Please confirm if the prices in Chennai is falling?

Recent times we know that the RE through out the country is either stabilizing or falling. While we know for confirm that Bangalore property has cooled 15-20% due to over supply and less demand and other problems, i still wonder if its the case in Chennai.
 

I personally know the rates where around 4000+ in OMR. Now with DLF coming in, it has brought down the price by 15-20% to 2800-3300. But what is the going rate for Perungudi, Velachery, KK Nagar, Guindy, Thambaram, Ashok Nagar, Anna Nagar, Vadapalani, Mogaipair.

Are the builders reducing the prices? Please comment. If you have made any transaction in any of these areas, either first sale or second sale, please inform what price did you buy or sold. It would be a nice awakening to understand the market.

My personal opinion is the rates have not fallen much except for the fact that builders are offering other incentives to promote sales. Free kitchen, wood work, pre-emi interest waiver etc are some incentives currently being offered to promote sales.

I would appreciate your true comments on prices in various parts of Chennai. Please refrain from posting prices which are being quoted, rather the prices at which the deal is sealed would be useful.

67 Comments

  1. deepa

    how much did u book per sq ft in navin’s.. i am also trying to book …

  2. Prasanna

    navin builder in ramapuram cost was 4200 per sq ft and for 3bhk it is 66 lakhs

  3. pinky123

    Can you pl suggest any projects in Perungudi, preferably on OMR road like Navins.

  4. Prasanna

    Perungudi i am not sure.Sorry if i am not able to help u much on that.As navin projects are available only in ramapuram,medavakkam and keelakatalai

  5. pinky123

    I still have my eye on Etopia perungudi but really scared of the dump yard..
    If anyone is living in that area please through some light

    Thanks

  6. manic

    pinky123, i am looking on the same doshi project too. i have’nt decided yet. the project looked good and will finish in couple of month it seems. I visited the site two weeks before and i don’t see any smell or smoke. Even i went close to the dump yard / stp.

    i googled around and got these links.

    http://www.thehindu.com/2008/04/03/stories/2008040359880300.htm

    http://www.thehindu.com/2008/11/01/stories/2008110159760500.htm

    http://www.hindu.com/2009/02/02/stories/2009020257820200.htm

    check before making a decision.

    What advantage did you find on that project with other you visited?

  7. The property prices in Chennai have not decreased that much when compared to other Metros. There are predictions that the property prices in Chennai might reduce upto 15-20% within the span of 3-4 months.

    Arjun, Realty Expert @ http://www.100floors.com

  8. Rsun3

    Priya/Vidya, Sorry for the late reply, i forgot to come back to this blog.

    Anyway, Casa grande pallikaranai – I booked at Rs 2750 in Feb 07. Not sure what the current going rate is.

    Vidya, I do not have individual breakdowns, i will post soon. I dont believe the Sq feet rate included the registration. They did not provide any discounts on car park.

  9. Satu

    Hi pinky / Manic,

    I’ve booked a apartment in ‘Doshi Etopia – I’ last year Oct 2008. The construction is too good.

    Last week, when I visited the site, I could see the board in front of the site, stating that Phase-I will be completed in another 3 months and Phase II in another 12 months. This is really a quite good news for us when compared to other builders like Jains / Appaswamy, who are deviating more than a year from schedule date. Please revert to me for any further clarification on Doshi Apartment.

    And it’s true that Burning of waste stopped at Perungudi and could not see the fire now…

  10. senthil

    Article from Hindu Property Plus
    Buyers treading cautiously

    They want a fair deal and keen to know factors such as carpet area, payment terms and levy, writes SHANTHI KANNAN

    PHOTO:S.R.RAGHUNATHAN

    Keep their eyes open: Buyers are getting more calculative now and are concerned about progress of construction.

    The reality sector in general and housing market in particular had a dream run in the last few years. Increase in salary levels and easy availability of credit helped the turn around. The average age of home mortgage consumer dropped from late thirties to late twentiesWith the IT sector on the rise, investment in the real estate also increased. Apartment sizes, specifications, delivery terms and price band were matched with the boom. But the current economic slowdown has changed the scenario significantly and has forced the home buyers and developers to re-orient their strategies.

