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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  • Administrative Issues and Market Dynamics

    In Suburbs

    The Transaction of 50 lacs above, its implication without PAN at 20% and with PAN at 1% TDS, ST Exemption for affordable small floor area for Builders, IT exemption for sub 40 lacs flats , Massive land bank and multi year multi phase Projects with glut in supply will keep many Investors, Builders, Land owners at bay clearly and this pause or lull will weaken the finacially weak players and drive them or wipe them out, Revison of Plan will be on the anvil with Reduction of cost through new techniques like MIVAN,FP,Quick Shuttering,FBD to cut down construction lead time and conversion of land into livable flat by Big players to sustain.

    Since full RE is live wire only with color money , absence of it due to the above even for 6-12 months would act a deterent factor and leading to price crash, incompletion, Halting of Construction like 2009 , Abandoning the site halfway through and difficulties in Servcing high EMI for Investors with borrowed capital .

    Registration of Construction Agreement with complicated costs of Infra,Club,Road in township projects and it's stamp duty , deduction of TDS by buyers from Builders who as usual will pass it on back to Customer, Declaration of Profit to IT by builders as both Constuction cost and land cost are revealed through Acquistion and Registartion will act as dampened for Builders .

    Mighty will survive with lower customer base .

    In City

    High Stamp duty for prevailing GV and lower actual payment for buy and sell transaction will keep the IT clueless of how to deal with it .

    Unsold inventories , WIP Inventories and Paucity of fund at Builders side will force them to offer all indirect incentives like Purva but Buyers as usual desist in accepting such offer without deep Price discounts and above all fearing for halting or stagnation or abandoning the site without completion.

    Hence Price cut may revive and pull the customers more despite the above odds which is possible for suburb builders through Mechanised ,quick construction lead time and with low land Acquistion cost But for City builders, nothing is left much due to the scarcity of land , customers with deep packet and challenging GV and Transaction costs .This is very evident from the ongoing activities and absence of Big Builders in City side . The same over crowded Big Builders in suburban areas need to alter the plan by revisiting drawing table once again with new offerings .

    Demand is more than Supply in Chennai Market ( Homeless % is more ) but wherewithal to acquire at affordable Price level is the issue
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  • Originally Posted by lovebirds43k
    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



    What I have observed is Kilpauk had a tremendous run.
    Kilpauk was at 6500-7500 even till early 2010.

    Today, Kilpauk is trading at 16K for even mid grade projects.

    Kilpauk has definitely overtaken Anna Nagar East. Kilpauk is 25-30% more expensive than Anna Nagar, it used to be bit less or similar to Anna Nagar East before. Egmore is the same, but supply in Egmore is very less becasue of limited residential areas. Purasawakkam also is going up.

    Anna Nagar E has 12K price. There is one luxury project (Ozone Gardenia) at Anna Nagar at 15K. Anna Nagar West has 8-9K price on Avg. MetroZone project is still trying to move the last few units at 8.5K now. They were trying to sell at 6.5-7K all throughout 2009-10. There is not much movement in Mogappair either.
    West Chennai has not seen much movement in the last couple of years.
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  • ECO is going to be profoundly offended now and is going to thundercharge the missiles of attack about West Chennai valuation
    Hey where is the IIM pro - RG another Purasai supporter --
    sollunga boss, eppadi vada/ merku chennai then chennaiya vida sirappil olirgiradhu
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  • Nothing to offend, anyone including Eco. That is the reality what we see today.
    You look at the numbers and recent trends.

    West Chennai had a good run in the last decade or so, performance in last couple of years did not change it. But prices peaked in 2008, and did not go up post recession as much as other areas. South Chennai, areas like Velachery, Thiruvanmayur had a pretty good run too.

    Apt launches and prices tell the story in West Chennai.
    The bypass area has never taken off. The bypass should be trading close to 6K+ today, but it is struggling to sell at 3.5-4K. KG project is an example.
    Poonmallee and beyond also has not shown much improvement.

