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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  • Originally Posted by rmagesh75
    its a very sensible thinking. i was about to a flat and dropped my idea with same mentality, as i felt the property is over priced.

    there is a story about the stock market, it hink it will aptly suit the RE market at current situation.

    The story
    Once upon a time in a village, a man appeared and announced to the villagers that he would monkeys for Rs 10 each. The villagers seeing that there were many monkeys around, went out to the forest, and started catching them. The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even
    further and people started going back to their farms.

    The offer increased to Rs 25 each and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it! The man now announced that he would monkeys at Rs 50 ! However, since he had to go to the city on some business, his assistant would now on behalf of him.

    In the absence of the man, the assistant told the villagers. "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell them to him for Rs 50 each."

    The villagers rounded up with all their savings and bought all the monkeys. Then they never saw neither the man nor his assistant, only monkeys everywhere!. ......... .....

    have a nice day.

    magesh


    Dear friend,

    Nice story reflecting the players mind in the current RE scenario.

    ks2071746
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  • Originally Posted by nabishek
    I have no second thoughts that RE would grow over long term.If one can hold it for 1-2 RE Cycles then when one enters doesnt make any difference.

    The current scenario in chennai is that prices are stagnating.Though builders are quoting X Lakhs/Crores.They are willing to offer at 2007 price(30% lesser than the quoted price)

    Even at this price, the attainability is beyond the majority's capacity.

    When the price is not appreciating like it did 2-3 years back and when there's a likelihood of correction upto 2005/2006 levels and even further.Many are adopting wait and watch like me.

    This year in my profession there is no pay hike.Many are taking salary cuts and losing jobs.

    In an uncertain situation like this, I choose to hold back and not risk and over exert myself.

    The land and flats at far off places, which currently fits my budget, is not even worth attempting to purchase.

    I would rather keep my savings to myself, concentrate on earning and saving more and attempt to at better localities at a later time when it gets affordable to me.

    I also would advise people not to sell their property, unless its of dire need and only if they have to pay off huge debt and want to exit to cut down on greater loss.To sell just because RE may not give the expected returns for some years now is not a good idea.one may not be lucky to get back a similar property in the desired location at a later time.

    I feel that correction in prices to saner level is very necessary and critical to revive demand and the economy.My view may be biased because of my will to see what i want to happen.India coming out Stronger.

    Affordable housing such as reducing size of apartments/specification is not going to work.

    I am no economist and may be totally wrong.In my opinion, The sooner the correction happens the sooner our economy will revive and evade a sub-prime mortgage like crisis.

    Instead of anouncing stimulus package to infuse more liquidity into the economy and bailout packages to builders and banks, the government's focus should be to instigate fair pricing and absorb the bad mortgages arising of the devaluation.

    Coupled with low interest rates, People would realize more Value for money and show more confidence investing in RE.

    We need lots of reforms and regulation in this sector, and fast.

    Despite the cues if RE still appreciated, I will not be surprised.There are lots of prospective takers in the market.All that was needed to trigger the boom in sriperambathur was anouncement of an airport whose work hasnt even started yet.

    Nonetheless, I see this as a treasurable learning experience which i can put to better use sometime later in my life when the moment is right for me.

    Dear Nabhishek. You spoke sense for n and oneth time and I continue to see you as a rare commodity on this board where many write without any sense.
    I agree with you fully on
    a. RE appreciates over a few RE cycles. I had explained this clearly in the example of a plot I got in Tirunindravur in 1980s which for 5 years did not give bank return, and for 10 years hardly gave more than bank return. However in the next few years it gave the 20+% CAGR.
    b. You are on the dot in explaining that one should not sell his land unless there is some desperation.
    In summary you cant be called a bear, you are just speculating that MAYBE PRICE will fall for the next few years and so you dont want to invest.
    Now how correct were you in the past about predicting RE prices in the next 2 years? Did you anticipate a super run in 2003-4? I did and I made sure my dear ones bought houses in 2004. If they did not do it then, they wont have managed to a house today with their retirement benefits.
    All I want to tell you is that even in the short run, RE does not seem to be going down.
    Anyway, U & I are in sync on the basics of RE as I explained in a and b above. High time Wiseman and his FOOLISH BEAR COTERIE takes a look at atleast your posts and gains some sense instead of eating diarrhea which is Wiseman's favourite food.
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  • Last year, my brother was very interested to a flat in chennai for a budget of around 35L in Pallikaranai(Outskirt of chennai), i told my brother 2 things:

    1 The Price of Flat in Melbourne in Australia comes around 50-60 lakhs in the decent area, where all hi-tech facilities are there.

