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 srk0447
    The advantage for chennai RE is being that, there are no quality houses. Now people are shouting OMR is over supplied, even at this time, if you search for a good quality (available ) properties, it is very very less on OMR. And the demand is also not getting down. If you look at Bang or Hyd, there is more supply (at very very good quality compared to chennai, infact, in some cases, we cant compare chn projs with them at all) and demand is getting saturated.

    So for any good valid buyer finding good quality product in nearby areas is very tough, as a result, the prices are going up. And if you buy from local chennai builder, you have to virtually destruct u r house with in 5 yrs and construct it again. They only see margins, never worry about customer satisfaction. Not only in RE, even in Food, transport ..etc


    Man no love for chennai in a few threads this morning, a lot of chennai bashing going on - lol
    in any case , points well taken and true, builders if they can make the formula work they will do a better job, the fact is Chennai has stricter FSI guidelines than Bangalore / HYD so far a builder the equation is a very tight one, unless he cuts corners he cannot see a dime
    Most of the promotions are done in promotions so if its a 2 partner JV the builder makes less money than a SW guy in regular salaried job
    so where is the motivation to give a quality product - NONE
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  • Looks like we are at the peek in real estate cycle. If it busts all are gone.
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  • Is that not the thrill

    Originally Posted by josephsekar
    Looks like we are at the peek in real estate cycle. If it busts all are gone.


    I always tell to myself when the common man we call tom dick and harry
    or kuppan suppan muppan of tamil nadu start discussing and mastering the art of the investment its time to get out

    so its better to be cautious having said that dynamics in chennai are different
    Low FSI, high population inflow, growing economy
    land banks with rich people stifling availability of land may still cause steady growth
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  • Mumbai’s residential mkt may finally be in favour of buyers | Firstpost

    Now Is Chennai more diverse than Mumbai would be the question.. Only difference is the valuation in both places chennai is compartively low.
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  • Dont beleive Firstpost, i am seeing same kind of news in that from 2010, but never seen price correction. May be they are relatively correct because prices are getting stagnant.

    Chennai, is an end user market unlike mumbai,NCR which are investor driven markets. So defenitely the correction in chn will be less compared to them. But resale may become very very tough in coming days.
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  • R.A.Puram rent for commercial space

    I am just bouncing off ideas for now. We live in a ground+3 apartment complex (15 flats and a few covered garages) on a 30' road off Greenways road (now DGS Dinakaran Salai) on a 3grounds land. The building is over 25 years old and there is no lift. Will any commercial establishment be interested in taking up the whole building for rent of lease? If so, what is the rent we can expect? The main advantage is the location.
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  • Hi Friends,

    It has been a while since I updated this thread.

    Let me start by posting the prices for 2012-2013

    https://api.indianrealestateforum.com/api//v0/attachments/fetch-attachment?node_id=29046

    https://api.indianrealestateforum.com/api//v0/attachments/fetch-attachment?node_id=29047

    https://api.indianrealestateforum.com/api//v0/attachments/fetch-attachment?node_id=29048

    A Brief history of this thread

    Chennai RE market had a bull run from 2003/2004 onwards and peaking during 2007/2008..The apartment and land price had reach unsustainable levels riding on the availability of liquidity in the market and good sentiments. Then We had 2008..sentiments became bad, noone was interested in RE..people were more worried about retaining their job first. We saw prices crashing as much as 30-40% in many places from the peak 2008 price in 2009/2010 (https://www.indianrealestateforum.com/forum/city-forums/more-cities-states/patna-real-estate/189-latest-re-news-bihar?p=116486#post116486). Many of us had expected the trend to continue for couple of more years, but that wasnt to be..Government infused liquidity in the already over-leveraged market and inflation fuelled the slowing RE wheel to rotate again. Coupled with the revision of guideline value and easing of FSI rules, Chennai RE witnessed a bounceback of sorts. We are now in a situation where the prices have recovered and in some places are 15-20% more than the earlier peak price and in many places unaffordable even to local popualtion. In short we have come full circle and are in exact situation when I had started this thread. But we are at a different time and different price point. Though the fundamentals have not changed..the situation has.