    New offers

    N. Ananthanarayanan, Head REIS, Jones Lang LaSalle Meghraj, says that the buyers are now getting calculative and wants to probe factors such as falling prices of cement and steel, construction cost and reduction in service tax and wants to know how these are reflected in the new offers.

    Mr. Ananthanarayanan says buyers are also now examining the actual carpet area that they get in comparison to the area that they pay for. He also points out that today, the buyers are looking at the terms of payment and penalties carefully and wants a fair deal. They ask for compensation for any delay in delivery of the completed apartment commensurate with the loss of income or the rent.

    Some have even started demanding that payments be linked to the construction stage, and not make it time bound, as they want cash flow to reflect progress of construction. These demands are strengthened by the perception that they may get better bargains in the days to come. The fact that leading builders including DLF have continuously come out with price reductions has strengthened this, says V. Kalyanaraman, Director, Yeskay Promag Consultancy Pvt Ltd.

    With the interest rates starting to come, many prospective buyers feel that it would be worthwhile to re-plan their purchases and wait for a better rate.

    Awareness growing

    Consumers’ awareness about the developing scenario has increased in recent times and it has become important for the developers to keep the buyers informed. For example in the DLF case, about 150 consumers decided to quit the project as they were not kept updated on development of the progress. The questions raised by them were – will the project be delivered on time, what is the operational model of the club house, practice of selling undivided share of land, comparing prices between DLF’s two projects, funding position and operating cost of the company.

    With all these demands coming from the end consumers, DLF needed to rework their approach. They addressed their buyers and explained the situation.

    Many big developers, who started constructing mega projects, have begun to scale down and re-design them. They are entering budget housing projects such as one or two-bedroom apartments. The risk is spread by cutting down the unit size.

    Plans to construct three to five mega towers are now scaled down and in their place only one or two towers are built. The customers are also re-located within the same development, so that the required built up area could be completed within the committed deadlines, says Mr. Kalyanaraman.

    Huge gap

    There is a huge gap between the expectations of the buyer and the builder. Today the buyer expects the prices to slide further and is in no hurry to close the transaction. On the other hand builder faces a challenge with their cash flow affected. “Knowing that the demand is still high builders will have to focus on completing projects as buyers will immediately lap up projects that are ready for immediate consumption as long as they are within their affordability”, says R. Balaji, Chief Executive Officer, Propmart.

    The bankers too are playing a cautious role. The delay in completing the projects and drop in salary levels concerns them. The financial instutions, who went overboard, are slowing down and exploring new products such as financing second hand apartments.The three factors – customers, developers and bankers, taking a cautious step has only led to a slow down in the residential sector growth. Everyone agrees that the market will bounce back as there is a real latent demand. The key to this is “affordability.”

  11. senthil

    Buyers treading cautiously
    http://www.hindu.com/pp/2009/03/14/s…1450010100.htm

    highlights:

    Quote:
    But the current economic slowdown has changed the scenario significantly and has forced the home buyers and developers to re-orient their strategies.

    New offers

    N. Ananthanarayanan, Head REIS, Jones Lang LaSalle Meghraj, says that the buyers are now getting calculative and wants to probe factors such as falling prices of cement and steel, construction cost and reduction in service tax and wants to know how these are reflected in the new offers.

    Mr. Ananthanarayanan says buyers are also now examining the actual carpet area that they get in comparison to the area that they pay for. He also points out that today, the buyers are looking at the terms of payment and penalties carefully and wants a fair deal.

    They ask for compensation for any delay in delivery of the completed apartment commensurate with the loss of income or the rent.

    Some have even started demanding that payments be linked to the construction stage, and not make it time bound, as they want cash flow to reflect progress of construction. These demands are strengthened by the perception that they may get better bargains in the days to come. The fact that leading builders including DLF have continuously come out with price reductions has strengthened this, says V. Kalyanaraman, Director, Yeskay Promag Consultancy Pvt Ltd.

    Are these expectations listed here are not basic ? Do we need a global recession to wake up the sleeping buyers in India ?

    What are the builders dreaming on ? Haven’t they played the buyers for long time ?

    They were using the builtup area to charge while delivering only carpet area which is 20% is lesser. Instead of raising prices they could reduce the carpet area ratio and get away with it.

    While builder have clause to increase the prices unilaterly when the input prices were raising, they dont have any clause to reduce prices when the input prices are falling ( as it happens now). Why they can’t link this to WPI or CPI measure to be fair ?