    2. Investing in a outskirt of chennai in a budget for 35L will give returns maximum 7000Rs rent per month.

    3.For the same amount investing in Fixed depost in a Nationalised bakn will give 30,000 Rs/month which is 4times the returns of above. The amont invested will double in the next 10 years.

    4. Wait and see for next 2 years.

    He listened my words and invested in FD. He is very happy now with his savings and not bothering for the present situation with his savings.

    I request everyone (particullay engineers), you are all genius in studies but don't be fool while investing in the RE, your job is not secure like other peoples, try to save when lakshmi knocks and invest in a proper way. Just imagine, the total price money of the ICC world cup is 5 Crores....is it worth to 2 grounds in Mylapore...or 5 flats in Purvankara in Kelambakkam????)
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  • That's my current thought too. I put all money i have into SBI term deposits...no tension and during these times 7.5% growth would be great when many people have lost 50% of net worth.
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  • Exactly.

    Do not any real estate for next 2 years
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  • Originally Posted by Nataraajg007
    Exactly.

    Do not any real estate for next 2 years


    Dear friend,

    Now big builders talk about "affordable homes". They advertise like Rs. 1750 to 2500/sq. ft. type of rates. Buit I am of the opinion that these projects by the time the ers get into the flats, may be minimum 2 years from the start of the project and even may be more. This itself will indirectly contribute an equivalent price impact of atleast 10% for a 2 year lock up of atleast 50% of the cost of flat. Also to be added is the heavy maintanence charge which may continue to be in the range of Rs. 1.5 to Rs. 2 per sq. ft. per month. These all add to the cost. Another thing is, initial location inconveniences one will have to face atleast for the first period of a few years till such time the location improves to be a good locality.
    One need to take into so many considerations and decide. For any one needing the flat for personal use, better to choose a locality best suited for their specific needs like Rly. Station, Bus terminus/stand, schools, colleges, office, market, water problems both availability and water logging during rain etc. etc. and even can pay 10 to 15 % higher rate for these conveniences, of course as told earlier, for personal use. For rental or investment purposes, out of own cash in hand, the so called- affordable homes- may also can be a choice if one can wait for a longer period to see the appreciation or return.

    ks2071746
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  • Originally Posted by ks2071746
    Dear friend,

    Now big builders talk about "affordable homes". They advertise like Rs. 1750 to 2500/sq. ft. type of rates. Buit I am of the opinion that these projects by the time the ers get into the flats, may be minimum 2 years from the start of the project and even may be more. This itself will indirectly contribute an equivalent price impact of atleast 10% for a 2 year lock up of atleast 50% of the cost of flat. Also to be added is the heavy maintanence charge which may continue to be in the range of Rs. 1.5 to Rs. 2 per sq. ft. per month. These all add to the cost. Another thing is, initial location inconveniences one will have to face atleast for the first period of a few years till such time the location improves to be a good locality.
    One need to take into so many considerations and decide. For any one needing the flat for personal use, better to choose a locality best suited for their specific needs like Rly. Station, Bus terminus/stand, schools, colleges, office, market, water problems both availability and water logging during rain etc. etc. and even can pay 10 to 15 % higher rate for these conveniences, of course as told earlier, for personal use. For rental or investment purposes, out of own cash in hand, the so called- affordable homes- may also can be a choice if one can wait for a longer period to see the appreciation or return.

    ks2071746


    Dear ks2071746, I completely agree with you and second your opinion here.

    Any large project launched now would take minimum 2 years for completion of phase I and another 5 years for all ameneties and facilities to be provided.

    The maintainence/club/transport/les conceirges and other charges in these projects are very costly.If one is hoping to rent an apartment in one of these complex, maintainence cost itself works out to huge Rs.5000 every month.

    I still cant understand why floor rise charges should be applicable from 2nd,3rd floor onwards?Upto 8th 9th floor you can still find mosquitoes.Esp in projects adjacent to buckhingam canal.

    The premium and preference charges are just ways to add to the base price.

    Affordable homes are just affordable base price, adding all the additional costs.most of the projects work out 3000+/sqft.Really not affordable.Not value for money.

    Without even getting proper approvals and still in the pre-launch phase why should the builders increase the price by 200/sqft every fortnight?Pleasing their investors seems to me as the only motive.

    Now nearing launch, they are rolling back to the prelaunch price and calling this gimmick as adjusting to market realities.the price will be increased slowly and will be more than 50% the quoted price if and when its handed over.