    Six months ago, I was thinking West suburbs as the most VFM place, but I am begining to doubt my opinion. Earlier in the year I was looking at Godrej project, but dropped out. I think West Chennai has all the pluses, but the prices are just not going up. Maybe the lack of quality high end project or lack of IT companies or in general job growth plateaued in suburbs is keeping the prices down, I do not know the reason.

    I welcome more comments on the reasoning behind the under performance in western suburbs.

    Why western suburbs is better than southern suburbs? How about a duel.
    What areas in West are key and compare it to southern suburbs.

    Something like,
    Mogappair vs Velachery
    Chrompet/Tambaram vs Poonamalle
    Chembarabakkam vs Shols/Siruseri
    Sriperambadur vs Vandalur/Oragadam/Thriporur/Kelambakkam

    Not sure if the above are the right place to compare, but it is a start.
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  • I can provide enough examples to demonstrate that Chennai suburbs have performed extremely well in the last 5 years 2007/08 up till now. The suburb areas included Porur / Iyyapanthangal, Omr up to shols, pallikaranai up to sitalapakkam etc., which had given handsome returns to buyers. Only exception i could think being OMR beyond shols. I think areas beyond shols will remain so in the near future because of various reasons i have posted in my earlier posts in this forum like lack of infra development, supply demand mismatch etc.,
    It would be helpful if ppl back their views with some examples to demonstrate how they think it is stagnant in the last 5 yrs? However some areas like porur is over heated and prices have gone up very quickly than one would have expected with one builder setting the bench mark for the area and others just following like herd of sheep. In such cases, I feel that potential upside will be limited in the near future once buyer realise the true potential of the area.
    Going fwd whether Chennai RE would stagnate or go down remains a question since it has not gone down in the last 20 yrs or so whilst metros across India have gone through the cycle once or twice. Personally, I don’t think it would go down in the near future since it is still in the expansion mode and still there is a room to manoeuvre. Infra projects like metro phase 2 (if it ever happen???) would spruce up RE activity in North Chennai which I think so far has received step child treatment though it has all required infra structure in place and it is juz matter of time before it catches up with the rest.
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  • sundarjp,

    Any views on my post on West suburbs?

    North Chennai has been doing good, I have seen Kolathur rocket up.
    Now trading above 8-8.5K for new projects. I think even this doubled up in short time.
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  • Mogappair is one of the areas I missed in my list which had excellent run in the last 5-10 years. It has no big names but lots of decent / premium projects. Builders like dabc/VGN/golden homes had a strong footing in the area. Price in 2006-2007 - around 3000/-.citilights was selling at ~2800/sqft in 2007.
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  • Yes, there are some mid grade projects that have done well. VGN Minerva is one of the names. Today, 3.75K-4.5K seems to be rate for Mogappair West areas. Mogappair East at 6-7K seems to be a 1000-2000rs less than Anna Nagar West or Thirumangalam. The whole area from Anna Nagar West to Mogappair West is still cheap.

    What do people think of future targets. Is it worth investing in west suburbs.

    Job growth in the area, what do you guys think are the hot spots.
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  • Plots price range near thaiyur ( like Crescentz Aurora) which is costing more or equal ( approx 1700/sft) to mambakkam and ponmar price .

    I feel that ponmar and mambakkam is near to omr and V-K raod but thiyur is not that close to OMR, but how come plot price is more in thaiyur.

    Is it justifiable? Kindly give your opinion on investing thaiyuir or ponmar area? which will be good?
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  • Originally Posted by k11
    Yes, there are some mid grade projects that have done well. VGN Minerva is one of the names. Today, 3.75K-4.5K seems to be rate for Mogappair West areas. Mogappair East at 6-7K seems to be a 1000-2000rs less than Anna Nagar West or Thirumangalam. The whole area from Anna Nagar West to Mogappair West is still cheap.

