum limit on the site extent for fuel filling stations and auto service stations has been removed. Kalyana mandapams, preview and dubbing theatres, multiplex complexes and religious buildings up to 500 sq.m are now permissible in this zone with special sanction from CMDA.

    A notable feature of the proposed plan is that the land use zoning is based on the width of the road from which the site gains access. Sites abutting roads of width 12 m and above, but less than 18 m in areas designated for primary residential zone are deemed to be zoned for Mixed Residential zone.

    Commercial use zone

    In this zone, all activities (other than the industries) permitted in primary and Mixed Residential zone are permissible without any restriction of floor area. In general, there has been no major change in the uses permitted except for addition of broadcasting and telecasting stations and private helipads which are now permissible.

    In addition, in areas designated for Primary Residential and or Mixed Residential zone sites gaining access from roads of width 18 m and above are deemed to have been zoned for Commercial use zone.
    Industrial use zone

    The light industrial zone and general industrial zone provided in the FMP have been clubbed together in MP II and all activities permitted in both the zones are permitted in Industrial zone. The major departure from the FMP is that in this zone, all uses permissible in Residential and Mixed Residential use zones are permitted with special sanction from CMDA. In addition, the restrictions in terms of H.P or number of workers for industries (excluding those of obnoxious or hazardous nature) have been removed. Container terminals are permissible with special sanction from CMDA on sites abutting or gaining access from 18 M wide public road.
    Special Industrial use zone

    The uses permitted are more or less the same as in the previous plan except that the restriction on H.P. has been removed. All special and hazardous industries classified as `Red' are permissible in this zone provided sufficient precautions are taken. An important inclusion is that Residential, Commercial, Institutional and Recreational uses incidental to this are permissible with special sanction from CMDA.

    Institutional use zone

    Notable omissions from this zone are the hospitals and public health institutions. Professional and business offices, nursery, primary and secondary schools and social and cultural institutions including sabhas are some of the inclusions in this zone. Sports stadium, recreational complexes, exhibition fares are also permissible with special sanction from CMDA.

    Open Space

    In this zone, it is now proposed to permit theme parks and amusement parks, incidental commercial uses, hotels and restaurants not exceeding 300 sq. M, beach cottages not exceeding 100 sq.M, sports stadium and recreational complexes, multiplexes with recreational as the dominant activity. with special sanction from CMDA.

    Urbanisable use zone

    This is a newly introduced zone. All uses in Primary and Mixed Residential zones are permissible in this zone. In addition, the uses permissible in Commercial, Institutional zone and Industrial zones are also permissible in this zone with special sanction from CMDA. It appears like a neutral zone where practically building of any use can be constructed.
    Non-urbanisable use zone

    The Agricultural zone and Non-urban zone of the FMP have been clubbed together as one zone. The notable omissions in this zone however are the parks and playgrounds, camping sites, temporary touring cinemas and other recreational uses. Residential uses not exceeding 100 sq. M. incidental to the main activity are considered in this zone.

    In addition to the nine land use zones identified, the proposed land use plan has earmarked the areas for buildings of special character (which includes multi-storeyed building area, Continuous building areas, economically weaker section areas), ecologically sensitive areas (which include CRZ area, aquifer recharge area and catchment area), Development of prohibited area (which includes area around Indian Air Force station and Pallikaranai swamp area), areas of special character (which includes a Transit corridor, MRTS influence area , IT corridor on old Mahabalipuram road and area around Airport /aerodrome), natural hazard prone area and Green belt along Poonamallee bye pass and Red hills bye pass road.

    source : ]http://www.thehindu.com/pp/2007/04/21/stories/2007042100120800.htm



    Also If we look at the tnreginet.net website for the guideline value, we can see another category classification like Residential-Class I,II,III,Most backward,Special Type,Commercial etc

    I till now am not aware of its significance or its applicability.If anyone has more information on it requesting you to kindly share.

    Also If we look at the tnreginet.net website for the guideline value, we can see another category classification like Residential-Class I,II,III,Most backward,Special Type,Commercial etc

    I till now am not aware of its significance or its applicability.If anyone has more information on it requesting you to kindly share.

    Also If we look at the tnreginet.net website for the guideline value, we can see another category classification like Residential-Class I,II,III,Most backward,Special Type,Commercial etc

    I till now am not aware of its significance or its applicability.If anyone has more information on it requesting you to kindly share.