    There should be strict norms controlling the escalation of prices and project pre-launches.

    I would rather go with a builder who offers the same price to all their customers irrespective of the project completion stage than the one who has increased it just for the sake of it and offering 20% over 50% inflated price.

    According to me, The price correction for flats should happen in the following phases.

    Phase 1- Correction of Fancy Prices - Reputation of builders will not be able to demand more than 5-10% premium of market price.

    Phase 2 - Correction to Market Price - Falling back to the 2007 price, from when the land prices are stagnating.

    Phase 3 - Correction to Right(Real) Price - Falling back to the inflation/returns adjusted project launch price(read as 2004/2005) with acceptable builders margin and correct FSI factoring.

    We are already in phase 1 officially, and in phase 2 at the negotiation desk.

    The cue for me that we will be entering phase 3 is sharp reduction in rentals and increase in number of new/1-3 years properties for resale.Both we are beginning to witness now.

    If and only If after all the above corrections has happened and we still dont see any increase in demand.

    We will see a Hibernation period i.e 1 - 2 years of very less bu ying/selling activity.More properties coming on resale.No new projects being launched.Projects under construction getting indefinately delayed.Prices for flats will see severe crash and hit rock bottom.The land prices will continue to stagnate and may see significant corrections.During this period purchasers will be spoilt by choice.

    Morning walk period - The industry would witness a brief warming up period.There will be interest and lots of activity and hustle at the end users.New projects will be once again launched and RE will set foot for its next brisk walk, a healthy one.
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  • Originally Posted by krisharun
    Last year, my brother was very interested to a flat in chennai for a budget of around 35L in Pallikaranai(Outskirt of chennai), i told my brother 2 things:

    1 The Price of Flat in Melbourne in Australia comes around 50-60 lakhs in the decent area, where all hi-tech facilities are there.

    2. Investing in a outskirt of chennai in a budget for 35L will give returns maximum 7000Rs rent per month.

    3.For the same amount investing in Fixed depost in a Nationalised bakn will give 30,000 Rs/month which is 4times the returns of above. The amont invested will double in the next 10 years.

    4. Wait and see for next 2 years.

    He listened my words and invested in FD. He is very happy now with his savings and not bothering for the present situation with his savings.

    I request everyone (particullay engineers), you are all genius in studies but don't be fool while investing in the RE, your job is not secure like other peoples, try to save when lakshmi knocks and invest in a proper way. Just imagine, the total price money of the ICC world cup is 5 Crores....is it worth to 2 grounds in Mylapore...or 5 flats in Purvankara in Kelambakkam????)

    U know what. That logic is valid even in Australia. So why would anyone own a house?
    In Singapore I used to rent a 5I apartment for S$1400p.m. And its value was some 400KS$. So will someone it? Well they did and they do and I am talking of 1996.
    Finally Australia is a poor example of a place. There is too much of place, too little population and the Whities are living out of sucking the world and probably releasing some Uranium here and there.
    That logic wont work in India and Chennai where population is bursting at the seams and usable RE is hardly much. So with high demand and low supply prices will go only one way! UP.
    So before comparing Kangaroos and Elephants first get your ideas ratified by some sane means and then post buddy.
    If someone invested in RBI bonds tax free in 2003 he would have got for every 1000 another 900 more by 2008 but in RE his 1000 in the worst place has become 5000.
    I think these Kangaroos and Bald Eagles on this board are the reason for all the confusions!
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  • In the upmarket areas of Chennai there have been no considerable price drops. In Chennai’s Arcot Road, Purasawakkam, Thiruvanmiyur and Valasaravakkam areas, rates still hover between Rs 4,700 and Rs 6,600, about the same a year ago, a dealer says, but prices have fallen by 20-30% in the suburbs. Economic Times.

    Chennai needs more than 50% correction/drop.
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  • The Builder bashing is on again ...

    Originally Posted by REGuru
    In the upmarket areas of Chennai there have been no considerable price drops. In Chennai’s Arcot Road, Purasawakkam, Thiruvanmiyur and Valasaravakkam areas, rates still hover between Rs 4,700 and Rs 6,600, about the same a year ago, a dealer says, but prices have fallen by 20-30% in the suburbs. Economic Times.

    Chennai needs more than 50% correction/drop.



    As you can see, the media is being used to hammer the builders by the financiers. With volumes falling by as much as 95% (South Delhi) and prices falling in some pockets upto 40% - all this from the EcoTimes report of today; as well as reports on the Web that Banks are now asking Builders to clear their inventory (by crashing prices, what else?), this seems like a concerted move thru media to force builders to bring down prices.

