Global investors eyeing Indian real estate market

NEW DELHI: With the new government taking charge at the Centre and the investor-friendly announcements in its first budget, global investors have got interested in the Indian real estate market once again, Tod Lickerman, global chief executive officer of property consultancy DTZ, has said.

“There are a lot of people who have started talking about and thinking about India again. They all feel confident about India because things are already changing, but say that they are now waiting for a few more things (from the government) to prove that India is going to be an investment-friendly market and is going to invite FDI in various other fields,” Lickerman, who is in India to meet business leaders and to “get a feel” of what is happening in the country after the regime change in Delhi in May, told ET.

DTZ works with top global companies, helping them search properties to house their offices, stores and factories. It is also among the leading providers of facilities management. Real estate consultancies are usually the first to get a sense of the prevailing business sentiment as companies lease or acquire real estate to expand their businesses in good times or freeze such plans amid a slowdown.

Interest in India has been higher since elections also because of the global recovery, Lickerman said, adding that it would take a little time before it started yielding investments. “But the first thing is interest and awareness. There was a time when India wasn’t top of mind. But now it is being talked about. So I think it is a precursor to it,” he said.

After a few more positive signals, India could actually see a lot of money coming into real estate, he said, though he did not hazard a guess on how much the FDI inflows could be. Much of this money would go into development of commercial buildings — offices, stores and malls, as over the past few years builders and investors have neglected this to focus on the residential segment where there is a glut.

With the revival in global economy – especially in the United States and Europe – people are more bullish and looking for property to invest in, he said. “It’s just a matter of time and a little bit of track record to say that it’s a friendly place to be.”

While DTZ itself has not raised a specific fund for India, the conditions are now ripe for one, he said. What is also working for India is that over the years, the quality of commercial assets has improved and these assets are attractive to investors as well as sustainable, he said. “I think previously there was a short-term view of the assets in terms of lifecycle of the buildings but now there are quality assets with great companies occupying them both from a multinational and domestic perspective,” he said. In India, DTZ is focusing on growing its facilities management business. This business brings in over 60% of the company’s revenues globally – of its $2.2 billion global business, about $1.4 billion comes from facilities management, which is a high revenue business.

Source: Economic Times

Customizing home for new look and needs in Chennai

Chennaiites customising home for new look, needs

More and more buyers in Chennai are customising their houses to suit their modern needs. Some are re-designing their old houses for a new look, while some others are trying to equip their residence/buildings with added amenities. Naturally, it means a few extra lakhs spent on the re-designing and renovation but the idea is to have a house that fits in with your lifestyle.

Take for example, the inhabitants of Manikanthan Residence who planned to go in for a thorough makeover of their house. They wanted to make sure that their house stood out in the locality. They called in an architect and went in for landscape planning inside the house.

“Our grandkids keep visiting us. Parks are clogged with water during the monsoons and we thought we needed to give them an alternative play area preferably inside the house,” says Mukund Manikanthan.

Consequently, while the ground floor remained a semi-public space, the first floor was used as a private area. The second floor was remodeled as a recreational space.

Who’s doing it?

“People who are remodeling their houses are connoisseurs of fine living, who value design and comfort over money,” says Subhapriya Vadivel of DesignQube, a group of architects in Chennai.

“Luxury has become a necessity for a big cross section of the community over the years. Being well informed and well travelled, buyers have become finicky about the space they live in, where they spend their maximum time,” adds Vadivel.

Although a majority of these accommodations that are being remodeled are either farm houses or beach houses used as weekend getaways, there are those who are redesigning the houses they live in. Moreover, experts believe, if you put in a little extra into the look of your spacious house, it has the potential to grow your investment.

Abu Baker of Colliers International talks of the intricately done beach houses in Neelangarai that are a hit among keen investors. “They go in for corporate leasing, as vacation rental accommodations, as guest houses and earn up to Rs 4 lakh per month. Such houses are discerningly designed and that makes way for an additional income.”

Pricing and location

“We have worked on a range of luxury apartments, designer villas, cozy beach houses and farm houses in the stretch of ECR, Vandalur – Kelambakkam highway, the GST corridor and around Chengalpet. The prices of these houses vary between Rs 6,000-20,000 per sq ft,” says Vadivel.

Gone are the days when branded developers dictated the standards of luxury, today you have a range of world class design and interiors choices if you can’t afford a brand or if the branded houses don’t match your sensibility. Throw pastel shades on the walls, design a titanic book shelf, remove the doors of your kitchen, go for a custom-made bathroom, most of all, enjoy your space.