    Govt has reduced service tax to pass the benefit to the end user. What is the problem with builders ? why can’t they pass on these benefits ?

    I see no problem with Builders making a profit legitimately. But why cheat the very buyers or resort to unlawful practices who are helping them to make their livelihood ?

    Why not link the payments with construction progress ? After all if you dont work, you dont get paid. We are not paid for passing the time, isn’t it ?

    Quote:
    Awareness growing

    Consumers’ awareness about the developing scenario has increased in recent times and it has become important for the developers to keep the buyers informed. For example in the DLF case, about 150 consumers decided to quit the project as they were not kept updated on development of the progress. The questions raised by them were – will the project be delivered on time, what is the operational model of the club house, practice of selling undivided share of land, comparing prices between DLF’s two projects, funding position and operating cost of the company.

    There are plenty of people in India who believe in brand names. See what they got now. Some of the tricks played by DLF are very new to Chennai and none of the small time builders would even have courage to resort to those tricks. How can they offer the club houses to outsiders ? Does it not belong to the community ? Isn’t it why they are buying an apartment and not a house in the street ?

    How can they increase the builtup area w/o offering anything extra for the same price ? If the price has escalated why not increase the base price ? Why this cheap trick ?

    Anyway, it is good these unscurpulous builders learn the lessons hard way. Companies like these vanish from the market very soon and wont sustain for long.

    I feel the buyers themselves has encouraged such practices and did not bother to check the “i”s dotted and “t”s crossed. We are partly to be blamed too.

    Our interest was to book a flat and turn around and sell it in few weeks and make a quick profit, who had time to read the terms and conditions ? It is not only the local uneducated people who played the game this way, but even well educated business graduates, MBAs and NRIs joined this game and played throwing all the cautions to the wind.

    What has been done is already done. Atleast, let us be wise and learn something from these lessons and use that to prevent mistakes like this in future.

    This is my question to the forum. In current situation, with new knowledge, What do Real Estate Buyers Expect from Builders ?

    Let us start making list of thing that we like to see the builders build in the terms and conditions. Who said we can’t have our own terms and conditions. { For a change it is buyers market. Let us enjoy the benefit }

    As the builders need the buyers, buyers need the builders too. So, it becomes important for us to communicate very well and tell them our EXPECTATIONS in BLACK & WHITE.

    Go ahead and show that we are really AWAKE and AWARE..
    And let us give a wake up call to the builders..

  12. senthil

    The real estate cookie crumbles

    April 14, 2009

    The story of Sashwat Brahma is an interesting one. His story, unverified by me, appears as a post on http://www.consumercomplaints.in and goes like this.

    He applied for a 4 BHK apartment in DLF’s New Town Heights in Gurgaon and put money down. A year has passed; but there is no sign of the project, launched in February 2008.

    He then says that DLF delayed in sending the agreement, thanks to which there was a delay in payment of loan instalments from his bank. DLF, according to him, charged him interest for the delay, saying had the disbursal come in time, then he would have paid the finance company interest and hence he should pay DLF interest even though the delay was at their end!

    I am only hoping I am not getting something here.

    Sashwat says he has a signed agreement with several unsigned pages and the witness page unsigned. He wants to exit, as do a few other potential apartment mates. DLF’s response: ‘Feel free to take us to court.’

    ‘DLF has charged customers when they have not even started work. Why should I pay them if the project has not taken off?’ he asks.

    If you think I am being led down the garden (pun not intended) path by one biased property speculator, well, you can visit an entire Yahoo group(http://in.groups.yahoo.com/group/Newtownheights/) which has apparently rallied 300 prospective owners saying, ‘This (group) is to bring all future residents of DLF New Town Heights and DLF Express Greens residents together. We all need to need to be together to make it happen,’ they say. The web page says there are 672 new messages.

    Unitech, the other Delhi-based giant, is facing similar ire for delays over its World Spa project, delivery date for which was mid-2006, and is still not done.

    There are similar tales in Mumbai where scores of home buyers hold ownership papers, without the keys to their homes. And the wait has been pretty tough, particularly for those whose EMI clock has begun ticking. Though there are very few of those and more of the speculative variety.

    From a layman’s perspective, it was, just to recount a fantasy all over again, an amazing run. The big builders who already owned land at close to throwaway prices were getting funded both ways, by the banks, private equity players and hungry small investors on one end and the other, well, you and me, funded in turn by the banks.

