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.
Read more
Reply
2345 Replies
Sort by :Filter by :
  • Back in 90's, every few people used to do Engg and MBAs. The number of colleges itself were 100 or so. I think the min was 70% to get a seat in those days.

    So every tom, dick and harry does Engg. All you need to pass your 12th and you get a seat.
    There are 400+ colleges now in the state. So you cannot equate a Engg guy from 90's to guy getting out now.
    Standards have taken a nose dive.

    Of course there are smarter people in colleges, but there are lot more below avg people, who would never get into even an arts college get in to Engg college today.
    I can even stretch out and say even IITs have gone down in standards, IITian of yesteryear's are much smarter than guys who are getting out today. They focus so much on getting in that now the candidate development is left out. But still IITs are best of the Engg colleges anytime.

    Many people getting out of Engg colleges today cannot even write a sentence in English. Most are unemployable.

    Top mgmt consulting firms do not even hire Engg students anymore.
    They are taking people in commerce, arts, law, etc from top universities.

    I am seeing even tech companies like Google, Facebook are moving to non-engg streams to get better talent. There are a lot of people who are avoiding Engg and Medicine today.
    CommentQuote
  • Well written K11... its not anymore about what you are studying. It is a combination of what you are studying and where you are studying. A BE/BTech from IIT has more weightage than an ME from IIT. Students are getting placed in top companies based not only their scores, grades, percentage and percentile. It is much beyond that. We are rigorously trained on how to pick college grads. It is far tough to get an admission for LKG today rather getting an admission in BE. 12th you pass and then you get into an Engineering college.
    CommentQuote
  • Usdinr = 58.13 -

    What is the read on the devaluing rupee its effect on Chennai RE
    More rupees for USD means more residual investment INR for NRIs to help pick up value deals
    CommentQuote
  • The state has more than 500+ colleges and the number of placements a year easily crosses over 1Lakh on a good year, so it all boils down to number of candidates being employed and gross salary they draw and its impact on affordability towards buying RE,
    You can be smart, dumb, or a use less, unable to write a sentence of english does not matter.
    Actually when i went to school, all the english speaking chennai vaasis flunked in all the Labs whereas the tamil speaking folks from south of madurai did really well in all our programming labs. we all are in IT and can clearly say a lot of times empty vessels make a lot of noice. so quality is in the eye of the judge.
    But bottom line is more engg graduates from TN means more engineers which means more potential candidates for job opportunities
    I dont beleive IT and INDIA has taken a sea of change to prefer non engg grads over arts/science college folks,
    CommentQuote
  • Originally Posted by SRajagopalan
    What is the read on the devaluing rupee its effect on Chennai RE
    More rupees for USD means more residual investment INR for NRIs to help pick up value deals


    Get used to USD over Rs 60.

    That is were I see it sitting in the future.

    In couple of years USD in high 50s will be a fading history.
    CommentQuote
  • Originally Posted by SRajagopalan
    What is the read on the devaluing rupee its effect on Chennai RE
    More rupees for USD means more residual investment INR for NRIs to help pick up value deals


    Debt funds - yield machine for FIIs - are redeeming and finding its shore back to US. What gives? They don't think the juicy yield of 8-10% can even compensate for the currency depreciation in the near future.

    Yes, USD can buy more today. It can buy much much more down the line is the current mood and the direction it is taking. RBI stance of not arresting the rise through artificial means is not helping as well. RBI must be aware that fighting the trend through artificial means is a losing battle at this juncture.

    I know a few who took home equity loan last year to make cash down purchases in RE and my prayers are with them.

    Mav
    CommentQuote
  • Originally Posted by maverick007
    Debt funds - yield machine for FIIs - are redeeming and finding its shore back to US. What gives? They don't think the juicy yield of 8-10% can even compensate for the currency depreciation in the near future.

    Yes, USD can buy more today. It can buy much much more down the line is the current mood and the direction it is taking. RBI stance of not arresting the rise through artificial means is not helping as well. RBI must be aware that fighting the trend through artificial means is a losing battle at this juncture.

