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 connect2sam
    Here is the original link :

    http://www.financegurukul.com/2009/02/14/chennai-february-2009-house-prices/

    Thanks for taking the pain to copy the prices from the above link ! But more importantly, thanks for sharing !



    Looks like Paul from financegurukul has reused my post in his website for wider reach.

    Paul - Thanks for mentioning my id in courtesy, not many exhibit such manners on the Internet.Really appreciate your effort in maintaing a website with excellant compilation of articles from various sources on diverse topics.Would surely frequent it.
    CommentQuote
  • Originally Posted by nabishek
    Looks like paul1970 has reused my post in his website for wider reach.

    Paul - Thanks for mentioning my id in courtesy, not many exhibit such manners on the Internet.Really appreciate your effort in maintaing a website with excellant compilation of articles from various sources on diverse topics.Would surely frequent it.


    Honestly it not me(paul1970), should be some other Paul.

    Thanks,
    CommentQuote
  • Originally Posted by paul1970
    Honestly it not me(paul1970), should be some other Paul.

    Thanks,


    My Bad!.Shouldnt have presumed.I am sorry for the confusion,Shall edit the original msg.
    CommentQuote
  • Originally Posted by vngpls
    Thanks for the price list. Very informative.
    I also visited FAIRPRO. Found good crowd milling around as if there’s no tomorrow. Also saw today’s post-fair ad by FAIRPRO which claimed they did a brisk business of Rs. 200 crore with over 1 lakh visitors. That would mean about 500 bookings. Better than their last year’s claim. I wonder what’s happening. Are people crazy enough to believe CREDAI’s “never before, never again” offer of discounts at the fair that they should rush in to book apts no matter if the real discount was nothing but 10-15% eye wash? Or CREDAI is lying through their teeth by exaggerating real bookings? Chennai seems to be more intimidating and complex compared to my experience in Bangalore and elsewhere. Some sense of reality has already arrived in Bangalore. People don’t fall for fake discounts anymore. Are people in Chennai really rich enough to buy properties at any rate? As most members said before me, I found the prices at FAIRPRO still at boom time rates. Not many willing to offer real discounts. Most developers and their sales team at the fair also looked indifferent..not making efforts to follow on enquiries. Wonder what Wiseman has to say on FAIRPRO. Anyway, I have decided to wait till year end. Unless I find some realistic prices, will not go for property. Will be happy to live on in my rented house which is quite inexpensive.

    Rented house... Tenants of these obviously will wait indefinitely to buy a house. After all in Chennai, for that matter almost anywhere in India, the rental value is mostly around 2% or 3% of the value of the flat. So a 60L flat in Ayanavaram gives a rent of 9K p.m. which is less than 2%.
    That is now why realestate went up in the first place and this truth is something many of the PUTHU PANAKKARANS of thw 2003-8 dont seem to digest. They think their salary of 5L p.a. pre tax is great to buy a HOUSE in MYLAPORE! Ask Wiseman!!
    CommentQuote
  • Value for Money, Infrastructure and ease of accessibilty should be main criteria for buying RE.

    Chennai RE needs alteast 50% correct from the Peak (currently) to sustain a resonable growth.
    I hope the RE builder/developer politician Cartel will soon be broken after the General Elections,
    as Black Money will be diverted for the Elections too,
    which is also a form of Investment.

    Also, the should be curb on speculative investment in RE and
    mode of fund transfer should be through Bank Transfer or using Bank Instruments.

    If IT was the sole reason for the RE boom from 2003 -2008,
    then with the recent economic downturn and home returning of the IT people from foreign,
    will put enormous pressure on RE and drag it to bottom soon, as most of the IT Money flowed into RE.:(
    CommentQuote
  • People who rent a house, opt to buy a house for various reasons.

    Some the advantages are owning a house in your name, availability of loan from bank and its long term investment benefits.

    For salaried people, Buying a House through Home loan is the Best
    Investment instrument in term of savings and wealth creation in the long
    term.

