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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  • I have made a calculation of the flat I am currently living in Velachery.

    Cost of the Flat : Rs. 5000000

    Say 50% is loan amount : Rs. 2500000
    Total interest payable for : Rs. 2500000
    10 yrs 10%
    Money paid from hand : Rs. 2500000
    Total : Rs. 7500000
    (This excludes all other expenses for
    maintenance etc)

    Rent I am paying now : 12000 / month

    Cumulative annual rent for 10 yrs : 150000
    10% increase every year 165000
    181500
    199650
    219615
    241576
    265733
    292306
    321536
    353689
    Total collected as rent 2390605 ~ 2500000

    Now the owner has got only 1/3 rd of the total value of the property. To completely recover the it will take atleast 10 - 12 more years which makes it an average of 20 years (say)

    I have not calculated the loss of interest on the 25 lakhs that he had invested from hand. When I made all these claculations I really don't understand why people think that investing in RE is lucrative. Please don't tell me that the market value of the property will rise and if he sells then it would be good. If a guy who buys a property@50 Lakhs takes 20 yrs to recover the investment alone then what would happen to the one who buys it at even higher rate.

    This leaves me completely puzzled.
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  • The investor is hoping that he'll sell it for a much higher rate, the rate of appreciation in the last 5 yrs has been much more than the interest he is paying.
    All the rental income he is getting meanwhile is just an extra money.

    Also if you had missed buying a flat in Velachery 5 yrs back, chances are you are never going to afford buying in Velachery anymore unless you had a brilliant career streak and made lot of money. After a few years if you decide to buy a house, will have to contend with buying it in Sholinganallur or Kelambakkam or worser still, Sriperumbudur or Oragadam. For the rest of your married life, one of the constant complaint you'll hear is how stupidly you had missed a golden opportunity to buy house in heart of the city like Velachery.

    PS: When I mean "you" I didn't mean you personally, just used it to refer a person in a similar situation
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  • Originally Posted by iconic
    Please don't tell me that the market value of the property will rise and if he sells then it would be good.


    Why shouldn't we tell you market value will rise??
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  • @iconic: Along with @love4land's words, a few corrections: the interest amount comes to only 14 lakhs, over 10 years on a 10% RI + there could be tax benefits. Property prices are not predictable with smooth curves! A few local factors, say a popular IT park, a good 6 lane road, or a famous school can suddenly shoot up prices. History tells us that almost every good locality has had such spurts once or twice in a 10 year period. The same applies for your 10% formula for rents. You may increase the rent by 10% for a continuing tenant. But when they vacate and a new tenant shows up, often a jump is not just a 10%.
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  • @Love4Land

    Eventhough velachery is having great appreciation I don't regret for not buying as it is one of the worst areas in terms of roads in interior areas, current traffic conditions, low voltage EB, flooding in rainy seasons etc. It has gained status only because you don't have a better place in its surroundings. The public infrastructure is lot to desire for the money it demands.

    Originally Posted by Love4land
    Why shouldn't we tell you market value will rise??

    Just read the line below, I have a question on that. If some one buying @50 lakhs takes 20 yrs to earn it back what would happen for some who buys at a higher cost.

    @murugesh

    You are right 10% at diminishing would come upto 14 lakhs - tax benefits we can assume that to be 10 Lakhs. In the case of total investment 25 lakhs from hand there is a loss of interest. Considering an FD @8% for 10 yrs = 20 Lakhs.

    On the trend of rents, I accept there will be hikes but there are also lean periods where in you may have the house locked without renting. The calculation is just based on average.
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  • In last 10 years, Velachery 2-bhk went from 20-25L to 50L.

    Now if it goes to 1C in next 10 years in 2022, I wouldn't be surprised.

    Rent is just additional yeild to supplement the capital value increase.
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  • Will it be possible to get 2bhk apartment at proper Velachery ?
    It sounds too less


    Originally Posted by k11
    In last 10 years, Velachery 2-bhk went from 20-25L to 50L.

    Now if it goes to 1C in next 10 years in 2022, I wouldn't be surprised.

    Rent is just additional yeild to supplement the capital value increase.
    CommentQuote
  • Originally Posted by braveman
    Will it be possible to get 2bhk apartment at proper Velachery ?
    It sounds too less


    I do not know what an actual resale 2-bhk costs, 50L is a rough estimation from @iconic.

    New ones are at 90L I think.
    CommentQuote
  • Chennai Rental/ Capital Values - 2012 Q2

    I would like to share this link about Chennai Rental/ Captial values as of 2012 Q2
    http://www.cushwake.com/cwmbs2q12/PDF/chennai_res_2q12.pdf
    CommentQuote
  • Originally Posted by braveman
    I would like to share this link about Chennai Rental/ Captial values as of 2012 Q2
    http://www.cushwake.com/cwmbs2q12/PDF/chennai_res_2q12.pdf


    No appreciation anywhere in last quarter? not sure if they don't have enough data points.
    Also Adyar's appreciation of 43% YOY seems crazy. Would be interesting to see the levels for suburbs. If somebody has one, please do share.
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  • The TVH project in Adyar is big. It probably has skewed the numbers and lifted the Adyar averages.
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  • @RandomGuy

    It's all about keeping the momentum going.

    Originally Posted by randomguy
    No appreciation anywhere in last quarter? not sure if they don't have enough data points.
    Also Adyar's appreciation of 43% YOY seems crazy. Would be interesting to see the levels for suburbs. If somebody has one, please do share.
    CommentQuote
  • Sree Nivas Buildtech - Ongoing Projects | Flats Near Aurobindo Ashram

    Looks like another housing board redevelopment project on LB Road. Italian marble flooring, unit size starting from 1930 sq ft.

    Expecting price to be more than 10-12k, don't know for sure.
    CommentQuote
  • Originally Posted by k11
    In last 10 years, Velachery 2-bhk went from 20-25L to 50L.

    Now if it goes to 1C in next 10 years in 2022, I wouldn't be surprised.

    Rent is just additional yeild to supplement the capital value increase.


    The appreciation in Velachery has been much more . In 1995, we had flats being built in Velachery ,mostly along the by pass and along the then-under-construction Taramani-Velachery 100 Ft road. Flats were sold for Rs 500 per sqft. By 2000-2001, the rate was Rs 1000 per square ft. The takeoff in 2003-04 saw rates go up progressively to 2K per sqft, then 4K per sqft, now it has gone to over 7K per sqft. Velachery still has long way to go, because of lovely connectivity to all parts of South Chennai (be it TIDEL Park/IT Highway) or City or Airport !
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  • Originally Posted by randomguy
    No appreciation anywhere in last quarter? not sure if they don't have enough data points.
    Also Adyar's appreciation of 43% YOY seems crazy. Would be interesting to see the levels for suburbs. If somebody has one, please do share.


    Reg suburbs, IT highway areas arent seeing much appreciation, because of looming oversupply..

    But one can say that flats in Pallikaranai/Medavakkam stretch have gone up around 30-40% last two years. Roughly, since 2010 there has been a 40% rise in RE across much of Chennai but things vary by location. Some parts of Chennai are still undervalued. (Madipakkam, Mugalivakkam, Maduravoyal e
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