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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  • But the point to be noted especially for those buying vacant plots on the periphery of the city. These plots in 5 or 10 years down the line may NOT appreciate as much as say the increase that was seen between 2000 and 2010. As such comparison of buying a plot in Anna Nagar or Adyar 30 or 40 years ago and selling it now and buyting a plot in th city periphery will not hold much water.
    Infact my hunch is most of the plots in the so called "Auto Belt" near Oragadam and Wallajabad will not fetch returns (in 5 to 10 years) as much as being touted now. The layouts may be sold out now (promoter point of view) but selling it to second buyers down the line (say 5 years from now) would not be an easy task at all (especially when one wants to get money at a short notice).
    CommentQuote
  • 10 - 15% rates have been hiked in most of the projects.
    My gut feeling, builders are as of now playing games .

    India is no more different; it's highly connected to Global Economy.

    Once the Base Rate and Interest rate hikes come into effect we may see the real state of RE, may be the bubble which escaped last time may burst this time.
    CommentQuote
  • Originally Posted by REUser


    India is no more different; it's highly connected to Global Economy.

    Once the Base Rate and Interest rate hikes come into effect we may see the real state of RE, may be the bubble which escaped last time may burst this time.



    As per REUser "India is highly connected to Global Economy"

    I feel some of us believe that the property price in the whole world is crashed (after Nov 2008) except for India - therefore India must follow suite.

    Looks like India is not alone in property price rise in the current environment.


    Global house prices
    Year to March 2010 (country, percentage change)


    1. Hong Kong +27.1
    2. Singapore +23.9
    3. Taiwan +18.5
    4. Australia +16.6
    5. Israel +12
    6. Finland +11
    7. Sweden +9.6
    8. China +8.2
    9. Norway +7.6
    10. Britain +5.4
    16. New Zealand +1.5
    27. United States -5.3

    India not listed due to lack of proper data

    Since March 2009 (15 months ago) in many countries Property prices have gone up considerably.

    Just like India, GFC only registered only a small Blip in many other countries.


    Guys only US and Some parts of Europe has considerable impact due to GFC but there are many other countries that cruised comfortably thru GFC
    (India,China,Singapore and Australia to name a few)

    In this "Global Village" still every country has there unique fundamentals. Yes every country will be affected when some major Crisis happens but the degree of affect will be considerably different. some countries are down for few years and some countries brush away the Crisis with few months of slower growth and move on.
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  • ceedeeyes chennai pattinum are giving delivery of 1st phase flats in Jan 2011. It has been divided into 2 phases now . Manager says the demand slipped due to recession now only it is starting again but very slowly. around 921 houses booked.
    thiruporur road looks neat now . guduvancherry road sucks as usual. went to site just last week during rains.
    that supervisor ramachandran is a big time loser.....he pitches in for the actual supervisor selvaraj from time to time...this guy is harsh and mean, selvaraj is the same but he says things in gentle manner....
    Staff Courtesy at their adayar office and that of the workers at site who take you to show your houses are great. As stated above that supervisors suck...
    Local bus services are increasing...saw 4 buses when i went last week to the site...also in that thiruporur road electicity / lighting can be seen..so night time not much worry when coming this side.
    pending taks include gas connection by bharat gas, seperate sub station for electricity by local officials, sewage plant- all these are external agncies so it is getting delayed.
    a bit of road has been laid inside site. looks good...project coming up slowly but nicely....manager said they will pay 8% or so fine /month for delay :).
    in short .....but this as investment....trust me my father did that 20 yrs ago and now that flat isselling for 80 lacs now...however we dont have to wait that long for this to develop.....also another construction major is developing flats few km from ceedeeyes chennai pattinum towards guduvancherry side.....so that area is bound to develop.....
    enjoy... guduvancherry road sucks as usual. went to site just last week during rains.
    that supervisor ramachandran is a big time loser.....he pitches in for the actual supervisor selvaraj from time to time...this guy is harsh and mean, selvaraj is the same but he says things in gentle manner....
    Staff Courtesy at their adayar office and that of the workers at site who take you to show your houses are great. As stated above that supervisors suck...
    Local bus services are increasing...saw 4 buses when i went last week to the site...also in that thiruporur road electicity / lighting can be seen..so night time not much worry when coming this side.
    pending taks include gas connection by bharat gas, seperate sub station for electricity by local officials, sewage plant- all these are external agncies so it is getting delayed.
    a bit of road has been laid inside site. looks good...project coming up slowly but nicely....manager said they will pay 8% or so fine /month for delay :).
    in short .....but this as investment....trust me my father did that 20 yrs ago and now that flat isselling for 80 lacs now...however we dont have to wait that long for this to develop.....also another construction major is developing flats few km from ceedeeyes chennai pattinum towards guduvancherry side.....so that area is bound to develop.....
    enjoy... guduvancherry road sucks as usual. went to site just last week during rains.
    that supervisor ramachandran is a big time loser.....he pitches in for the actual supervisor selvaraj from time to time...this guy is harsh and mean, selvaraj is the same but he says things in gentle manner....
    Staff Courtesy at their adayar office and that of the workers at site who take you to show your houses are great. As stated above that supervisors suck...
    Local bus services are increasing...saw 4 buses when i went last week to the site...also in that thiruporur road electicity / lighting can be seen..so night time not much worry when coming this side.
    pending taks include gas connection by bharat gas, seperate sub station for electricity by local officials, sewage plant- all these are external agncies so it is getting delayed.
    a bit of road has been laid inside site. looks good...project coming up slowly but nicely....manager said they will pay 8% or so fine /month for delay :).
    in short .....but this as investment....trust me my father did that 20 yrs ago and now that flat isselling for 80 lacs now...however we dont have to wait that long for this to develop.....also another construction major is developing flats few km from ceedeeyes chennai pattinum towards guduvancherry side.....so that area is bound to develop.....
    enjoy..
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  • Roubini Says India's Economic Growth May Surpass China's in Next 10 Years

