Plot summary: Constructing your own house

Plot summary: Constructing your own house

Chennai

V S Rajasekaran talks about how buying a plot near Medavakkam in 1994 and building a house on it, has benefitted him.

While buyers today mostly have the option of apartments or villa to choose from, not many will have the luxury of choosing a plot to build their house upon. But for those who bought homes in Chennai a few decades back, they had the option of buying an empty land and constructing their house on it.

V S Rajasekaran, a government employee, is one among those who bought a plot. “I bought a 2,178 square feet of land near Medavakkam, in 1994. And in 1995, we constructed a 2-BHK house there and moved into it. We have been living there ever since,” he says. The fear of buying a plot or its encroachment always existed. Recounting this struggle, he further adds, “We ensured that the land came with proper patta (legal document for land ownership). Besides, we immediately started construction, which also helped. So, there was no fear.”

Having lived in Chintadripet, as a tenant in a rented house, he was glad to have moved into his own independent house. Medavakkam was far away from the bustle of the city. “It was considered a back of beyond area. There was just one bus-51H, which would ply between Saidapet and Tambaram, which would stop at a bus stop in Medavakkam. Travelling to other parts of the city was difficult. Thankfully, there are innumerable buses today, which help the residents here commute to many parts of Chennai. Also, there are good amenities that have come up in the area, like good hospitals, schools and shopping malls,” he says.

The plot and the construction together did not exceed Rs 3 lakh. Overall, he is glad to have made the investment.

Ranjitha G, Times Property, The Times of India, Chennai

Along the coast – ECR Chennai

Chennai

With a sound social infrastructure and residential development that fuels the growth of the commercial sector here, ECR is becoming a safe bet for homebuyers and corporate.

Once this area was considered the back of beyond. Severely lacking in infrastructure, and barely with any amenities, not many would have imagined buying a house in the locality. Today, East Coast Road, popularly abbreviated as ECR, has come a long way. Constructed along the scenic Bay of Bengal stretch, ECR cause of the area’s proximity to the coastline, were popular earlier, now other high-rise apartments are being developed in ECR,” says a Chennaibased realtor.

According to Magicbricks, the prices of multi-storey apartment in the area vary from ‘4,099 to ‘5,302 per sqft.

The average price of residential plot is ‘46,093 per sq yard. The residential houses will apis a popular hangout spot for the locals from the city and also foreigners who head here for fresh sea food and some good sea breeze.

It is known as the city’s entertainment and leisure hub and has also become one of the most sought-after residential localities. It is no longer just a weekend getaway that it was a couple of decades back. The neighbourhood has seen a steady transformation over the years. “This area was once a prominent weekend destination. But now, it is seeing an influx of people who want to relocate from the busier parts of the city to villas or high rise apartments here. While the sea facing villas, beproximately cost ‘8,768 per sqft.”

Shreya V, a corporate communication professional and a resident of ECR, says, “The real estate boom here is unbelievable. There are all kinds of property here, ranging from individual homes to studio apartments and spacious villas. The infrastructure has improved but it can become better. The social infrastructure here as also improved by leaps and bounds. The connectivity to this part of the area and also the roads here need to improve.” Thankfully, the proposal of widening of ECR road will now become a reality. The TN government is working on the six-lane road widening from Thiruvanmiyur to Akkarai in Injambakkam. Additionally, there is a project in the pipeline to lay a four-lane national highway on the ECR from Chennai to Kanyakumari.

The residential landscape in the area has indeed changed. “When it comes to luxury segment, on the outskirts of the city, ECR is a popular choice. The area has uninterrupted supply of electricity and does not have shortage of water. This is what has attracted homebuyers to invest here. Gated communities have come up here. For some, a house here becomes their weekend homes, especially if they have bought a house here despite having to live elsewhere. Other than that, there are plots available which a few homebuyers are keen on buying and building a house of their choice,” informs a developer.

East Coast Road is also an important road in the state that connects Chennai with Cuddalore through Puducherry. According to Tamil Nadu Road Development Company Ltd (TNRDC), “The road was formed in 1998 by interlinking and improving a series of small village roads that were connecting the fishing villages along the coast of Bay of Bengal.” ECR is an important road, and it also witnessed residential growth, and hence it was not surprising to see commercial growth in the area.

