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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  • Wow!! This is an exhaustive list of projects. Thanks for sharing it here.
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  • annoying RE price

    Who's really buying these flats? My budget was 1.25c and I couldn't find a decent three BR flat in Adayar area. The interest rate is pretty high who can afford this much to buy a flat? But the sq. ft rate is keep going up like anything within city limit. I have been in USA since 1999, to be honest I checked with ICICI I'm not qualified to get 1.5c loan. I think those builders are simply hyping things. Thanks.
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  • VijayShanthi Builders isnt part of the list. Were they not present in the FairPro..? Wanted to know the current price of Park Avenue in Vandalur-Kelambakkam Road.. any idea ?

    Originally Posted by nabishek
    Hi Friends,

    A roundup of FAIRPRO 2011.



    The Rates quoted has recovered back to 2008/2009 peak levels and surpassed it for yet to launch projects in prime locations.Builders displayed the same haughty behaviour as before making buyers feel helpless and leave saying dejectedly "That place is costing so much now!" and look into projects in middle of "nowhere" just because thats what they can afford.

    It will be interesting to see the impact of several factors like

    1. Effect of stimulus easing on pushing economy growth
    2. Lower industrial growth than expected
    3. High Inflation pushing prices high
    4. Increase in interest rates making loans costly
    5. Discouraging Buy/Rent ratio
    6. Loan-repayment coming up in next fiscal for many builders
    7. State Election results
    8. Uncertainity in global economies/markets etc

    I request members to share your views and speculations on the prices and impact/outcome of above factors.
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  • Originally Posted by melav
    VijayShanthi Builders isnt part of the list. Were they not present in the FairPro..? Wanted to know the current price of Park Avenue in Vandalur-Kelambakkam Road.. any idea ?


    No,They were not present.The project was priced around 2800/sqft some months back.

    Originally Posted by nidhsek
    Who's really buying these flats? My budget was 1.25c and I couldn't find a decent three BR flat in Adayar area. The interest rate is pretty high who can afford this much to buy a flat? But the sq. ft rate is keep going up like anything within city limit. I have been in USA since 1999, to be honest I checked with ICICI I'm not qualified to get 1.5c loan. I think those builders are simply hyping things. Thanks.


    Thanks for sharing your view.Looking forward to hear diverse opinions from others too.

    I see only one reason for such pricing..It is to sell to this uber-rich customer telling them the premium they are paying will ensure that normal class people are filtered out and guarentees a posh like minded neighbourhood for the customer.Believe it or not, The idea sells very well and makes all other parameters like VFM etc meaningless and lures the customer.

    The general impression I got from the fair was builders are continuing to get buyers from target segments like NRI's and HNI's from other states/districts who are cash rich and looking to diverse and buy in chennai.If the place has a recognisable address, then it commands a hefty premium and they are strictly not for the first-time buyers.

    Apart from few affordable projects, builders were not serious to get propspective buyers from the event.They were more interested only in showcasing their "leading reputed builders" status and were also seen vocal on how most of their projects are almost sold and If you buy how 20%+ returns is assured!.
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  • Friends,

    Wanted to share another trend I have been noticing.The big hands in the industry are buying out several projects that were planned/developed by small and medium size builders and re-naming them,altering the plan/specification and launching it as if its their own and marketing them aggressively at exorbitant price.

    For example, a project in T.nagar near natesan park from the above list is now priced 14000/sqft.The same project was launched some months back by another medium sized builder for 10500/sqft who was willing to negotiate, but it didnt elicit any response.

    Does Brand Name/Builder Reputation justify a Rs 3500/sqft premium? Request members to share what they make out of it.Thanks.
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  • Originally Posted by nabishek
    Friends,

    Wanted to share another trend I have been noticing.The big hands in the industry are buying out several projects that were planned/developed by small and medium size builders and re-naming them,altering the plan/specification and launching it as if its their own and marketing them aggressively at exorbitant price.

    For example, a project in T.nagar near natesan park from the above list is now priced 14000/sqft.The same project was launched some months back by another medium sized builder for 10500/sqft who was willing to negotiate, but it didnt elicit any response.

    Does Brand Name/Builder Reputation justify a Rs 3500/sqft premium? Request members to share what they make out of it.Thanks.



    It's nice to know that an old economy sector like construction is also becoming more like other modern businesses in terms of M&A (mergers & acquisitions). We always regularly read about Big Technology & IT companies acquiring smaller niche companies to improve their market value and to provide more types of products or services to their customers.

    As far as Brand names go...yes it has a lot of intangible value. When it comes to garments like jeans for example brands like Levi's, Lee attract a premium. Similarly even in campus interviews some companies attract a lot of talent because of their brand perception. Even for fried chicken for example we can't recall any other brand other then KFC. For a internet search engine Google is default, inspite of dozens of choices.

    However, to become a big brand proper pricing is important as per 4Ps of marketing. Google gives away search, email, and many other services for free and still makes 100-500 times more money then the largest construction companies in the world from just from text Ads. Would Google have become more successful if they charged for every single search performed?
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  • Agreed. But ...

    Originally Posted by contra
    It's nice to know that an old economy sector like construction is also becoming more like other modern businesses in terms of M&A (mergers & acquisitions). We always regularly read about Big Technology & IT companies acquiring smaller niche companies to improve their market value and to provide more types of products or services to their customers.