Source: Times of India Chennai, Magicbricks com Bureau

Bloomberg TV India’s new show to track real estate sector

Stocks of real estate developers in India soared when Finance Minister Arun Jaitley promised to provide incentives for the real estate investment trusts (REIT). But how much of the sentiment is truly reflected on ground? Bloomberg TV India prepares to answer with its new show Tracking the Recovery-Real Estate. The series will begin from 27 August at 8:30 pm.

Bloomberg TV India executive editor Mini Menon says that with a new decisive government taking charge the real estate sector is showing early signs of revival. But the highs of the stock market alone do not guarantee that the problem will be completely solved.
“Through the five part series, we will be analysing the overall trends, challenges and triggers the real estate segment is facing. Industry honchos and experts are demanding a regulation of the sector to control the growth of illegal structures and a single window clearance for upcoming projects,” says Menon who will be anchoring the show. It will also rank India’s most successful real estate firms.

Menon provides an example informing that over three lakh units are lying vacant in the NCR region alone including projects that have been caught up in a bind due to clearance issues.

JLL chairman and country head Anuj Puri said, “The key to the recovery lies in the Government’s commitment to re-establish the country as an economic force and boost consumer and investor confidence.”

The show will initially target high investment areas like NCR, Chandigarh, and Lucknow followed by Greater Noida, Mumbai and then the southern markets.

The show is being promoted via twitter, with an average four to five issues and fact based tweets every day. Videos pertaining to the show are being uploaded on Facebook. On the channel, teaser promos have been running two weeks prior to the launch. Now, closer to the launch, a series of impactful data led promos are being aired. The channel is releasing print ads in all editions of newspapers Mint and Business Standard. The show is also being promoted via radio spots on Big FM Mumbai and Delhi stations and through a series of e-mailers.

Menon adds that industry experts, members of CREDAI, research analysts will be a part of the panel to be held in Mumbai and Delhi. The target audience for the show will not just be Bloomberg TV India viewers, but also investors from segments like banking, steel, roads, cement who are a part of the real estate domain.

 

Source: Indian television.com

Parking spaces are not to be sold as separate entities or charged extra

Street View Velachery Tansi NagarParking spaces are not to be sold as separate entities or charged extra for. Yet, nearly 90 per cent home buyers pay extra for a parking space in their residential complex, says a recent Magicbricks poll!

The Supreme Court had passed a judgment in September 2012 which stated that “open-to-sky” areas or “stilted” (covered) portions of flat complexes, usable as parking spaces, cannot be sold separately by builders/promoters/developers as “garage”. These spaces are part of the “common areas” in flat complexes and not “saleable independently as a flat or along with a flat”.

This clearly indicates that parking spaces are not to be paid extra for. However, home buyers across the country seem to be unaware about this norm. As per a recent poll conducted by Magicbricks, nearly 90 per cent home buyers have paid extra for their parking spaces. This reflects either a high level of ignorance or unawareness on the part of buyers or lack of choices as developers also find a way to duck this norm.

Several Magicbricks users have also raised a concern about parking spaces on Open House-the discussion forum on Magicbricks. For instance, Santhosh Kumar from Chennai asked. “Do we need to pay an additional amount for the car park and can the builder sell the car park to an external buyer when I own the UDS on the land area?

Answering his question, Asha Basu, managing partner, S Jalan and Co says, “One should always remember that parking spaces cannot be charged extra. Further, these are not to be sold or rented to an outsider.

Shveta Jain, Executive Director, Residential Services, Cushman & Wakefield says, “It is a common practice for developers to charge extra for parking spaces, particularly in cities such as Mumbai where there is a space crunch. The price of an apartment is fixed on the basis of the built-up area and parking spaces are part of this built-up area. Thus, it is not justified to charge extra for it.”

Why then are developers indulging in such practices and why are buyers obliging? “Well, let me take the case of Mumbai. Parking spaces are considered a premium due to the space crunch in the city. Thus, buyers who have money do not mind paying an additional amount to own one,” adds Jain

In fact, several sale deeds mention it as mandatory to buy a parking space with the apartment or in some cases two parking lots in case the ticket size is large.

