Discussion: Real Estate prices 2009

Hi, I would like to know whether the realestate prices have gone down a little in chennai. what seems to be the prediction for 2009? Thanks.

Hi Raagam,

I just came back from India(Chennai) couple of weeks ago. I don't see any major decline in apartment prices (both new and the resale ones).
Sellers of the resale apartments are still quoting the highest prices even for junk units and the only difference I found is that the resale ones take too long to get any response, unlike before where, if you release an ad for a resale apt, you normally get 100 phone calls to view. Nowadays, it doesn't happen.

Regarding the new apartments in the city, the builders don't entertain much of negotiation still, irrespective of the economic slowdown and various other factors. Big builders have the money power to hold the unsold units and then sell them when the price picks up.

To shorten the story, It is predicted that the real estate prices will slowdown atleast to the tune of 20% or so, but that would take some time (6 months or so). Hence wait and try in few months, but if you are seriously interested in buying any new apartments now, you are in a better position to negotiate and get a good deal, as the demad is not much in Chennai.

Good Luck,
GPriya

Raagam,

The prices of real estate is bound to go down. but the indices of real estate always trail the market indices by a 6 months, the reason the cost of the raw materials, labour and other market indicators will reflect on the real estate only after a 6months delay..

the market is a buyer's market, if you are good at negotiations. the market seems to be dull, with not much of registration in the once crowded saidapet, chengelpet and sriperumbudur offices.

there is no reduction in the rates that the big operators are quoting. but if you are not into big operators, the medium and small operators have definitely open to negotiations...

A free car park, a mercedes and a modular kitchen that is being thrown into the deals...

As priya says, there are too many resale units too in the market...and some of the sellers have not come to the ground reality....

Hi Shanvy and Priya, Thank you for your detailed response. I have been wanting to buy an apt in chennai but got fed up with the prices. Is there any particular website for properties in chennai by owners? I am in no rush but would like to have a place. Hoping for the best. Keep me posted. Thanks again.

Raagam,

The websites all have hyped prices...not many have come to ground reality.

do check out the ads that come out on hindu property plus every saturday.

Hi Shanvy, I know I can always count on you. Its very nice of you to take your time and post the facts. I will subscribe for that. Thanks.

Hi Raagam,

Try take a look at the following sites to get an idea of the available properties:

99acres
Magicbricks
Indiaproperty.com
Indiaproperties.com
Sulekha classified

Ofcourse Hindu's property plus..as Shanvy mentioed.

Good luck,
GPriya.

Thanks Priya. I will look into it. I just want to have an idea before I go to india in June. RaagamDrowning