    Also If we look at the tnreginet.net website for the guideline value, we can see another category classification like Residential-Class I,II,III,Most backward,Special Type,Commercial etc

    I till now am not aware of its significance or its applicability.If anyone has more information on it requesting you to kindly share.
    CommentQuote
  • Nabishek, i am trying to understand the tnreginet values. It gives guideline values as below. how do i interpret it to get. I am trying to find out what is the guideline value for the value of land in Rupees/sq ft. Also the valuation seems low, is there any multiplier to use to this guideline to get a more realistic valuation

    GUIDELINE VALUE (SqFt/Acre) - how do i interpret this into Rs per sq. ft of land


    CommentQuote
  • Originally Posted by spaul
    Nabishek, i am trying to understand the tnreginet values. It gives guideline values as below. how do i interpret it to get. I am trying to find out what is the guideline value for the value of land in Rupees/sq ft. Also the valuation seems low, is there any multiplier to use to this guideline to get a more realistic valuation

    GUIDELINE VALUE (SqFt/Acre) - how do i interpret this into Rs per sq. ft of land




    Hi Paul,

    Hope you are doing fine, havent been seeing frequent updates on your website.

    As per my understanding, The tnregnet.in website lists the guideline value in Rs/sqft and Rs/Sq.mt for residential/commercial zones and Rs/Acre and Rs/Hect only for agricultural land.So, The sqft/Acre is not sqft per acre but its sqft (or) acre.

    Regarding The valuation being low, The list on net is not regularly updated.The actual value would be higher based on latest transactions.Mostly everyone prefers to register only at government value to reduce registration charges so the list is a very good pointer towards actual value.You can get the current value from the sub-registrar office.

    You can use the FSI thats applicable as a multiplier to get a fair value of market price.

    Market price = FSI * guideline value/sqft

    I cannot say if its the right method but thats what I observe in pricing regarding chennai RE by reverse calculation.

    I believe that market price is fixed based on the extent of land and the FSI thats applicable.

    Consider a location where price for a flat is 4500/sqft.Assuming 1500/sqft goes as construction rate+builder profit, the remaining 3000/sqft should be for the land value.

    So assuming 1.5 FSI the land price in the area is

    3000*1.5 = 4500/sqft i.e. ~ 1C/ground.

    For a built up of 1500/sqft the UDS would be arnd 940 sqft.

    So, land cost that will be registered would be only 3000 * 940 sqft, thus 3000/sqft becoming the guideline value.

    Sometimes the guideline value is very skewed and seem very low because our builders have increased price more than what the land's market price indicates.

    They have further simplified the equation and keeping buyers in the dark.

    Their method - Kick the FSI dont ever mention it and talk only about UDS.

    If the land rate in the locality is 1C/ground i.e. 4500/sqft, they would apply that rate directly on the UDS

    as, 940*4500 + 1500*1500 = 4320/sqft

    while it should have been actually

    as, 940 * 3000 + 1500*1500 = 3380/sqft

    A inflated price of more than 25% just on paper with slight juggling of numbers.

    Please note, If you insist the builder to explain the above calculation.The builder can alway justify by saying that the 3000/sqft land price already factors the FSI so the calculation should be on built up

    as, 1500 * 3000 + 1500*1500 = 4500/sqft

    Technically, The builders stand cannot be disputed and they would claim that they quoted 4500/sqft on UDS only to protect your capital investment and not for profit making.

    Now, If the buyer choses to register at 4500/sqft.That would pull up the guideline value and with it the market value also.The viscous cycle of price starts all over again with the new base.

    The builders can keep increasing their rate pointing alternatively factors like the guideline value, market price,FSI,demand etc and artificially sustain price increase and fool buyers to support that.

    According to me FSI is the silent killer similar to inflation for RE.

    I request fellow members to correct me if I am wrong and provide more insights.
    CommentQuote
  • Originally Posted by nabishek
    Hi Paul,


    As per my understanding, The tnregnet.in website lists the guideline value in Rs/sqft and Rs/Sq.mt for residential/commercial zones and Rs/Acre and Rs/Hect only for agricultural land.So, The sqft/Acre is not sqft per acre but its sqft (or) acre.

    Regarding The valuation being low, The list on net is not regularly updated.The actual value would be higher based on latest transactions.Mostly everyone prefers to register only at government value to reduce registration charges so the list is a very good pointer towards actual value.You can get the current value from the sub-registrar office.