    I would like to hear your opinions on future trend of Chennai RE prices.Do you expect the cycle to repeat?or will the prices normalize towards the median income by correction or stagnation against inflation? Please share your views.Thank you.
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  • It will stagnate for next two years and again it might go up but it will be minimum growth only. Only if economy grows more than 9% then we can expect double digit jump which I dont think can happen before 2020.
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  • I do not think it ever crashed. Prob in suburbs, but not in city.

    I would say city prices stagnated, some developers gave 5-10% discount thats it.
    It was not on firesale in 2009-10, as far Chennai goes.

    OMR bubble popped defenitely during the downturn, even ECR, Mogappair and some other suburbs came down to earth in the 2009-10 period.

    In Chennai city, prices have steadily grown. We are nearly triple the 2008 price today.
    City has outperformed suburbs like crazy.

    Suburban apt values have gone up today primarily driven by increase in construction cost. not so much by increase in demand.
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  • Originally Posted by nabishek

    I would like to hear your opinions on future trend of Chennai RE prices.Do you expect the cycle to repeat?or will the prices normalize towards the median income by correction or stagnation against inflation? Please share your views.Thank you.


    Nabishek
    I was actually thinking about this very hard and deep this weekend.
    In every asset / trade / investment product that i try to deal with i look for the long and the short trade and was trying to pull parallels to Chennai RE.
    what is the short trade on the chennai RE be it flat, land, plot in city or suburbs. All has as you understand and have quoted correlation to prices per sqft of liveable space sold ( could be house or flats ).
    The organized trade in this sector is long, there is no shorts as i can see.
    The biggest risk i see is the odds of indian real estate customers foreclosing on their loans due to underwater properties, which is a common thing for indians and migrants in the US as you all know.
    The loan and housing system is set in such a way the equity of a home owner in any property is roughly around 25+% thats a pretty sound safe downpayment by a buyer.
    So if the properties dont fall 25% in a year or a short duration the customer is not going to default, even if it falls 25% over 2 years, the erosion in value will be so slow the customer / owner will get used to it and will hope again for the ETERNAL LONG trade that RE will go up
    Now combine other factors
    Devaluing INR, appreciating USD, AUD,EUR this causes all those affordables, NRIs, Residents who do the onsite trips and all those who have exposure to liquidity in a stronger currency may it be Singapore, Dirhams etc.
    Urban migration - power cuts leading more people moving to chennai
    Chennai/TN getting its act together - investing in OMR, ORR, IRR, overpasses, metro etc - MORE infrastructure investments
    Strong Employment prospects -IT , BPO and other industrial segments
    Stable State govt - as compared to Unstable political Karnataka , communist kerala, Fradulent Andhra Pradesh / Telungana, HYD
    Commercial Bangalore mumbai builders coming to chennai and delivering high quality good projects - making public to beleive in builders
    Springing VILLA projects - Villa lifestyle in gated communities
    Maturing Colleges, universities , foreign schools setting up JVs in chennai along VK, GST, OMR and Bangalore HWY
    ( there was a time when we all went to Coimbatore to do our undergrad- now most chennai folks go to colleges in Chennai only)
    More Medical colleges in pipeline 3-4 new permits are underway of approval

    These are some positive developments there are a lot of negative developments i can list as well.
    But as we witness folks from north india, Middle east, SING/MALAY, AUS/NZ, US / Canada, EUR consider chennai's stability in the post 2008 stagnation as a sign for durable long term destination for investment
    I bought an ECR land in that period from a GUJARATI doctor settled Urologist in Southern California - i was surprised he had holdings, he has more in manapakkam and near greenfield airport.

    So my theory is as much as i feel supply is just way over in Flats market in chennai now particularly in OMR, and a stagnation is imminent, the counter forces will step up to lift from the stagnation levels over period of 24 to 48 months

    When such a thing happens - Chennai has more opportunities and odds to recover than BLR or HYD , hence chennai IMO is stable place to get in

    there was BEARS BALL BUSTER called NATRAJ/ZEENN , as much as he was abrasive , he was spot on in his theory around behaviorial bears and it applied to many in the forum including me as recently as in the S&P run from my predict peaks of 1500 to 1650
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  • Originally Posted by k11
    I do not think it ever crashed. Prob in suburbs, but not in city.

    I would say city prices stagnated, some developers gave 5-10% discount thats it.
    It was not on firesale in 2009-10, as far Chennai goes.

