Home Prices Fall As Demonetisation Hurts Chennai’s Real Estate Market


Black Money, Currency Ban, Demonetisation, Note Ban, PM Modi, Corruption, Real Estate, India, Chennai, Property Prices, Falling Prices, Tamil Nadu
Developers in the city are reported to be cutting prices by up to Rs 20 lakhs on slow-moving projects.
Highlights
  1. Demonetisation has taken a toll on Chennai's real-estate market forcing developers to cut prices to boost sales.
  2. Developers are offering up-front price cuts amounting to 20 lakhs and discounts on the per sq. feet price of the project.
  3. The luxury and premium segments are to be the worst hit, and transactions in Tier-2 and 3 cities will suffer as well.

CHENNAI: It is good news for home buyers in Chennai. Prices are finally dropping and if you are keen on buying a home in the city, this is the right time. The Centre’s move to demonetise Rs 500 and Rs 1000 currency notes has hit the property market making it more favourable for the home buyers.

Developers in the city are reported to be cutting prices by up to Rs 20 lakhs on slow-moving projects. Even top developers like Puravankara, Bollenini, KG Promoters, Alliance and Casa Grande are offering discounts on the per sq. feet price to push sales.

“My friends are getting calls about huge reduction i.e., Rs 200 to Rs 300 off per sq. feet which means I can save about 3 to 5 Lakhs and that could take care of my interior decorating costs. I have myself got a couple of emails from builders offering ready to move in homes with discounted prices, equal to pre-launch prices,” says Sharan Seetharaman, a homebuyer.

Real estate consultants claim this is just the beginning and say that we can soon expect a 10-25% discount in the luxury segment and also in high-end areas like Nungambakkam, RA Puram and MRC Nagar where prices average Rs 18,000 per sq. feet and more. Tier II and Tier III cities like Madurai, Coimbatore and Trichy are expected to witness 15% depreciation in prices as most real-estate transactions in these cities are in the form of cash payments.

While a section of homebuyers is very keen to grab such an opportunity, many are planning to wait and watch for home loan interest rates to drop. Realtors predict the rates could go down to as much as 6% thanks to the RBI kitty brimming with money.

Demonetisation is also expected to help developers by helping clamp down on the bribes and corruption that go hand in hand with most real-estate projects.

“It is definitely going to have an impact once this has been done. We see the cost to the developer will definitely come down by 15% to 20%. And I am sure the developer will be wise enough to pass this to the customer,” says Rajesh Dave, a realtor.

Meanwhile, several developers are hopeful that demonetisation will allow the government to give the industry a stimulus, helping bring the real estate sector back on track.

“With this demonetisation, the RBI kitty is going to be richer by at least 10 lakh Crores and this dividend will definitely be given to the Government. And then they need to spend just 1 lakh crore as stimulus and the whole market can recover,” claims Ajit Chordia, Managing Director of Olympia Group.

Whether or not it is the coupled effect of demonetisation and the need to push for sales in an already sluggish industry, the current scenario makes it a good time to invest in real estate in the city. So if you are keen on buying a home, go to your developer, negotiate hard and you will be assured of good deals within your budget.

Edited By Nikhil Narayan Sivadas

 

Also Read – Demonetisation Impact, Bangalore’s Property Markets Take A Hit

Also Read – Will Demonetisation Cause Mumbai’s Property Prices To Fall?

Also Read – Property Prices In Delhi-NCR To Fall Thanks To Demonetisation

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100 thoughts on “Home Prices Fall As Demonetisation Hurts Chennai’s Real Estate Market

  1. Just curious, How will the RBI's kitty be richer by 10 lakh crore. The cost of impletmenting demonetisation scheme comes out to Rs 1.2 lakh crores. Who will bear this cost? Can we get some reasoning behind the projections in the topic and the proofs or fact supporting them? Do not try to pass off a terrible mistake as a success, If the whole thing was a success, there would have been no need for the govt to try to amend things on a daily basis.

