Here Comes DLF Chennai Garden City- 1200 sq ft Starting 35 Lakhs
| The much awaited project in Chennai is finally here. DLF has finally come out with information of its new project, The Garden city in semmancheri in Chennai. Agressively priced starting around 35 lakhs for a 1200 sq ft, it is bound to hit the already dull IT corridor market. |
A total of 3500 apartments, Padma Sheshadari school, Fortis mini hospital , mall etc is planned and this is what i call perfect time to invest. Is it worth it, a big YES from my side. With neighbouring projects priced at 3500+, the worst hit would he Hiranandani Upscale, Adora who are priced very very high for almost same features. Need to see how well is Hiranandani competes against DLF.
If you are planning for home in IT Corridor, there is no better time to so. Read the full article here in Hindu.
Indicative Prices (I am yet to confirm this)- Thanks Ramesh- One of our readers
Rate(per sq. ft.) Type Super Area (sq.ft.) Basic Sale Price(Rs.)
2800 2BR-2T 1280 33,60,000
2800 3BR-2T 1480 41,44,000
2800 3BR-3T 1680 47,04,000
DLF Garden City might Look like this
(4 votes, average: 4.25 out of 5)
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Amar,
I have a booking of 3 br + servants room 1850 sq ft Plus with DLF Booked @ 3000 per sq foot. in 8th floor I have not confirmed my booking , and therefore not paid any amount to DLF . I am willing to transfer the Booking to you If IT is allowed by DLF at the same price of Rs 3000 . YOu may pay me Rs 1000 only for this purpose which I shall put the money in the temple
RAMAMURTI,
It makes sense to give your contact number to initiate further contacts.
Uday
My contact no is 97911 43137. any one interested in 3 BR +SQ 8th floor DLF I am willing to give a letter to transfer the Booking to any one if DLF is agreeable . My Blocking is @ 3000 per sq ft made in january 2008.I am not interested in this Project becos of the Location is not GOOD.
I would like to know if anyone has booked an apartment in DLF Garden City for Rs.3000 per square feet or less after February 2008
sivaramakrishnan
the current rtae quoted by DLF is 3200 even though the booking level is close to 50 % only after 7 months of its launch. IF you talk to DLF direct and do hard bargaining , you can get @ 3000. BUT there are agents doing DLF Bookings they wont reduce the price , but will certainly give a free gift of an AC or REFrigerator etc, if booked through them.
Real estae market is very bad now.iF THE Position Of DLF the Real Estate King is what it is today, the bookings of other BUiders would me worse if not same.My suggestion is that OMR is too much in supply and the rates have peaked, there is still vaue left in Tambaram/marimalai Nagar and beyond
I booked a DLF Garden city flat this July for Rs.3200/SFt, 5th floor, 2BHK+2T with a discount of 4.2 lakhs on down payment plan. I read comments abour the location benefits of Hiranandani & Purva projects. In fact DLF Garden city’s location is far better than the rest. I live in Gurgaon and I am well aware of the DLF quality. No second thoughts at all in buying a DLF property.
Folks,
I wrote to DLF regarding concerns raised by some folks regarding approvals and current rate / sq.ft. Here is the response.
Thank you very much for writing to us.
As you are applying as a Non Resident Indian, in accordance with rules of RBI, payment towards the same can be remitted only from an NRE / NRO / FCNR account. You could also wire transfer the amount from your account to our account
You should receive an allotment letter within the next 2 weeks.
Approvals have been received from various authorities including Panchayat President, Panchayat Union, Tahsildar, District Collector, Mahabalipuram Local Planning Authority, Madras Metrowater and Sewage Board, Airport Authority of India, Traffic Clearance, CRZ, Urban land Ceiling Authority, Land Reforms Authority, Structural stability clearance by IIT Madras and other authorities as required. The final Government Order of Approval for the project has also been issued by Directorate of Town and Country Planning on 31.3.2008 and the same has been gazetted by official gazette notification by Government of Tamilnadu. The excavation work in the site is in progress in full swing and the approach roads have been done up very well by us at our cost. All customers who want to visit the site are being taken to the site from our office and dropped back. The approvals are available for inspection in our office at Chennai and we are showing the same to customers who wish to inspect them.
The apartment will be handed over to you 36 months from signing the agreement. On the basis of the approval, we have commenced the construction. You should receive the update on the progress within the next 2 weeks.
We are currently selling at Rs. 3200 per square feet. Do let me know if I can be of any further assistance.
