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Property Price Trends in Chennai

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Property Price Trends in Chennai

Last updated: May 20 2021
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  • Re : Property Price Trends in Chennai

    another great report. In most cases the rate betwen 2009 and 10 is the same or marginally increased (this itself is significant especially when people are going crazy calling it a crash! In some cases the price did drop a bit.

    What makes you think the guideline value will be revised pl. Is there any media news about it.
    Last edited February 24 2010, 07:57 AM.


    • Re : Property Price Trends in Chennai

      Good Article to read


      • Re : Property Price Trends in Chennai

        You called teaser rates on home loans a gimmick, and then HDFC started offering teaser rates...

        We were losing business. I still feel that teaser rates are a gimmick; it is a marketing tool. But my marketing people said that if we do not have attractive rates in the first two years no one would come to us. So we had to fall in line immediately. So everyone is doing it now and financial innovation takes 24 hours. ....There are two things in this.

        If the teaser rates are much lower than the normal rates, borrowers may not have the cash to pay when the normal rates kick in. Secondly, even when we give these rates the quantum of loan is calculated as if the rates are higher ...we don’t want the family to be short of money two years from now. So our eligibility is much lower because we take into account the higher rates. But if suppose in two years time rates become 12-13%, how are they going to pay? Then 8.5% will become 13%


        • Re : Property Price Trends in Chennai

          Originally posted by ramasaikumar View Post
          where are the mugaliwakkam plots of VGN?
          Please check the promoters website or contact their office.I think the layout was named VGN blooming gardens and cost 50L/grnd.


          • Re : Property Price Trends in Chennai

            Originally posted by REUser View Post
            Good Work !

            Please find the attached zip for the Fair Pro Price both 2009 & 2010

            What's the final call for 2010?

            Going to Increase by 10-25 %

            Builder's will never blink in Chennai; they got ample support
            (I'm expecting Guideline Value to increase by atleast 1.25 to 2 times at any time sooner)
            Hi Friends,

            Thanks REUser for the comparision report, really puts things in perspective.

            Its been over a year since I started this thread and we have seen both reduction and increase in prices.

            While it was fairly safe to wait and watch last year, This year my take is we need to be really cautious.Many factors such as inflation, central governments unwillingness to exit stimulus completely, possibility of early state election,possible increase in FSI/guideline value, reduced availability of hold land, increased NRI remmitance due to strong dollar etc may result in increase in property price.

            But, I am of the opinion that price cannot breach the last peak rate easily.With possible increase in interest rates and cost of living becoming expensive due to inflation, with not much salary increase.The buyer base would drastically reduce resulting in better deals in the offing for buyers who are buying to live using their savings.

            Chennai is one of the few places in India, where an individual buyer can still buy and hold land within the city if they can afford to.

            A very important risk we face going forward is we can expect builders to reduce the apartment ticket size to below 1000 sqft to meet affordability of majority buyers.Though by this one would get a house in a preferred locality within the budget in the future, it may not be the same of getting a bigger home today paying a premium over the real price.

            Its very important we consider all factors so as to take an informed decision.

            Following is my take on the latest fairpro exhibition

            Its just a mirage to fool buyers that price in known location has reached back the peak levels and going to increase.Making buyers think its the right time to buy in ongoing projects at quoted rate which is 10-15% less than proposed projects.

            The interest subvention scheme for loan disbursed before march 31st clearly shows Chennai builders are also facing cash crunch and are desperate to get money from all avenues possible.Its to lure gullible buyers who are unaware that after 2-3 years banks are going to increase interest rates(even fixed plans-reset period is 3 years for most banks) and charge nothing less than PLR to recover the concession as low interest given now.

            Alarming marketing tactics like pushing forth only proposed projects on prelaunch, selling plots withing a future township project for which theres no launch date.Assuring fixed rental for 3 years which really is just 10-15% discount on cost price.

            Most of them claimed that ongoing projects are nearly sold out and quoting 10-15% higher for proposed projects.When I insisted that I am interested only in ongoing projects and am ready to book immediately if good flat is available.I was immediately asked to contact builders office for correct availability/price.Such was the misinformation exhibited.

            This exhibition was just pure display of builders(CREDAI)-bankers cartels strength.

            In general following was the trend

            City limits - 10-15% higher (back to peak price of 2008-2009)
            Suburbs - Stagnating and 10-15% lesser
            Outskirts - Stagnating

            Please share your comments.
            Last edited February 24 2010, 12:31 PM.