    India’s economy may expand more than China’s in the next 10 years if the world’s second- most populous nation lifts curbs on foreign investment in retail and boosts spending on roads and bridges, Nouriel Roubini said.


    “I’m very optimistic about India’s future growth” because the economy is driven by domestic demand while China relies more on exports, the New York University professor and chairman of Roubini Global Economics who predicted the global financial crisis said in New Delhi yesterday.


    Roubini joins Morgan Stanley in predicting India will grow faster than China. Prime Minister Manmohan Singh’s government plans to double spending on roads, ports and power plants to $1 trillion in the five years to 2017 to improve the quality of India’s infrastructure.


    India’s gross domestic product climbed 8.9 percent for a second straight quarter in July to September, the government said this week. O.P. Bhatt, chairman at the SBI, said today 10 percent growth for the nation “is inevitable.”


    Small Stores
    Indian laws, aimed at protecting small store owners, limit overseas investment to single-brand retail or wholesale operations. Wal-Mart Stores Inc., Carrefour SA and Tesco Plc are pushing the government to allow foreign investment after the trade ministry invited views from the industry on removing the restriction.

    Wal-Mart Chief Executive Officer Michael Duke said in October he is “optimistic” that non-Indian companies will be allowed to invest in the country. Organized retail may create as many as 3 million jobs in the next five years in India, according to Duke.

    India’s economy bucked slowdown in Asian neighbors from Thailand to Malaysia, where currency appreciation and risks to exports from Europe’s debt crisis and U.S. unemployment have clouded the outlook.



    India’s factory output last month grew at the fastest pace in six months, according to the Purchasing Managers’ Index compiled by HSBC Holdings Plc and Market Economics. The nation’s service industry expanded at the quickest pace in four months in November. Exports in October grew 21.3 percent, a separate report showed.


    Young Population


    “China is likely to slow in the coming years gradually and India’s growth is likely to accelerate,” boosted by a young population and higher consumption, Roubini said.


    India will add 136 million workers, more than the population of Japan, by 2020 compared with 23 million for China, Morgan Stanley economist Chetan Ahya said. That will help the nation tap into a rising pool of savings and help finance infrastructure projects, he said.


    Morgan Stanley expects India to overtake China as the world’s fastest-growing major economy by 2015. India’s growth may accelerate to 9.5 percent between 2011 and 2015, Ahya said.


    India can sustain a growth rate of 9 percent by raising productivity and addressing supply-side issues, Roubini said yesterday.
    CommentQuote
  • The people opposing more foreign direct investment in Retail are not small stores. Small stores can find ways to survive given relationships and emotional connect they have developed with local communities over generations. Annachi can survive even a Walmart given his informal local relationships.

    The actual opponents of more foreign direct investment in Retail are the big Indian retailers like Big Bazaar (Biyani), Reliance, Tatas who along with corrupt government have ensured that they will forever enjoy a monopoly for their business dynasties and people should have no choice but go to them.

    If Mr.Roubini can visit any RTO, Sub-register office, or chat with Traffic police on the roads during his visit, all his optimism of India will disappear.
    CommentQuote
  • The prices are rising again for the past few months. But, in all likelihood, this bubble would burst shortly. This is happening in China now.
    CommentQuote
  • Originally Posted by rasvijay
    The prices are rising again for the past few months. But, in all likelihood, this bubble would burst shortly. This is happening in China now.


    Hi Friends,

    Over the past 6 months we have been seeing upward bias in real estate prices all over chennai.In many localities rates have recovered and sometime surpassed the previous peak price.We could see lots of projects getting launched and people going ahead and booking them without second thought.GST seems to be the OMR of this recovery cycle.

    Personally I see history repeating itself.I am able to sense a repeat of late 2008-2009 rally which came to end when recession hit U.S and we saw price correction upto the tune of 30% due to general bearish sentiments in RE.This thread was started during the peak and it beautifully records the trough and recovery of that cycle.