Warm Regards
Renu Kartik
Senior Manager – Customer Service
DLF Home Developers Ltd
Tel : +91 44 4399 8888 Fax :+91 44 4399 8889
Mr sesh & IORGANICWORLD
I agree with you that DLF quality is not only GOOD BUT VERY GOOD. But what is the use of a GOOd quality in a not a very Good Surrounding or in a place 3.9 kms inside the main road and this 3.9 kms is not from TCS , but from POlaris near siruseri That is you travel further 3 kms from TCS on OMR road and from Polaris go inside 3.9 kms. Calculate the petrol cost on a daily basis of 7 kms extra . YOu have booked the flat and paid full down payment and got a discount as all other builders give a flat 10 %. so you will like the flat you have booked.When we invest in apartments of large value, one should also expect a good return on investment. this rate of return will certainly be far less than the Projectsb on the main road. Plus the availabliy 0f 3500 flats in one place means too much availability on completion and very few purchsers or even to get tenants with reasonable rent.I retiterate that DLF is a GOOD company but the location chosen by them is bad . It is unfortunate that TVH/OLYMPIA/Mantri all smaller players than DLF have APREMIUM LOCATION.I feel bad that DLF sitting in Delhi have not been given a Proper Advice by a Madrasi on the selection of Site. This is the reason, i did not confirm my booking even though I was among the first to Block a 3BR apartment.FOr the size/brand of DLF the aprtments should have got all booked by latest February 2008 as claimed by DLF people that Bookings will close within one week . This is what DLF representative told me in January 2008. NOw it is JULY 2008.
I did block an apartment by giving the signed cheque for 5+ lakhs. I had no major apprehensions and was waiting for communication for signing the agreement. It was told very very clearly that the cheque will not be presented for realisation and would be done so only after consultation. One fine day I got an email inviting me to sign the application and was given a 2 day notification to make or break.
Simultaneously, they have also presented the cheque and the instrument bounced back as I did not maintain cash for obvious reasons. But I saw some charges for the cheque getting bounced.
It is horrific to think that DLF presented the cheque and broke the promise. Even before me signing, they broke the promise. This is kind of ominous of things to come.
I have lived in Gurgaon for a reaosnable period of time and also in Bombay right across Hiranandhani, Powai at Renaissance Hotel for 1.5 years. In my opinion, DLF flats age fast. But not Hiranandhani. They stand the test of time and architecture never boring. It has a much richer look too. My 2 cents…
I eventually informed DLF that I am not signing the application as they broke the promise already.
Mr. Ramamurti and Mr.Sensex,
You are entitled to give your perspective of location for DLF, and other developers. From my perspective, location of DLF is excellent compared to other projects you had mentioned on OMR. Hiranandani, Mantri and TVH all have Cooum on one side, and OMR on the other side of their projects. Anyone who had lived in Chennai for a while will tell you that this river is a health risk and carries sewage along with it. Next, living near a river may be good for the view (if the river is not Cooum), but it causes problems with mosquitoes, frog’s screaching sounds in the night and bad smell in this case. DLF on the other hand is 2 kms from OMR, not near Cooum, and is on the way of the proposed Siruseri Airport Road.
I had lived in Hiranandani, Powai for a couple of years. Any apartment is as good as its maintenance. The Powai apartments are maintained well, but there are a handful of Hiranandani apartments in bombay which have degraded in looks and quality after a few years of construction. I once again re-iterate that without proper maintenance, any builder’s apartment will look bad after a few years. Moreover projects like Hiranandani will not generate a good ROI since you are paying 4600 / sq.ft (1400 rs/ sq. ft more) for the same level of amenities that DLF is offering. My interaction with DLF has been very professional and honest so far. Thanks for the healthy debate on this topic.
Those who booked in DLF can join the group in below link
http://groups.google.com/group/dlf-gardencity?hl=en
For the information of Real Estate Investors
- India Properties – Real Estate India – Indian Property News Site – http://www.indianrealtynews.com -
India’s Beaten Property Sector May Now Offer Some Bargains
Posted By Indian Realty News On July 17, 2008 @ 3:25 pm In Real Estate India, Property Prices | No Comments
Amid the debris of a battered Indian real-estate sector, some analysts say investment bargains may be emerging. Their favorites: blue-chip property companies DLF and Unitech.
This has been a miserable year for Indian property stocks. Rising inflation and interest rates have delivered a double whammy: Capital is more expensive, and consumers are scaling back spending.
“The real-estate sector has been witnessing a cash crunch,” says Shaleen Silori, a real-estate associate at ICICI Securities in Mumbai.
As a result, Indian real-estate stocks have taken a bashing. So far in 2008, shares of key players DLF and Unitech have skidded 58% and 61%, respectively. In comparison, India’s benchmark index, the Bombay Stock Exchange’s Sensex, is down 33%.
Property companies have been hit hard because they are vulnerable to a downturn from two directions. Borrowing is becoming more expensive as interest rates rise. At the same time, raising fresh funds in equity markets isn’t easy either: India’s market for initial public offerings is lackluster, and both Unitech and DLF have delayed plans to raise money through real-estate-investment-trust issues in Singapore.
More expensive credit can be a particular problem for property companies, because they often borrow a large portion of their land-development outlays up front and depend on advance sales to repay loans.