    What I have market in BOLD is the key to most discrepancies discussed on this forum! As per reginet site the rate in Anandpuram Mylapore area is around 2300Rs/sqft but you will find a higher rate for example in Maxworth Nagar in Pallikaranai. I hope Wiseman reads this!
    CommentQuote
  • Rates in Chennai

    Wonderful and useful information on property prices in and around Chennai.
    But the rates will change once the Government announces the following pending proposals:
    1. New Satellite city
    2. New Financial city
    3. Implementation of the Chennai Metro rail projects.
    4. Formation of new Corporations like Kanchipuram.
    Rates in and around the newly announced areas will shoot up disproportionately.
    Please keep this in mind for any future plans.
    CommentQuote
  • Originally Posted by radnats
    Wonderful and useful information on property prices in and around Chennai.
    But the rates will change once the Government announces the following pending proposals:
    1. New Satellite city
    2. New Financial city
    3. Implementation of the Chennai Metro rail projects.
    4. Formation of new Corporations like Kanchipuram.
    Rates in and around the newly announced areas will shoot up disproportionately.
    Please keep this in mind for any future plans.


    Rates are already on the rise, buyers have blinked atlast.........builders and real estate agents are having the last laugh !!!
    Many builders are planning to launch projects in 4 6 months with hefty price per sqft as far as my enquiry go quoting 6500 - 7000 where it was 4500 in 2008
    CommentQuote
  • Originally Posted by REUser
    Rates are already on the rise, buyers have blinked atlast.........builders and real estate agents are having the last laugh !!!
    Many builders are planning to launch projects in 4 6 months with hefty price per sqft as far as my enquiry go quoting 6500 - 7000 where it was 4500 in 2008


    the rates are already high i do not see a 50% increase anywhere for a couple of years and OMR will have the least increase.allready the potential is over leveraged.i think a 5-15% increase is very much on the cards
    CommentQuote
  • Home prices almost back to 2007-08 levels

    Originally Posted by madrasi
    the rates are already high i do not see a 50% increase anywhere for a couple of years and OMR will have the least increase.allready the potential is over leveraged.i think a 5-15% increase is very much on the cards


    http://www.business-standard.com/india/news/home-prices-almost-back-to-2007-08-levels/383348/
    CommentQuote
  • Thanks ="http://www.indianrealestateforum.com/members/nabishek-6146.html"]nabishek for your detailed response as usual.

    I am preparing for exams and hence heads down in that and not finding time to post my views on the website. Hopefully will change soon!

    Cheers for your detailed response as usual.

    I am preparing for exams and hence heads down in that and not finding time to post my views on the website. Hopefully will change soon!

    Cheers
    CommentQuote
  • Akshaya Adena

    Is there anyone who has bought at Akshaya adena
    CommentQuote
  • This is indeed a nice thread and useful to househunters like me whonare new to Chennai.
    We have decided to buy a flat in Velachery area. We know that there are less choices, as water logging problem is a constraint here. Anyways, things are improving these days. We would like to get guidence from this forum in deciding were to buy a flat. We chose Velachery, as it is closer to OMR( my work place) and as this area has good schools too. We need a ready to occupy house as we find rents are really high here. We are not interested in buying flats in OMR. We are looking for flats for resale, as they seem to come under our budget, and also in good locations.
    Hope those who have more knowledge about Velachery would definitely help.
    Some flats are for resale in MGR nagar. the rate is 34 -36 lacs for 1000 sqft. Building age is 10 years though. We also got another offer in Dhandeeswaram. Its 6 years old. Here the asking price is 48 lacs for a 1000 sqft flat. Which one is a better choice? We are now, looking the apartments for our living purpose and may leave it for investment in future.
    Please give us your valuable suggestions.
    CommentQuote
  • What you are talking is what I call CRAZY? What is the rental...well 8K, maybe 12K at best! What is the flat value...48L? If I put 48L in a bank I will get at even 6% rate of interest atleast 24K a month. So where is the logic.
    Then you will talk about investment and future and what not. You are confusing many things as most people do (can I say 99.9999% of people).
    You want to buy a flat, do so, good for you, but that does not justify rental being high as a reason. In Chennai the rentals are so pathetically low and around 2% that buying a flat for rental is the ultimate stupid logic of the folks around. Buy a flat to live. You get your freedom to do what you want. Perfectly logical. Your flat will appreciate too. However that will be because of the UDS land you own. So only that is your investment. The building depreciates though, but with increasing construction cost it will sort of hold a bit. Also you are going to lose interest on the capital you put in or if it is a loan, worse still you pay an interest for the loan at higher levels than self owned money. If that compensates for the rental cost and rise in UDS value you are blessed.
    Most often people know mathematics as much as the donkey knows the smell of camphor. Please get your maths right and you will realise
    a. Buy a flat to live well... Perfect
    b. Invest in land...Great
    c. Buying a flat because of high rental...Total nonsense.
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  • Hi Almighty,

    Thanks so much for the reply. I understood what you said. Yes, right now we are looking for our own purpose.. I think, we would buy an old apartment of around 30 lacs in a nice location that would serve our purpose. Good that we could take a decision as we posted on this thread.

    Thanks once again.
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