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Property Price Trends in Chennai

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

    Originally posted by Love4land View Post
    Isn't 2k too low? He may not be able to break even. You may call him and check the rate he is looking at.
    No, new apts like Pacifica are available at 3K. 2.5K is less than 20% off.
    I do not care if the guy breakseven or not. I cannot offer market price for distress sale.
    If they are interested to sell he would have responded and asked me for 500rs more. I am telling you the guy is not real. There is a good chance the phone number is not real too.

    Most buyers would have paid around 2.5-2.75K to buy there. I knew a person who bought a row house, a 2-bhk for 34L.

    BHS has got a lot of negative remarks on forums, but how come I do not see any distress sellers. I do not see any posting on classfieds too. Distress means less than original price or alteast at original price.

    Thankfully, atleast this forum is not polluted by people starting rumors about BHS.
    Last edited September 4 2012, 08:54 AM.

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    • Re : Property Price Trends in Chennai

      Originally posted by k11 View Post
      No, new apts like Pacifica are available at 3K. 2.5K is less than 20% off.
      I do not care if the guy breakseven or not. I cannot offer market price for distress sale.
      If they are interested to sell he would have responded and asked me for 500rs more. I am telling you the guy is not real. There is a good chance the phone number is not real too.

      Most buyers would have paid around 2.5-2.75K to buy there. I knew a person who bought a row house, a 2-bhk for 34L.

      BHS has got a lot of negative remarks on forums, but how come I do not see any distress sellers. I do not see any posting on classfieds too. Distress means less than original price or alteast at original price.

      Thankfully, atleast this forum is not polluted by people starting rumors about BHS.
      BHS is bird in hand, Pacifica is 2 in bush. We had a similar discussion earlier and you said paying 25% more for RTM in Mantri synergy is better option than Sobha.

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      • Re : Property Price Trends in Chennai

        Originally posted by Love4land View Post
        BHS is bird in hand, Pacifica is 2 in bush. We had a similar discussion earlier and you said paying 25% more for RTM in Mantri synergy is better option than Sobha.
        Yes, RTM is better but this is distress sale, why give a premium.
        If BHS has issues, why would the people expect more than original price. As I said, I will meet the orginal price, 2.5K all cash offer. Do not care about location or floor of the flat. 2-BHK and 3-BHK is preffered. I can get upto 4 flats for my family, if someone is willing to sell.
        If there are more, I can try to get more buyers too.

        But where are the phantom sellers and their ads for distress sale?

        2500 was the 09 price. Now do not tell, BHS became bad (slum colony and issues) and the price went to 3K (25% increase).

        Even L&T, Mantri has not gone up 25%. Folks there would be lucky to get 10-15%.
        Hira is the only project where the rates increased by 25% during the same time frame.

        By the way I would not go beyond 4K on OMR except Hira, in todays scenario. 25% above Sobha is Hira's price (5K). So no way Mantri=Hira, anyday.
        Last edited September 4 2012, 09:21 AM.

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        • Re : Property Price Trends in Chennai

          Ok, here is my 601th post.

          Want to give some advice to prospective buyers (end users/investors).
          I have learnt a lot of things and would like to share.

          Everyone asks whether it is a right time to buy property, but when a slowdown comes and prices stagnate no one want to get in. They always look for lower price. But it is hard to predict the bottom.

          I have seen this back in 09-10, there were good opportunities in the market with decent prices. After it shot up higher, and in 11-12 people were chasing it.

          I think we will have one more good opportunity in the coming year. So all the prospective buyers who missed the last run, should start getting ready.
          Markets give us a chance you gotta take it.
          I have missed some good opportunities in stocks and gold, but fortunately not RE.

          Do not over analyze prices a lot, research the area instead. I have seen people ask 110 questions on a 100Rs price differential, value is important but if you can afford 4000rs, it does not hurt to go to 4100rs for a better location. I do this mistake sometimes, it seems we have in our DNA - we do RE bargaining like in a vegetable market and always look for value.

          Window shopping is good time pass. I am a window shopper but not when I am seriously looking to buy. If I have to buy, it is 3-6 months max, (i spend 2 months) find something and get in. This is very essential during down periods, 2010 is a good example. Prices started rising late 2010 and early 2011, waiting extra six months means 20-30% increase in prices.

          For (first time property buyers - end users) NRIs and IT folks, If your job is not a high paying one, take some time off and search for RE when the time comes and you have to buy. Do not do RE shopping as a side activity, it has to be a full time job, to save some laks. This does not need to be done for an investment property.

          Location, Location, Location - This is the most important part. Choose a place where you can see yourself living in comfortably in the near future. Do not go by infrastructure promises, airports, metro, highway, might never come, it is a big gamble not worth taking when you are look for end use.
          Do not buy in a slum/near a garbage dump/waste water/crappy location for end use if you are moving from Amrika/London.

          Do not waste time in plots and get cheated. I see NRI/IT people buying plots in middle of nowhere, do not get into 50km outside the city for end use. Get in those only if you can take a risk and familiar with the location.

          Do not buy something expecting rentals to pay for EMI. Rental market is very volatile and it is hard to rent places outside the city.

          If you are looking in the city,
          Look for resale too, sometimes there are good deals in resale properties. It is better to go for a resale apts in good buidling than a crappy low end new building.

          Younger people, look for your first home once your job stabilizes, do not delay. Prices go up faster than your income sometimes.