            • Re : Property Price Trends in Chennai

              Good intel Nabishek.What is your views on:

              1. Percived oversupply of appartments in chennai paticularly OMR.
              2. Are there many new projects commencing?
              3. What happened to all the talk of affordable housing (ie.small units 500 to 600sqft) are there any progress on that segment.


              • Re : Property Price Trends in Chennai

                Originally posted by Economist View Post
                Good intel Nabishek.What is your views on:

                1. Percived oversupply of appartments in chennai paticularly OMR.
                2. Are there many new projects commencing?
                3. What happened to all the talk of affordable housing (ie.small units 500 to 600sqft) are there any progress on that segment.
                I am very skeptical about OMR development beyond sholinganallur in short term(5 years).

                At present only road infrastructure is available in OMR.Water, drainage etc will be provided along OMR only upto sholinganallur junction.Individual panchayats have to take responsibilty of laying culverts to connect to this.

                I believe strongly that no private company or builder can substitute the government's role in providing basic infrastructure development at subsidized cost.The private builders are surely going to milk double the amount spent out of the owners in the name of maintainence.If they dont provide what they promise and facilities like water,drainage,garbage are not handled properly then it would be utter chaos.

                I personally would prefer to rent in these communities, than spend 1C+ on these projects and be treated like a tenant by the builder/association.

                OMR is surely overhyped.Regarding oversupply, The answer is yes and no.These high rises were launched targetting HNI's,NRI's,Corporates, IT professionals.Many floors are booked by these people as investment during launch itself.Only 20-30% are bought by actual end users and people who plan to R2I and settle.

                The first completed project near siruseri is yet to see full occupancy even after one year of handing over.The capital appreciation of these properties largely depend on how much occupancy these buildings see in the future than whether they get sold now or not.The risk of these towers being deserted with only one or two flats occupied per floor is very high.

                Regarding new projects, Builders have postponed their plan to launch new phases/projects as of now.But there are many projects in pipeline to be launched both in affordable and premium segment.

                Regarding affordable housing, but for few projects outside the city like kelambakkam, serambathur.I think this affordable homes segment was a non-starter.Chennaites are generally cash rich.Most prefer to buy in known location even if it means paying little extra than go too far in the name of affordability.People who wanted to make use of the low interest rates for sub-20 lakhs loans have only bought here.

                We may hear from TNHB/CMDA soon on satellite township projects where properties will be developed as a private-public partnership with good construction quality,specification and amenities.These projects will be self-financing at affordable competitive price and have all basic infrastructure planned.
                Last edited February 24 2010, 05:47 PM.


                • Re : Property Price Trends in Chennai

                  Comparison of Feb 2009 Vs 2010 ... a.pples to a.pples

                  While REUser has put in the first post of nabishek (Feb 2009) against the latest (Feb 2010), what I've done is compared the 2 statements side-by-side and removed the incomparables (where there is no data in either of the years). Basically the intersection set!

                  Attached Files


                  • Re : Property Price Trends in Chennai

                    Thanks Wiseman for the clear cut info.

                    I thought of doing it, but got struck into other things.
                    Anyways Thanks again.

                    Prices are stagnant, thats my verdict (removing increased/decreased glitches).

                    I agree to nabishek, one has to play safe this year and may be next year or till state elections are over.

                    From April, no more teaser loans
                    (and its a gimmick accepted by Deepak Parekh of HDFC main financier).
                    Loans are going to be back to normal rates.
                    CRR will be hiked.
                    No restructuring of Non Performing Assets.
                    Interest rates will be hiked.
                    No more Govt Stimulus (Fiscal deficit has to be reduced drastically)
                    INR will strengthen against USD & Euro
                    (RBI is planning to buy another round of from IMF (190 MT), to derisk currency fluctuations and reduce USD/EURO foreign reserves)

                    (Hope no tax sops this budget due in couple of days for the salaried class)

                    IT industry is yet to face the tough situtation from US
                    (when jobs are getting created in US)
                    Call centre jobs will be moved back Onshore/Near shore than off shore.

                    Given these scenarios and with the state elections hanging around any time after June/July, the only option left behind is increasing the Guideline Value.
                    Last edited February 25 2010, 12:34 AM.


                    • Re : Property Price Trends in Chennai

                      Good posts. We can't rule out the fact that specs would have changed for the same project and location. Builders did convert some of their projects to "affordable housing" with low end specs.


                      Have any questions or thoughts about this?