New Benchmark in Chennai Real Estate

4 crores for a ground (2400 sq ft) is the new benchmark in Chennai Real Estate. The property measuring 43 grounds was sold in an e auction by IDBI Bank yesterday and was sold for Rs. 175 crores. The numbers make one dizzy, but they are true.

Real Estate is getting dearer in Chennai, like in all other Indian cities. I was skeptical a couple of years back, expecting the market to crash, but it only seems to go up and up. I still hold that there will be a crash, but don’t know when (such profound insight). The land prices in Old Mahabalipuram Road is sky rocketing, even though there is hardly any public infrastructure in that area. But most of the development is skewed towards South Chennai. In the northern parts of the city the prices are stagnating. If only I had bought that land in OMR in 2004…

9 Comments so far

  1. vatsan (unregistered) on February 8th, 2007 @ 2:07 pm

    chenthil havent u read the economist? if the economist says india is over heating, then the fii inflow will drop.

    PS economist publishes on the say day that S and P rated the indian govt bonds as investment grade.

    whose is rite? id bet on economist. india is over heating

  2. Karthik (unregistered) on February 8th, 2007 @ 9:19 pm

    Most of the land dealings are towards converting black to white. So this trend will continue.

  3. nandhu (unregistered) on February 8th, 2007 @ 9:41 pm

    the question on most middle class minds must be: Will I ever buy a flat in Chennai? i dont have any black money, though i wish i did!

  4. vinodvv (unregistered) on February 9th, 2007 @ 7:15 am

    Have you noticed one thing?
    The costliest things sell first.

    As long as there are people ready to buy. The prices won’t come down.
    Be happy that you are not loosing big time money, Save now and we all could buy our dream home soon.

    When the market dips. Hoping …………..

  5. suppamani (unregistered) on February 10th, 2007 @ 2:50 am

    So it means Rs.16,666…/-per sq.fwwt of land in chennai. I am no having even 1Sq.foot of land to own or to sell in Chennai.

  6. somu (unregistered) on February 10th, 2007 @ 3:27 pm

    Lets not forget one thing prior to saying the real estate price in India is over heating.
    Have you taken a look at something interesting at the Insider Trading section of some well known stocks (for example: Google) and you would notice some Indian names in an Executive level post. Also notice the amount of transactions. You would be shell shocked. No wonder the prices in India are sky rocketting. Where will all that money go? Obviously most of it goes to land buying in India :-)

    Director 138,000 Direct Sale at $473.50 – $479.25 per share. $65,740,000

    Yeah your eyes are not blurring!! it is 65 million dollars…
    Interesting right?

    Enjoy by looking at other companies as well and you would not be surprised.

    Amazon – Kal Raman

    26-Aug-06 RAMAN KAL
    Officer 20,000 Direct Option Exercise at $0 per share. N/A

    These are just samples!!



  7. Thad E. Ginathom (unregistered) on February 11th, 2007 @ 1:25 am

    This is a patch of one of the most desirable areas of Chennai, a place where trees, open spaces, peace and quiet rule. It is an area long considered to be ‘posh’ in the extreme.

    So we might expect its prices to be three or four times other areas not so far away.

    But we can still express horror at the well-over-one-crore (per ground) prices of nearby Mylapore, Alwarpet, Abhiramapuram, RA Puram, etc.

    As someone who hoped to be able (and failed dismally) to afford a house near Mylapore, it seems to me that actually, while bigger plots for development might sell like hot cakes, many smaller plots and houses are unsold due to the high prices the media reports have encouraged their sellers to ask.

  8. Govar (unregistered) on February 11th, 2007 @ 8:48 am

    “if only”… funny. :)

  9. isaac (unregistered) on February 12th, 2007 @ 5:30 pm

    Yes ofcourse, real estate boom will still continue for one or two years.This is b’cose of IT sectors and black money flow.Since bank intrest is low people mobilize money in r-estate.Guess…. a salary of normal IT guy even non core engg guy is getting more than 60,000/pm.Naturally where he/she will invest?.People ready to buy any thing even at high price because of money flow.RBI Knows it. Investors Money flow can only be controlled by RBI.Presently money is flowing like anything and moving into realestate.There will be an end in an year.When growth potential is slow automatically the dumped money will be withdrawn and shifted to the other sort of investment.

    In shortly telling …. boom will continue for an year and stop…. and will not crash…..

Terms of use | Privacy Policy | Content: Creative Commons | Site and Design © 2009 | Metroblogging ® and Metblogs ® are registered trademarks of Bode Media, Inc.