    What do people think of future targets. Is it worth investing in west suburbs.

    Job growth in the area, what do you guys think are the hot spots.


    I think when you say:

    "Mogappair East at 6-7K seems to be a 1000-2000rs less than Anna Nagar West or Thirumangalam. The whole area from Anna Nagar West to Mogappair West is still cheap"

    I think you are referring to Annanagar West "Extention".

    Annanagar West "extention" Is different to Annanagar West.

    The Price for a basic new flat in west is Rs13,000 to Rs 14,000.

    West "Extention" is about Rs 8,000 to Rs 9,000.

    West "Extention" is nothing but part of Thirumangalam & Mugaperu.TNHB made a small pocket sorounding Thirumangalam SBOA school as West "Extention" in the 90s.

    The people of Mugaperu took it on themselves to Rename large portion of their area as Annanagar West "Extention" - No official standing except for Name board on shop front.

    Mugaperu West is nothing but "renamed" Nolambur & Parts of Ambathur.

    The unofficial name extention does not Impact property price.

    That is why from an outsiders point of view West "Extention" may look cheap.
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  • Actually not true ponmar and mambakkam are about 300 to 400 RS cheaper than cresentz
    With dtcp approval and decent road access and no graveyard
    Fyi
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  • I knew the ECO engine will rev up and it did
    Sir Avaru mr Anna nagar vidunga vidunga
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  • Originally Posted by SRajagopalan
    Actually not true ponmar and mambakkam are about 300 to 400 RS cheaper than cresentz
    With dtcp approval and decent road access and no graveyard
    Fyi


    That is why i am wondering ponmar and mambakkam are less or equal ( on some layout !!!) than cresentz in thaiyur. Is the cresentz price correct or way too high?

    But i am seeing many big projects around that area ( Today,Pbel, urbania, and etc ... ) , ponmar has started with artha ( villa and apartment ). I feel ponmar is near to omr than thaiyur, but not able justify the price in thaiyur.
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  • Originally Posted by Economist
    I think you are referring to Annanagar West "Extention".


    Yes, you are right. I am always confused on this strech.

    But I know that Metrozone project is not in Anna Nagar W, though they market it as Anna Nagar West.

    Correct me if I am wrong.
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  • Originally Posted by k11
    What I have observed is Kilpauk had a tremendous run.
    Kilpauk was at 6500-7500 even till early 2010.

    Today, Kilpauk is trading at 16K for even mid grade projects.

    Kilpauk has definitely overtaken Anna Nagar East. Kilpauk is 25-30% more expensive than Anna Nagar, it used to be bit less or similar to Anna Nagar East before. Egmore is the same, but supply in Egmore is very less becasue of limited residential areas. Purasawakkam also is going up.

    Anna Nagar E has 12K price. There is one luxury project (Ozone Gardenia) at Anna Nagar at 15K. Anna Nagar West has 8-9K price on Avg. MetroZone project is still trying to move the last few units at 8.5K now. They were trying to sell at 6.5-7K all throughout 2009-10. There is not much movement in Mogappair either.
    West Chennai has not seen much movement in the last couple of years.


    Absolutly incorrect.

    I know Kilpauk, Annanagar East, West, Extention and Mugaperu for over 25 years.

    1. Kilpauk - Is,Was & always will be expensive than Annangar East & Shenoy Nagar. Kilpauk Was a VIP area since 1940s.

    2. BTW the pricing you have quoted for Annanagar East & West are way too low for current market reality.

    3. Annanagar East ( Area before rountana) at 12K is not reality mate. You would be lucky to get at 16K

    4. Real Annanagar West (area before 100ft Inner ring road) is going at 14K new projects from local builders. Shanthi Colony at 16K new projects (Color homes)

    I am speaking to few builders, JV partners & owners in the area on a montly basis.

    your pricing is way too out -of-sync to market movement.
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