    OMR bubble popped defenitely during the downturn, even ECR, Mogappair and some other suburbs came down to earth in the 2009-10 period.

    In Chennai city, prices have steadily grown. We are nearly triple the 2008 price today.
    City has outperformed suburbs like crazy.

    Suburban apt values have gone up today primarily driven by increase in construction cost. not so much by increase in demand.


    this is very common as you compare to famous crashes in the world in tokyo, boston re crash in 80s, as recently the 2006-8 crash all across the US, areas close to Wash DC like Vienna, Mclean, Arlington in Virginia never really crashed and are over 10-15% of the July 2006 PEAK prices.
    Such properties will always have demand due to a lot of external market forces that some times can never be computed . calculated nor predicted
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  • K11- The prices did drop, not by means of slashing of prices in new projects but by offering near-launch prices on ongoing projects. There were no interest in new projects at the price quoted, and they had to be either scrapped or postponed. If you have time please go through this thread, I would have given many instances in t.nagar, nungambakkan, anna/shenoy nagar and even suburbs like velachery/thoraipakkam. I agree land prices were unaffected. Even during then the flat prices had no correlation to land prices in the locality. I used to justify that flat prices will correct because land is selling for X and after construction it should be Y and not 2Y. I learnt it the hardway that in chennai increase in apartment price is pre-cursor to increase in land price and not the other way round which we assume is a fact. Stagnation affects apartment prices more than land.

    SR- Very true.Chennai has a solid footing compared to other cities. Regarding RE shorting,It is a risky proposition. It should be attempted only if you are willing to hold for long-term as a fail-safe if things dont go as planned. For land it can be rewarding..but for flat one can only hope to cut losses and exit ASAP. I personally feel comfortable only while investing in a rising market..I have the sense of having my bases/support level covered doing so and its easier to pick and identify the gems. In a falling market like the saying goes..dont attempt to catch a falling knive you never know when you would get caught on the wrong foot. Thats a dilemma most investors face..when to make a call..I didnt go ahead in 2009 because the properties that I liked were still unaffordable.People who did have reaped profits. But would that have been a case if the market didnt turnaround? I think No. I personally know people who cursed themselves to have bought a flat at peak price after they lost their job. As per the recent NHB residex, chennai witnessed a fall in absorption. Our economy is losing steam, We are unable to compete in the world market and our foreign policy isnt helping either. We live in uncertain times and from my limited understanding of RE market. The forces thats controlling the swings are beyond our grasp and are not well-defined to prepare. Almost the whole industry is heavily dependent on rising-valuation starting from the project being funded to buyers leveraging through loan. No-one knows how to deal when that does not happen. The only solution we are seeing is artifically sustain the levels and keep raising it using inflation and rupee depreciation. The damage is going to cripple a generation and widen the gap between have and have-nots even more. I can understand America printing currency as USD is the reserve currency, but fail to understand why in india. Maybe our government thinks soon America will figure out how to get out of the mess and we can mimic them in toto.
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  • Chennai RE as a broader market may have done about 100-120% since mid 2008.

    For those who are looking at Chennai RE as an investment: Law of large numbers will have its effect - sooner or later. Those that are priced in 5500-6500 psft or higher, will suffer from flatulence, regardless of the area. Further, 3000-6000 price point is a much easier slope to ascend for affordability reasons as well (of the past). Stay away from apartments/GC in suburbs thinking infra will catch up and barring few lucky exceptions, which is hard to foresee now, much will languish.

    Chennai as an RE destination is becoming a very picky market to make decent returns (at retail level). Much of the disappointment will come from the rest of the market looking at those isolated bets and chasing the broader market.

    Mav
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  • Originally Posted by k11

    In Chennai city, prices have steadily grown. We are nearly triple the 2008 price today.
    .


    Not so. May be doubled or even less. In 5 years doubling is not extra ordinary.

    In Anna nagar/Kilpauk price was 7000 to 9000 per sqft in 2008 and now it is around 12,000 to 15,000
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  • All new project launches (suburban) are almost priced similar to 2007-2008 levels (I am not talking about Super Luxury segment with unique offerings) even today. Within the city similar tendencies except for few luxury ones...Only few lucky ones probably made fortune, otherwise, returns are moderate levels.

    Within the city the story is different where people are not looking for brand new houses instead go for 10-20 years used homes with good accessibility and parking options.
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