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Property Price Trends in Chennai

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

    More observations on Chennai ,esp on points raised by k11:

    It is true that social infrastructure in Chennai is poor. Till 2006, we did not have even a single mall with multiplex. Till 2009, the only proper mall with multiplex was Chennai Citi Center. Even now, for the size and spending power of city,we have far fewer malls, and restaurants, esp in fast growing suburbs.

    Some reasons I could think are:

    1. Weather - Chennai scores poor and everyone incl diehard chennai resident like me would agree. Which means, those from outside who come to Chennai for employment will choose the city only if the income (be it a shopfloor worker or construction labourer or a high end executive) is substantial and competitive.

    2. water - Shortage means costlier water and this does affect the business prospects of some like restaurants.

    3. Language is also a barrier to some extent. Most people in city can understand english but if a North easterner boards an auto or bus, he or she is in for some difficulty.

    4. And because the state (districts of TN) are relatively much developed, labourers from interior TN come to city only at a price..

    I feel that due to these 4 factors, labour cost is higher and cost of doing business is somewhat higher in Chennai. All these are not big negatives but i feel these could be reasons why Chennai's infrastructure development is slow , esp in suburbs.

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    • Re : Property Price Trends in Chennai

      So much unsold units in an end user based city like Chennai too!

      The table in the below article is confusing.

      Why finance minister P Chidambaram is worried about flat housing market - The Economic Times

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      • Re : Property Price Trends in Chennai

        Originally posted by Garuda View Post
        So much unsold units in an end user based city like Chennai too!

        The table in the below article is confusing.

        Why finance minister P Chidambaram is worried about flat housing market - The Economic Times

        The example below quoted by a home buyer shows the point I mentioning

        In the past three years, the Delhi-based brand consultant, who earns about Rs 15 lakh per annum, has made over a dozen failed attempts to buy a house in Noida, a suburb of Delhi.

        "I keep deferring my plans, hoping that prices will come down in next three months, but it only moves upwards unhindered. I've revised my budget multiple times, and it's now Rs 60 lakh from the original estimate of Rs 35 lakh. But owning a house remains a distant dream because a ready-to-move-in house costs nothing less than a crore," explains Parmar
        This is true for Chennai too and there are many such places just outside city which are facing huge price increase.

        One of the main reasons for such haphazard pricing nowadays is due to the launch of some "premier" builder's project in some area who raises the bar to the next level and others start following him. Here the small builder doesnt know a thing about why the top builder chose to quote X Rs for a project and he simply raises his price of a kachra project!

        If a builder faces price increase due to increasing input cost like labor, raw material its ok, but quoting other builder's value as a benchmark is a bad sign of growth, esp in surburbs and areas recently added to city limits!

        If this is the case for a person earning 15L, what will happen to a guy earning 20 K per month in a decent job after good performance. Hmm! Strange ways of the RE world!
        Last edited August 26 2012, 04:03 PM.

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        • Re : Property Price Trends in Chennai

          Waiting for today's Neeya Naana show between RE developers and buyers!
          The promos show a developer calling buyers in the show as fools!

          Even in a similar show long time back, the developers were openly saying to buyers side that if they want a home better spend money else keep you mouth shut and sit in a rented flat!

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          • Re : Property Price Trends in Chennai

            Originally posted by ramki830 View Post
            1. Weather - Chennai scores poor and everyone incl diehard chennai resident like me would agree. Which means, those from outside who come to Chennai for employment will choose the city only if the income (be it a shopfloor worker or construction labourer or a high end executive) is substantial and competitive.

            2. water - Shortage means costlier water and this does affect the business prospects of some like restaurants.

            3. Language is also a barrier to some extent. Most people in city can understand english but if a North easterner boards an auto or bus, he or she is in for some difficulty.

            4. And because the state (districts of TN) are relatively much developed, labourers from interior TN come to city only at a price..

            I feel that due to these 4 factors, labour cost is higher and cost of doing business is somewhat higher in Chennai. All these are not big negatives but i feel these could be reasons why Chennai's infrastructure development is slow , esp in suburbs.
            Weather has got a bad name but it is not necessarily the worst as nowadays we have ACs everywhere.

            Delhi (NCR) has the worst weather in the country (hottest and coldest metro), has the best performing RE market. Everyone wants to migrate there.

            Water situation has become much better with RWH. But I agreeoutsiders associate Chennai with water shortage, will change soon.

            Language is a big issue.
            Govt should stop aggresive tamilianization. It is ridiculous that they try to force it on other minority groups.
            Why should stores have tamil signs compulsarily. It is a decison of the store owner on the type of crowd he wants to attract. Samething with every thing.
            Migrants from other parts of TN also make it worse as they disturb the cosmopolitan nature of Chennai.
            If this becomes worse, more and more minorities will stay away from tamilians and eventually Chennai.

            Govt should start adopting English in all white collar jobs and developmental projects. They need to make the city more cosmopolitan, something like Bangalore.

