Guys, Chennai RE is in ambulance.. In a transit to ICU...all projects including blue chips on stall aka dead...wait and watch should be the approach of end users (note: not for investors who buy in barren lands)....apart from time correction Chennai RE heading towards price correction...wait a little to witness panic selling
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  • From my field experience, panic selling is about to happen in next coming months
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  • Nbkanna can you point me some icu units I would like to give lifeline please quote some actuals
    Seriously I'm interested to pick up
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  • I am hearing this panic selling for the past 4 years but in actual I could see none
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  • Originally Posted by lovebirds43k
    I am hearing this panic selling for the past 4 years but in actual I could see none


    Were you in the field? You lack field experience :).
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  • Hi,

    From 2007, iam been hearing the same that chennai RE market will crash big time i.e. 30% / 50% from current level and people to wait on the sidelines to cash the oppurtunity. But after waiting for 7 yrs i have not seen this happening and i dont see this happening in the near future as well.

    Do post with facts for your analysis....
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  • Wait a few more months
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  • Originally Posted by NBkanna
    From my field experience, panic selling is about to happen in next coming months


    Whatever you are smoking, I want some
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  • Originally Posted by chenaire
    Whatever you are smoking, I want some


    i think its magic mushrooms from the dutch
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  • IMO market is in over supply..... However Price have not crashed ????? Economy says over supply price drop however in last two year price in chennai has not crashed... The big question why this over supply has not resulted in crash the real estate market..... More then over supply chennai market has now become unaffordable... Investors have left the market long back..... And end user have been priced out..... So how to increase the demand without price reduction.... Which IMO is black money. Lot is pumped in this asset class..... So crash IMO is not possible but long price stagnation at least for next 5 years at least is possible
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  • I agree to Septaa's view..but price stagnation for 5 yrs is too long i think.. may be 1 or 2 years..
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  • It's no secret that there are significant % of the houses are bought ans just kept locked.

    So it all depends on what the investors decide.
    1) Leave it just locked
    2) Hold it as long as it takes to find a buyer at least at the current notional price- Don't sell below a certain rate
    It's hard to say how this will change in future. But, given the current outlook , there is going to be very few 'end users' who can afford a decent apartments at the current price point.
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  • Originally Posted by lpk1986
    I agree to Septaa's view..but price stagnation for 5 yrs is too long i think.. may be 1 or 2 years..


    it is already two years for apartment jan quarter 2013 to dec 2014 in 8 quarter price has hardly moved... infact it has reduce in form discount and freebies..... so 5 years stagnation is possible
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  • If you take 5 years stagnation starting whenever you want to in the past few years, inflation, job loss, economic stress, ZERO infra development across the board(Power, road, water, social eco system) I think you can safely conclude that it is a HUGE CRASH ! I think people with cash must take advantage of this situation and invest if you have guts ;-)
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  • Originally Posted by Ramchi
    If you take 5 years stagnation starting whenever you want to in the past few years, inflation, job loss, economic stress, ZERO infra development across the board(Power, road, water, social eco system) I think you can safely conclude that it is a HUGE CRASH ! I think people with cash must take advantage of this situation and invest if you have guts ;-)


    I agree but not at these price on not completed project I am very uncomfortable in investing in new project.....given the market condition...if ur investor then I do not mind waiting however end user with cash then bargain heavy with ur cheque book
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  • Originally Posted by Septaa
    I agree but not at these price on not completed project I am very uncomfortable in investing in new project.....given the market condition...if ur investor then I do not mind waiting however end user with cash then bargain heavy with ur cheque book


    It is not just about price alone in this case. So far I have been talking to various (except NRIs who are seen as optimistic on their RE investment in India and while seen pessimistic on everything else) people in RE industry as I am getting closer and closer to this industry now a days due to various reasons...there is absolutely ZERO TRUST on ANY Builder, there is absolutely no infrastructure across, HUGE MAINTENANCE charges, sky rocketing construction charges, lack of skilled labor, totally unregulated industry that is the pillar of Indian economy, no strong Societies act to control the functioning of Gated Communities!

    People who invest in big projects now a days are mostly oblivious to the pitfalls and mostly inconsequential as far as their investment directions (North or South) are concerned due to HN category. Initially the euphoria of following the footsteps of crowd is diminishing and there is plenty of OVER Supply as someone mentioned in all categories, across price ranges and specs (luxury, mid-range, premium, budget).

    No need for any buyer to rush to close any deals, now. This trend typically continues for a minimum period of 5 - 10 Years and this can either extend of shorten if economic recovery coupled with infra growth, can contain the trend.
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