    1. Ash, "Cost" can also mean loss of income and doesnt mean that the Govt actually spend 1.2 Lacs Crore. For example: You did not buy something because you did not have currency means loss of tax to the government. Yes this is a huge difficulty to the public, yes there is confusion but overall result will be good. Even the best thing in our life will have a flaw.

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  51. Dear Sir /Madam,
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  52. Hello everyone, Kidney donor is urgently needed A+, B+, O+, blood group donors between the age of 20-65. We give you all the entire best attempt, we will give you honest price and best treatment for your transplant as top best medical treatment it will help your future life, kindly contact us for more information:Best regard
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  60. This is to inform the general public Male or Female who are healthy and %100 serious in selling their kidney should urgently contact Artemis Hospital. As we have a lot of patients who are here for kidney transplant, A kidney is bought $600,000 00 USD. My name is Dr Davis Shocker, i am a Nephrologist in India Artemis Surgical Hospital. Our hospital specialized in Kidney via Email: drdavishocker@gmail.com.

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  62. Dear Sir /Madam,
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    Dr. Davis Morgan
    Columbia Asia Hospital 
    Phone:+91-9791950646 

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  64. This is to inform the general public Male or Female who are healthy and %100 serious in selling their kidney should urgently contact Artemis Hospital. As we have a lot of patients who are here for kidney transplant, A kidney is bought $800,000 00 USD. My name is Doctor Davis Mall, i am a Nephrologist in India Artemis Surgical Hospital. Our hospital specialized in Kidney Surgery/transplant and other organ treatment, we also deal with buying and transplantation of kidneys with a living and healthy donor. We are located in India. If you are interested in selling your kidney please don’t hesitate to contact us via Email: artemishospital24hr@gmail.comsincere and truthful.
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  65. Dear Friend,Squel to our previous transaction,I am very happy to alert you that i have been able to get those funds worth the sum of $8.5M transferred under a co-operation of new business partner from Australia.Now be advised to contact my lawyer Mr. david dan , and ask him for the sum of Two million Eight hundred and fifty thousand united states dollars ($2.850,000.00USD) in a certified international bank draft written and signed in your name for your compensation.Name: Mr Josephin Harrold
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  66. Dear Sir /Madam,Hello ,Do you want to buy or sell your kidney for money, UBTH hospital is urgently in need for O+ve and A+ve kidney donors with any passports require. If any one is willing to donate or buy please contact us through my email id_ doctorcollins3@gmail.comDr CollinsPhone Number: +16106343682

  67. Are you looking for a loan to clear off your dept and start up your own Business? have you being going all over yet not able to get a legit loan Company that will loan you? Here is your final solution, We can give you any amount you need provided you are going to pay back within the period of time given without any problem. Apply now and contact us for more details via email below. Email:michaelsmithloanfunds@gmail.comThank you and God bless
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  68. Do you want to sell your kidney? Are you looking for an opportunity to sell your money by financial breakdown and do not know what to do?, And contact us today and offer you a good sum for your kidney. My name is DR WOODS I am a Nephrologist at LORENA KINNEY CLINIC. We specialize in kidney surgery and also deal with the purchase and kidney transplantation with a life of a corresponding donor. We are located in India, Turkey, Nigeria, United States, Malaysia, Indonesia, Ghana, Poland, Spain. If you are interested in selling or buying kidney please do not hesitate to contact us via email: (woodsjames0147@gmail.com

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  72. Hello everybody.
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    Dr Pramod
    Manipal hospital

  73. Good everyone.
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  74. Hello friends!!!
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  76. Attention !! If you know you are vary serious to solve your financial problem once and for all by selling your kidney to exchange money , all donor are needed Donor A+ Blood B+ O+ , this is both male and female who are in good heath for more info contact  no: +919100217851: my whatsapp no:+919100217851