Practices such as these make us realise the importance of a regulator in the real estate sector. The first steps towards this have already been taken with the formation of the FAOA (Federation of Apartment Owners’ Association). However, more stringent rules and execution of the same is required to safeguard the interest of the buyers in the long run. Let us hope that with the Regulatory Bill becoming a reality, such issues would be taken care of. Till then, as buyers, let us all be more aware and careful!

Source: Times of India / Magicbricks.com Bureau

Patta books for Apartment complexes in Chennai

Step will ensure interaction between police, residents; banks, ATMs are currently covered

Chennai City Police has extended the Beat book system (commonly known as patta book) to residential complexes in a step towards reaching out to communities. The system enables better interaction with residents as a beat officer will visit the location on a daily basis and record his signature following preliminary checks of the premises.

Terming it an experimental effort, Commissioner of Police S. George told media persons on Thursday that the initiative will bring people closer to police personnel of their respective jurisdiction and in turn, enhance law and order enforcement and crime prevention. “The beat patrol policemen on motorcycles will establish contact with primarily people in residential complexes, educational institutions, hotels and other business establishments. The existing patta book system covers over 10 spots under a police station while the new system will cover nearly 90 locations,” Mr. George added.

Earlier, the patta Book system covered only banks, ATM kiosks and other vital establishments in the city.

Residents or resident associations requiring a police patta book maintained on their premises can contact their respective police stations with a written request.

The application will be scrutinized and a patta book will be placed to record daily or frequent visits to the given spot, police sources added.

Realty to race ahead with Metro Rail in Chennai

Chennai Metro Rail is bound to transform the commuting experience of citizens and have a significant impact on the realty sector.

A bird’s eye view of the Chennai Metro Rail project is simply breathtaking. The elevated tracks snake through densely populated areas of the city — all the way from the north to the south and passing through its central business district and along its principal corridors of Anna Salai, Poonamallee High Road and Inner Ring Road.

The biggest and most ambitious infrastructure project in the city till date, Metro Rail is bound to transform the commuting experience of citizens and have a significant impact on the realty sector. Market observers and leading players in the construction industry are optimistic that the project will primarily help people living in the suburbs and employed in offices in the Central Business District (CBD).

Secondly, it will encourage people to look for residential projects in the suburbs as the Metro promises a comfortable and a quick journey very close to their offices. The project will also help find buyers for unsold office and retail space. “The Metro project will bring stability and have a positive impact on the construction industry. Social infrastructure – basic amenities in the suburbs that are linked after the metro – will improve,” says A.S. Sivaramakrishan, Head, India Residential, CBRE.

“People living in the city will prefer to move out of the city to escape from the congestion and it will be a big boon to areas waiting for improved connectivity to boost their housing potential,” observes Dinesh Ethiraj, Director, Green Tree Homes. The project is also expected to change the profile of Anna Salai and result in the stretch regaining its ‘lost glory’ in retail and shopping space.

“Till about a decade ago, ‘high street shopping’ was an integral part of Anna Salai, but it later moved to interior areas, apart from south Chennai and offices also moved elsewhere. The Metro Rail will help bring about a turnaround in the case of Anna Salai,” points out Sanjay Chugh, Head, Residential Services, Chennai, Jones Lang LaSalle.

“Metro planners must look at a way to serve new suburbs by connecting Sriperumbudur and Kundrathur among other areas. Plans to link the Metro with MRTS, suburban services, the proposed Monorail, MTC and small bus services bus will address the traffic woes of commuters and extend longer connectivity,” notes Sundarji Nandagopal, Creative Editor, Clear Estate.

Keywords: Chennai Metro Rail project, Chennai Metro, Chennai real estate prices
Source: The Hindu ‪#‎Chennai‬

Smart ways of quickly improving India’s existing urban centres

Indian Prime Minister Modi’s vision of creating a 100 new smart cities may be a great idea, but new cities take generations (not only decades) to populate and become important urban centers.

There are other smart ways of quickly improving India’s existing urban centres and towns.

As land is a state subject in our Constitution, laws concerning urban development are state laws, as are city planning and municipal laws. The legal regime concerning urban development does not have the advantage of policy making at the Central level – nor has enough thought been given to how our existing cities should grow, how the rural areas around them should convert to urban areas, how the two could co-exist, how towns are to work as viable financial units and how professional knowledge should be used to guide cities to develop as healthy communities.

Coupled with this basic constitutional flaw is the fact that land is an emotive subject in India. Being a democracy adds on other dimensions. Over populated as India is, no one wants to give away land which has been handed down through generations. Building new cities on barren land is also no solution–water, power, transport linkages and other necessary infrastructure is hard and costly to come by.

