Real Estate affected badly in Chennai
Recent economic crisis in the US combined with Reserve Bank of India interest hike its effects felt in the Office Space takers and residential buyers.
Google has cut its expansion plan in the NCR region. German giant SAP, has postponed the expansion plan. Many small and medium size companies follow the wait and watch policy with the global economy facing the turmoil. The demand of the real estate space has gone down drastically.
The Global consultancy firms now predict Bombay, Bangalore and Pune will face the situation of oversupply in the office space. The rentals in these areas are projected to fall by 25 to 30%. This will affect the demand for the residential space also.
Further dip in the demand for real estate is predicted for Chennai and other cities also. There will be severe shortage of funds from foreign and local investors. With funds from banks already not available, private equity source dried up, the demand from end users has come to a sudden standstill.
The crazy idea of the Public to invest in Land and reap huge profits has a long chain of agents and promoters. All of them feel unsafe as there are no buyers. The market is in for further crash like the sensex coming down hard. My friend who has lot of shares and watches NDTV Profit 24 hours was in panic. Once he used to say the sensex will touch 50000 in six months. And the offers on plots of Land near Chennai are showing signs of reduced prices by almost half in certain prime locations.
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sukesh said,
September 29, 2008 @ 2:39 pm
I heard from realiable sources that commercial real estate is taking bad hit lately.
Prakash said,
October 11, 2008 @ 9:23 pm
I love this. Chennai has been super heated crazy market. Idiots who does not even know how many zeros in a crore, simple quotes 1c, 2c for mediocre house. These idiots has not even out of the place and does not know how much value a crore has. that is why Honda-Accord is luxury car in India. Just do what the neighbour does. don’t do any research!. Atleast it is coming down good. by the i just thrown my frustration. Am chennaite only. Being lived in USA in a townhouse (for locals - it means luxury luxury bungalow ) driving Acura (for locals it means luxury luxury luxury car ) all as a simple programmer about the average salary of american.
Prakash said,
October 11, 2008 @ 9:26 pm
Chennaites! if you easily get excited then you are there to loose. Ask for more for less Price (have world class cities as benchmark not the shitty bombay) ! don’t pay more for less. no other idiot in this planet does that !