            I fully agree on the labor scarcity. It is worse in all southern cities.

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            • Re : Property Price Trends in Chennai

              Comments in Bold!

              Originally posted by ramki830 View Post
              1. Weather

              True! Chennai altho is not as hot and humid as Mumbai, has this unique tag or impression as being hotter than Sahara desert. But I guess this is just an impression as Hyderabad is also very hot! But being a coastal area Chennai cant avoid it! We also don't have much greens!

              3. Language is also a barrier to some extent. Most people in city can understand english but if a North easterner boards an auto or bus, he or she is in for some difficulty.


              This is a serious issue. I have been asnwering questions from my delhi and Banglore friends who keep asking, why dont ppl in Chennai answer even if they understand Hindi !

              The one who was the reason behind this has seen to it that his family is versatile in Hindi and all other languages as Hindi is required for all discussions with Power Center! ;-)

              But some of my Tamil speaking friends have learnt, after thier stints in Noida, Bangalore etc, that "Who needs 'Atha hai, Jatha hai" and other such rigidity is now hurting them !

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              • Re : Property Price Trends in Chennai

                That's too rude....that too in a talk show

                Originally posted by vettipayyan View Post
                Waiting for today's Neeya Naana show between RE developers and buyers!
                The promos show a developer calling buyers in the show as fools!

                Even in a similar show long time back, the developers were openly saying to buyers side that if they want a home better spend money else keep you mouth shut and sit in a rented flat!

                Comment


                • Re : Property Price Trends in Chennai

                  Originally posted by braveman View Post
                  That's too rude....that too in a talk show
                  :-) True! Gopinath threatened to throw him out for such words!

                  On unfortunate thing is that the show turned out to be Land sellers vs buyers who lost money in land..

                  I would have liked them to focus on Apartment market too! Cos that's where a common man's dream is running out!

                  The main point of Sellers was : Its buyers greed that they are trying to capitalize, as they have the resource and power to do so

                  The main point of Buyers was: Why such exorbitant rates for Land where no development exists or is promised? Why plotted community is not maintained for the accepted duration?

                  General points: Commercial property in Mount Road is lying unused with no takers even for 6500 rs psft. 1 Ground in Ponmar is only 8 L

                  Expert opinion: Too much black money, no regulation in prices, bad trend and hapazard allotment of land for residential use will lead to total degradation of soil and hence agricultural land!

                  Stats : 10 crore people in city are without own home and 6 crore flats are empty! There are huge amount of buyers with more than one home and the city is being grabbed by the rich! Hence this is causing an unfair market!

                  Funny incident: When a buyer asks what is there in Navalur to charge 1 Cr a ground, An over acting seller with tie (one who thinks he is a great mktg mind) replies there is a theatre! Then continues to ask the buyer why he stays in Alwarpet and answers himself that all facilities available in Alwarpet are in Navalur :-) Ofcourse he was laughed at!

                  Irritating point: Sellers say that they will continue to increase prices and no proper reply!
                  Last edited August 27 2012, 12:15 AM.

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                  • Re : Property Price Trends in Chennai

                    Thanks for updating. Is this on you tube or something.

                    Stats : 10 crore people in city are without own home and 6 crore flats are empty! There are huge amount of buyers with more than one home and the city is being grabbed by the rich! Hence this is causing an unfair market!
                    Not sure if the stats are exagerrated, there are less than 1 crore people in the city. Whole of TN has 7 crore people so there cannot be 6C flats.

                    India has a big rich poor divide, we are a capitalistic society. There is no way of getting around it. As we develop, the lower end of the socitey will also develop as they will get the maximum wage growth. An unskilled day labor's salary has went to 500/day now. It was 300 until 3 years ago. I am sure the rich guy's pay did not go up that much. As time goes by, the blue collar labor will start making money close to median wage. So we do not have to worry about it, free economy will take care of itself.

                    Same thing we do not have to worry about rich people buying multiple houses. They cannot keep it under lock forever. They will rent it out, this will enable very good rental rates for people who cannot afford. India's rental yeild is lowest that helps the poor a lot.

                    When it comes to land, I do agree there is land hoarding.
                    It is not rich people even middle class people are the biggest hoarders, buying up land and not building anything on it.
                    If the developer gets cheap easy land, he will make cheap flats. Hoarding land backfires by making apts expensive especially in outskirts.
                    This is bad for RE affordability.
                    The only way I see is there needs to be some kind of vacant land tax. It should be 4-5% of the property value every year. If the property tax is not paid for 3-4 years they should auction off the landed property.

                    We need to discourage plot ownership. Plots should be registered with a high stamp duty. May be they can charge 20% stamp duty and refund 12% of it when the building/house is complete.

                    Govt can make a lot of money and bring down the housing prices in the suburbs this way. This will make life easier for all, buyers, builders and govt.

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by k11 View Post
                      Thanks for updating. Is this on you tube or something.
                      Neeya Naana 26-08-12-Vijay TV show

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