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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  • rebuilding

    Maybe if the FSI limit is not reached/exceeded already, an option is rebuilding whole apartment by giving it to a builder and then he can sell the extra units he builds so that exisiting owners dont pay much from their hand! For apts . 10yrs old buyers only see the rental value and purchase it for market value of land UDS.
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  • Originally Posted by sh1729
    Boss, In all fairness, consider my predicament. I own 2 decent apts in Ashok Nagar and Virugambakkam. I am staying in Virugambakkam (where I have stayed for 10+ yrs) and rented out Ashok Nagar one. Both are pretty old > 20 yrs. Other house owners are opposing reconstruction of the apartements sighting awkward reasons -- Children in 10th :(, I am living on pension and can't afford even 20K to repaint the exterior:(.
    Also I work in ITES sector. My offices are in Shols and MCity. The travel kills me with sometimes 2-3 hrs one-way in case of traffic. There is no option available but to move into suburbs.
    I would like high-end houses available near these suburbs. I dont find good infrastructure even in CBD, the roads, water logging, electricity (load shedding) etc are not good in Virugambakkam as well :D.
    I ended up buying few plots near GST hoping for construction later on. My current experience in desperately trying for reconstruction of my old apts which has resulted futile has made me choose plot over flat or apts and independant house construction.
    Few issues I do foresee in living in suburbs is lack of renowned school. I am hoping the scenario would change in the time to come.
    I am chennaiite and like living in city, but for all practical reasons it does not make sense for me in the long run.



    The fact is there is not much difference between suburbs and most for areas within Chennai. Only select pockets are good residential localities. However, due to longer period of development, city areas tend to have better schools, shops and hospitals. Even this is changing rapidly. Till a few years back, it was unthinkable to have schools like Vidya Mandir and PSBB starting branches in suburbs. People who moved to suburbs like Sholinganallur in 2006 were forced to enroll their kids in international schools like Gateway. They were paying much higher fee than what was charged by traditional good schools. Now Vidya Mandir is operating from Guduvancherry, Perungudi and Perumbakkam while PSBB has branches in Siruseri, Perumbakkam, Gerugambakkam and GST road. You have great hospitals like Global hospital (Vilasrao Deshmukh fame) and Chettinad health city in OMR. Similarly areas like Chromepet are no different from densely populated middle class localities like Triplicane or Saidapet. The lines are blurring.
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  • Originally Posted by ramanu
    Maybe if the FSI limit is not reached/exceeded already, an option is rebuilding whole apartment by giving it to a builder and then he can sell the extra units he builds so that exisiting owners dont pay much from their hand! For apts . 10yrs old buyers only see the rental value and purchase it for market value of land UDS.


    My friend owns unit in Alacrity Velachery, it is a huge gated complex and Ramaniyam has recently given proposal for redevelopment (with swimming pool and clubhouse facilities). They'll provide additional 100 sq ft free of cost to existing owners and 2 lakh to compensate for rent during construction period. However the residents are not agreeing to proposal. Most of the residents are senior citizens and they are not interested in redevelopment. My friend is worried but still hoping common sense will prevail in the end.
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  • Even I reckon UDS is bit overstated. It does serve purpose for end use (CBD) to some extent (patience is key), but there's big if- if you look at localities like Adyar, Alwarpet , Mylapore, Nungambakkam etc..most of the dwellers live for decades and appears more like retired homes.

    They have goldmine in hand but their PPP is low, as they would have inherited or living there for generation (acquired when it was cheap). So you do come across issues like building consensus for re-development, maintenance quibbles etc..

    I did look at an appartment (19 years old) in the heart of Nungambakkam in mid 2000s but had to walk out as I found better opportunity in plots. I don't have regret as return % is higher than flats.
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  • Originally Posted by sh1729
    Boss, In all fairness, consider my predicament. I own 2 decent apts in Ashok Nagar and Virugambakkam. I am staying in Virugambakkam (where I have stayed for 10+ yrs) and rented out Ashok Nagar one. Both are pretty old > 20 yrs. Other house owners are opposing reconstruction of the apartements sighting awkward reasons -- Children in 10th :(, I am living on pension and can't afford even 20K to repaint the exterior:(.
    Also I work in ITES sector. My offices are in Shols and MCity. The travel kills me with sometimes 2-3 hrs one-way in case of traffic. There is no option available but to move into suburbs.
    I would like high-end houses available near these suburbs. I dont find good infrastructure even in CBD, the roads, water logging, electricity (load shedding) etc are not good in Virugambakkam as well :D.
    I ended up buying few plots near GST hoping for construction later on. My current experience in desperately trying for reconstruction of my old apts which has resulted futile has made me choose plot over flat or apts and independant house construction.
    Few issues I do foresee in living in suburbs is lack of renowned school. I am hoping the scenario would change in the time to come.
    I am chennaiite and like living in city, but for all practical reasons it does not make sense for me in the long run.