Perhaps the way to go is to correct the malaises in the existing cities. Firstly, we need urban planning laws and processes which are not based purely on political compulsions (though politics cannot be wished away), and which follow professionally tested systems of urban and municipal planning.

Such systems allow local communities to decide on issues of local area planning, while creating zoning and planning regulations at the town/ city level without interference from the local wards, as also creating city level plans for transportation, infrastructure etc. Zoning plans, land use plans and other such data should be digitally available for all to see.

Secondly, the systems for collecting municipal taxes need to be rationalised and instituted in each town, combined with how the funds collected are to be utilised judiciously.

At present, no system for collecting municipal taxes, nor for proper fiscal management exist even in our district level towns. These are essential, both to garner funds, as well as to instil a feeling of ownership in the urban citizen.

Municipal governance systems need drastic changes. Technology needs to be harnessed to bring in more transparency in municipal affairs; urban land records need to be digitised; sales and purchase of urban land needs a transparent urban record and registration system– involving reforms in the Acts governing registration of documents and assurances; fiscal models for various municipal functions like waste management need to be created, tested and then institutionalised.

While it was the intent of the JNNURM to reform such processes and systems, the Mission has not achieved its desired objectives. This is perhaps because its allocated funds were used mainly for actual project implementation (sewer lines, waste management systems, flyovers etc), and not for building institutions which would then further find ways to implement needed projects.

In many ways, the JNNURM ended up as an implement through which the central government would dole out funds to about 63 originally listed cities. Very little was done to change city systems – be they administration or planning or execution.

How rural areas are to seamlessly be absorbed into the city/urban fabric is another area of pending work. While the revenue lands of the villages get converted to urban conglomerates, the original villages are almost never transformed into the city fabric.

The result is that every odd kilometre of every new city/old city extension, we have a village which grows into a local slum within a decade of its land being made urban. The urban planners need to work with administrative experts to find ways to merge the rural into the urban fabric. This has been one of the crying needs of the last few decades.

Another area of work is to examine how the PPP models of the last three decades have worked and how they need to be improved through legislative action and new laws. The transition of city building by the government (as it was till the 1980s), to that of the private sector building urban areas has had its fill of blunders.

These need urgent fixing – laws to protect both consumers and developers need to be enacted. Systems to regulate how professionals shall deliver services need regulation as well.

Seeking the Singaporean model is not going to work. Singapore, as is true of all city states, was a dictatorship during the decades it developed– India is a democracy. Land in Singapore is state owned. In India, it is owned by individuals even though land is not a fundamental right in the constitution. The recently enacted new Land Acquisition Act recognises the duties of the state to rehabilitate citizens who are displaced.

Perhaps the faster way to solve the issues concerning our urban messes is to look for 100 smart ways to cure the existing malaises; while, at the same time, dreaming about future new cities.

Sudhir Vohra, architect and urban planner

Source Times of India Real Estate

Tamil Nadu’s plans to establish satellite towns may get fresh lease of life

Chennai

The union government’s decision to financially assist the states to set up smart cities is expected to give a fresh lease of life to Tamil Nadu’s efforts to establish a satellite township on the outskirts of Chennai, at Thirumazhisai in Tiruvallur district. The central government’s plan is to develop new satellite towns around larger cities and modernise existing mid-sized cities with better infrastructure. A senior of ficial in the housing ministry said the state government had not pitched for promoting any particular area under the central scheme so far.

“However, projects like the Thirumazhisai satellite township, would qualify for the same,“ said the official. The satellite township project at Thirumazhisai, announced three years ago, is stuck owing to opposition from farmers, who have been asking for higher compensation for the land acquired from them. Some are totally opposed to giving up agricultural land for other activities. Though the government has acquired more than 300 acres out of the 311 acres required for the project, farmers have taken back much of this land and have started cultivation there. Many have moved to courts and what is left with the government is only 138 acres.

Meanwhile, the state government, said Anna University had been engaged to prepare an infrastructure design for an approach road to the township. The Tamil Nadu Housing Board has allocated Rs 9.52 crores for the initial land preparation. Ponneri in north Chennai, will also be developed as a township as the central government has announced that it will be promoted as an industrial smart city . The proposed industrial corridor connecting Chennai and Chitradurga via Bangalore cuts across Ponneri.

