Looking into the market prices...even thought the broker/so called mediators keep hiking the price...I felt the prices even places like anna nagar (in chennai) have come to stand still or gone down a bit (30%) From 7,500 to 5,500 sq ft. When I talk to many of the builder (note not mediators) the are ready to negotiate the price.

I remember near to sarjapur road (bangalore) near to IT park, about 5 years back the prices where for 1100 sq ft apartment was costing Rs.45 to 50L. But know we are able to get for 25 to 30L based on the ads. Even in Hyd the prices are drop down.

I heard from many of my colleagues that they have bought house in chennai for Rs.45-50L in old OMR road and when they try to sell them now they were unable to get even for 30-35L?

Has anybody experienced it (don't deal with mediators, they hike it)? Will the prices come down like other cities in India? Will be good for all of us who are willing to buy a decent house for a "reasonable price".
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  • Prices are hiked by 20- 30%



    Originally Posted by emailskyit
    Looking into the market prices...even thought the broker/so called mediators keep hiking the price...I felt the prices even places like anna nagar (in chennai) have come to stand still or gone down a bit (30%) From 7,500 to 5,500 sq ft. When I talk to many of the builder (note not mediators) the are ready to negotiate the price.

    I remember near to sarjapur road (bangalore) near to IT park, about 5 years back the prices where for 1100 sq ft apartment was costing Rs.45 to 50L. But know we are able to get for 25 to 30L based on the ads. Even in Hyd the prices are drop down.

    I heard from many of my colleagues that they have bought house in chennai for Rs.45-50L in old OMR road and when they try to sell them now they were unable to get even for 30-35L?

    Has anybody experienced it (don't deal with mediators, they hike it)? Will the prices come down like other cities in India? Will be good for all of us who are willing to buy a decent house for a "reasonable price".
    CommentQuote
  • Originally Posted by REUser
    Prices are hiked by 20- 30%


    Do you have any data to support it? without any data even i can say that prices have slashed by 50% everywhere in chennai..Do not make a blanket statement without sufficient data

    Mahesh K
    CommentQuote
  • If you know a property in anna nagar with a price drop of 2000 to 5500, let me know the details. I would like to consider investing in this property.
    CommentQuote
  • Originally Posted by blogger
    If you know a property in anna nagar with a price drop of 2000 to 5500, let me know the details. I would like to consider investing in this property.

    If you are mentioning abt my earlier pot of 50% reduction, i was just kiddin....
    Hell ya - i wish there could be a drop of 50% in chennai :D
    CommentQuote
  • Originally Posted by blogger
    If you know a property in anna nagar with a price drop of 2000 to 5500, let me know the details. I would like to consider investing in this property.


    Anna nagar has come down from earlier quoted 9000-10000/sqft to 7500-8500/sqft with further scope for negotiation.

    As mentioned there are some projects in anna nagar quoted at 5500/sqft, one in L-Block and another in AH Block.The reason for the low price is not market correction.Its due to bad location and complications like near the drainage canal, slums or on a T-junction etc.

    I would say price has actually stagnated in most parts of chennai since early 2008.

    1.Not much sales happened at peak price, the current price point evoked moderate response.
    2.couple of months back 10-15% discount was being offered at quoted price with no negotiation.
    3.Now the price reduction has been rolled back with the discount being offered while negotiating.
    4.New projects are being priced at market price or less 10-15% depending on the location and builders reputation.Most being in the affordable homes segment.
    5.Resale flats in the range 3-5 years are available at very attractive price(30-40% less than market price)
    6.Resale flats in the range 1-2 years or under construction projects are being quoted 10% higher than market price looking to book profit.
    CommentQuote
  • Perfect and correct analysis by Abishek. Very true.
    CommentQuote
  • Originally Posted by nabishek

    I would say price has actually stagnated in most parts of chennai since early 2008.


    Stagnated price for 2 yrs means a loss of ~15L on a investment of 50L, without even considering the
    Inflation during that period.