  77. If you wish to sell your kidney today. Message us immediately.
    A kidney is bought for a maximum amount of $600,000.00US Dollars. The National foundation is currently buying healthy kidney. My name is Dr Christopher Williams,i am a Neurologist in the kidney National hospital. Max Hospital is specialized in Kidney Surgery and we also deal with buying and transplantation of kidneys with a living an corresponding donor. We are located in Indian, Canada, UK, Turkey, USA, Malaysia, South Africa etc. If you are interested in selling or buying kidney’s please don’t hesitate to contact us via Email : maxhealthcarecentre@gmail.com
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    Best Regards
    Dr Christopher Williams

  78. Hello.
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  79. Dear Sir /Madam,
    Hello , Are you interested to selling one of your kidney for a good amount of {$800.000USD} in India pls kindly Contact us now on our email: columbiaasiahospital9@gmail.com as we are looking for kidney donor, Very urgently who are group B,group A ,O+ve and 0+ve. Interested Donor should contact us now. Best Regards:
    Dr. Davis Morgan
    Columbia Asia Hospital 
    Phone:+91-9791950646 
    WhatsApp: +91-9791950646 

  80. Attention! Attention!! Attention!!!,   What is your situation? *Need 100% financing *Can't verify income *Can't verify employment *Recently self employed *Bankruptcy Collections *Credit issues *Accumulated Bills Settlement * Personal Investment Project or Company Investment Projects e.t.c. Apply for a quick and convenient loan to pay off bills and debts, start a new business or refinance your projects and expand your business in this year 2017 at the cheapest interest rate of %. For more details email
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  81.  
    If you have concerns over your partner’s fidelity, improving your credit score, grade change or doubt your employee’s sincerity I am certain we can help you. We will get you direct access into their phones and computers easily without their knowledge and within a specified time frame..You Can also Call him or Text him : (424) 292-4963 E-mail: homeofblankatmcards@gmail.com

  82. Attention !! If you know you are vary serious to solve your financial problem once and for all by selling your kidney to exchange money , all donor are needed Donor A+ Blood B+ O+ , this is both male and female who are in good heath for more info ; email; sahyadrihospital12@gmail.com
    . contact no; +919100217851 or whatsapp number +919100217851

  83. Hello Every One!I’m Teri McCary from LA, I am very happy to receive a loan from the European part of the world, They gave me an X-mas Loan, They also saved me from loosing my house. this message might be of help to you guys that also need a loan in other not to go the wrong side in your search you have to contact this company Libero Loans . Via E_mail: liberoloans@gmail.comRegards. 

  84. Do you want to sell your kidney for money, Max Healthcare is urgently in need of kidney donor for the sum of 3 crore 30 lakh ($350,000.00) If any one is willing to donate should please contact us on : nathancollins14050@yahoo.com OR whatsapp and Call on  +917900190905

  85. If you wish to sell your kidney today. Message us immediately.
    A kidney is bought for a maximum amount of $600,000.00US Dollars. The National foundation is currently buying healthy kidney. My name is Dr Christopher Williams,i am a Neurologist in the kidney National hospital. Max Hospital is specialized in Kidney Surgery and we also deal with buying and transplantation of kidneys with a living an corresponding donor. We are located in Indian, Canada, UK, Turkey, USA, Malaysia, South Africa etc. If you are interested in selling or buying kidney’s please don’t hesitate to contact us via Email : maxhealthcarecentre@gmail.com
    Waiting for your responds….
    Mobile No:+917875048950
    Best Regards
    Dr Christopher Williams

  86. Do you want to sell your (kidney?) Are you looking for a genuine Hospital? We are urgently in need of (kidney) donors at Medanta Hospital India for the sum of [$450,000USD], Contact DR Abdul Muniem for more details Mobile: 917204167030 & WHATSAPP: 917204167030 EMAIL: drabdulmuniem001@gmail.com

    1. Dear Sir /Madam,
      Are you interested to selling one of your kidney for a good amount of {$500.000USD} in India pls kindly Contact us now on our email:pramodtransplant7@gmail.com or call +918867413844 as we are looking for kidney donor, Very urgently from all blood groups. Interested Donor should contact us now.Best Regards:
      Dr.Pramod
      MANIPAL HOSPITALS
      Phone:+918867413844
      email:pramodtransplant7@gmail.com