    For a person earning 5,00,000 CTC.Lets assume take home per month is Rs
    30,000 after all tax deductions.

    Assuming the person can spend 40% of the income on EMI
    (40/100 * 30000) = 12000 + 6000(rental saved on buying the home)
    = 18000

    If this person goes for a home loan at 9% for 20 years tenure
    monthly installment for 1 lakh would be Rs 900

    For a person with repayment capability of 18000 per month the loan
    eligibility is

    18000/900 * 1,00,000 = 20,00,000

    with a downpayment of 5 lakhs, the person can now buy a house for 25 Lakhs.

    It is believed that returns are around 20% p.a for Real estate and the cost
    of borrowing is 10% p.a. over the long run.

    Applying that at the end of 20 years

    25 lakh worth of property would be worth 1 Crore 25 lakhs
    and Total repayment (principal + interest ) = 50 lakh

    Therefore savings = 75 lakhs + savings/income on rental + tax ememptions
    over the years.

    Note - The above figure is just indicative and not inflation adjusted and I
    havent used CAGR for calculations, hence the actual returns can be very
    much higher.

    Now, in the Family if both husband and wife are working, the affordability
    increases double fold and with money from parents,in laws,savings one could
    easily buy a decent 2/3 bhk for 40-50 lakhs and hope to have a property
    worth 2.5 Crore at the end of 20 years.

    If the person is an NRI, the yearly savings would be 10-15 lakhs per annum
    and for them a 5 years stint would be enough to repay the loan completely
    and R2I with huge savings and crores worth place to live.

    All of this within their own lifetime.
    CommentQuote
  • In my above post, I explained the benefits of availing loan to buy a home.

    Like for any investement even for RE proper planning,proper risk assesment should be done and contingency plan should be ready.

    Experts claim that the returns are 20% p.a. for RE long term, taking into account all the boom and burst cycles the industry will face.

    So, one should understand when prices have skyrocketed 400-600 % in just a span of 4-5 years, a possibility of RE crash/correction cannot be ruled out.It has happened in the past and can happen now.

    Just in stocks, in RE also there are long term and short term
    investors.when there is a crash, people who were speculators and who have played and gambled beyond their strength will be wiped off their wealth.

    We need to ask ourselves some questions before commiting our future to an RE investment through loans.

    Question 1

    In the case of devaluation of the asset, do you have the capability and capacity to pledge additional collateral and hold on to the investment long term to realize the profit?

    Question 2

    Land appreciates, building depreciates.

    Is the property worth 2.5 crore after 20 years?

    When you buy a flat, for 1000 sqft built up the UDS would be only 700
    sqft.Its wrong to assume that one will have 2.5 crores worth property by paying 50 lakhs for a 1000 sqft 2 bhk flat.the 20% returns should be calculated only on the land value, not on the flat sale value.Is your expectations realistic?

    Question 3

    Are you buying, hoping to get rental income from the property which can be paid towards the EMI?

    The rental yield on an average is 4-5% of the property value.If the rents falldown from the current 10% in some places to average level or below that, are you prepared to manage your EMI without the income?

    Question 4

    with the Recession hitting hard and people losing their jobs and taking salary cuts everywhere,God Forbid, if such an event happens to you do you have other sources of income, wealth to take care and continue holding on to your investment and secure the future of all those dependant on you?

    Many are in the impression that if they cant pay the EMI, the bank will only confiscate back the property.unlike in US, when you default on EMI payment the banks here are entitled to possess the asset and also the other assets that belongs to you.Its treated as a personal long term liability where the house is the mortgage.

    Question 5

    The interst rates keeps varying very often, and the fixed rate is also not really fixed.Are you prepared to take on this fluctuations by arranging more funds or prepaying the loan whenever necessary?

    Question 6

    Have you secured the future of yourself and dependants?

    Are you investing only in property and not diversifying in other portfolios like stocks,FD's,Mutual funds,Life/Medical/Accident Insurance,childrens savings,pension schemes,Gold etc?

