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 ramki830
    I agree with Rajagopal. INR fall against USD is not a surprise to me. India has had such a large and unsustainable CAD, that this is so obvious...

    Our Indian Media is never known to work anything more than propaganda arm, so they never saw this coming...

    I think we will have a rough time for next 6-12 months and we will surely cross Rs 60 per USD. But the results of this fall will do lot good for us in long run...

    As far as RE Investing, the cost of construction will continue to rise in next 12 months, courtesy diesel price rise (which will also hit rs 60 per liter) and this is election year, expect more profligate spending by UPA2 govt, all in all get ready for rolller coaster ride.

    Me think - all this will lead to slowdown in sales of built apartments by early 2014 (Esp in Chennai). Those who disagree , welcome to put your views , will be most happy to hear a bullish case...


    I have a different take on it, not sure if it should be called bullish or bearish..it depends on how you are reading it..Let me explain in third person.

    I feel the gap between the have's and have-nots is going to widen dangerously and very fast. The decision one takes now with their finances is going to decide whether their children are going to remain wealthy or not. Buying RE is no more just investing for returns beating inflation. Its establishing a home for securing your family. If the things we are talking like Rs 65/$, Rs. 60+ diesel and Rs. 100+ petrol price are going to be true and that coupled with moderate salary increases not matching price rise..It is going to put tremendous presssure on the earning class. They are going to have enough challenges to handle and buying a flat/RE taking loan would be the last thing on their mind.

    Having said that..what is the refuge for a person wanting to buy when the price due to inflation pressure doesnt come down and it is still remains unaffordable? Wait for price to correct/crash? The whole situation may never become conducive for everything to fall in place and for buying. Traditionally in India Buying RE has always been beyond one's means and involving fair degree of risk. Its never a decision of buy/rent or P/E ratio alone. I dont see that changing anytime soon. The best we can do is try balancing our affordability and preference to identify a value deal.

    Generally RE is called hedge against inflation. One of the main reason why so is, In an inflationary environment when rupee is also depreciating it gives additional incentives to borrow as we can repay with currency of diminished value at later point. This fact is the fundamental reason why property prices are going up and is not factored in by potential buyers. Credit if managed judicously can act as a catalyst to make you richer faster than your counterpart.

    I have stated this before - buyers dont estimate their affordability properly..many dont consider the future flow of money and repayment capability properly and often find themselves caught in the wrong foot when they either bite too much or feel they could have over-leveraged more if successful. When unaware of what are the factors that control the environment/market its better to understand by participating in it rather than speculating from outside. One has to keep failsafes ready though like leveraging within repaying capacity for instance and by evaluating all risks and taking well informed decision.

    General stagnation in prices and slow down in sales I agree..but If one come across a property thats affordable and to their liking. There is no point fearing the unknown and delaying the purchase, If currently its unaffordable one should focus on earning more and re-positioning themselves to increase their affordability and move in immediately when they get a good deal. Leveraging to be done only if job/business outlook is secure. Waiting for price correction/crash can be done if you are exposed to a stronger currency/better economy or are planning to sell a property and buy one or have divested part of the money in RE already.

    Finally, It would help to keep in mind..When the tough gets going, a roof above your head and shelter for your family is invaluable.
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  • Originally Posted by ramki830


    Me think - all this will lead to slowdown in sales of built apartments by early 2014 (Esp in Chennai). Those who disagree , welcome to put your views , will be most happy to hear a bullish case...


    My counter view is very simple, no complex terms like QE or equity or currency fluctuation.

    Lot of people are going onsite these days, watching foreign locations in movies and TV commercials. They yearn for first world lifestyle. They want well paved streets, lawns, security, gym, etc... Unfortunately our town planners are not able to match expectation of new generation. The only solution is township, that is why apartment sales keep increasing every year and will continue to increase.

    Unless...young generation suddenly realize all these maya and give up their materialistic expectation. Everyone yearn to return back to golden socialistic 80s. In that case, apartment sales will go down.

    I still remember how after Anjali movie released, apartment builders received enquiries if they can construct an apartment complex like one in that movie.
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  • Originally Posted by Love4land
    My counter view is very simple, no complex terms like QE or equity or currency fluctuation.

    Lot of people are going onsite these days, watching foreign locations in movies and TV commercials. They yearn for first world lifestyle. They want well paved streets, lawns, security, gym, etc... Unfortunately our town planners are not able to match expectation of new generation. The only solution is township, that is why apartment sales keep increasing every year and will continue to increase.

