Looks like there is a price correction going on in many cities.. Chennai seems to be one of them (some areas)...

reference:
India Real Estate Forums :: Topic: Is there a price correction in the reality market (1/1)
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  • Reality prices in chennai may dip but not sure when..

    A good article... Is NHB a government bank? How do they get the data?

    Originally Posted by nexuschennai
    Looks like there is a price correction going on in many cities.. Chennai seems to be one of them (some areas)...

    reference:
    India Real Estate Forums :: Topic: Is there a price correction in the reality market (1/1)
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  • If genuine buyers show some character by not falling to the praying eyes of greedy investors and start hard negotiations and walk-out of deals at any point, this corrections can turn the wave upside down in RE market. The key is genuine first time buyers and needy ones (especially the resident/end-use category) are the keys to the actual price at the ground levels....

    They are becoming smarter now a days and they are able to see the ground realities instead of seeing the discussion forums and making decisions. They go to the place and look at the infrastructure and see the ecosystem. They give no weight to the brand value or premium names etc...they have understood these all are history....

    For the finished projects, they do not mind paying little more premium....

    But pre-launches and 3D modeling techniques are not cutting any ice with local buyers.
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  • From a layman pov, I can see corrections and openness-to-negotiations among local builders, in good locations. A builder in velachery has reduced psft price upto 300 Rs for their vanilla apartment. Also Habitat shows few Ads with price reductions! Something i didnt notice 6 months back.
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  • Good find.
    On the plot side, one change im seeing the number of plots on market, availability is less, this is very classic of a slowing market, trader ads first fall ( broker vyabaris) only real sellers sell lands through 1500rs Ads,
    Last 4-8 weeks property plus is thin on residential land
    I can also see same proeprty being advt for over 2-3 times in an 8 week period, some indicators, i think careful watching and cherry picking or strong arming a needy seller could get good deals now
    on a side note, not every one can get the flat 300-500 rs discount deals that VP gets, he is a meticulous investor and does ground work research guided by some experts so your discount may not be my discount VP.
    just a compliment
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  • Originally Posted by vettipayyan
    From a layman pov, I can see corrections and openness-to-negotiations among local builders, in good locations. A builder in velachery has reduced psft price upto 300 Rs for their vanilla apartment. Also Habitat shows few Ads with price reductions! Something i didnt notice 6 months back.


    VP, Agree with builders finding difficult to find buyers in inflated market have seen builders like Malles in perumbakkam reduced rates and also open for Negotiation. Looks like not an ideal market to invest in new launches from builders with not so good execution record. We can see builders delay completion as we saw in 2008.

    There is a good slowdown in domestic market with people holding off to only necessities and reducing investment by leveraging. This can be seen evident in Auto sales slump, Chennai RE unsold inventory increase etc. Job market is also off with unannounced layoff citing performance and only 10% campus offering compared to previous two years. Most of the top companies have even shy'ed away with increments.

    Going by the way and high cost of living looks like we can see further correction.

    In 2008 the local market was still strong and posting decent GDP but current economic condition is the real test for domestic markets.
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  • Originally Posted by SRajagopalan

    on a side note, not every one can get the flat 300-500 rs discount deals that VP gets, he is a meticulous investor and does ground work research guided by some experts so your discount may not be my discount VP.
    just a compliment


    So Mr. Vettipayyan isn't vetti after all...:bab (59):
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  • Originally Posted by srivat

    Job market is also off with unannounced layoff citing performance and only 10% campus offering compared to previous two years. Most of the top companies have even shy'ed away with increments.



    Placements are down heavily this year for sure. I talked to a relative two days back. In his tier-II government college, TCS last year hired ~150 freshers, this year just ~50.


    During times of distress companies will mostly keep their usual hiring almost intact at tier-I colleges and reduce the hiring levels aggressively as they move down from tier-I to tier-II to tier-III ( mostly private) colleges. So most likely it should have been bloodbath as far as campus placements in private colleges this year is concerned.