    This type of maintenance issues exist in all the small time apartments where 15-20 families live in a building..each falt owner has his/her own agenda for non co-operation...I have lived in one of such apartment almost 15 years of my life...thats why either the new branded apartments (where they suck maintenance via corpus funds and prepayment) or own houses built on plots are prefered for peace of mind...Who has time to explain the good reasons to maintain a Building...
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  • Very old apts have different dynamics. Some residents will not want to move out. Old apts could have been built without approvals, and might have used up all FSI. Housing boards and other units have this issue, so that's why UDS in these units are not worth much.

    But nowadays, smaller apt complexes (10-15yrs) is not a big issue. I saw a big builder purchasing a whole apt complex and nearby houses. There is a luxury complex coming up in its place. Smaller complexes are always easier to redevelop. I know a couple of buildings who are doing redevelopment. One by a builder and one by residents themselves. Most of the residents in nice localities are good and understanding, so you might have issues with association in not-so good localities but not many in good areas. Lot of NRIs, people working in different cities, tenanted apts, means there are not much attachment like before. Everyone nowadays know JV, so people do not shut the door on it.
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  • Originally Posted by Love4land
    However, due to longer period of development, city areas tend to have better schools, shops and hospitals. Even this is changing rapidly. Till a few years back, it was unthinkable to have schools like Vidya Mandir and PSBB starting branches in suburbs. People who moved to suburbs like Sholinganallur in 2006 were forced to enroll their kids in international schools like Gateway. They were paying much higher fee than what was charged by traditional good schools. Now Vidya Mandir is operating from Guduvancherry, Perungudi and Perumbakkam while PSBB has branches in Siruseri, Perumbakkam, Gerugambakkam and GST road.


    New schools in suburbs are facing big shortage off teachers and lot of issues despite having good new buildings and infrastructure. They have to increase the pay to get good teachers, that's not happening now.
    Remember in India, people still rely on coaching centers even students from city branches of DAV, PSBB, Vidya Mandir, etc.

    International school are good, no issues there. They are well staffed and have been running for sometime.
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  • Best to avoid apartments with senior citizens, they want a stable life during their final years and will create issues during redevelopment due to uncertainties and relocation involved during construction period.
    CommentQuote
  • Originally Posted by sh1729
    Boss, In all fairness, consider my predicament. I own 2 decent apts in Ashok Nagar and Virugambakkam. I am staying in Virugambakkam (where I have stayed for 10+ yrs) and rented out Ashok Nagar one. Both are pretty old > 20 yrs. Other house owners are opposing reconstruction of the apartements sighting awkward reasons -- Children in 10th :(, I am living on pension and can't afford even 20K to repaint the exterior:(.
    Also I work in ITES sector. My offices are in Shols and MCity. The travel kills me with sometimes 2-3 hrs one-way in case of traffic. There is no option available but to move into suburbs.
    I would like high-end houses available near these suburbs. I dont find good infrastructure even in CBD, the roads, water logging, electricity (load shedding) etc are not good in Virugambakkam as well :D.
    I ended up buying few plots near GST hoping for construction later on. My current experience in desperately trying for reconstruction of my old apts which has resulted futile has made me choose plot over flat or apts and independant house construction.
    Few issues I do foresee in living in suburbs is lack of renowned school. I am hoping the scenario would change in the time to come.
    I am chennaiite and like living in city, but for all practical reasons it does not make sense for me in the long run.


    If you work in suburbs as far as MWC, you should evaluate moving to suburbs. But there are some issues I see.

    Your kids will be in high school soon so this will be important.

    Price difference between Virugambakkam and Shols is not much. Virugambakkam is around 6K and Shols is 5K. You will not get a big flat even if you sell your old one.

    Monthly maintainance in burbs is a lot, 5K a month at least, primairly driven by water and power. So if you are having problems in paying 20K one time fee. This is an issue.

    Transport, do you have a car. Buses are not good in OMR, especially in the interiors.
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  • Originally Posted by Clairvoyant
    Even I reckon UDS is bit overstated. It does serve purpose for end use (CBD) to some extent (patience is key), but there's big if- if you look at localities like Adyar, Alwarpet , Mylapore, Nungambakkam etc..most of the dwellers live for decades and appears more like retired homes.

    They have goldmine in hand but their PPP is low, as they would have inherited or living there for generation (acquired when it was cheap). So you do come across issues like building consensus for re-development, maintenance quibbles etc..

    I did look at an appartment (19 years old) in the heart of Nungambakkam in mid 2000s but had to walk out as I found better opportunity in plots. I don't have regret as return % is higher than flats.


    Just to add-on- Premium here is Time. How long are you ready to play waiting game? It can be any where between 10-30 years. Is it worth a wait ? it's individual choice and no one size fits all approach.