    I know a few who took home equity loan last year to make cash down purchases in RE and my prayers are with them.

    Mav


    USD can always buy much more if you wait down the line from today to 5 years from now or from 5 years prior to today, thats a given.
    RBI's stance is a bit surprising the widespread rumour yesy was that RBI will intervene when 58 is yet, but yet no real signs of it, i feel they are a bit too late to the party. like our indian police in movie climax
    But i want to point out some good hard numbers to ponder upon
    as much as INR devaluing is an alarming fact as perceived , let me know if your views are any different after you see the numbers.

    To make it more interesting i took the lowest point 39.11 and extrapolated over 10 years to make the worst case
    IF you would want you should consider the 10 year with 2003 pricing at 46 and change

    EDIT - added the chart for 39.XX pricing for 5 years still 8%

    Attachments:
    CommentQuote
  • Tamilnadu
    " state’s economy or Gross State Domestic Product (GSDP) decelerated from 7.3 per cent in 2011-12 to 4.6 per cent in 2012-13, which was lower than national average of 5 per cent."


    Link: Planning body approves Rs 37K Cr outlay for TN | The Hindu


    Could this impact realty prices?
    CommentQuote
  • Originally Posted by maverick007
    Debt funds - yield machine for FIIs - are redeeming and finding its shore back to US. What gives? They don't think the juicy yield of 8-10% can even compensate for the currency depreciation in the near future.

    Yes, USD can buy more today. It can buy much much more down the line is the current mood and the direction it is taking. RBI stance of not arresting the rise through artificial means is not helping as well. RBI must be aware that fighting the trend through artificial means is a losing battle at this juncture.

    I know a few who took home equity loan last year to make cash down purchases in RE and my prayers are with them.

    Mav

    Minor point here is that FIIs when they investin equities or debt in any market will hedge the underlying Fx value to their base currency. So in India they will book forward hedge or INR/USD and hence there is no Fx depreciating risk to them - the only cost the forward premium.

    The reason funds are moving out by FIIs is a different issue in combination of our debt limits allocation methods, offshore demand for redemptions & other more lucrative markets releasing investment limits to FIIs.
    CommentQuote
  • Originally Posted by rsrsin
    Minor point here is that FIIs when they investin equities or debt in any market will hedge the underlying Fx value to their base currency. So in India they will book forward hedge or INR/USD and hence there is no Fx depreciating risk to them - the only cost the forward premium.

    The reason funds are moving out by FIIs is a different issue in combination of our debt limits allocation methods, offshore demand for redemptions & other more lucrative markets releasing investment limits to FIIs.


    But if the risk crosses the hedge over the time value that i factor in a note , then im exposed in which case its better to call the note and roll the money to else where, this happens too but most debt instruments do have strict expiries so its not like i see currency devaluation and i want to pack bags and run, most maturities wont be reinvested, what happens to those folks who parked money in NRE FDS at 9.5% they are possibly screwed.
    But if you can find a moderately risk free instrument that yields 16 to 18%
    onnu arai rooba vatti then you can pretty much beat the currency fluctuation.
    CommentQuote
  • Originally Posted by SRajagopalan
    RBI's stance is a bit surprising the widespread rumour yesy was that RBI will intervene when 58 is yet, but yet no real signs of it, i feel they are a bit too late to the party. like our indian police in movie climax
    But i want to point out some good hard numbers to ponder upon
    as much as INR devaluing is an alarming fact as perceived , let me know if your views are any different after you see the numbers.


    RBI has a process of montoring the Fx vols, rates, INR volatility etc., through the day and it intervenes only when it finds any of its own set limits are in the potential of being breached. Of course these monitoring mechanism is linked to the money market outlook set by the monetary folks. It does not intervene just because INR is depreciating from say 55 to 58 to a dollar.

