This statement may be applicable to all of the metros in Chennai, but more specific to Chennai real estate-
More than first world prices quoted for worse than fourth world infrastructure!
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The following is my short take on the current Chennai real estate scenario.
At the outset, if you make web enquiries or talk to a broker you may get a feel that the prices have not gone down. But the reality is different.Look at the following stories that I know of
1. Many apartments launched on the OMR almost /. 7 years ago are still not fully sold and they are not fully complete in terms of construction either ( in terms of the amenities promised).The prices quoted are almost 50% down if you adjust for inflation.
2. In a building that I know in Adyar, a new 2 BHK apartment (1100 sqft) is quoted at 1.8 crores for almost a year now. The rental yield for this price is 1.5% at the max. There is a big garbage dumping place and a sewage stream within smelling distance of this apartment. 4 of the 6 flats in this building are waiting for sale for more than a year now. ( For this price you may actually find apartments in New York, Singapore, Malaysia, Dubai or even some European countries!)
3.One of my friends who bought an apartment in the city for 51 lakhs ( 5 years ago) wanted to sell his apartment for 90 lakhs. Finally he had to settle in for 65 lakhs and he was lucky enough. This apartment was flooded till the first floor during the Chennai floods. After the floods, the price could have gone down further.
4.A suburb which was flooded ( built in a lake bed) like hell is seeing exodus of tenants while the owners are left with their house along with huge mortgage payments for the next 10, 15 years.
5. Couple of my friends are frustrated as the possession dates of their apartments have been pushed indefinitely ( from 2014->2015-> 2016 now)
2015 has seen the beginning of the down fall.With state elections coming up in 2016, a lot of money locked by politicians need to be taken out.This might also pull down the prices further.
The reality will get more apparent to all in 2016!
1 comment:
Do you think, investing in real estate (ready to move flats) now be a good decision?
I even spoke to a broker and visited a few places near velachery, nandanam, adambakkam but still they quote atrocious prices. Builders from OMR are very eager to sell off apartments. A certain builder even ascertains around 10k+ rent for a 2BHK!
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