    The more you diversify, less is the risk you will lose more.

    One has to always remember that there's a family to be look after and there are people who are dependent on us and should act responsibly.



    If one is aware of all the risks and is capable and confident of handling them, anytime is a good time.One shouldnt get carried away by herd mentality and get into something withouth knowing all danger involved.

    RE is bonded with sentiments in India,Everyone wants to plunge in and own a home sometime, The time should be right and comfortable for you and decided based on what you have and personally can afford.whether the market is in boom or burst, bull or bear is immaterial in the long run.

    In this tough times of uncertainity and recession, Being aware and staying prepared is the key to survival.
    CommentQuote
  • Originally Posted by nabishek
    In my above post, I explained the benefits of availing loan to buy a home.

    Like for any investement even for RE proper planning,proper risk assesment should be done and contingency plan should be ready.

    Experts claim that the returns are 20% p.a. for RE long term, taking into account all the boom and burst cycles the industry will face.

    So, one should understand when prices have skyrocketed 400-600 % in just a span of 4-5 years, a possibility of RE crash/correction cannot be ruled out.It has happened in the past and can happen now.

    Just in stocks, in RE also there are long term and short term
    investors.when there is a crash, people who were speculators and who have played and gambled beyond their strength will be wiped off their wealth.

    We need to ask ourselves some questions before commiting our future to an RE investment through loans.

    Question 1

    In the case of devaluation of the asset, do you have the capability and capacity to pledge additional collateral and hold on to the investment long term to realize the profit?

    Question 2

    Land appreciates, building depreciates.

    Is the property worth 2.5 crore after 20 years?

    When you buy a flat, for 1000 sqft built up the UDS would be only 700
    sqft.Its wrong to assume that one will have 2.5 crores worth property by paying 50 lakhs for a 1000 sqft 2 bhk flat.the 20% returns should be calculated only on the land value, not on the flat sale value.Is your expectations realistic?

    Question 3

    Are you buying, hoping to get rental income from the property which can be paid towards the EMI?

    The rental yield on an average is 4-5% of the property value.If the rents falldown from the current 10% in some places to average level or below that, are you prepared to manage your EMI without the income?

    Question 4

    with the Recession hitting hard and people losing their jobs and taking salary cuts everywhere,God Forbid, if such an event happens to you do you have other sources of income, wealth to take care and continue holding on to your investment and secure the future of all those dependant on you?

    Many are in the impression that if they cant pay the EMI, the bank will only confiscate back the property.unlike in US, when you default on EMI payment the banks here, the banks are entitled to posses the asset and also the other assets that belongs to you.Its treated as a personal commitment where the house is the mortgage.

    Question 5

    The interst rates keeps varying very often, and the fixed rate is also not really fixed.Are you prepared to take on this fluctuations by arranging more funds or prepaying the loan whenever necessary?

    Question 6

    Have you secured the future of yourself and dependants?

    Are you investing only in property and not diversifying in other portfolios like stocks,FD's,Mutual funds,Life/Medical/Accident Insurance,childrens savings,pension schemes,Gold etc?

    The more you diversify, less is the risk you will lose more.

    One has to always remember that there's a family to be look after and there are people who are dependent on us and should act responsibly.



    If one is aware of all the risks and is capable and confident of handling them, anytime is a good time.One shouldnt get carried away by herd mentality and get into something withouth knowing all danger involved.

    RE is bonded with sentiments in India,Everyone wants to plunge in and own a home sometime, The time should be right for you and decided based on what you have and personally can afford.whether the market is in boom or burst, bull or bear is immaterial in the long run.

    In this tough times of uncertainity and recession, Being aware and staying prepared is the key to survival.


    Hi Nabishek

    Well written and well done, looking at things from all perspective.

    Keep the good work
    CommentQuote
  • Originally Posted by nabishek
    Its my pleasure to be part of this forum and be amongst many knowledgable people who bring in loads of experience and very valuable thoughts from different perspectives.