    The other point is that India is deplete with any natural resources and is primarily import dependant and hence does not have the normal methods to maintain the rupee on the strong end. The focus is hence being infra, IT, Retail, Pharma etc., to get the FDI funds to come in for longer duration and stay invsted while helping us grow the basics in the country. This will help control the rupee depre process, however this does not seem to be taking off due to various issues with the policies, adminstration challenges, regulatory inconsistency etc.
    CommentQuote
  • Originally Posted by SRajagopalan
    But if the risk crosses the hedge over the time value that i factor in a note , then im exposed in which case its better to call the note and roll the money to else where, this happens too but most debt instruments do have strict expiries so its not like i see currency devaluation and i want to pack bags and run, most maturities wont be reinvested, what happens to those folks who parked money in NRE FDS at 9.5% they are possibly screwed.
    But if you can find a moderately risk free instrument that yields 16 to 18%
    onnu arai rooba vatti then you can pretty much beat the currency fluctuation.

    Fx risk will not cross the hedge - hedges are for specific tenures and these tenures are arrived by the investor basis their expectation of holding their investment and not on any other criteria. The hedge is booked on the same day as the investment is made and not later - it works all the time, the only exposure you end up having is the credit risk on the borrower of your debt. It you choose to retain local currency for further investment, then you spot Fx rate will be close to the hedge as its the same maturity
    CommentQuote
  • Originally Posted by rsrsin
    Fx risk will never cross the hedge - hedges are for specific tenures and these tenures are arrived by the investor basis their expectation of holding their investment and not on any other criteria. The hedge is booked on the same day as the investment is made and not later - it works all the time, the only exposure you end up having is the credit risk on the borrower of your debt. It you choose to retain local currency for further investment, then you spot Fx rate will be close to the hedge as its the same maturity


    Ok we are deviating the topic , but explain me how it can never cross he hedge ?

    I make for example investment in an institutional buy or an NCD or some thing that yields me 12% ( for example shriram transport) i look at its credit rating, asses the risk and buy a protection for 2 purposes, covering the risk of default and the currency fluctuation, now the protection for currency fluctuation is based on fact or prediction that 1 year investment note,we expect INR to devalue from 52 to 58, what happens if it hits 65 then we are out of our protection zone
    Can you brief may be im not following your instrument and i have a different in mind and talking about it
    CommentQuote
  • $ rate is going to affect inflation.
    Construction costs are going to go up. Labor costs and materials are going to go up.
    Govt to stabilize rupee has to increase diesel prices and cut subsidy to reduce CAD. Electricity rates has to go up. Transport rates has to go up. Shipping rates/import costs go up. That is going to push everything higher. All of this leads to more expensive building costs.

    RE market will remain the same despite the increase in building costs. Land owners - JV guys are going to get screwed. Builder's profit margin will also get hit.

    Overseas investors who invested with our builders are going to run away, most already left Indian RE market whoever is remaining will also pack their bags. The swings are big, not sure to what level folks have hedged.

    This dollar rate enforces what I said previously.
    Market will be slow until 2014 for sure. It is better to start/invest in building (construction/renovation) projects soon.
    CommentQuote
  • Originally Posted by SRajagopalan
    Ok we are deviating the topic , but explain me how it can never cross he hedge ?

    I make for example investment in an institutional buy or an NCD or some thing that yields me 12% ( for example shriram transport) i look at its credit rating, asses the risk and buy a protection for 2 purposes, covering the risk of default and the currency fluctuation, now the protection for currency fluctuation is based on fact or prediction that 1 year investment note,we expect INR to devalue from 52 to 58, what happens if it hits 65 then we are out of our protection zone
    Can you brief may be im not following your instrument and i have a different in mind and talking about it

    I will try to keep this as my last post on this topic as dont want other members to badger me for supporting the topic deviation.

    Rate of interest of the debt is immaterial as the point was loss due to fx depre. If you buy INR 100 of debt (vs $ 50) in India which matures on (say) 31Dec. Then you buy a hedge for INR 100 vs $ on same day (as purchase) having hedge maturity of 31Dec. Then irrespective of whether INR is at 2 (as in this example) or 1.5 vs $ on the day of maturity of debt, you will get the $ as per the hedge rate as you have booked on day 1. Credit risk is different and has to be covered separately.
    CommentQuote