But on the demand side, rising inflation — running at an annual rate of 11.89% for the week ended June 28 — and higher interest rates, which have jumped to 11% from 7.5%-8% three years ago, mean many consumers are putting real-estate purchases on the back burner. A rise in mortgage rates would affect residential-property purchases and lead to delay in some project launches, say analysts at Macquarie in Mumbai.
Meanwhile, costs for steel and cement, two key building materials, have been rising.
Given that gloomy environment, some sector watchers say investors should stick with India’s biggest real-estate companies, whose share performance they expect to improve over the longer term.
“DLF is a real-estate company with relatively greater stability,” says Deven Choksey, managing director of K.R. Choksey Securities in Mumbai. Delhi-based DLF, India’s biggest real-estate company by market capitalization, is well diversified, selling property in the housing, commercial, multiplex and retail sectors, he notes.
The company has steady sales, unlike some of the smaller companies in the sector. DLF is also adequately capitalized, Mr. Choksey says, and “provides a robust business model.”
Last week, DLF’s board approved an 11 billion rupee ($257 million) share-buyback plan aimed at boosting investor confidence after the stock price fell below its IPO level. The plan involves a buyback of 22 million shares at a maximum price of 600 rupees each. Prior to the board’s approval, some investors reacted negatively when Macquarie said in a report that it felt the proposed buyback was negative for DLF’s cash flow. On July 3, DLF shares tumbled 9.9%.
To some analysts, DLF shares look attractive after this year’s sharp fall. Mr. Choksey, who recommends the stock, has a 12-month target of 800 rupees. He says the price-earnings ratio for the stock for the current year, which ends March 31, 2009, is less than eight, which he calls attractive. Analysts at Citigroup rate Unitech, India’s second-biggest real-estate company by revenue, a “buy” too. They cut their 12- to 15-month target for Unitech to 375 rupees from 454 rupees in April. The reduced target is 98% above the level at which Unitech shares closed Friday, 189.15 rupees.
Unitech, based in Gurgaon, reported on June 27 that net profit for the quarter ended March 31 fell 52% from a year earlier, to 3.6 billion rupees. Citigroup estimates Unitech’s P/E ratio at 17.6 times for the year ending March 2009 and 12.8 times for the following year, which they consider attractive. Stock analysts say Unitech, which listed earlier than DLF and which publicly sold a larger percentage of its shares, has steadily had a higher P/E ratio than DLF.
In India, there are bears who think things could get even worse for property investments, including stalwarts like DLF and Unitech. Shailesh Kanani, an analyst with Angel Broking in Mumbai, says both stocks should be avoided: “It would not be good to invest in DLF and Unitech at the moment, as an underperformance of this sector is highly likely for the next six to 12 months.”
Mr. Kanani says that real-estate companies need to lower the selling prices of homes in order to revive demand. Once they have done that, he contends, the situation for property companies “is likely to become more stable.”
Article printed from India Properties – Real Estate India – Indian
Futher to add more information on DLF,
The road thro sunami rehabilitation village is around 2.5 kms from OMR and the other connecting road from OMR is 3.9 kms from OMR.
ie after passing thro the sathyabama then u have to travel again ~4 kms. How many would be willing to take this extra 5 km drive..?
Do u still think DLF garden city is a better bet than the other projects on OMR….?
The current rate at Hiranandani palace Gardens, Chennai is Rs 3450 to Rs 3550. Out of 1500 apartments, we have sold more than 1300. Its a hot investment as there are many developments happening in this area. If any one is interested in buying, contact at jbakshi@hirco.com
Can anyone please advice me on the land rates in Thalambur. I was approached by an agent for 1200 Rs / Sq.Ft. The property is located 0.5Kms after VELS maritime academy off OMR.
DLF in their layout plan released through Power Point Presentaion claims that the distance of their site from OMR is only 2 Kms while I have personally seen that it is more than 2.7 Kms.
Again why DLF is claiming in their advertisement that IT is DLF GARDENCTY OMR , How they are claiming it is OMR when the actual name of the Village is Thazambur or SEMMENCHERRY.
Next why DLF does not have a sign Board even today at the beginning of the road near Indian Oil Petrol Pump to show to the world the direction to the proposed 3500 apartment Project. Will the DLF or the so called agents of DLF writing BLOGS under anonymos names answer these questions .
I also understand that The state Government holds several acres of land surrounding the DLF site and there are plans to construct several thousand Houses under Tamil Nadu Slum Clearance scheme for those evicted /to be evicted from their present Hutments /Unauthorised shelters within the city
All,
I have stressed myself a lot visiting them and contacting them till I got myself an apartment booked. To put it short, I have cancelled now.