    In the RE industry, various cartel's are working together.Each coterie is heavily backed by Banks.

    In fact, The builders are selling prospective buyers a loan rather than the property.Real Estate has become a joint venture between the builder and bank i would say.

    The property fair's organised by SBI,HDFC,LIC,IDBI etc all feature only builders who bank with them or to whom they have financed.

    The FairPro was heavily sponsored by HDFC,SBI and LIC.I could see representatives before each stall offering attractive loan rates.They were calculating and convincing me how affordable these homes are through home loans given my current salary and years till retirement.

    The builders who participated would amount to just 5-10% of the overall builders in chennai.But,the point is they are the popular ones and strong hands who over the years have created a image for themselves as reputed.

    It is their consortium of builders,politicians,government officers,bank officers,corporates,speculators,brokers etc etc who get finances from Foreign Investment/Public money through stocks/Black Money and decide where there should be demand and where there should be supply.They would gain knowledge beforehand where infrastruture development is planned and buy large land banks near airport,SEZ,township,outer/inner ring road,metro rail etc and fix the price stating the proposed development.

    They promoted IT and Electronic corridor, It was not End users who saw development,infrastructure and personal need that created demand.

    They fuelled the speculation and capitalized on the buyer's sentiment of owning a home (even if its on mortgage).They created a sense of panic among buyers by hiking rates meaninglessly.

    The remaining small builders who use their own money and in joint ventures are stuck having invested huge amount in land at a time when construction cost was high.I came across many such properties in prime localities which are at ready to occupy/nearing completion stage for 1500-3000 rs/sqft less than the prevailing market rate.They are more willing to accomadate buyers interest and negotiate further and provide a better deal.

    This Trend would change only if the buyers insist on value for money and are aware what they are getting into and more importantly know exactly what is that they really want.

    "One should'nt bite more than what they can chew"


    Dear friend,
    I liked your last 2 paras. The best is the last but one- which reads- This trend would change....... they really want-. But do you feel that the buyers are such an united community to join with full vigour and fight the Promoters/Builders TO force them to reduce the prices to reasonable levels? The buyers will always be a divided lot in this country.

    You have rightly said that it is not selling the flats but selling the loans. The Banks always support the RE guys for reasons well known to every one. The poor buyers is the sufferer in any case.

    ks2071746
    CommentQuote
  • @nabishek,

    Thanks much for your post(s). Really informative and they answered so many questions of mine, for which I'm here in this board.
    Appreciate your work, well done!
    CommentQuote
  • Originally Posted by ks2071746
    Dear friend,
    I liked your last 2 paras. The best is the last but one- which reads- This trend would change....... they really want-. But do you feel that the buyers are such an united community to join with full vigour and fight the Promoters/Builders TO force them to reduce the prices to reasonable levels? The buyers will always be a divided lot in this country.

    You have rightly said that it is not selling the flats but selling the loans. The Banks always support the RE guys for reasons well known to every one. The poor buyers is the sufferer in any case.

    ks2071746


    You are right ks2071746, Buyers are not united, and they wont be united unless they have a common purpose.For instance all getting cheated by a builder.

    All the potential buyers would still try to out buy each other if there is a good deal on the block, This is because supply of good properties are still less.

    In chennai oversupply is only at far away places like OMR, GST road etc.

    People who truly know what RE investing is, invest only in liveable areas where basic infrastructure is already available.They do not speculate.

    Once you start to speculate, its no different than gambling in a casino.People will experience beginners luck but the "House" never loses..

    The builders have earned a lot already and will hold up as long as they can.

    Builders,Banks,Speculators,Buyers and other players have hugely betted on each other and have over leveraged themselves.

    If one of the player goes down, all will.

    Buyers are largely influenced by mass psyche, They easily get carried away by the mania that envelopes them during the time.Not many take decisions based on what they know, they take decisions rather by what they are told.

