Chennai: Situation in Oct 2008-March 2009
I have searched /visited some of the flats in Chennai north and south. There were many fully constructed , painted houses without
takers. That was the situatio in the month from Oct 2008 to March 2009. These flat sizes ranges from 700 to 900 sqft. Then after April
2009 many of these started selling. Almost all the 700 - 850 sqft flats were sold.
The price of these flats are from Rs 2800 to Rs 3100. But the builder say Rs 3500 and negotiable.

Situation from April 2009 - July 2009
Many of the buyers are from Public sector employees (Railways, Airline, Bank, Telecom etc) becos of 6th pay commission and pay
revision. And business person who have more cash in hand. (atlease 50% cash and
The price of these flats are from Rs 3100 to 3400. But the builder say Rs 3500 and negotiable. And the builder is not coming down
from his price bcos already 6 out of the 8 flats sold. OR 4 out of the 6 flats already sold for this price.
This is the situation of the appartment/flats.
The advts are given repeatedly in the news papers (eg, The Hindu , Saturday - Property Plus) , but there is no takers.
I have seen a quote for 2 Gr plot in Tiruverkadu ( March first week 28 lakhs, MArch last week 25 lakhs, April 23 lakhs).
There are many quotes from Poonamalee road to Tiruvallur, But there is not plot buyers.
I have bought a plot near Tiruvallur in the year 2007 July for Rs 280 per sqft. Recently there was a advt for Rs 350 for that layout !!!
But there is no interested buyers. If I want to sell my land at the bought price I can not sell it. I have to wait for the Sriperumbuthur
Airport !!! It may take another 10 years !!!
This is the situation of plots.
The recession hit IT industry may take another 1 year to grow from its current level. The last qtr profit shown from the IT industrries
are from layoff, cost cutting, no salary hike etc. But the top management are under high pressure to review their contract from the
TOP clients.
NASSCOM dicided to go for the college campus only at the end of the final year. Not at the beginning of the Third year. This is good
for the Industry and for the students also. And for the real estate also.
So, it may take another one year to start the boom.
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  • Both OMR and Mogappair will come down. But OMR will decline even more as some places like navalur, kelambakkam, siruseri, thoraipakkam are very far away. With IT declining and migration of IT workers to Chennai declining prices in OMR will have higher decline.

    Mogappair has to also come down, but since it was never an IT influenced location it is a bit insulated.
  • Originally Posted by chataara
    Dear newcomer

    In the offices of VGN and jains, CBI has raided yesterday and unearthed around 15 crores of rupees worth unaccounted documents.



    15crores for huge builders is like Chocholate for chatara. He certainly seems to fit the old Indira Gandhi times slogan
    "Rumour mongers are nation's enemies"
    Hope Chatara and his rumour mongering is taken care of!!
  • The newly drafted will have a good effect in reducing the RE Prices. Expected increase in ROI in March 2010 by RBI, due to inflation will be the starting point for RE price crash.
  • I meant the newly drafted Tax Code.
  • Originally Posted by mani_vaidya
    The newly drafted will have a good effect in reducing the RE Prices. Expected increase in ROI in March 2010 by RBI, due to inflation will be the starting point for RE price crash.

    The new tax code will provide more disposable income into the hands of the common man. So it will increase his buying power and so RE will shoot UP!
  • The new Tax code takes out all the benefits from Housing. The disposable income has already come down due to Pay cut, rise in cost of living etc..All the major companies have shown good results ( +15%) juz by reducing salary ( 25 - 30 % ).
  • Tax exemption on home loan to go,its bad news for RE
  • Any idea how much a sqft cost ( Flat) costs in Thiruvanmiyur area around RTO office?
  • I dont know where you found that housing loan benefits are gone. However that is paltry compared to the disposable income in one's hand. Now you are confusing pay cut with disposable income. They are unrelated. If your pay is cut that is your problem. It is not as if pay cut happened to govt employees for example. In other words dont confuse things. Today the 10L earning guy pays a tax close to 3L but tommorow it will be 84K. The new code is a welcome move. Regarding cost of living, that will increase but along with it the greed to have a better life increases. In other words inflation does not mean cost of RE will go down. Deflation does not mean people will eat two additional meals. I think most of the financial talkers on this forum seem to be oversimplistic in their approach. Almost to the point that they seem to be talking about economics like Charles law or Boyles law.
  • Regarding Thiruvanmiyur by Mani Vaidya:
    Well there are quotes running to 13K psft on 4th Seaward road. Let us know your study data. I will be interested!!
  • This guy gets funnier by the day!

    Originally Posted by Natarajg007
    The new tax code will provide more disposable income into the hands of the common man. So it will increase his buying power and so RE will shoot UP!

    So, folks, lets get both the sides of the story.

    Let us a person has Rs.5 lakhs as taxable income (please note this is taxable income after all deductions and perks, which, on this level of salary could easily be around 50k to 1L depending on your employer).

    Note that in the new scheme of things, tax is applicable after including all perks and allowances, so there is no hiding place.

    Let us assume then that the removal of 1.5L interest on house property will result (at the maximum rate of 30%) in a reduction of 45k which would be saved in taxes under the current rergime.

    Back of envelope, I can see the maximum increase in disposable income of at the most around 25k per annum or around 2k per month on a 5L salary. And note that, in cash terms, even this amount may be lost since much of the income under the new tax laws will be notional in terms of perks and not cash!!!

    So, where exactly is this increase in disposable income coming from? And even if it is notionally there, how much is it going to be per month that people can go buy property with!!!

    The real gains that this tax regime will bring is for people with 15 - 20L salaries and above. And how many of the readers on this forum have such salaries?

    Of course, in argument against this, you will find Nats rant about the pitchakarans and how he is talking about the guys taking 30L salaries, blah, blah, going completely off the real point, which is, this new tax regime has nothing much for the sweet spot of the Indian middle class, which is probably taking salaries ranging from 4L to 8L.

    I do not see much increase in income (since when did disposable income go into buying long term assets, Nats?:D) which could be routed into long term asset purchase like RE; not enough to make a significant shift in buyer psychology!!!

  • It is better to assume Wiseman is talking about people who earn Rs 3,267/- p.m. and how they can buy a bungalow in RK Salai. In other words Wiseman is hallucinating and I will let him pass.
    In anycase the folks with decent money, read 5L to 50L annual salary will be able to save much more money and so will jack up the worthwhile portion of RE. The rest will have no option but to follow.
    Simpletons like Wisey with the ability to fit a million points into his predefined line can write what they want. Just that Kilpauk's search for the escape is not over I understand.