Chairman and country head of JLL India, Anuj Puri, said creation of smart cities, for which the union government has allocated Rs 7,060 crores, would have positive implications for real estate across all segments residential, commercial, retail and hospitality . “Smart cities, by definition, imply considerable demand for technology-enabled services, and this is a big positive for IT/ITeS companies in India. Significantly, as much as one-third of the country’s demand for office space emanates from this sector,“ Puri said.

Source: Times Property, The Times of India, Chennai

Stronger Economy, Political Changes Have Foreigners Returning After Financial Crisis – India Is Luring Real-Estate Investors Again

India Is Luring Real-Estate Investors Again
Stronger Economy, Political Changes Have Foreigners Returning After Financial Crisis

Backers of the Palava community outside Mumbai, say overseas investors aren’t needed now. Atul Loke for The Wall Street Journal
MUMBAI—Encouraged by India’s strengthening economy and the pro-business agenda of Prime Minister Narendra Modi, foreign investors have begun to return to the India real-estate market after fleeing the country in the wake of the financial crisis.

But with memories of past losses still vivid, both domestic developers and foreign investors are taking different approaches to doing business.

Some developers, such as Mumbai’s Lodha Developers Ltd., say they are more financially self-sufficient and don’t need foreign partners at the moment.

“It’s a question of the maturity of the business,” said Abhishek Lodha, managing director of Lodha and son of the company’s founder. The firm is constructing what it says will be India’s tallest residential tower in Mumbai. It is also building a master-planned city named Palava just outside Mumbai that will cost more than 140 billion rupees ($2.3 billion) to construct.

Meanwhile, international heavyweights like Morgan Stanley MS +0.69% and Blackstone Group BX +0.66% LP, sovereign funds and other investors have become more choosy about with whom they will invest and are including more safeguards in their deals.

For example, it has become more common for them to invest through debt instruments that may include covenants requiring borrowers to get permission from the investors before spending a large amount of money.

“Investors are going to be a lot more cautious this time around,” said M.K. Sinha, chief executive at Mumbai-based IDFC Alternatives, 532659.BY -3.35% which plans to raise a $300 million-to-$500 million fund from foreigners and others to invest in Indian residential real estate.

Foreign investors flocked to India after the government passed new laws in 2005 greatly reducing restrictions on foreigners investing in real estate. From 2006 to 2008, private-equity funds and other investors pumped more than $15 billion into Indian property, according to data from Venture Intelligence. Sometimes investments were made directly into real-estate companies.

Many of the partnerships formed among foreign investors and Indian developers soured with the postcrisis decline of apartment and office sales and the wilting of the initial-public-offering market—both things foreign investors were depending on as part of their exit strategies. A number of partnerships dissolved into legal battles, and many international firms shut their India real-estate businesses.

“I’m kind of thrilled they left,” Sam Zell, who made his first and only investment in India in 2011, said in an interview. “For the first time in a long time, the Indian market is much closer to being balanced.”

Residents of the $2.3 billion planned community known as Palava, outside Mumbai, can take swings on its own nine-hole golf course. Atul Loke for The Wall Street Journal
Private-equity and other investors have put $675 million into Indian real estate in the first half of this year, more than double the investments made during the first half of 2013, according to data from Cushman & Wakefield. That is the most investment in the first half of a year since 2009, says the firm.

Today, developers and foreign investors believe the real-estate sector in India is poised for a turnaround. They expect Mr. Modi’s government to undertake much-needed reforms that will help boost the economy, creating spending power for buyers and ultimately demand for both residential and commercial real estate.

Active foreign players include private-equity giant Blackstone Group LP, which has become one of the country’s biggest office landlords. Earlier this year, the $174 billion Canada Pension Plan Investment Board said it had reached a deal with Piramal Enterprises Ltd. 500302.BY -0.59% , an Indian conglomerate, to finance residential projects.

In May, a consortium of investors led by Dutch pension-fund asset-manager APG Asset Management NV said it was working with investment firm Xander Group Inc. to invest $300 million in income-generating commercial properties in India.

In June, Canada’s Brookfield Asset Management Inc. BAM.A.T +0.31% launched a bid of $580 million to buy a portfolio of office properties called Unitech Corporate Parks, UCP.LN +0.48% comprising approximately 17 million square feet of existing space and development projects in India.

Bruce Flatt, chief executive of Brookfield, said in a shareholder letter in May that India, along with Brazil and China, looks attractive because the economic slowdown has led to better values for assets. “These markets offer us opportunities which have generally not been available to us before,” said Mr. Flatt.