    Unless...young generation suddenly realize all these maya and give up their materialistic expectation. Everyone yearn to return back to golden socialistic 80s. In that case, apartment sales will go down.


    L4L we were discussing some of such roots and causes of those folks you claim to go to onsite and see the first world way of living to clone in chennai
    if the QE faltered not much of chennaities would be going on onsite trips at all, althought a counter theory is for cost cutting there would have been more outsourcing ( markets in india in 2009 did not reflect counter theory).
    If IMF bailouts faltered Eurozone would have been in danger, if the ECB buy backs and brokered agreements between Germany and Greece , spain, portugal , italy did not happen we could have seen the EUROZONE effect on US economy and indian economy
    More than any thing sheer supply in chennai market today is just crazy, you and i are looking at all sat/sunday property plus, thanthi proprety ads, online ads, see the number of new townships, villa communties coming incredible, supply IMO is overwhelming now
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  • Originally Posted by Love4land

    I still remember how after Anjali movie released, apartment builders received enquiries if they can construct an apartment complex like one in that movie.


    Hahahahhaha you made my day, so funny, yes, the movie had a long lasting effect on designing flats, but you needed a thotta tharani for that,
    Yes we chased girls in all mottai maadi after seeing that movie.
    Mani is a legend, the kitchen, low lying dining table with pull out shades ontop
    the arched panel see through from kitchen to dining, i had this in my first house i bought in US , long lasting impact
    thanks for the nostalgy
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  • Chenani RE might be an exception to the Economic Theory of Supply and Demand. I am still not able to understand whether we are in a Seller's Market or Buyer's Market...
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  • Supply in suburbs keeps prices in check. It keeps bubbles from forming.
    Becasue of GCs all the land that would have been locked up are coming out. End users are moving in becasue of the affordability and amenities. The supply also provides cheap rental options as many IT/NRI people buy up and subsidize the renters by keeping the yeild below 4-5%.

    I do undestand people who want to leverage on apts and the plot sellers might not be happy with supply, it is hard to bet in high rate environment when values are not moving up and plot guys do not see plot values going up as prospective buyers end up at cheap flats.

    I say all the supply is good for long term growth. I am all up for it.
    There needs to be some pockets with cheaper prices. Suburbs should offer good cheap housing alternative to people who cannot afford in city.
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  • Originally Posted by mukundanmk
    Chenani RE might be an exception to the Economic Theory of Supply and Demand. I am still not able to understand whether we are in a Seller's Market or Buyer's Market...


    Depends on Location, Layout , Development, Builder/project,
    you can find both
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  • It is hard to bet in high rate environment when values are not moving up and plot guys do not see plot values going up as prospective buyers end up at cheap flats.


    This by far can get the award for the multi contradicting faceted facts statement.
    Lets decipher so that i can undestand before i go to sleep
    1 - High rate environment - India the rates are definitely lows now not highs may it be lending, savings etc
    2 - Values have been moving up atleast until end of financial year March 2013
    3 - Plot guys are not seeing values moving up -ok , since January most hot locations under 1250 rs /sqft have grown up double digits in %
    4 - prospective buyers are buying cheap flats - what is cheap 3500/sqft, 4000/sqft, as compared to 25000/sqft in PG or BC ?
    a 2bhk that yields 10K rent costs 50L how is that cheap ?
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  • The supply also provides cheap rental options as many IT/NRI people buy up and subsidize the renters by keeping the yeild below 4-5%.


    Rentals remain cheap because there are no takers. Why use the word subsidize? Subsidy means intentionally selling at lower prices than market price. If folks were caught with the bad expectation at the time of purchase and realize lower rentals, we can't call it as a subsidy and it is simply a bad call and accept lower rentals and move on. Let's not paint a noble intention for a bad call.

    Mav
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  • Originally Posted by SRajagopalan
    2 - Values have been moving up atleast until end of financial year March 2013
    3 - Plot guys are not seeing values moving up -ok , since January most hot locations under 1250 rs /sqft have grown up double digits in %
    4 - prospective buyers are buying cheap flats - what is cheap 3500/sqft, 4000/sqft, as compared to 25000/sqft in PG or BC ?
    a 2bhk that yields 10K rent costs 50L how is that cheap ?


    2-bhk under 50L, 3500-4000/sqft with all amenities is affordable.
    I do not care about rents. People strech for apts to live not rent out.