    It’s a miracle that the banks, at least some of them, have not blown holes in their balance sheets. Or have they?

    All the money, believe it or not, was being collected upfront, to fund other grandiose projects, of four and five bedrooms, with extensive landscaping, water bodies and modern security systems. And of course, most home buyers were also diving in, thinking prices would appreciate 400 per cent all over again. And most of them have first-owned homes already.

    So the law of the unregulated market says buyers must pay the price for trusting the DLFs and Unitechs and scores of builders across the country. Yes and no. Because rising real estate prices have created a level of arrogance in the developer community unseen or unheard of in any other business.

    Keep paying up, buddy, or go to court. Because the fine print in our contract says you have no choice.

    Now this is not about disgruntled second and third home owners banding together on the internet or wherever they are. This is about how India’s real estate industry lacks any body or regulator that can haul up realtors who take buyers for a ride.

    And let’s be fair — DLF and Unitech are soft targets because they are visible. There are hundreds of cases in Mumbai which never make it to Yahoo Groups, or anywhere, for that matter. Except in some corner of a consumer court where they can grind on unnoticed for years.

    Let’s assume a regulator will not come about in a hurry because the real estate industry –which wants a return to the golden era of 7 per cent interest rates so that they can make you pay for their delays — will howl in protest.

    Don’t be surprised if the protests hit home because most politicians are inextricably linked to real estate, at least in the city of Mumbai where I often find it difficult to separate one from the other.

    What are we doing in the meanwhile, is the question. Let’s face it. Assume the grand gong signalling the downturn went off in October 2008. But many of the projects in question, including in Mumbai, were supposed to be completed even before that. There was no real funding problem as I see it. So where were the glitches?

    Well, this is where the arrogance of the builders (and the stupidity of the buyers) sets new benchmarks. Turns out the delays were more to do with land clearances, lack of occupation certificates and the like.

    Puneet, writing on indianconsumercomplaints, says DLF told him they have no environmental clearances. When he said he wanted to back off, they asked for a Rs 5 lakh (Rs 500,000) penalty!

    Now, DLF is apparently willing to renegotiate with buyers. Which it should have done in the first place, without the media shindig.

    So this is how the real estate cookie is crumbling. But let’s assume, as we always optimistically do, we can’t do anything about anything, legal or otherwise. Surely we should not be listening to the real estate sector’s demands on interest rates. Clearly we know where the problem is.

    The writer is editor of UTVi Business. He is not chasing any half-constructed properties, for himself or anyone known to him.

  13. priya

    AM LOOKING OUT TO BUY A 3BHK APT AT APPASAMY
    ORCHARDS VADAPALANI OR AT SHYAMALA GARDENS
    CEEBROS…KINDLY GET IN TOUCH WITH ME
    9840289330 PRABHU

  14. Sound1

    Boss, I checked Shyamala Gardens It is all sold off. Good construction quality. Bed rooms are a bit smaller. Cost was coming to 1 Crore+. Appasamy may be good; Need to check out. Another complex that is coming up nicely is Navin’s at Nelson Manickam Road; There is availability . Price is a bit high for the specefications I saw. But location is superb. 7000/per sq ft.plus other ameneties charges are also there. Total around 1.5 Crs+. Nearby there is Vinod Vetri- inside Amjikkarai- next to MR hospital- cost is 4500/sq ft. 2-3 flats available. check out :-)

  15. Varun

    Hi Satu, We visited the Doshi Etiopia site just last weekend and we thought its a good deal to buy a flat. But the only thing that makes us think twice is the dumping ground issue. Even though you have mentioned you cannot see the fire where garbage is burnt, the issue might arise during rains wherein the dumping ground (2kms away from Doshi site) will start emanating a foul smell. How are you planning to deal with that issue? If you have any more information on this issue, please let me knw. As such we like the constructions and are keen to buy. But any information would be helpful. Thanks!

  16. anuradha

    What about appaswamy springs project in thiruvanmiyur? I saw the plan. What about the rate & availability?

  17. sivaraman

    I want to invest around 30 lacs. I’ve seen Doshi’s etopia-II at perungudi and ETA star le chalet’s villas near sriperumbudur. Please help me to decide.

Leave a Reply