Are the investors finally hitting the Chennai market?

Is Chennai, a traditionally end user driven market, gradually garnering interest of the investors? Let’s find out!

As per the Housing Sentiment Index Report, jointly evolved by Magicbricks and IIM-Bangalore, investor sentiments in Chennai are quite high. Investors in the city, though less in number as compared to the actual buyers, seem to be more optimistic about the property market than those planning to purchase property for end use.

As per the report, the HSI (Housing Sentiment Index) for those planning to buy a property as an investment stood at 124 during the Jan-Mar 2014 quarter. This is was in contrast to the HSI of 111 recorded for end users.

Does this mean investors have finally accepted Chennai as a destination worth parking their money in? Has it finally caught the fancy of the investors? Well, let’s find out.

There are three kinds of investors in the Chennai market today, informs S Ramakrishnan, director, Harmony Homes. “A large number of buyers in the market today who are buying for investment purpose consist of second and third home buyers. These are not hardcore speculators, but those who have money and want to park it safely. It helps that the suburbs of the city are offering ample options to these buyers at reasonable rates,” he says.

The fact that rental yield in the city has been increasing consistently also acts as an additional impetus to those buying a second home. As per PropIndex, during the Jan-Mar 2014 quarter the gross rental yield in different localities in Chennai varied from 2.04 to 4.35 per cent. This was an improvement over the range recorded in the previous quarter at 2.28 to 3.81 per cent. In fact, gross rental returns are the highest in locations that are eyed by these second home buyers, such as OMR and Shollinganallur.

NRIs are also showing a keen interest in the market. “NRIs may not be very keen on earning rental returns from their investments but look for capital appreciation in the long run,” adds Ramakrishnan.

It is probably these investors who have pushed up the sentiment index. Actual speculators in the market are still very few. Nonetheless, as Chennai is considered to be a safer real estate investment than many other cities, investors are slowly showing interest. However, Chennai still cannot be considered a conventional investor destination. But surely the seeds have been sown for the same.

Source: Magicbricks.com Bureau/Timesofindia

In Chennai the demand for plots continues to grow

With the Candy GPS Report identifying Chennai as one of the 12 cities around the globe with the potential to show strong residential property price growth in the next few years, land developers are bullish about their projects. However, the residential segment is finding the going tough at present due to a combination of factors.

Demand for vacant plots, however, continues to grow across micro markets though liquidity crunch has impacted the tempo of investment. Smaller to medium range investments in the price range of Rs 7 lakh – Rs 12 lakh are now consistently pushing the land developers to continue to undertake development.

Depending on the affordability level and the price segment, demand varies in the city. For instance, areas, such as Wallajabad and Achirapakkam are hot spots for those who are looking to invest in the price range of Rs 7 lakh – Rs 8 lakh. Whereas, those who can afford Rs 12 lakh and above, areas like Oragadam, Sriperumbudur and Sunguvarchathiram are the favourite locations with multiple options.

The demand for plots predominantly driven by salaried classes has been steadily growing due to scarcity of land for development in the city, rigid development control rules throttling the land development and conversion of land for housing purposes taking a prolonged time. Lack of clarity in title deed, legal issues and prohibitive cost are major factors that deterred availability of land for development in the metro.

Over 10 organised developers are catering to this segment across micro markets in Chennai besides several unorganised players operating in the market.

However, with the government creating awareness through their website and displaying approval details for plotted development projects in and around the city, today’s investors are cautious to opt for only DTCP approved plots and those that are offered with the provision to avail of plot loans. This provides a cushion to investors as the lending institutions do the due diligence exercise before offering plot loans to the borrowers.

Moreover, plot loan is available only on the guideline value of the property and not on the market value of the property. This necessitates a higher upfront investment from the investors while opting for plot loans.

Source: Times of India

Top 12 realty investment destinations -Chennai in list

Chennai in list of top 12 realty investment destinations

Strong English speaking skills and a wide mix of industries that promotes cross pollination of work culture has made Chennai one of the top 12 cities in the world for real estate investments. This is the first global recognition the city has received; it is also the lone Indian city on the list.

The Candy GPS Report, published on Friday, identifies 12 cities around the globe with the potential to show strong residential property price growth in the next few years. The report — produced by Candy & Candy, Savills World Research and Deutsche Asset & Wealth Management — said, “Prices in these rising cities are generally much lower than in the world cities, which make them more accessible and attractive to yield seeking real estate investors.” The list ranges from well established cities such as Melbourne, Australia, to centres in developing economies such as Jakarta and Chennai, that have a high number of ultra-high-net-worth residents, it said. Read more

List of ‘green buildings’ countries outside US -India is Third

India 3rd on list of ‘green buildings’ countries outside US

India has been ranked third on the list of top 10 countries in leadership in energy and environmental design outside America, according to the latest US Green Building Council report.

Canada followed by China occupy the top two slots in the ranking of the top 10 countries for Leadership in Energy and Environmental Design (LEED) outside the US.

The report said the list demonstrates the global reach of the movement that is transforming the building environment into healthy, high-performing structures that benefit the planet and its people.