    Whether this will work or will ers use this as another ploy to wait for further drops is to be watched for.

    I believe that prices will keep declining in waves and this is NOT the last wave. Still on track for my minimum target of 50% drop within 1 year from now and maybe more later in pockets.

    cheers
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  • Originally Posted by wiseman
    As you can see, the media is being used to hammer the builders by the financiers. With volumes falling by as much as 95% (South Delhi) and prices falling in some pockets upto 40% - all this from the EcoTimes report of today; as well as reports on the Web that Banks are now asking Builders to clear their inventory (by crashing prices, what else?), this seems like a concerted move thru media to force builders to bring down prices.

    Whether this will work or will ers use this as another ploy to wait for further drops is to be watched for.

    I believe that prices will keep declining in waves and this is NOT the last wave. Still on track for my minimum target of 50% drop within 1 year from now and maybe more later in pockets.

    cheers


    With the real estate sector showing little signs of revival despite several steps taken by the government and the central bank so far, banks are now asking developers to lower prices to clear their piled-up inventory.

    Even the special home loan package introduced by public sector banks in December had lukewarm response and between December 17 and February 12, public sector banks have cleared only 28,000 proposals and disbursed Rs 1,550 crore through the special scheme.That is another reason banks are pushing builders to cut prices.
    --from Business standard.
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  • Originally Posted by REGuru
    In the upmarket areas of Chennai there have been no considerable price drops. In Chennai’s Arcot Road, Purasawakkam, Thiruvanmiyur and Valasaravakkam areas, rates still hover between Rs 4,700 and Rs 6,600, about the same a year ago, a dealer says, but prices have fallen by 20-30% in the suburbs. Economic Times.

    Chennai needs more than 50% correction/drop.

    Now that makes sense. In upmarket areas as I always said prices have not reduced one bit, just that wishful thinkers would like price to come down! In suburbs depending on the USABILITY of the place prices will change. So if someone sold a plot in some place 4km from Sriperumbudur with no facility for Rs 1K psft it will drop even to Rs 300 psft if the place does not develop and markets tank but if that same place has had development prices will continue to hover around Rs 1K and might even go up!
    Ofcourse Wisey will talk of cycles and scooters (LOL!) but all he wants is wishful thinking wanting prices to crash!
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  • I disagree with Nataraj that the upmarket prices would continue to remain this way. Just wait and see, the pricess in Bangalore has fallen in upmarket areas. It is a question time before it happens in Madras. It is simply untenable to hold on to this price for long.
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  • Originally Posted by REGuru
    In the upmarket areas of Chennai there have been no considerable price drops. In Chennai’s Arcot Road, Purasawakkam, Thiruvanmiyur and Valasaravakkam areas, rates still hover between Rs 4,700 and Rs 6,600, about the same a year ago, a dealer says, but prices have fallen by 20-30% in the suburbs. Economic Times.

    Chennai needs more than 50% correction/drop.



    Dear friend

    If you happen to speak to a mediator personally, he will tell explain how plots and flats are lying unsold in all places. S ellers keep telling the fancy rate for the last one year. But when they are in urgency they have to give in.

    Wait and watch..

    thanks

    chataara
    CommentQuote
  • Originally Posted by chataara
    Dear friend

    If you happen to speak to a mediator personally, he will tell explain how plots and flats are lying unsold in all places. S ellers keep telling the fancy rate for the last one year. But when they are in urgency they have to give in.

    Wait and watch..

    thanks

    chataara


    Dear Friend,

    Builders are not only quoting fancy rates for the last one year, they have steadily increased it and are quoting 30% more than what they had quoted last year.

    To give an idea, in late 2007 a flat in shastri nagar, adyar was quoted 7500/sqft at 60% construction completed stage.Now the same flat is still unsold, ready to move in and is being quoted 10000/sqft.On negotiating one can get it at 8500-9000/sqft.

    If purchased at 8500/sqft,One can claim they have got 25% discount from the builder, but in reality its 20% profit over 2007 rate.

    The builder seems to be in no urgency to close the deal fast.

    The lethargic attitude may be because the builder has already booked profit from the sale of the first few flats. hence, whenever and whatever price the flat is sold its only a profit.

    Some invisible powerful hand is holding up the prices and discouraging builders from selling below or even quoting below the market price.

    Whether its the builders cartel, politicians, black money?its not clear.But surely, it isnt only Demand...

    Chennai RE is truly baffling.
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