The factors that played against going with DLF were broadly, as found below
1) Resettlement colony: Being adjacent to Resettlement colony. I have been there in person. You can witness sewage in full form on roads with breeding of mosquitoes. This being an authorized resettlement area means, it will never go away. More resettlements would be planned in future by government as the adjacent areas are vacant for expansion. It is a big problem from a flat ownership point of view because of few reasons. This can affect appreciation in future. The “Premiumness” is not there because of neighbourhood.
2) DLF’s Business Interest: Problem here is that DLF is also trying to build businesses other than apartments themselves… How many of us wants a 75 room hotel or a hospital; If there is a top hospital within 5-7 km of home, it is good enuf… school is welcome, but we also would end up participating in the maintaining of vicinity of so called businesses in which DLF has interest. So the chance of house owners trying to bring down the cost to say 1 Rs per sq.ft would be met with resistance as they would want the Fortis healthcare and the hotel maintained in top environments at the house owners’ cost. Hoe many of us wants this clubhouse in the campus.
3) Clubhouse: The cost of using clubhouse is not very clear. It is a business interest from DLF. After 2 years, the annual membership cost would be as per what DLF decides. Cost of a snack that you want to buy there, may be decided by DLF; You may end up paying up for amenities…. like for example, usage of swimming pool
4) Increase of saleable area sans carper area: An apartment that was declared with saleable area as 1420 sq.ft later became 1505 sq.ft for unknown reasons. This means significant increase in cost of apartment and also registration cost
5) Registration: When you buuy a home with other players you pay registration duty for UDL but in case of DLF, it is a percentae of full value of apartment. This is a significant add-on cost for no apparent value
6) Access Roads: In the beginning they told that the approach roads would be 60 ft wide. But now there is no commitment on that.
7) span of construction: It would take atleast 3 years to handover the apartment as the project is huge in nature; This means you can expect any returns only after 3 years. No tax benefit on interest paid till you get completed apartment.
9) Distance: It is a good 3 km from OMR and is a significant distance for everyday commute.
10) Over-supply: So many apartments in single campus means dilution of value, in case you expect appreciation and intend to sell it in near future. It is unlikely to fetch premiums in near future partly because of supply more than demand as of now and also so many apartments in single campus.
11) Maintainance: Since DLF has business interests inside campus, there will be an influence to spend more for long time for maintainance. This means say 2500 Rs per month for a 1500 sq.ft in most optimistic case. Chennai is not the kind of market like Bombay or Gurgaon where the tenant would feel comfortable footing this bill apart from a 25K rent pm (if you spend 55 lakhs to buy, you shoudle expect atleast 20K rent pm). Chennai has not matured that much yet, in my opinion.
Maybe others have more points going against boking with DLF; But I decided it is not for me. Only time can answer.
Mr. Sensex and Mr.Rajan, you say that you had cancelled your bookings with DLF, but you are very active in this DLF discussion thread. I had booked a flat with DLF, and I am curious to know what is going on with the construction, and hence I am visiting this thread. If someone was to draw logical conclusion on us, then it is very obvious who has a hidden agenda in this forum. Just because you want to see the pessimistic side of the world, it doesnt mean that everyone else has to see the same.
Being closer to Madya Kailash(city) than other constructions is not a plus for you.
Being on the way of the proposed Siruseri Airport Expressway is not a plus for you.
DLF giving a penalty clause in the agreement where they will pay the rent @ 5rs /sqft every month if there is any delay in handing over of the apt after 36 months is not a plus for you.
Buying an apartment for 3200 rs./sq ft or less whereas other builders are selling around 3600 rs/sq ft at distances far from the city is not a plus for you.
DLF constructing two approach roads to the construction site from OMR giving different connection points is not a plus for you.
It is ok to travel 5 to 10 kms further on OMR for other apartments, but travelling only 2.5 kms from OMR to DLF is not a plus for you.
Registering only UDS(using a loophole in the law), and postponing registration of the flat until you sell it (you cannot sell an unregistered flat) with builders like TVH is ok with you, but with DLF registering the flat at a lower value in your name upfront is not a plus for you.
Risking posession of your flat since only UDS is on your name and not the flat itself (unless you have title insurance in India), but with DLF the flat being on your name right from day one since you are the registered owner is not a plus for you.
With the risk of smaller builders going bankrupt if the real estate market slumps, DLF having cash surplus to manage current and future projects with a strong financial backbone is not a plus for you.
I dont understand the logic when you say that it is ok to spend 1 crore on buying apartment for higher price in OMR from the other builders, but it is not ok for you to spend Rs 20 for a cup of coffee at DLF club. Living next to Cooum is ok with you, but living near a resettlement colony is not ok. This colony is not as bad as you had described above. I had visited this place myself as well. Also, please be humane before talking low about other human beings, specifically the resettlement folks.
DLF’s common area is between 17 and 20% of the saleable area, which is less or equal to what other builders are offering in OMR.
I want to re-iterate that I had invested in a DLF flat and I am not speaking for DLF. I am giving my observations and trying to correct your pessimistic observations.