    Would I rather buy new appartment instead of re-sale (ex. on market for 12k/sq ft in CBD) where new build will be 15-20k/sq ft. It depends on individual preferences and any appreciation will be compensated by time and other ROIs.
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  • As per the info received from Regn dept , Regn from 01.04.2012 to date are in steady steep declining form and from Aug to Sep, it is abysmally low across TN. Reason cited is that steep hike of 10-15 times of land value and TDS and PAN card linking for more than 30 lacs transaction keep the buyers/ sellers at bay. Much awaited correction bearable to the realistic land price level is expected in the months to come only to get stabilized for certain period before inching up further . For flats, Builders must slash the land cost to their original buying price rather than GV, since construction cost is uncontrollable one to keep the flats coming up with sales.
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  • On Friday - US Fed announced mother of all QE i.e QE3. This shall flood the market with US dollar. In Coming days you would see rupee appreciation and price appreciation of all real assets.
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  • I do not think there will be any increase in RE prices in the near future. It would stagnate for a year unless they drastically reduce interest rates, which we know is not going to happen. However I see a 25bps reduction by end of year.

    Indian economy is in a slowdown along with other BRICS. Prices have also gone up a lot, especially in the suburbs.

    Chennai market along with Banaglore, NCR and Mumbai has a lot of inventory. New projects have fallen down the cliff. PE money has dried up in most places. Lot of new land parcels are flooding the market, as cities are exapnding like crazy.

    Even take Chennai Metro area as example, it was the 174 sqkm until 6-7 years ago. they expanded to 450sqkm-ish, then 1150sqkm-ish, now they are thinking 4000-9000, which is crazy. People will keep going farther and farther for investments even though they will live in the city.

    Govt will try to increase revenue from stamp duties as pressure is grown to reduce VAT on fuel. There might be another Guideline Value revision by late 2013 or early 2014.

    The effect of all of this is short term holding of Plots would get affected. You need to do all transactions in white because of the GV rates. If you sell under three years, short-term cap gain taxes with cess close to 32% applies. Reinvestment or infra bonds do not apply for short term, only long term can do that.
    Holding three years will cost 35-40% interest cost and another 10% stamp duty with brokerage fees mean anything under 50% profit is a loss. 75-80% will mean moderate returns, double the cost means very good return.
    Very few places have plots double in the price from 2009. So most investors are already trying to get out. I do not think price will double here on to 2015 with the current environment. An inflationary led return of 20-25% is possible however which is ok for cash investors.
    It is hard to get buyers who will use colored component in suburbs, most resale buyers also need loans and will be white-only guys.

    In my opinion, people should carefully evaluate before getting into expensive plots. Cash investors, it should be fine. Borrowing money from bank at 11-12% for plots does not make sense at this juncture unless you get a screaming deal.

    Flats, people should should get into CLP (constuction linked payments) to reduce interest burden. Never give big downpayments for pre-launches. You should look at rental returns, 3-4% is needed especially in a flat market. Buy flats only where there is good infra or where there will be infra soon. Be ready for delays of atleast 1 year. Always think about resale aspects like carpark, location, view etc.
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  • It is ULTA otherwise . Enough FDI money chased Indian RE already and to make it prosperous with marketability , rates need to come down from Builders side to attract buyers as sign of interest rate cut with Inflation is far from the sight for next one year or two with toppling of present Govt soon

    Originally Posted by sunr2i
    On Friday - US Fed announced mother of all QE i.e QE3. This shall flood the market with US dollar. In Coming days you would see rupee appreciation and price appreciation of all real assets.
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  • Real estate hotspots from 1971 to 2006:

    Check Fig 2 in page 41, shows how Perungudi village emerged in 2001 while Urapakkam emerged in 1981:

    http://itpi.org.in/files/oct3_11.pdf

    Ullagaram – Puzhuthivakkam showed emergence during 1981. Nerkundram, Ramapuram, Manapakkam and Kottivakkam emerged during 1991 whereas Perungudi and Pallikaranai emerged only during 2001. During 2001, the villages along Old Mahabalipuram Road viz. Perungudi, Okkiyamthorapakkam and Sholinganallur and those along ECR viz. Neelankarai and Injambakkam emerged in a contiguous fashion. Only one village in the northern part of the CMA, namely, Vallur emerged with a population crossing 10,000 during the year 2001. Table 6 indicates the transportation corridors along which the growth of villages has taken place during 1971 – 2006. Fig. 2 shows the emergence of villages from 1971
    to 2006.
    So it is not true that development always happen in contiguous manner, some areas may be skipped or overlooked while areas much beyond may develop at faster pace due to government schemes or infrastructure development. Chennai's urban sprawl has been skewed and not linear. So it is not foregone conclusion that Sholinganallur is going to be next Adyar eventually.
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