    Just like everyone were buying 3-4 years back because the other was buying, now everyone have started to hold back because the others near them are waiting and watching.While the former created a boom, the latter can initiate a crash.
    CommentQuote
  • All these calculation will work out good as long as your job is stable.

    When jobs can be lost at any time, such EMI calculations are risky
    CommentQuote
  • Originally Posted by nabishek
    You are right ks2071746, Buyers are not united, and they wont be united unless they have a common purpose.For instance all getting cheated by a builder.

    All the potential buyers would still try to out buy each other if there is a good deal on the block, This is because supply of good properties are still less.

    In chennai oversupply is only at far away places like OMR, GST road etc.

    People who truly know what RE investing is, invest only in liveable areas where basic infrastructure is already available.They do not speculate.

    Once you start to speculate, its no different than gambling in a casino.People will experience beginners luck but the "House" never loses..

    The builders have earned a lot already and will hold up as long as they can.

    Builders,Banks,Speculators,Buyers and other players have hugely betted on each other and have over leveraged themselves.

    If one of the player goes down, all will.

    Buyers are largely influenced by mass psyche, They easily get carried away by the mania that envelopes them during the time.Not many take decisions based on what they know, they take decisions rather by what they are told.

    Just like everyone were buying 3-4 years back because the other was buying, now everyone have started to hold back because the others near them are waiting and watching.While the former created a boom, the latter can initiate a crash.


    Dear friend,

    Your messages are very useful and thought provoking from practical point of views and not theoritical just to enjoy at the time reading only. They all look very practical and so many members and guests will be benefitted surely. Hi Members/Guests! Why not we appreciate the quite useful messages from nabishek?

    ks2071746:)
    CommentQuote
  • it is not the same everywhere,everytime

    Originally Posted by nabishek
    You are right ks2071746, Buyers are not united, and they wont be united unless they have a common purpose.For instance all getting cheated by a builder.


    In chennai oversupply is only at far away places like OMR, GST road etc.

    People who truly know what RE investing is, invest only in liveable areas where basic infrastructure is already available.They do not speculate.


    The builders have earned a lot already and will hold up as long as they can.

    Builders,Banks,Speculators,Buyers and other players have hugely betted on each other and have over leveraged themselves.

    If one of the player goes down, all will.

    Buyers are largely influenced by mass psyche, They easily get carried away by the mania that envelopes them during the time.Not many take decisions based on what they know, they take decisions rather by what they are told.

    .


    some of the reasons u have given r what i also have been arguing about 'oversupply in chennai in only far off places'.

    the mass psyche is also termed as the 'present bias' the thinking that what is happening will continue till eternity.

    the same exprts who said the sensex will touch 30000 in a yaer or two are
    saying 12000-15000 levels now.
    the same experts who predicted that IT hiring on OMR will be huge and require huge no of houses and predicted a requirement of 50000 houses on OMR.
    now they are ranting and comparing this with 1929.
    common sense does not allow me to believe them.

    ALL THESE YEARS THEY HAVE ONLY PREDICTED HOW THE ECONOMY SHOULD BEHAVE RATHER THAN HOW IT BEHAVES.
    drawing parallels between slumps and economies(nations) is senseless.
    every economy has its own inherent strengths and weakness.every situation was different.
    the world moves at a diff pace now than in 1929.distances have disappeared,
    borders are imaginary,in short the world has shrunk and things have changed to unimaginable levels since 1929,how could you compare them.

    what happened then need not necesarily happen now.

    everybody here agrees chennai prices have not crashed yet compared to
    other places.there is a difference among geographies,chronologies and effect of the same.
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  • Vens velachery flat

    I don't agree with the appreciation calculation. If real estate only appreciated at 10% why wouldn't everyone put it in Savings Bank instead of taking a loan at a higher interest? Real Estate on an avarage, appreciates about 15% p.a. Generally Real Estate in Chennai grows at 15% p.a. Calculate with a Rs.450 / sq.ft in 1989.
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