Rajan, Sensex, Organic,
I would request each of you to exercise patience.
Rajan you have the right to express opinion, but repeating the same comments in different tone is un-warranted.
I see one of you of see merits in buying DLF and one is seeing negatives.
at the end of road, its all about value add and only time would say how much one gained from TVH and how much from DLF.
I would request you guys to stop discouraging investors from investing. while highlight merits/demerits is absolutely fine.
Rajan , sensex,
What is your next move, are you buying any thing else in OMR.
Please note i see both of your writing from chennai while organic is writing from US. Makes me think if these comments are indeed genuine or competition driven but i always give benefit of doubt to commentors here.
Please note i have around 40 comments unapproved and most are about DLF.
I again repeat People are smarter and i think this post has enough comments for people to read and decide.
I also hope DLF tries to clear the points raised against it.
some times i think staying 3KM away from main road is also advatanges as it shields one from pollution and dust settling down in our apartments. believe me i own a apartment in main road and i see dust every where in TV and hall and dinning areas.
Well. If someone wants to know if I am not a competitor, I can help to clarify. Anyone can email me at sensoft99@yahoo.com and can give the phone number and I can call back. I am in India every 7th week for 1 week (more or less) and out of country for remaining time. And I dont live in Chennai but around 800 km south. In such hectic trips, I travelled and evaluated DLF couple of times. So, I have gone through the mental process.
I guess the thread was started when most of us were still evaluating. And I believe it is still the same. I have put together points before that I have posted individually so it can benefit readers. Out of habit, I rarely come here and post even though just 10 days back, i cancelled my booking. If someone (moderator maybe … Uday?) thinks am nuisance, please block me or disable me and I dont own this place anyways….
regarding DLF constructing roads, they claimed they will do it in January but while booking was open, they were not willing to put it down on paper.
I perfectly agree to stay 3 km inside OMR as many rightfully cited pollution and dusted. I dont think anyone buying a flat for 50+ lakhs would bother spending a few more for every day commute. It is only the resettlement colony that put me off.
It is possible that soon, DLF will build few more towers in empty land in centre as I dont believe there is anything that prevents them from doin it.
And I would doubt that 1organicworld represents DLF; I dont care even if that is true.
Uday. Thanks for asking. I have spent lots of time physically and mentally in waiting for DLF to get all approvals and applications to happen officially. Unfortunately, I no longer favour moving along. And I will take little more time to think about another option. Meanwhile, in south, I have purchased an independent house and this is for strageic purpose. I would like to see if OMR has corrected enough and then would take a plunge.
And I think too, it is not fair to visit this place again.
Good luck, my countrymen!!
Sensex,
As i said in my previous post, highlighting merits/demerits is absolutely fine and you are welcome to do so.
thanks for your comments and good luck
Hi Guys,
Click the below link to join the DLF Garden City Chennai Community in
Orkut.
http://www.orkut.com/Community.aspx?cmm=62668533&refresh=1
Thanks & Regards,
Prasanna.
Chennai had seen property prices shoot up almost by 200 percent in the last two years but the situation seems grim at the present. The real estate sector in Chennai may be witnessing the beginning of a crash. Some realty players have sold only a couple of houses in the last six months. Experts say there has been a 90 percent drop in demand for residential projects since the start of the year.
This area along the Old Mahabalipuram Road was once mooted as the hottest realty destination in the city. It’s now turning out to be a dampener. There have been few takers for the over 14000 units of flats here, mostly due to lack of infrastructure.
Office rentals are also seeing a correction. The Central Business District in Chennai has seen a 15 percent drop. According to a Cushman Wakefield report, the expected supply of the office rental space for 2008 is 18 million square feet. But the absorption rate is a mere third of this. This is because the office rentals are largely driven by IT companies who are now deferring their expansion plans. No wonder then developers are slowing down their project plans. They say funds are hard to come by.
The PE funds are mostly looking at structured deals of the north of 30 per cent post tax ERR; now those kinds of funds they are being very choosy today, looking at valuations realistically from the perspective of what it was done earlier they have given discounting of what about close to 70 per cent now .
Most real estate developers in Chennai say they are struggling to sell flats, with one real estate player admitting he has sold just one flat in the last six months. Analysts say that this is the time for developers to sit back and take a realistic look at prices.
