The Chennai real estate prices did not fall too much. It got corrected to some extent in the range of 10-20% depending upon the location. In my opinion, the Chennai RE has appreciated too much and there is less room to move upward. The higher income (IT and others) job losses make the situations worsens further.
The beaten down stock market shows some improvement. I think it is wise to invest in stocks now. I bought suzlon at 40 Rs. (6000 stocks). In 2 months, the stocks price jumped to 90 Rs. I got my investment doubled and it may increase further. This may not possible with RE unless we are heading for collapse. I bought Bank of Ireland ADR (IRE) for 1 dollar (1800 stocks). It is now at 9 dollars.