Thursday, 17 December 2015

Chennai real estate crash

Following heavy floods in the low lying areas of Velachery and Tambaram, realtors expect a crash in prices in this fast growing region of the city.
Regretting their decision of investing in  land or properties in this area, residents said they wouldn’t suggest anyone to buy houses, flats or plots there.
“I had invested all that I had earned for the past 20 years and I am extremely distressed to see the flat engulfed in water,” said Ramesh who had recently brought a 2 BHK for `60 lakhs in Ram Nagar, Velachery. He is ready to dispose it off at the earliest and relocate to some safe place on the East Coast Road to avoid facing the crisis next year.
C Sadish, working in a leading IT firm in MEPZ Tambaram, was aspiring to buy a home in Tambaram. “Looking at houses getting completely submerged in water during the floods in television news channels, I dropped the idea and am planning to buy a piece of land in Thiruvanmiyur or Adyar and construct a house which can withstand rains in the coming years”, he said.
President of Chennai Real Estate Agents Association, Amit Damodar Chugh admitted the rains would certainly have an impact on the minds of buyers or tenants.
“While some were unable to open the doors, some were stranded for hours before being rescued. Many who have purchased houses by spending a fortune are searching for temporary accommodations. The mental agony that people have endured will affect the real estate prices in Velachery, Tambaram and Mudichur,” he added.
S Aarthi, of Medavakkam, said “I would not suggest any one to move in here, not even my enemies.”
On the other hand, developers feel that the prices of land and apartments in these areas would not be affected in the long run. Citing the Tsunami that struck the coast of Chennai in 2005, when real estate prices in ECR dipped drastically, they said it took little time for that to sky rocket. For, public memory is short, said Confederation of Real Estate Developers’ Associations of India Chennai president Ajith Chordia. He told Express that the demand for land is more and hence prices of real estate in these areas would not come down.
“The focus now would be to ask the Public Works Department to come out with a 100 year flood line data to fix the average mean sea level for plinth,” he added.