News Published Under: Real Estate India |
How do one cancel DLF booking without loosing money
The prevailing scenario of high interest rates would continue for some time and those who have already booked apartments in DLF or Hiranandani would find difficulty in going ahead with the payment schedule and their loans would have become expensive. Hiranandani has considered lowering their price to about Rs. 3050 per sq.ft from Rs.3500 per sqft in order to have full bookings. One needs to wait and watch if DLF will follow suit. It it does it becomes a discriminatory pricing……earliest entrants paying only Rs.2800 per sqft…later entrants Rs. 3200 per sqft or so and the new entrants Rs.3000 sq.ft……? But it does augur well for these companies to take into consideration the current scenario and lower the prices across the board
Both Mumbai and Delhi have large number of co-operative group housing societies & I got a flat at half of DLF prices in Gurgaon in 2001. For reasons not known to me there are no such societies in Chennai, Bangalore & Hyderabad. There are lot of talented retired engineers in south who can administer and supervise construction for a fee. DLF, Hiranandani & all others make a clean 100% profit. DLF sub-contracts the construction work in Gurgaon & it is only their brand name that sells. I visited a DLF flat in Gurgaon & was surprised to see that the servant room did not have any window and it was pitch dark !! The servant will fall sick living in darkness. for want of light. Housing society rooms are much larger, ventilated since plans are decided by members for mutual benefit as opposed to builders who cut everything to make more money. DLF apartments may have perceived value but I have felt the real comfort in the society formed by like minded group of people. I do not know the building society laws in Chennai. I am interested in joining a society and get a flat at cost price. Believe me we can get much apartments at half the price. With so many people joining, one gets muscle power to negotiate better prices of steel, cement, marbles, etc.etc. Is there any one willing to join me ??
Yes, I am there
Sivaramakrishnan, Can you tell if Hiranandani has reduced their price to about Rs. 3050 per sq.ft from Rs.3500 per sqft in order to have full bookings? Is it official or just speculation?
Yes Mr. KK………it is not rumour…i have an offer for the Hiranandani but the payment terms may differ from what it was offered to the early entrants. This is only expected since the project will be ready in a year hence……
Thank you Siva. That’s good news. Can others also get the similar offer?
Iam planning to purchace flat at OMR road. Can someone tell me what are the current prices offered by builders in OMR for DLF, Hiranandani, Olympia, TVS, Purva, Mantri, Akshya, L&T
Thx
Hi,
Any idea, what is the current status?
I have booked and paid Rs. 5 lakhs. Progress is very slow.. Thinking of cancelling.. Not sure if it is worth to spend 4.5 lacs on registration and doubt the appreciation in this location..
I have earlier also stated about the location of the garden city project of DLF.I continue to maintain that the location is not good.
however I understand that DLF is soon going to launch another Project on OMR the location is still not officially announced , but i presume it is going to be a premium location. I would prefer going for the new Project even if it is around Rs 3500 per sq foot for the Brand name if the location is prime as it is expected to be in comparison to the present location .
Mr Rajan,
thanks for the comment. surprised to know DLF’s another project. does not look like a smart move. can you confirm the source of news.?
Mr Uday,
This information is from one of the authorised agents of DLF .I am informed that DLF booking is little over 50 % and that DLF would like to launch this new Project when they are close to 75 % bookings in their current Project so that they can command a good premium over the current Project and also a Demand.My personal feeling is that Real Estate market outlook is not good and will not be for atleast 6 months. with the current scenario in the financial markets ,tough times are ahead.Fortunately most of the Indiian banks are well managed and well controlled by RBI but the banks like ICICI ,one has to be careful. In india if the bubble Bursts, I feel it is going to be REAL ESTATE sector, becos the rise has been too steep in a relatively short period of time. We have seen what has happened to oil price plummeting from $ 150 to $ 92. The most risky investment in India is Real estate particularly if the investor is not the enduser.It is very difficult o imagine even a meagre 10 % per annum appreciation in real estate investment unless the investmnts are in the middle income group apartments (budget 25- 30 lakhs)
THINGS TO HAVE A BIT OF THOUGHTS ON:
=============================
I wonder how do they manage to get water for 3500 apartments in chennai??.
chennai is out of water scarcity??.
Remeber, chennai is subjected to global warning threats. what may happen to OMR area if the sea water level raises?. (of course, these things may not be the concern for those who are just looking at apartments for the sake of investments). But this should be the concerns of people who are looking for a dream house for their life time?.
It is very common to see people buying apartments in chennai and paying lots of money on maintenance.(mainly due to water problems).
Does IT companies in chennai pays sooo much of money to their employee?. (how do we manage to pay EMI’s. at present, IT market facing trouble(job cuts, pay cuts started), interest rates are at the peek and still expected to go up).
why do you guys pay more money at the place where the climate is THE worst, too much polluted, water problem etc.
Thanks
XYZ.
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Chennai IT residential sector witnessing slowdown
Posted By Indian Realty News On September 17, 2008 @ 10:27 am In Chennai | No Comments
Real estate developers are worried as the residential sector on the IT corridor in Chennai is undergoing one of its worst crises ever. Builders had planned luxury apartment projects on Chennai’s IT corridor wanting to take advantage of the growing IT industry. Of the 40,000-odd residential apartments that are expected to come up in the outlying areas of the city over the next three years, 50% have been planned along the IT highway. Prominent developers – DLF, Hiranandani, Puravankara, True Value Homes, Arihant, Vijay Shanthi, Akshaya, SSPDL, L&T, Doshi, ETA Star and Mantri – all have their presence on this six lane road that is also home to IT giants that include TCS, Cognizant, Satyam and Infosys.