Children play outside a building in Palava, on the outskirts of Mumbai, India. Lodha Development is building the master-planned city that will cost more than 140 billion rupees ($2.3 billion) to construct. Atul Loke for The Wall Street Journal
International firms that have stayed in India through the downturn, including Morgan Stanley, Blackstone, Walton Street India Real Estate Advisors Pvt., which is an affiliate of Chicago-based Walton Street Capital LLC, and Houston developer Hines, are looking to make fresh investments in India.

“We’re now getting more aggressive in the market,” said Yash Gupta, India head for Houston-based Hines, which expects to make its first investment since 2008 in the next few months.

Mr. Modi’s administration has already scored points with the real-estate and business community by taking a step toward creating a market for real-estate investment trusts, which will help provide an exit avenue for investors in commercial real estate.

“I wouldn’t say the tide has completely turned,” said Sanjay Verma, chief executive of Cushman & Wakefield’s Asia-Pacific division. “But we’re seeing a revival.”

Foreign investors, however, are finding a different landscape from the one that existed few years ago. Developers are less hungry for foreign investment, especially those who own large pieces of land and simply need to build residential projects on them. They can typically fund their developments with property presales and, if needed, by using construction finance, which is available from state-run banks at annual interest rates of 13% to 14%. In comparison, structured debt from institutional investors costs more than 20%.

For example, nearly a decade ago, Lodha was one of the many small development companies that soaked up the first wave of foreign investment in Indian real estate. Lodha executives say the company’s sales now generate so much cash that foreign investors aren’t as critical as they once were. Last year, Lodha delivered 8,500 homes and had sales of 85 billion rupees, compared with about 10 billion rupees in annual sales a decade ago, according to Mr. Lodha, the managing director.

Lodha and other healthy businesses in India “are very comfortable without taking on a lot of external capital, whether foreign or Indian,” Mr. Lodha said.

Source: Wall Street Journal

Chennai Besant Nagar Values rise by 46% in a year

Besant Nagar, one of the premium addresses to own a house in Chennai, has witnessed a rise of 46 per cent in capital values in the last one year, according to the data with Magicbricks. For instance, a 3BHK apartment in the locality measuring 1400-sq-ft area, which was priced at about Rs 1.4 crore in 2013, is now available for approximately Rs 2 crore. Limited supply in the area has made sure that the property prices don’t fall.

“Even with re-development happening in the locality, there are very few new properties that come on sale. If 10 apartments are being re-developed, eight will go to the original owners and only two will be added as new inventory. This has limited the supply in the locality thereby increasing the property prices,” says Ravi Shankar of E2E Solutions, a broker firm active in the area.

Besant Nagar was developed by the Tamil Nadu Housing Board way back in the 1970. The apartments built at that time were divided into three types – LIG (Low Income Group), MIG (Middle Income Group) and HIG (High Income Group). In the late 90s and early 2000, re-development of these apartments by private developers started, which is still happening.


Besides the limited supply, the continued interest of high net worth buyers in the locality is another reason for high property prices. Proximity to the popular Elliot’s beach has also played a significant role in making this area aspirational. “The upper-middle and higher income group is attracted to this locality because of greenery, less traffic and the beach,” says Shankar.

“Santome and Thiruvanmiyur are two neighboring localities that also have access to the beach, but those beaches are more congested, while the Elliot’s is comparatively less crowded and clean,” says Muthu P of Lakshmi Realty, a broker firm.

“In Thiruvanmiyur, there are slums close to the beach while the Adyar creek doesn’t give you the beach effect and hence Besant Nagar becomes the only locality that is also close to the city,” says Muthu P.

“Most of the buyers of these expensive properties want a sea-facing apartment and are ready to pay more for it. The buyers include businessmen, top governmental officials and senior professionals,” says Shankar.

Of late, some of the developers have started converting top floors of apartment buildings to pent houses, which are even more expensive than the floors below.

What’s available?

Currently with the capital values ranging from Rs 13,000-16,850 per sq ft, the area falls in the list of the expensive localities of Chennai. A 3BHK unit, also the most supplied BHK configuration, is priced between Rs 2-3 crore with size varying from 1400-2300 sq ft.

A 2BHK apartment having 650-1100 sq ft covered area is priced between Rs 90 lakh to Rs 1.5 crore. Majority of them are re-sale properties, according to the data with Magicbricks.

Source: Times of India Chennai Magic Bricks