    As far as Brand names go...yes it has a lot of intangible value. When it comes to garments like jeans for example brands like Levi's, Lee attract a premium. Similarly even in campus interviews some companies attract a lot of talent because of their brand perception. Even for fried chicken for example we can't recall any other brand other then KFC. For a internet search engine Google is default, inspite of dozens of choices.

    However, to become a big brand proper pricing is important as per 4Ps of marketing. Google gives away search, email, and many other services for free and still makes 100-500 times more money then the largest construction companies in the world from just from text Ads. Would Google have become more successful if they charged for every single search performed?



    The value of the brand is equal to the sum of positive customer experiences of the brand. Better the experience, stronger and more valuable the brand.

    Therefore, one might expect to get better construction quality, amenities, etc from (say) a Sobha and therefore be willing to pay more per SFt.

    But Abishek's question was (I think), can Levis buy out an average quality jeans from a little-known brand stiched for price competitiveness and THEN put on a Levis label and charge a premium?

    Would that not cause a dissonance between the product's actual benefit level and the perceived benefit level appropriate to the bigger brand at a higher price?

    In simple English, would not the mid-size builder's benefit level be lower than the big-size builder's benefit level, thereby creating a poor impression in the mind of the buyer when he pays a premium expecting one quality and gets gyped actually seeing another, lower, quality!

    cheers
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  • Originally Posted by wiseman
    The value of the brand is equal to the sum of positive customer experiences of the brand. Better the experience, stronger and more valuable the brand.

    Therefore, one might expect to get better construction quality, amenities, etc from (say) a Sobha and therefore be willing to pay more per SFt.

    But Abishek's question was (I think), can Levis buy out an average quality jeans from a little-known brand stiched for price competitiveness and THEN put on a Levis label and charge a premium?

    Would that not cause a dissonance between the product's actual benefit level and the perceived benefit level appropriate to the bigger brand at a higher price?

    In simple English, would not the mid-size builder's benefit level be lower than the big-size builder's benefit level, thereby creating a poor impression in the mind of the buyer when he pays a premium expecting one quality and gets gyped actually seeing another, lower, quality!

    cheers


    Point to be noted. If the bigger company is simply acquiring the project as it is and selling to customers at a premium, by just cajoling them on the brand name alone without any equal improvement in quality then in longer term their brand value would come down due to increase in negative experiences and word of mouth.

    It is better to branded companies to go alone in that case to maintain consistency in quality and customer experiences.
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  • Friends,
    Please note the words 'altering the plan and specifications' ! The reputed builder is able to pump in more money in the project and carry out the improved specifications, which the smaller builder is not able to do, and therefore charges a premium for his quality and market brand name !!!
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  • By the way who are the small and big builders we are talking about it.
    My guess is big builder will enforce quality standards on the project and ensure compliance simply because he wouldn't risk his reputation built over years and years to make few crores from this project.No doubt cost of quality improvement will not be equal to the amount of premium paid.
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  • burst

    I happened to read at a forum. Are these true? Thanks for your opinions.

    Indian Real estate is going to burst like in US.
    The present property developers are pure politicians and invested their corrupt black money in real estates. It is just an illusion
    projected as having good demand. Once the elections are over all their game will also over bringing back the value to its knees.

    If I live in USA and invest in India the return on investment will get taxed twice.
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  • Originally Posted by nidhsek
    I happened to read at a forum. Are these true? Thanks for your opinions.

    Indian Real estate is going to burst like in US.
    The present property developers are pure politicians and invested their corrupt black money in real estates. It is just an illusion
    projected as having good demand. Once the elections are over all their game will also over bringing back the value to its knees.

    If I live in USA and invest in India the return on investment will get taxed twice.


    A crash like it happened in some US states like Florida during last few years is not possible in Tier-1 large Indian cities.



      There is good job growth across various sectors in some Indian cities like Chennai, Bangalore. In US there was actually job losses.
      Salaries are competitive in India, so more exporters want to come here and end up creating jobs.
      China, the world's largest exporter currently is aging slowly. India has a young workforce which is another advantage to create more jobs at competitive salaries.

      However prices may become stagnant, and so double digit returns every year may not at all be possible, expect in few situations which depends.
      However prices may become stagnant, and so double digit returns every year may not at all be possible, expect in few situations which depends.
      However prices may become stagnant, and so double digit returns every year may not at all be possible, expect in few situations which depends.
      However prices may become stagnant, and so double digit returns every year may not at all be possible, expect in few situations which depends.
      However prices may become stagnant, and so double digit returns every year may not at all be possible, expect in few situations which depends.
      However prices may become stagnant, and so double digit returns every year may not at all be possible, expect in few situations which depends.
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  • Cannot compare US with India. Real estate growth depends on people and hence the population growth, we are very strong in that.
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  • Folks, haven't had a chance to follow the market oflate. how is Chennai RE doing so far this year. Do we see it still booming or started to stabilize/stagnate again. Have read about Hira Upsacle quoting 6-7K for the new project in OMR!!!
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  • rates have increased by a minimum of 50% in this year in chennai and suburbs i am talking about land.

    i have been following tthis forum for a long time and crash and bubble dont seem to apply to chennai.all is not well with the WISE.....

    people who stupidly listened to some perpetual pessimist armed with linguistic mumbo jumbo made some highly refined analysis about the impending crash in chennai RE lost a golden oppurtunity last year when the sale of the century was on.

    chennai will never crash.. chennai RE is bullish for few more years...
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