Real Estate in chennai.....
Dubai is a little behind us! Singapore, Malaysia are quite! Are you asking about what this is about? Land prices my friend, land prices.While at a friendly get-together yesterday evening, it seemed like all the conversations revolved around the changing landscape of Chennai. I whispered under my breathe to a friend that it seems real-estate is the hot topic for the day, to which he made a public announcement that its always a topic, because either we bought it and are hoping the prices will remain this way (or better yet keep rising), or we cant afford and we are just jealous. I am wondering if there is truth to it - there might be.
So the truth of the matter is this. To buy a house or land in Chennai right now is more expensive that buying property in Dubai or singapore. You can buy a luxury condomonium in Malaysia for 40 lakhs. In chennai, for that same style and comfort, you will be spending atleast 2 crores and upwards. The funnier part was when a friend asked “So whats the fun in having a luxury condominium right in the middle of nowhere without any infrastructural amenities around?”. Well, I dont think we have options. But Lets get down to the dilemma of the common man. Most houses today are financed by banks. I don’t think people are sitting on ready cash piles of 40 - 60 lakhs for a good house. I am not sure people are in a hurry to buy houses. Then why are land prices escalating so much? There certainly must be hoards of people who are driving up the demand and prices right? For one, the culprit seems to be the land lords. The good news is that there are major infrastructure overhauls happening, such as moving away of the airport to some remote destination.This will eventually happen in Chennai and it will be followed by a drop in land prices.
I am sure most of you who are reading this and do have any interest in real estate have heard about the project by DLF where they are building 4000 apartments in a complex, with three layers of parking alone. Imagine that!I am thinking that it is the twitchy middle class that is making most of the noise. Most of the folks on the lower spectrum, or lower middle class are happy living in not-so-hip places. The traditionally wealthy ones do own their bungalows in Adyar, Nungambakkam, Boat club area and the likes. Its the newly rich, as always, that is making a ruckus. There is no place to buy, that would suit “the lifestyle”, and OMR right now seems to be the haven for them.The market is driven by speculation and ofcourse I plan to fuel and extinguish atleast a part of it. “Will the market prices for houses come down?” Most probably, Yes. Time is running out, and that’s the problem. It’s this very dilemma which is driving prices through the roof. Can anyone do something about it?
So the truth of the matter is this. To buy a house or land in Chennai right now is more expensive that buying property in Dubai or singapore. You can buy a luxury condomonium in Malaysia for 40 lakhs. In chennai, for that same style and comfort, you will be spending atleast 2 crores and upwards. The funnier part was when a friend asked “So whats the fun in having a luxury condominium right in the middle of nowhere without any infrastructural amenities around?”. Well, I dont think we have options. But Lets get down to the dilemma of the common man. Most houses today are financed by banks. I don’t think people are sitting on ready cash piles of 40 - 60 lakhs for a good house. I am not sure people are in a hurry to buy houses. Then why are land prices escalating so much? There certainly must be hoards of people who are driving up the demand and prices right? For one, the culprit seems to be the land lords. The good news is that there are major infrastructure overhauls happening, such as moving away of the airport to some remote destination.This will eventually happen in Chennai and it will be followed by a drop in land prices.
I am sure most of you who are reading this and do have any interest in real estate have heard about the project by DLF where they are building 4000 apartments in a complex, with three layers of parking alone. Imagine that!I am thinking that it is the twitchy middle class that is making most of the noise. Most of the folks on the lower spectrum, or lower middle class are happy living in not-so-hip places. The traditionally wealthy ones do own their bungalows in Adyar, Nungambakkam, Boat club area and the likes. Its the newly rich, as always, that is making a ruckus. There is no place to buy, that would suit “the lifestyle”, and OMR right now seems to be the haven for them.The market is driven by speculation and ofcourse I plan to fuel and extinguish atleast a part of it. “Will the market prices for houses come down?” Most probably, Yes. Time is running out, and that’s the problem. It’s this very dilemma which is driving prices through the roof. Can anyone do something about it?
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