    Also I heard that tier-I companies are also reducing their staff citing poor performance.
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  • Originally Posted by s.sath
    Placements are down heavily this year for sure. I talked to a relative two days back. In his tier-II government college, TCS last year hired ~150 freshers, this year just ~50.


    During times of distress companies will mostly keep their usual hiring almost intact at tier-I colleges and reduce the hiring levels aggressively as they move down from tier-I to tier-II to tier-III ( mostly private) colleges. So most likely it should have been bloodbath as far as campus placements in private colleges this year is concerned.

    Also I heard that tier-I companies are also reducing their staff citing poor performance.



    Do not want to cite name here but yes have seen tier 1 companies reducing staff. As of now the intensity is not high.
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  • Yes, there is muted layoff cycle in progress. This is very openly shared in the print media. We need to add 10-15 % to the layoff figure shown in the media.

    Also freshers salaries have been tightened.

    This year's increments have been peanuts ( i mean 0-3 %) for even higher ranked performers in top companies.

    Hope these kind of news reaches the local builder for whom IT people still look like a suitcase full of 1000 Rs notes.

    Builders, Karanthathellam podhum, ippo ukkanthu beram pesalam!
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  • Originally Posted by vettipayyan
    Yes, there is muted layoff cycle in progress. This is very openly shared in the print media. We need to add 10-15 % to the layoff figure shown in the media.

    Also freshers salaries have been tightened.

    This year's increments have been peanuts ( i mean 0-3 %) for even higher ranked performers in top companies.

    Hope these kind of news reaches the local builder for whom IT people still look like a suitcase full of 1000 Rs notes.

    Builders, Karanthathellam podhum, ippo ukkanthu beram pesalam!


    VP, If the information you have provided is part of the company you are with, Then I am able to guess where you are working :)
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  • Originally Posted by vettipayyan
    Yes, there is muted layoff cycle in progress. This is very openly shared in the print media. We need to add 10-15 % to the layoff figure shown in the media.

    Also freshers salaries have been tightened.

    This year's increments have been peanuts ( i mean 0-3 %) for even higher ranked performers in top companies.

    Hope these kind of news reaches the local builder for whom IT people still look like a suitcase full of 1000 Rs notes.

    Builders, Karanthathellam podhum, ippo ukkanthu beram pesalam!


    Oru alavukku mela karantha ratham than varum, paal varathu!!
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  • wat is the realtion between placements and chennai

    people who are end users or who are a long term invester dont need to worry

    chennai wont be drained at any cause

    every year more than 1 lakh students would reach chennai with job order or job search.

    there is no alternative to this unless some day night miracle happens by shifting all investments to other than chennai and all companies are truly building and awarding jobs in the alloted SEZ.

    nothing will happen for next 20 years.


    have a happy purchase friends
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  • சொத்துக்களை வாங்கி குவிக்கும் என்ஆர்ஐகள்!!!

    Updated: Monday, June 24, 2013, 18:29





    டாலருக்கு எதிரான ரூபாய் கடுமையான வீழ்ச்சி அடைந்திருக்கும் இந்த நிலை, வெளிநாடு வாழ் இந்தியர்களுக்கு சாதகமாக அமைந்துள்ளது. ரூபாயின் வீழ்ச்சி இந்தியாவின் பொருளாதாரத்திற்கு கெட்டதாக இருக்கலாம், ஆனால், டாலர்களில் வருமானம் பெறும், வெளி நாட்டு வாழ் இந்தியர்களுக்கு, 20% குறைவான விலையில் சொத்துக்களை வாங்க சரியான தருணமாக இருக்கிறது.
    44-45 அளவில் இருந்த ரூபாய், கடந்த இரண்டாண்டுகளில் 58-59 என்ற அளவில், கிட்ட தட்ட 32%உயர்ந்து இருக்கிறது.
    இது குறித்து ரியல் எஸ்டேட் வட்டாரங்களிடம் கருத்து கேட்டு, ஊடகங்கள் வெளியிட்டுள்ள அறிக்கையில், கடந்த வாரங்களில், வெளிநாடு வாழ் இந்தியர்கள், சொத்து வாங்குவது தொடர்பான விவரங்களை கேட்பது பல மடங்கு அதிகரித்துள்ளதாக கூறியுள்ளது. ரூபாயின் வீழ்ச்சி மட்டுமல்லாமல், புது தில்லியில் பண்ணை வீடு வாங்குவது தொடர்பான அரசின் கொள்கையும் வெளிநாடு வாழ் இந்தியர்களை, ரியல் எஸ்டேட் பக்கம் வர வழைத்துள்ளது.



