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Ajita Shashidhar

Chennai , Dec. 28

REAL ESTATE developers foresee a temporary dip in land prices close to the sea front post the killer tsunami tidal wave that hit the coast of southern India on Sunday.

Speaking to Business Line, Mr Suresh Krishnan, Managing Director, Isha Homes, said that the land prices along the sea front, which have traditionally been almost 20 per cent higher than the other areas, would dip by 15-20 per cent for at least the next one-two years.

Similarly, Mr Ravi Appaswamy, Managing Director, Appaswamy Real Estates, said, "The passion for having a home overlooking the sea would definitely take a backseat. The demand for residential properties along the coast would fall by at least 60-70 per cent."

On the other hand, Mr Nakshatra Roy, Chief Consultant (Commercial), True Value Homes, says that the tsunami in no way would affect neither the upcoming projects nor the land prices. "What actually would be affected is the resale of the private bungalows which have violated the Coastal Regulatory Zone (which prohibits any settlement to come up within 500 metres of the coast). These establishments are even going to find it difficult to get tenants."

On the other hand, an owner of a bungalow along the coast between and Chennai and Mahabalipuram, said, "There will be a lull on transactions till the fear settles, but world over beach front properties are in demand and prices have been in sharp uptrend. Tsunami or no tsunami, land prices in Hawaii are still high. Tsunamis have been hitting Pacific coasts and I don't think people have stopped going to beaches or beach resorts. I suppose people will want to stay a respectable distance from the sea. The tidal wave hit beach goers too, but it doesn't mean that people will stop going to beaches."

Mr Thirumal Govindaraj, Head, CB Richard Ellis (South), who is also of the opinion that the dip in property prices would be a temporary one, adds that there are only a few residential or commercial developments coming along the coastline particularly in Tamil Nadu, due to the Coastal Regulatory Zone.

More Stories on : Real Estate & Construction | Natural Calamities

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