Rising cost of land property in Chennai and other cities in India
By ravisivan
@ravisivan (14079)
India
January 17, 2012 9:17am CST
http://timesofindia.indiatimes.com/city/chennai/19-storey-IT-tower-in-Adyar-razed/articleshow/11482792.cms
The above link will tell about 19 storey building constructed for IT companies is being demolished. This is to give way for residential blocks.
Reason. IT companies were offering only Rs.5000 per sq.ft ($100) On the other hand residential blocks will fetch Rs.10500 to 12000 per sft. ($200-240). The cost of land in the same area was around Rs. 3000 per sq.ft. say five years ago. Price of land has been rising enormously making investment banks meaningless and reducing their value.
I think same inflationary situation may be perceived in other countries also execepting western countries where the real estate prices are probably coming down.
Give your views.
3 people like this
8 responses
@ram_cv (16513)
• India
17 Jan 12
I think the Chennai real estate space is really boiling over. The rates have really skyrocketed in the past 4-5 years. I am not sure it is very sustainable. Even during the recession period, the builders in Chennai did not drop the prices like the other parts of the country like Bangalore where the prices significantly dropped. But as they say it is a demand-supply game. As long as Rural India keeps moving towards cities, these areas will continue to rise!!
Cheers!
Ram
@ravisivan (14079)
• India
18 Jan 12
Ram - you are right. price of real estate in chennai is on the rise. But demand for land and house is high in view of investment of NRIs and also younger generation IT professionals. I am not sure where it will end.
1 person likes this
@ravisivan (14079)
• India
18 Jan 12
vandana: But in as much as more population is migrating towards chennai and cultivable lands are being converted into housing plots, demand is continuously rising and price is rising for real estate. Till now real estate has been yielding higher returns in terms of yields.
2 people like this
@CTHanum (8234)
• Malaysia
17 Jan 12
Here the same thing happen too. In fact I am sure every country face the same thing. Not just real estates but the house price as well. No wit is hard to find property with lower price as everyone seems want to earn bigger profit and the last buyer will suffer a lot from it.
1 person likes this
@ravisivan (14079)
• India
18 Jan 12
CT Hanum: How are you? meeting after a long time. You are from Malaysia and price of real estate there is also rising. Poor people and monthly earners are the affected lot .
@KrauseHome (36448)
• United States
18 Jan 12
Wow!! Sorry to hear that this type of thing is happening there. Makes it hard to be able to afford something when they are doing things like this. Here in the US they continue to make the Loans harder to get, while the property values in a lot of areas continue to fall. Makes you wonder sometimes when money becomes the main issue to living and survival for sure.
@ravisivan (14079)
• India
19 Jan 12
KrauseHome: How are you? How is your health? Hope your diabetes is under control.
In USA price is not rising for real estate. But in India and other asian countries --we suffer on account of inflation. skyrocketing price rises are seen. We are all simply watching things happen this way and making us feel helpless.
1 person likes this
@GardenGerty (157985)
• United States
18 Jan 12
Land is high priced every where. There is no more of it being created. If there are many people needing homes that just drives the prices more.
@ravisivan (14079)
• India
18 Jan 12
Your logic is one hundred per cent correct. It is rising because people are confident of getting that much amount. We cannot crate land. that is why culttivable lands are converted to building plots.
@dorannmwin (36392)
• United States
23 Jan 12
You see, quite the opposite is true here in the United States because of the economic crisis that we've been experiencing over the last several years. During the early part of the last decade, the prices of land were quite inflated and loans for houses were granted to pretty much anyone that had a pulse. Now, a lot of those people have lost their homes to foreclosure and it is virtually impossible to get a home loan. Because of this the price of property has fallen dramatically.
With that said, I hope the same doesn't happen in the future in India or anywhere else in the world.
@ravisivan (14079)
• India
23 Jan 12
drranmwin: I will consider the situation in usa being near normal. The situation in Asia and other continents is alarming. too much of inflation--everything is costly. Price of real estate has risen 700% in seven years. there is no logic for this.
today I am in Dindigul a place nearly 400 km from chennai. I am staying in a three star hotel -- I find the cable tv has local channels --Believe me there are more than five channels concentrating on selling land in view of price rise. About five years back we use to have cloth stores canvassing for sales, two three years back it was cars and motor cycles and now it is land and buildings.
I expect an economic burst in India, China and aother countries.
1 person likes this
@enelym001 (8322)
• Philippines
17 Jan 12
Hi ravisivan,
Same thing in here. It is hard to find a property which is affordable or that we can say we can at least use our savings to buy a cheaper property. If we get a cheap one, it will be pretty small only. We can get cheaper ones on very far provinces but those were slowly increasing as well. In my place which is not actually so close to the Metro - it has become very costly too.
1 person likes this
@ravisivan (14079)
• India
18 Jan 12
You are from Phil. Situation is not different there also. It is the middle class which is affected by this price rise. metros and near metros are costly. It is due to inflationary trend.
@jpso138 (7851)
• Philippines
18 Jan 12
Well, here in our country cost of real estate is also rising. They are already very expensive most especially for the lots near the city area. It is very difficult now to buy a lot for housing. This is the price that we have to pay for development. I do not think that later on it will drop. In fact, it will continue to rise as time goes by.
@Hatley (163781)
• Garden Grove, California
17 Jan 12
hi ravisivan as far as I know the price of land property here in California is outrageous and cost of housing is also. rents are sky high and many people have to have two paychecks in order to rent an ordinary not fancy 2 bedroom apt.imagine paying 1300to 1400 for a crumby 2 bedroom with repairs needed even . it boggles my mind, a few years earlier that same apt rented for 600 to 700 dollars a month now its almost doubled.yet most wages and salaries have not come up in comparison.
@ravisivan (14079)
• India
18 Jan 12
Hatley aunty: thanks for your response. California rent is 14000$. I think Detroit is better at 1000$. Even then rent is higher compared to earning. But in USA real estate prices have not been rising now, is it now? I am not sure. In India it is moving up and up always,.
1 person likes this