    Detailed calculation of this is below: Post #17

    http://www.indianrealestateforum.com/pune/t-re-is-again-bullish-7386/page2.html
    CommentQuote
  • Originally Posted by RAJESHP
    Stagnated price for 2 yrs means a loss of ~15L on a investment of 50L, without even considering the
    Inflation during that period.

    Detailed calculation of this is below: Post #17

    ]http://www.indianrealestateforum.com/pune/t-re-is-again-bullish-7386/page2.html


    Nice calculation from wiseman, thanks for pointing to the post.

    The post squashes lots of misconceptions about RE.While it is true that RE investment gives better returns in the long term, it need not necessarily be at the same rate every year.RE appreciates sharply during the boom cycle, compensating for the lull and decline during the rest of the term.It is important to clearly understand the implications while using borrowed money to invest in RE.

    It had been an unwritten rule that price of the property should always appreciate above the interest rate outgoing to give positive returns.This is an illusion put up by the banks-builders cartel who are now facing the brunt and desperately trying to hold up the interest rise from rising and price from falling, lest able to show any increase in rate/sqft to please their investors and stakeholders.

    Its very hard to predict upmoves and downmoves in RE.They are often compensated by stagnation period like what we are seeing now.It can be followed by a hike or a fall.How and when the event will be triggered cannot be predicted accurately.

    There are various support and resistance against such swings.The market forces are not very clear due to the unregulated nature of the industry.its further worsened by the monopolising attitude by the banks-builder-politician cartel of "Control the supply, decide the price".

    The market has been inclining towards the buyers as demand and affordability have diminished and in my opinion will remain so and not change anytime soon.Either there will be a fall or continuation of the stagnation period for a longer period before price starts to run upwards.


    Nice calculation from wiseman, thanks for pointing to the post.

    The post squashes lots of misconceptions about RE.While it is true that RE investment gives better returns in the long term, it need not necessarily be at the same rate every year.RE appreciates sharply during the boom cycle, compensating for the lull and decline during the rest of the term.It is important to clearly understand the implications while using borrowed money to invest in RE.

    It had been an unwritten rule that price of the property should always appreciate above the interest rate outgoing to give positive returns.This is an illusion put up by the banks-builders cartel who are now facing the brunt and desperately trying to hold up the interest rise from rising and price from falling, lest able to show any increase in rate/sqft to please their investors and stakeholders.

    Its very hard to predict upmoves and downmoves in RE.They are often compensated by stagnation period like what we are seeing now.It can be followed by a hike or a fall.How and when the event will be triggered cannot be predicted accurately.

    There are various support and resistance against such swings.The market forces are not very clear due to the unregulated nature of the industry.its further worsened by the monopolising attitude by the banks-builder-politician cartel of "Control the supply, decide the price".

    The market has been inclining towards the buyers as demand and affordability have diminished and in my opinion will remain so and not change anytime soon.Either there will be a fall or continuation of the stagnation period for a longer period before price starts to run upwards.


    Nice calculation from wiseman, thanks for pointing to the post.

    The post squashes lots of misconceptions about RE.While it is true that RE investment gives better returns in the long term, it need not necessarily be at the same rate every year.RE appreciates sharply during the boom cycle, compensating for the lull and decline during the rest of the term.It is important to clearly understand the implications while using borrowed money to invest in RE.

    It had been an unwritten rule that price of the property should always appreciate above the interest rate outgoing to give positive returns.This is an illusion put up by the banks-builders cartel who are now facing the brunt and desperately trying to hold up the interest rise from rising and price from falling, lest able to show any increase in rate/sqft to please their investors and stakeholders.

    Its very hard to predict upmoves and downmoves in RE.They are often compensated by stagnation period like what we are seeing now.It can be followed by a hike or a fall.How and when the event will be triggered cannot be predicted accurately.