    I do not track the 1250/sqft plots where there is no civilization. There are no flats nearby to compare either. End users do not flock to these places.

    My point is made on the inhabited parts like Shols/Thoraipakkam/Pallikarani/Velachery/etc.

    Buying a plot in Thoraippakkam (@1.25C/ground) and building houses is not cheap.
    But flats at 6K is a pretty affordable for people.
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  • Originally Posted by maverick007
    Rentals remain cheap because there are no takers. Why use the word subsidize? Subsidy means intentionally selling at lower prices than market price. If folks were caught with the bad expectation at the time of purchase and realize lower rentals, we can't call it as a subsidy and it is simply a bad call and accept lower rentals and move on. Let's not paint a noble intention for a bad call.


    Yes, I agree it is not a subsidy. I mean the unintended consequence of attractive GCs pricing and supply has created demand more than supply and thus lowering the yeilds.

    But do you think our suburbs should have more people. Existing suburban population growth without much infra is already amazing to me.
    So I will not blame people not moving in and renting in GCs. Population growth in subrubs is not bad.
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  • Originally Posted by SRajagopalan
    Hahahahhaha you made my day, so funny, yes, the movie had a long lasting effect on designing flats, but you needed a thotta tharani for that,
    Yes we chased girls in all mottai maadi after seeing that movie.
    Mani is a legend, the kitchen, low lying dining table with pull out shades ontop
    the arched panel see through from kitchen to dining, i had this in my first house i bought in US , long lasting impact
    thanks for the nostalgy


    My mother had this home decor & furnishing impact from movies in 80s & 90s.

    We had this big forest scenery (like wall paper) that filled the entire wall, huge Dancing Natraj statue, Cane hanging chair. Divan from Mouna Ragam & Agni Natchatitam. Human size poster of Queen's Grenadier Gaurd on the door etc.

    Yes movies have big impact.

    Induvidual house designs are influenced by movies.

    Audi India's secret of sucess in South India is product placement in movies.
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  • Reasons for Falling Rupee

    USD has touched its 3 year High . US stock market are at life highs,Strength in USD indicated recovery in US economy, We have seen a slew of data indicating the same.

    Housing Market is recovering, Job situation is improving which make market participants believe the US Fed will be tapering of QE Infinity. Gold which was safe heaven for investor has been quiet volatile off late, So investor looking for stable and non volatile instruments has again turned their attention to USD. So strength in Dollar Index is one of the reason Rupee is depreciating at rapid pace.


    Indian Economy Remains Weak

    Indian Economy is still not out of woods, Consumer and Food Inflation is still at Highs, Fiscal Deficit is large, IIP is almost flat and Growth concerns still lingers. Rating agencies has told still their is 1/3 changes of reducing rating of India from Current of BBB- with a negative outlook to JUNK status if fiscal and current deficit are not brought under control.

    Rising Import Bill

    India is net Importer of OIL and GOLD, with fall in GOLD prices Indian consumers are buying more gold which is increasing the gap between Import and Export  and thus we are having a huge current account deficit and it putting more pressure on Rupee.
     
    Euro Zone Recession

    Eurozone is still battling with recession, Imports are coming under pressure as due to almost nil growth in Eurozone , Euro is trading well below its psychological level of 1.30. ECB has also committed to flood market with Euros if economic data does not imporove hence putting further pressure on EURO and lead to Buying in USD which will further put pressure on Rupee.

    Weakness in domestic equities

    Foreign institutional investors have been selling index futures in the last week. This is a hedging move as FIIs expect stocks (cash segment) to fall in the near term. FIIs have been a key support for markets (and the rupee) after buying over $15.38 billion (Rs. 90,000 crore) worth of shares this year as of last week.

     Final reason is Electioneering year
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  • Mani's another movie Mouna Raagam too had a great house (Mohan's house in Delhi)... interiors were too good. During that time, many wanted an house with interiors like that and girls, wanted an husband like Mohan :)
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  • Originally Posted by mukundanmk
    Mani's another movie Mouna Raagam too had a great house (Mohan's house in Delhi)... interiors were too good. During that time, many wanted an house with interiors like that and girls, wanted an husband like Mohan :)


    About a year ago I saw a Vijay Anthony Movie called NAAN.

    There was this cute trendy,peppy little house on a small plot on 30 ft road.

    I was impressed how you can put a Trendy peppy house on a small plot (less than 1G) on a narrow 30-40ft road and look realy cool and upmarket.
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