Builders here have not increased prices (average price Rs 4,000 per sq ft) since their projects were launched. “We bet our stocks on these projects as the city is already facing a shortage of 30,000 dwelling units. To add to the demand, eight million sq ft of IT space has been added in the Siruseri IT Park and another eight million sq ft IT space is being readied in the park over the next three years. Going by a conservative estimate of 100 sq ft per employee, it would have generated 1.6 lakh new jobs, and for us, selling 20,000 flats to IT professionals should have been a cakewalk,” said Prakash Challa, president of the Tamil Nadu unit of Confederation of Real Estate Developers ‘ Association of India. But their calculations have gone wrong. IT professionals are in no hurry to buy flats now.
“Against a monthly booking of 30 to 40 units last year, we’re down to three to four, and many try to negotiate the price. People are adopting a wait-and-watch approach. If interest rates go up further, the scenario will worsen,” said Suresh Kumar, managing director of Vijay Shanthi Builders. To add to the builders’ woes, the IT sector is going through a bad phase. Many companies that recruited students on campus this year have not yet taken the new employees on board. Some companies have even suspended civil works in Chennai. A leading IT company, which was developing a 50-acre plot of land in Sholinganallur and was expected to add 10,000 employees soon, has stopped construction halfway through, reliable sources said.
Article printed from India Properties – Real Estate India – Indian Property News Site: http://www.indianrealtynews.com
URL to article: http://www.indianrealtynews.com/real-estate-india/chennai/chennai-it-residential-sector-witnessing-slowdown.html
Gentlemen,
I am planning to book a 2BHK, Can anybody let me know whats the current sq.feet rate?
Planning to book a 2 bedroom apartment in DLF. Is it worth as an investment. DLF is giving lot of promises that a road will be laid directly connecting to OMR, water especially (Metro water promised them) etc. Can I rely on that and go ahead booking the flat?
I am not sure what price they are offering you. Why don’t you look at Akshaya homes – Adair project on OMR road. Two things 1. you can find someone who is willing to sell between Rs.3000-3500 2. Being right on OMR will always fetch you a premium in the long run.
After 5 years when DLF leave the site it will compared with only another mega project from L&T some where interiror. My advice, when things are tough like right now it is better to buy from someone who is sitting with a built house than a guy who is building right now. Need more direction then email me at chandra.chinna@stahl.com.
And here comes the DLF default. DLF has acquired land at several cities across India at fancy prices and how unable to find buyers to fund the construction, it is beginning to default and asking customers to pay even when have cancelled their booking. DLF proceeded to encash the booking amount without even informing the customer about the procedure. And though DLF was informed of the cancellation of the booking they decided to call for the subsequent installment amount without even bothering to respond to the cancellation request. Even after several reminders they keep sending letters to retain the building without even specifying about the refund of the amount. At the most, DLF is entitled to retain the booking amount and refund the balance as per the agreeement but now it refuses to abide by its own agreement. This shows it is suffering from serious cash crunch. And it has the audacity to inform the customers to retain the allotment and sell it after one year when DLF has several unsold stocks. And DLF has to raise funds through such unethical means to fund the construction. And unless it gets a good response from its Cochin launch, the Chennai one will remain incomplete. And even if complete, there would be quality issues as DLF is facing cash crunch which is quite evident. I wont be surprised if DLF continues to ask for all the installments while deliberately failing to respond to the cancellation requests. This way DLF can retain the funds, charge 18% on the unpaid installments, retain the apartment, and appropriate the entire funds without even having to pay anything to the customers and to top it ask for unpaid interest dues. What a way to do business..?
Yes Pradeep, I too received the following letter……..and without even informing what the formalities are, DLF proceeded to encash the allotment cheque. And now it is refusing to refund the allotment money….and also refusing to cancel the booking
” Thank you for the interest shown by you in Gardencity, DLF at OMR Project, Chennai.
In order to facilitate your housing loan, we have tied up with banks who have pre-approved the project. At our request, each of these banks have identified two anchor persons who will co-ordinate and process home loan for this project.
In case you desire to raise a home loan, we request you to contact any of them and get a pre-approval for the quantum of loan you will be eligible for, based on eligibility criteria. This will help you plan the financing.
Your reference number is GCB20804. Please quote the same in all your future correspondence.
We will be contacting you soon regarding the next step in the formalities.
For any query please contact 044-44103534?
Has anyone else recieved such mail?