Prominent localities such as Neelankarai, Panathur, Injambakkam, Thiruvanmiyur, Palavakkam and Uthandi are preferred locations on the ECR. Developments along the ECR definitely offer opportunities for both buyers and developers.

Source: Times Property, The Times of India, Chennai

Affordable housing takes centrestage

Affordable housing takes centrestage

Affordable housing takes centrestage

Affordability, being a relative term, is difficult to determine for a city as dynamic as Bengaluru, says a Vestian report

Over the past one year, the effects of the triple reforms – demonetisation, RERA and GST – resulted in a deceleration of new property launches in Bengaluru. While it dampened market sentiment, it also brought about a fair balance to the market, making it surprisingly end-user friendly, says Vestian, in its half-yearly report on affordable housing titled ‘Real Estate Trends 2018: Bengaluru Residential Market’ .

Furthermore, the government’s ‘Housing for All by 2022’ initiative provided a boost to most developers who were deliberating their entry into the affordable housing segment. Another factor spurring developers to take up affordable housing was the granting of infrastructure status to the segment, thereby opening up a whole gamut of incentives including ease of getting bank loans and a host of tax rebates. Buoyed by the various tax benefits and incentives associated with these policies and schemes, affordable housing is finally on a serious growth curve.

Residential market

Majority of the housing demand observed in Bengaluru has always been in price range of 25 lakh to 60 lakh. While the lower value is considerably sparse, given the rising cost of land in and around the city, the upper range hovering around 45-60 lakh attracts a significant number of buyers. With 2017 proving to be a period of learning for industry stakeholders, the most potent opportunity as deduced by the developer community was pegged in the sub-60 lakh category.

As such, the first half of year 2018 (H1 2018, estimated till mid-June) saw the launch of 13,356 units in the sub-60 lakh category, as compared to just 8,240 units six months earlier, in the second half of 2017 (H2 2017). This depicted a whopping appreciation of 62% in H1 2018 over H2 2017, a significant change in tide.

Out of the total number of new launches, approximately 65% belonged to the ticket size category of sub-60 lakh. On the sales front, H1 2018, estimated till mid-June, saw 3,762 units sold, as compared to 2,183 units sold in H2 2017. Around 72% of the total units sold, of the new launches in H1 2018, were in the ticket size range of sub-60 lakh.

A word of caution

While all seems positive at the moment with demand picking up, some caution needs to be tended to. The government has provided enough policies and incentives to boost the sector but if not treaded with care the glut of relatively cheap housing might potentially create a bubble of artificial demand. The U.S. sub-prime crisis of 2008 serves as an important reminder as to what may go wrong.

Therefore, affordable housing should be treated primarily as a tool to improve the housing situation, rather than create a situation that may spiral out of control. Policy-makers, as much as individual investors, need to tread carefully in the segment.

Outlook

While affordable housing is considered more as a need-based acquisition, it has high prospects of becoming an attractive proposition to an investor as well. Growth corridors in Bengaluru such as Electronics City, Attibele and Chandapura in the south, Tumkur Road in the west, Budigere Cross in the east, and Doddaballapur Road and Devanahalli in the north, that presently offer more of affordable options could potentially become affluent markets in future and yield a substantial return on investment. Additionally, upcoming infrastructure in these peripheral regions portend well for their viability.

For Grade A developers in the city, the segment is no longer looked down upon but has turned into a strong and lucrative avenue for generating profits. Today, the segment holds the key to unlocking inventory, reducing the demand-supply gap and provide for a rewarding business proposition. Besides, the Centre’s recent move to increase the carpet area for residences eligible for interest subsidy under the Credit Linked Subsidy Scheme has come as a boon for the affordable housing sector. The new rule will cover many ongoing projects under the Prime Minister’s Awas Yojana and expand the market size.

Over the next 3-5 years, the momentum for sub-60 lakh housing in Bengaluru is expected to gain ground at a rapid pace, thereby benefiting the long-neglected end-user of affordable housing, as well as work for the betterment of the economy.

With transparency setting in on the industry, on account of the recent reforms, affordable housing is projected to become one of the principal demand drivers of real estate in the near future.

Source : The Hindu