    We seem to be in very interesting time now when we have various factors like follows that could affect RE price

    1.State Elections are coming next year
    2.New scams are being unearthed everyday with huge stakes in RE.
    3.Interest rates set to increase for buyers and liquidity crunch faced by builders.
    4.growth across industries decelerrating unless its constantly stimulated externally.
    5. Export affected by increased competitiveness of other devoloping countries.Increasing pressure to keep our currency de-valued.
    6.Rise in salary struggling to keep pace with inflation
    7.FII/FDI pumping huge money to inflate prices and ensure better returns on their investment
    8.Construction cost increasing very sharply due to inflation and supply crisis due to schemes like convert huts to roofed houses by current government.

    and so on..

    I also request members to share their view on what they feel the trend for next year would be.
    CommentQuote
  • Prices on the rise

    Dear friend Abhishek,

    You are doing a commendable job of recording the general price trends in the chennai realestate market.Iam an avid reader of your posts and gained much information from them.
    The last few months i have noticed that real estate prices have shot up in many areas in chennai.whether this is the result of a genuine increase in demand or a coordinated effort by real estate players who seem to be well organized is a question that can be debated .However, the verdict is out for now that prices are on the rise again.

    regards
    unlikely
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  • One thing I observe is either their is a demand or not. People raise at the rate of 10% every year. If their is more demand it increases further. If no one agreeing to that price they are not bothered and they keep increasing since they know someone would be buying for sure. Its a pure speculative game.
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  • Chennai property price up 83% since 2007

    As per RESIDEX National housing index, Chennai tops the list at NO:1 in increase in market value of property when compared with 15 Indian major cities.

    Jaipur followed by Bangalore is at the bottom of the list.

    Kolkata and Mumbai are at 2nd and 3rd place respectively.

    Since 2007:

    1.Chennai +83%
    2.Kolkata +76%
    3.Mumbai +60%

    14. Bangalore -32%

    This once again proves markets are unpredictable and market is above all of us.

    We all know what happened yesterday but no one knows what will happen tomorrow.


    Source:

    National Housing Bank
    CommentQuote
  • From my personal experience, Chennai data above looks close to the reality although I would say period is from 2006-10 averaging about 20%/pa.
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  • Dear friend blogger,
    It was definitely not an average increase of 20% a year.There was a period of stagnation roughly starting from mid 2008 to early 2010.Simultaneously, there was a drastic drop in the volume of property transactions.A routine enquiry at any of the registrars office would give u this information.Last few months the rates have gone up, but whether there is a corresponding increase in the number of property purchases remains to be seen.
    regards
    unlikely
    CommentQuote
  • Originally Posted by balab1405
    One thing I observe is either their is a demand or not. People raise at the rate of 10% every year. If their is more demand it increases further. If no one agreeing to that price they are not bothered and they keep increasing since they know someone would be buying for sure. Its a pure speculative game.


    This is true. However I do not see it as speculation. RE and bullion have been solid invesnt options for centuries. They should grow well beyond inflation and FD returns. This is a norm and not speculation. Speculation happens in a real bullish market. So, appreciation of 12-18% p.a. on RE is a healthy growth. (Long term FDs provide 10% p.a. plus). Bull runs like the ones during 2004-08 happens once in a while depending on disposable income of individuals, favourable interest rates, good growth in economy, higher inflation - speculation adds to these factors during bull run.
    CommentQuote
  • Originally Posted by balab1405
    One thing I observe is either their is a demand or not. People raise at the rate of 10% every year. If their is more demand it increases further. If no one agreeing to that price they are not bothered and they keep increasing since they know someone would be buying for sure. Its a pure speculative game.


    RE and Gold are always in demand because they are considered hedge against inflation and troubled times.It is because they have inherent value in peoples mind that is priced according to the then currency valuation and demand - not the other way round.It is the reason why our society and country is well off comparitively to other economies.It has been in our culture and traditionally we have been investing in Real Assets.

    Things get majorly skewed when we introduce leverage and use RE for diversification rather than for living/necessity without properly understanding and start expecting 20% CAGR YoY.Banks, Builders and sometimes even governments mislead people in thinking so.There is no guarentee of assured returns in any market irrespective of however powerful the people who control/manipulate it.This was the path taken by western capitalists.We know what happened to them.

    To put things realistically.Rate of RE appreciation is closely tied to rise in peoples income.Affordability and Location are the only major factors to be considered.

    Real appreciation is only with more job creation/migration of new people/significant infrastructure development/Excess liquidity increasing affordability which creates new demand.This is when you will get returns above inflation.

    If the above factors are non-existant and demand plummets then we will also have times when RE just appreciates with inflation i.e. stagnate in real terms.RE can also correct significantly i.e. stagnate when there's inflation over period of time or correct signifcantly when need arises to liquadate.
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