I had stated earlier several months ago about the DLF Project.Every one must be aware what is happening in thr HousinG market In US. It is not far before this Problem reaches India.realty sector will be the first hit, followed by the banks who are predomominantly into housing finance.ICICI first and the HDFC is next to be severly hit when the realty collapses in India .DLF launched this Project in january 2008 and their agent informed me that the booking will close in 4 days. Now it is more than 9 months bookings are still open .most of the big real estate companies have large land banks consisting of several thousand acres and most of them have been mortgaged to banks with valuations done at fancy prices ,whose curent values must be less tahn 50 % in many cases. you can imagine if banks have to revalue these loans at current values, most of the loans of real esatte companies outstanding will be far higher than their current market price.Beware the bubble will not stay long and will burst and banks/real esatte companies will run into several thousand crores loss.I am not trying to frighten the investors of these apartments at fancy prices ,but it will not be long when the investors will realise the deosist made in the bank which doubles now in 90 -93 months will prove to be wiser.if you are a geniune ed user , you may invest ,but for investors who want to make a quick profit off say 20 – 25 % within 6 – 12 months those days are gone
You are right Rajan. The situation applies to alll property developers across India. The smaller ones would be wiped out immediately. And for the larger ones like DLF, the bank lines are now virtually closed. And they have to find dubious ways to cut corners. DLf would cut corners for customers and reward the shareholders (speculators) through buy back offers. And with the US and European markets facing crisis, this will get reflected in the Indian IT sector as well. And the USP of DLF as well as other projects in OMR is that it is close to the IT corridor. Pink slips are on the way for several professionals. And with the downturn, many of them may not get the fancy salaries that they used to get. So the rental demand in that area may also not be high. The writing is on the wall
Here comes the latest report from CNN-IBN :
New Delhi: As the financial crisis grips world economies, the real estate sector is giving away freebies to lure customers.
Unitech is offering a free LCD TV on booking of property while one can get free Solitaire worth Rs 1.25 lakh on booking of property from Tulip. Another real estate giant, Jaypee Greens, is giving away a luxury car on purchase of property.
So it is raining discounts in the real estate market this festive season. But that is no the only thing luring customers.
Developers feel that this is the best time to invest in realty as the current financial crisis has take property prices down with it.
“For long term investment it is the right time to enter because market prices are low now,” says Moutani Goswami of the Jaypee Group.
“Real estate has a shortage of 24.71 million units in our country. So that market exists in not just metros but other areas too,” Sanjeev Srivastva, MD, Assotech Ltd, says.
Customers are also seeing value investment in these times. Taking advantage of these times are buyers like Devendra Singh, who works for an MNC and has been hunting for a house for some time.
“Economy is going down so obviously prices are coming down. So we thought that this is the good time to buy something,” Singh says.
According to property watchers, prices across the metros have come down in the past six months. In the north, Delhi and the NCR region has seen a fall by Rs 500 to Rs 1700 per sq ft while Mumbai has seen a decline of Rs 800-3000 per sq ft.
Bangalore has seen a drop of Rs 250-1000 per sq ft while in Kolkata there has seen a drop of Rs 900-1000 per sq ft.
But before you make that investment here’s a word of caution.
“Look at the long term and also you can never catch the bottom. So you never know when is right time to buy. Take an informed decision as to why should the prices increase in that area in the near future,” says Anshuman Magazine, MD of property consultancy firm, CB Richard Ellis.
In a downturn, real estate might be a good option to check out this Diwali.
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Chennai cannot be ab exception and should definitely follow the trend of other metros. Feel there cannot be any sharp decline in prices in the heart of the city since land availability is limited. But areas like OMR where huge development is taking place should see some price correction.
India Bulls quoting Rs 2700/- at medavakkam :
India Bulls Specifications:
Location: Medavakkam to sholinganallur Road at Chennai
Land Area: 15.9 acres
No of Flats: 936
No of Floors: G+6 floors
Apartments Size: starts with 685 Sqft upto 1600 sqft (Refer the E Brochure for exact details)
Amenities: Refer E Brochure (world Class, comparable to DLF, Hiranandani etc)
Price: Rs.2700/Sqft (Ranges from 17 lacs upto 45 lacs)
Completion date: 2.5 to 3 yrs from now.
I had taken a 2br in DLF. There is no progress in the project and DLF wants money without any legal approvals or signing the agreement. I wish to cancel my booking. Can someone suggest me way out?
I heard LDF provided tar road for approach. Now should be good? Nages, for what price you booked?
Unitech share price plunged on Friday last week following reports that the firm defaulted on payments to Greater Noida Development Authority for a land deal struck in 2006.
Who is next ? DLF ?
DLF has obtained approval till 14th floor, they are waiting for balance 5 floors approval, they say they will get it by next month. They can sign the contract with all the buyers only when they have full approval. They say they will sign the agreement by Dec 2008. From the date of signing the agreement 12 months is the lock in period for transfer of ownership. Knowing this fully, I do not know why many people are comlaining about cancellation. They must read the DLF Broucher fully.