          Places to look for RE - Newspaper classifieds is the best, freeads, internet ads, friends, neighbors, acquaintances, try visiting builder offices, construction sites, barber, watchmen, maids, drivers, local brokers, etc.

          Do not make RE as your only priority. Everyone needs a roof, after that it just becomes another investment which is not critical.

          Remember there are lot of things to do in life than RE.

          Happy hunting.



          Want to buy property? Look for promising destinations - The Economic Times


          Saw a good article in ET, shows how to select builders.

          Seven lessons realty players picked up from the slowdown - The Economic Times
          Last edited September 8 2012, 02:18 AM.

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          • Re : Property Price Trends in Chennai

            Originally posted by k11 View Post
            Saw a good article in ET, shows how to select builders.

            Seven lessons realty players picked up from the slowdown - The Economic Times

            With Delhi and Mumbai saturating, attention of big sharks is starting to turn towards Chennai and Bangalore. I already see lot of news articles and national TV shows appreciating south Indian market. We are going to see pan-India investors swooping in on Chennai and Bangalore, gear up for another round of property price increase!

            Did you notice one thing, the article doesn't mention a single Chennai based builder, even though it focusses on Chennai and Bangalore market. This is a warning sign to local builders. While there is no doubt about quality of our builders, their customer service and financial management leaves much to be desired. They are still following outdated strategy of charging hefty downpayments and starting construction using buyer's money. While builders like Sobha have learnt to manage their finances well and keep steady operational cash flow. They don't have pressure to sell as many units as possible in a short time, that is why they are able to price their projects for much higher price than their peers in the same location. Also they are able to charge lower downpayment, thereby pulling in NRI investors and people using own funds.

            Our local builders are not showing any sign of adapting to changing times!

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            • Re : Property Price Trends in Chennai

              Originally posted by Love4land View Post
              Our local builders are not showing any sign of adapting to changing times!
              Sobha perhaps is an exception! But cant say the same about other biggies. They have moolah and have not shown interest in smaller projects, but their terms are heavily biased against the customer, even more than what our local builders offer. Even though every builder is there for the money, I believe several local builders are also show a little concern and interest for the city and chennaites. I bet these big guys don't give a hoot.

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              • Re : Property Price Trends in Chennai

                Originally posted by murugesh View Post
                Sobha perhaps is an exception! But cant say the same about other biggies. They have moolah and have not shown interest in smaller projects, but their terms are heavily biased against the customer, even more than what our local builders offer. Even though every builder is there for the money, I believe several local builders are also show a little concern and interest for the city and chennaites. I bet these big guys don't give a hoot.
                I was not referring to ethics or moral values, local builders are certainly far ahead compared to corporates, the article is focussing on financial management.

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                • Re : Property Price Trends in Chennai

                  Local builders have one big advantage over big national ones, that is getting land at prime areas in the city. If you want apt at prime areas, there is no choice. Also the local ones are the ones who would build high end apts too.

                  DLF is the only exception. They got the land for a mall but changed their mind and put up a residential project.

                  Mantri/Sobha/Purva/Olympia/Prestige/etc - all of these guys cannot get land in prime areas in the city. They remain in suburbs, build townships and operate in high margin environment. Hira is a big exception, they do only townships so we can leave them out. The Bangalore based ones especially have a business model of buying cheap land and build apts. They do not show up at land auctions for city properties, but they do city properties in their home city. Their target market in Chennai is lower end apts.

                  When if comes to land in the city, the local guys bid crazy amounts. They never leave it, they would do projects for lower margins. It is hard to beat out Akshaya, TVH, VijayShanthi, Prince, etc.

                  Local builders do not get funding is not true in current environment, they do get funding up to 200 crores very easily. They can tap external sources to 500 crores. Anything above becomes challenging for them. There are not many land parcels in the city that goes above 500 crores, Chennai is not Mumbai.
                  Prince as an example paid 170 crores cash for Dasaprakash hotel, 5-6 crores a ground in an auction dominated by local builders. None of the guys outside showed up.

                  The bangalore based ones could have got it, but they did not. They would rather buy a cheap land in OMR/GST/other suburbs and do a lower end project. These guys will spend 5 crores an acre not 5 crores a ground. They spend 20-50 crores for land and launch small projects, Prestige is the big one, their land parcel was big enough (25 acres) in Porur, should be less than 200 crores still even though it was a JV and PE backed project I think.

                  I hope other national builders like Lodha, IREO, Orbit, Raheja sees DLF and gets into another Development in the city.

                  The bangalore based builders, I do not have hope. They will never take such a big risk.
                  Last edited September 12 2012, 09:09 PM.

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                  • Re : Property Price Trends in Chennai

                    I agree that is why suburbs are looking more and more like Bangalore with townships and high rises, especially extended ones and core city remains the good old Madras. Chennai is soon going to be bifurcated into two sections of society, the core and suburban population. Both will eventually have equal proportion of upper, middle and lower middle classes.

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                    • Re : Property Price Trends in Chennai

                      I do not like many things about Bangalore.
                      But the universal fact is

                      Bangalore Suburbs >>>>> Chennai Suburbs.

                      Also I do not think the builders are doing enough to attract high end population.
                      Olympia built 20 high end apts in their project. Hira is doing it with Oceanic/Seagull. Both these buildings represent probably 0.01% of inventory in suburbs.
                      Flat sizes beyond these two buildings do not go above 3000sqft. Forget about super sized flats.
                      The focus in Chennai suburbs is on lower to mid level apts only.

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