    டாலருக்கு எதிரான ரூபாய் கடுமையான வீழ்ச்சி அடைந்திருக்கும் இந்த நிலை, வெளிநாடு வாழ் இந்தியர்களுக்கு சாதகமாக அமைந்துள்ளது. ரூபாயின் வீழ்ச்சி இந்தியாவின் பொருளாதாரத்திற்கு கெட்டதாக இருக்கலாம், ஆனால், டாலர்களில் வருமானம் பெறும், வெளி நாட்டு வாழ் இந்தியர்களுக்கு, 20% குறைவான விலையில் சொத்துக்களை வாங்க சரியான தருணமாக இருக்கிறது.
    44-45 அளவில் இருந்த ரூபாய், கடந்த இரண்டாண்டுகளில் 58-59 என்ற அளவில், கிட்ட தட்ட 32%உயர்ந்து இருக்கிறது.
    இது குறித்து ரியல் எஸ்டேட் வட்டாரங்களிடம் கருத்து கேட்டு, ஊடகங்கள் வெளியிட்டுள்ள அறிக்கையில், கடந்த வாரங்களில், வெளிநாடு வாழ் இந்தியர்கள், சொத்து வாங்குவது தொடர்பான விவரங்களை கேட்பது பல மடங்கு அதிகரித்துள்ளதாக கூறியுள்ளது. ரூபாயின் வீழ்ச்சி மட்டுமல்லாமல், புது தில்லியில் பண்ணை வீடு வாங்குவது தொடர்பான அரசின் கொள்கையும் வெளிநாடு வாழ் இந்தியர்களை, ரியல் எஸ்டேட் பக்கம் வர வழைத்துள்ளது.
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  • Originally Posted by subramania
    சொத்துக்களை வாங்கி குவிக்கும் என்ஆர்ஐகள்!!!

    Updated: Monday, June 24, 2013, 18:29





    டாலருக்கு எதிரான ரூபாய் கடுமையான வீழ்ச்சி அடைந்திருக்கும் இந்த நிலை, வெளிநாடு வாழ் இந்தியர்களுக்கு சாதகமாக அமைந்துள்ளது. ரூபாயின் வீழ்ச்சி இந்தியாவின் பொருளாதாரத்திற்கு கெட்டதாக இருக்கலாம், ஆனால், டாலர்களில் வருமானம் பெறும், வெளி நாட்டு வாழ் இந்தியர்களுக்கு, 20% குறைவான விலையில் சொத்துக்களை வாங்க சரியான தருணமாக இருக்கிறது.
    44-45 அளவில் இருந்த ரூபாய், கடந்த இரண்டாண்டுகளில் 58-59 என்ற அளவில், கிட்ட தட்ட 32%உயர்ந்து இருக்கிறது.
    இது குறித்து ரியல் எஸ்டேட் வட்டாரங்களிடம் கருத்து கேட்டு, ஊடகங்கள் வெளியிட்டுள்ள அறிக்கையில், கடந்த வாரங்களில், வெளிநாடு வாழ் இந்தியர்கள், சொத்து வாங்குவது தொடர்பான விவரங்களை கேட்பது பல மடங்கு அதிகரித்துள்ளதாக கூறியுள்ளது. ரூபாயின் வீழ்ச்சி மட்டுமல்லாமல், புது தில்லியில் பண்ணை வீடு வாங்குவது தொடர்பான அரசின் கொள்கையும் வெளிநாடு வாழ் இந்தியர்களை, ரியல் எஸ்டேட் பக்கம் வர வழைத்துள்ளது.