    There are various support and resistance against such swings.The market forces are not very clear due to the unregulated nature of the industry.its further worsened by the monopolising attitude by the banks-builder-politician cartel of "Control the supply, decide the price".

    The market has been inclining towards the buyers as demand and affordability have diminished and in my opinion will remain so and not change anytime soon.Either there will be a fall or continuation of the stagnation period for a longer period before price starts to run upwards.


    Nice calculation from wiseman, thanks for pointing to the post.

    The post squashes lots of misconceptions about RE.While it is true that RE investment gives better returns in the long term, it need not necessarily be at the same rate every year.RE appreciates sharply during the boom cycle, compensating for the lull and decline during the rest of the term.It is important to clearly understand the implications while using borrowed money to invest in RE.

    It had been an unwritten rule that price of the property should always appreciate above the interest rate outgoing to give positive returns.This is an illusion put up by the banks-builders cartel who are now facing the brunt and desperately trying to hold up the interest rise from rising and price from falling, lest able to show any increase in rate/sqft to please their investors and stakeholders.

    Its very hard to predict upmoves and downmoves in RE.They are often compensated by stagnation period like what we are seeing now.It can be followed by a hike or a fall.How and when the event will be triggered cannot be predicted accurately.

    There are various support and resistance against such swings.The market forces are not very clear due to the unregulated nature of the industry.its further worsened by the monopolising attitude by the banks-builder-politician cartel of "Control the supply, decide the price".

    The market has been inclining towards the buyers as demand and affordability have diminished and in my opinion will remain so and not change anytime soon.Either there will be a fall or continuation of the stagnation period for a longer period before price starts to run upwards.
    CommentQuote
  • The prices around Mogappair East used to be Rs 4500
    recently the prices in the ads are being quoted around Rs 6500.
    Metrozone near Anna Nagar area last year quoted the price/sqft at Rs 5000, now its Rs 5300- 5600
    The basic price was Rs 75L now its 85L.(Can be verified with the ads in Hindu.)

    Originally Posted by Maheshk
    Do you have any data to support it? without any data even i can say that prices have slashed by 50% everywhere in chennai..Do not make a blanket statement without sufficient data

    Mahesh K
    CommentQuote
  • The prices around Mogappair East used to be Rs 4500
    recently the prices in the ads are being quoted around Rs 6500.

    Metrozone near Anna Nagar area last year quoted the price/sqft at Rs 5000, now its Rs 5300- 5600. The basic price was Rs 75L now its 85L.
    (Can be verified with the ads in Hindu.)
    CommentQuote
  • Originally Posted by REUser
    The prices around Mogappair East used to be Rs 4500
    recently the prices in the ads are being quoted around Rs 6500.

    Metrozone near Anna Nagar area last year quoted the price/sqft at Rs 5000, now its Rs 5300- 5600. The basic price was Rs 75L now its 85L.
    (Can be verified with the ads in Hindu.)


    Do not trust ads.

    See the actual transactions
    CommentQuote
  • How do we see the actual transactions? TVH too has increased their price on their OMR project. We didn't see builders increase the price in the last 1+ year or so. Their firmness today is an indication of market conditions.

    Originally Posted by lovebird
    Do not trust ads.

    See the actual transactions
    CommentQuote
  • Prices dropped by 20-30% during the first and second quater of 2009. Right now the prices are likely to increase by 15-20% by next quarter both in residential and commercial across India due to demand in homes, due to low land and infrastuctural cost as stated by International property consultants and builders.

    It is likely to increase further after RBI announces the rise in interest rates up to 20 to 50 basis point.

    Published in Financial Express: 13th Nov 09

    Regards
    Shonu
    CommentQuote
  • #14
    omething doesnt seem right. why will RE increse if int rates are going up by 0.5%.
    for one liquidity is reduced and the other is the housing loans are gonna be that much more costlier.
    CommentQuote
  • Originally Posted by lovebird
    Do not trust ads.

    See the actual transactions

    Dont trust Lovebird, he knows nothing!
    CommentQuote