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Sambhar Mafia - Cooked To Kill!

Tuesday, June 21, 2005

Soaring Property Prices

If there is something hotter than the Chennai weather, then it has to be Chennai’s property market. Property developer Ceebros recently came out with an announcement for their new project. The price quoted for this project is a whopping Rs. 4000 per sq ft. Ceebros is one of the premium residential developers in Chennai. The cost of this 1800 sq ft apartment will be Rs. 72 lacs. If you add other miscellaneous stuff like stamp duty/registration charges etc…the price might easily cross Rs. 80 lacs. Established players like Ceebros used to charge Rs. 2500 – 3000 per sq ft for properties in the city area. Some of the smaller ones used to charge Rs. 2000 – 2500 per sq ft. But this price of Rs. 4000 is significantly higher than the prevailing market prices. The IT/ BPO and Retail boom in Chennai, Bangalore, Hyderabad and Pune has resulted in an unprecedented property boom in the Southern metros. If prices continue to increase at this pace, people working in traditional industries might find it difficult to buy their dream home.

Nancy Gandhi of Under the firestar was also approached by such property developers recently. High-end apartments costing Rs. 80 – 100 lacs are becoming pretty common these days. These projects also get sold in no time.

23 Comments:

  • apartment prices are soaring yes, but small housing plots between 1 and 2 grounds (2 small to build apartments) cost only between Rs80 lakhs to 1.10 crore (a good buy actually, but people seem to prefer apartments.)some of these places r avliable in prime locations like mylapore and alwarpet!!

    By Blogger ada-paavi!!!!, at 11:34 AM  

  • ippadye pochunaa, i can buy only a bathroom in madras!!!
    :))

    even suburbs are expensive.....

    By Blogger monu, at 12:31 PM  

  • LOL @ monu's comment :)
    atleast its ok in Madras..Places which are a little away from the city will cost less..
    But in Bangalore there are places which are not accessible,have no public transport..even in areas like that a 2 bedroom apt costs a huge sum..

    By Blogger Prabha, at 1:23 PM  

  • yeah..you are right...Here we're facing the same problem...But in our state there is a boom in other cities like Vizag and Vijayawada!!

    By Blogger Gangadhar, at 1:57 PM  

  • Read this. Called up my dad and confirmed!

    Yeppaa.. Andha Maambalam flat en perula dhaaney ezhudhi vekka poreenga!

    unakkilladhadhaaadaa.. Unakku dhaan elaamey!

    Appaadaa..

    By Blogger ioiio, at 2:44 PM  

  • @Srivatsan,
    From an investment perspective, I also feel that land has more appreciation potential. But people are buying these with the intention of moving in.

    @Monu,
    LOL

    @Prabha,
    I read in BusinessWorld that B'lore hotel rentals are on par with that of NY and London.
    B'lore has a long list of woes and this is one among them.

    @Gangadhar Ambati,
    It's the same situation everywhere.

    @IOIIO,
    Where is your flat in Mambalam. For all you know I might be your neighbour :-)

    By Blogger Kaps, at 3:06 PM  

  • Nalla Velai, I hav started to construct my home in Chennai instead of going for a flat. Long live my dad. He bought a land before 20 yrs in Maduravoil.

    By Blogger REFLEX, at 3:44 PM  

  • Kaani nilam vendum.. parasakthi kaani nilam vendum..

    By Blogger Chakra Sampath, at 4:24 PM  

  • 80 Lakhs for an apartment??? My god! A house of my own is still a dream!

    By Blogger Jo, at 5:01 PM  

  • Chakra,
    Give the builder 50 L and u'll get ur own Kaani nilam.

    By Blogger REFLEX, at 6:31 PM  

  • kaps arent d prices of beach houses going down...post tsunami???or have those prices stabilised now?

    By Blogger Ramana Siddharth, at 8:07 PM  

  • right, you can get your kaani nilam for 50 lakhs - but no thennaimara keetrum ilaneerum - you will probably have only concretum pollutionum there :)
    can still not beleieve Madras has got so expensive - I know lots of people trace this rise back to the time when MNC comapnies like Ford and Hyundai came to Madras...

    By Anonymous charu, at 8:10 PM  

  • aguy in japan lived on top of a tree.Adhe nilamaya namakkum.

    By Blogger Anjali, at 9:21 PM  

  • a flat is a good option to move in, and are far more easily avaliable, with al facilities,
    indenpendent houses r also avaliable,
    we bought a 1.75 groud house for 90lakh (independent) in alwarpet, but these kinda places need some investment in the tune of round 5 lakhs, which is why ppl dont want them, inspite of their investment value (appreciation in the tune of 10-15% annual) but flats depreciate and not appreciate!!

    By Blogger ada-paavi!!!!, at 10:05 PM  

  • the house rental market has almost collasped!!and an easy money monertary policy is to blame for this!!!

    By Blogger ada-paavi!!!!, at 10:06 PM  

  • bathroom vangalam monu...adhuku thanni vangi maladhu :)

    ennamo...ellorum tent katti vazhanum...:)!

    By Blogger IBH, at 2:22 AM  

  • Hey man,
    this is nothing..come to Bombay...most of the suburbs are nowhigh as Rs. 9000 per sqft..and it will keep on increasing...

    sooner or later this is gonna happen to the other cities also..so best would be to invest now...

    By Blogger Packan, at 3:08 AM  

  • Adengappa!! Thats true..

    By Blogger Adaengappa !!, at 4:30 AM  

  • Anjali, lucky for that guy in Japan, he had atleast trees...

    By Blogger PVS, at 9:58 AM  

  • @ibh...
    LOL..
    aamaam madras la thanni vaangi maalaadhu....
    :(
    romba kashtamapaa vaazhkai.....

    By Blogger monu, at 2:59 PM  

  • Chakra, enna ennai maadiri aarambichchutteengalaa? :-)

    Kaps, tell me about high prices. We invested in one such project last year and it was sold to us at 2500 per sq. ft. Now I hear in the same area prices are hovering at 3000 per sq. ft.

    By Blogger thennavan, at 2:37 AM  

  • guys, how is the velachery area. ceebros is starting a project for 3200 rupees per sq ft, costing 60 laks for an apt comples approx 200 apts. what appreciation value it may have, if any ?

    By Blogger Amimu, at 1:48 PM  

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