    Yes, we definitely need NRI help to keep the rental yield at 2.5%. :D

    Few months back I was searching for a rental property and 80% of the properties I visited were of NRIs. It could be that the type of properties I was interested (GCs with lot of amenities) has higher proportion of NRIs. But, still 80% shows the over investment of NRIs in flats. I have seen that for a given GC, NRI owned flats often quote 10-20% lower rent. So, probably I naturally eliminated a lot of local owned properties at the first level looking at 10-20% higher rents and only visited the remaining ones priced lower. That could also imply the reason for 80% of those I visited being NRI owned. In any case NRIs are godsend for renters.

    Also, most of my TN-NRI friends own one or more properties in Chennai. Some of then don't intend to return. At some point, when the returns from RE is Chennai is less than FD return for 2-3 consecutive years, lot of NRIs are going to offload their properties, which could very well start a vicious cycle in Chennai RE.


    Yes, we definitely need NRI help to keep the rental yield at 2.5%. :D

    Few months back I was searching for a rental property and 80% of the properties I visited were of NRIs. It could be that the type of properties I was interested (GCs with lot of amenities) has higher proportion of NRIs. But, still 80% shows the over investment of NRIs in flats. I have seen that for a given GC, NRI owned flats often quote 10-20% lower rent. So, probably I naturally eliminated a lot of local owned properties at the first level looking at 10-20% higher rents and only visited the remaining ones priced lower. That could also imply the reason for 80% of those I visited being NRI owned. In any case NRIs are godsend for renters.

    Also, most of my TN-NRI friends own one or more properties in Chennai. Some of then don't intend to return. At some point, when the returns from RE is Chennai is less than FD return for 2-3 consecutive years, lot of NRIs are going to offload their properties, which could very well start a vicious cycle in Chennai RE.


    Yes, we definitely need NRI help to keep the rental yield at 2.5%. :D

    Few months back I was searching for a rental property and 80% of the properties I visited were of NRIs. It could be that the type of properties I was interested (GCs with lot of amenities) has higher proportion of NRIs. But, still 80% shows the over investment of NRIs in flats. I have seen that for a given GC, NRI owned flats often quote 10-20% lower rent. So, probably I naturally eliminated a lot of local owned properties at the first level looking at 10-20% higher rents and only visited the remaining ones priced lower. That could also imply the reason for 80% of those I visited being NRI owned. In any case NRIs are godsend for renters.

    Also, most of my TN-NRI friends own one or more properties in Chennai. Some of then don't intend to return. At some point, when the returns from RE is Chennai is less than FD return for 2-3 consecutive years, lot of NRIs are going to offload their properties, which could very well start a vicious cycle in Chennai RE.


    Yes, we definitely need NRI help to keep the rental yield at 2.5%. :D

    Few months back I was searching for a rental property and 80% of the properties I visited were of NRIs. It could be that the type of properties I was interested (GCs with lot of amenities) has higher proportion of NRIs. But, still 80% shows the over investment of NRIs in flats. I have seen that for a given GC, NRI owned flats often quote 10-20% lower rent. So, probably I naturally eliminated a lot of local owned properties at the first level looking at 10-20% higher rents and only visited the remaining ones priced lower. That could also imply the reason for 80% of those I visited being NRI owned. In any case NRIs are godsend for renters.

    Also, most of my TN-NRI friends own one or more properties in Chennai. Some of then don't intend to return. At some point, when the returns from RE is Chennai is less than FD return for 2-3 consecutive years, lot of NRIs are going to offload their properties, which could very well start a vicious cycle in Chennai RE.
    CommentQuote
  • Originally Posted by vettipayyan
    Yes, there is muted layoff cycle in progress. This is very openly shared in the print media. We need to add 10-15 % to the layoff figure shown in the media.

    Also freshers salaries have been tightened.

    This year's increments have been peanuts ( i mean 0-3 %) for even higher ranked performers in top companies.

    Hope these kind of news reaches the local builder for whom IT people still look like a suitcase full of 1000 Rs notes.

    Builders, Karanthathellam podhum, ippo ukkanthu beram pesalam!


    Man i would hate to be on the opposite side of the table with Mr VP
    a man who can milk a bull
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