From India ITC Maurya Hotel in New Delhi, built in 1977, Platinum under LEED, was notably mentioned in the report.  Read more

Chennai Ambattur Affordable rental options

Affordable rental options in Ambattur

 

Are you looking to rent a property in North Chennai? Do you have a limited budget? If your answer to both these questions is ‘yes’, then Ambattur could be the end of your property search. Developed as a suburb in the North, Ambattur offers several properties for lease within Rs 10,000 per month.

As per the data with Magicbricks, within a budget of Rs 7,000-10,000 per month, home seekers can get semi-furnished 2BHK apartments of sizes ranging from 800-1200 sq ft. Unfurnished, 1BHK apartments can be rented within Rs 7,000 per month. Offering properties at such reasonable values, Ambattur is sought by several middle-income home seekers.

The locality not only offers properties at an affordable price but also at prices lower than its nearby localities such as Anna Nagar and Mogappair. In Anna Nagar, a 1000 sq ft unfurnished apartment is rented for below Rs 15,000 per month. Similarly. in Mogappair, a minimum of Rs 14,000 per month is needed for an apartment of this size. “Ambattur is an economically viable option for renting properties in North Chennai,” says a resident of the locality and a user on Magicbricks. Read more

Chromepet real estate offers ample new developments

Are you considering buying a home within the modest budget of Rs 25-40 lakh? Then, Chromepet can be considered as your choice of location. Situated in South Chennai, Chromepet is one of the areas of the city, which offers ample new developments coming up in this budget range.

If you are thinking why Chromepet, then take this. The location has made its way into the list of top 10 preferred localities for buying home by PropIndex (Jan-Mar 2014), the quarterly India Apartment Index published quarterly by Magicbricks. Local realtors attribute this rising preference for Chromepet to the enhanced connectivity to other parts of the city.

“Chromepet gained preference because of its centralised placement. As the highway has opened up, it has improved the housing demand here. IT professionals employed in Thoraipakkam and OMR have generated maximum demand,” says Venu Krishan, a local broker in the area.

As per Magicbricks’ listings, the majority of the housing units in Chromepet are 2BHK, followed by 3BHKs. The locality offers 2BHK flat at the starting price of Rs 27 lakh, whereas a 3BHK flat is available for Rs 40 lakh. Majority of the units are in ready-to-move-in category that acts as an advantage to the location.

“Since the time the water issues have been sorted out, the residential demand has started pouring in again,” says Senthil Kumar, owner, VL Dreams.

The connectivity between Chromepet and Old Mahabalipuram Road (OMR) has improved since the time State Highway 109 or Pallavaram-Throraipakkam Road went operational. Apart from this, the area is one of the stops on NH-45 which connects the main areas of Chennai, such as Guindy and Nungambakkam with Chromepet.

Apart from this, Chromepet is also close to Chennai international airport which is just 4km away from the place. Moreover, Chromepet also has a railway station of its own that enhances its accessibility to the important areas of the city, such as Chetpet, Nungambakkam, Kodambakkam, Mambalam, Guindy, Pazhavanthangal, Meenambakkam and Trisulum.

Talking about infrastructure, Chromepet boasts about numerous townships that have well-built roads and basic amenities. The area also has leading schools and colleges in close proximity that makes living convenient for the residents.

Hence, if you want to stay close to the airport and also near your office at OMR, Chromepet can be a decent location to invest in.

Source: Time of India / Magic Bricks

 

House for every family by 2022 – New Government Target

If the Narendra Modi government meets its ambitious housing target, by 2022, when independent India celebrates its 75th Independence Day, every Indian family should have a house of its own. To this end urban and rural India initiatives are being framed even before the new government takes charge. The numbers are mind blowing – 20 million in urban India and 45 million housing units in rural India – and creating an enabling framework  for  participatory action from public, private , community and individual sectors. Read more

Thanjavur farmers’ woes – Realtors strike gold

M Chandrabalan of Kabisthalam in Thanjavur district is in distress. He is desperately awaiting a prospective buyer for his eight-acre farm, which was being used for cultivation of paddy, banana and sugarcane crop till a few years back. “My land is up for sale. There is no water, power or labour to raise the crop. Why keep it idle,” he said, summing up his angst and that of other farmers in the region.

Property deals are on the rise in Tamil Nadu’s rice bowl, the Thanjavur region, comprising Tiruvarur and Nagapattinam. Latest data compiled by the registration department indicated that barring Thanjavur (6.07%) and Chennai (5.75%), the state has seen a fall in property deals by 1.38% compared to last year. Chennai comprises Kancheepuram and Tiruvallur districts as well.

Poor monsoon, coupled with rising costs of essential commodities, resulted in huge parcels of agricultural land being put up for sale in the delta region. “It is a distress sale to meet the domestic expenses rather than a spurt in real estate activity,” said Sundara Vimalnathan, secretary, Cauvery Farmers’ Protection Association, Thanjavur. While farmers of Thirukattupall-Thiruvaiyaru belt feel it is shameful to sell what they term ‘family treasure’, the farmers of Nagapattinam could not bear to see the dry patches of their land anymore.

Officials said the distress was evident at grievance redressal meetings in the district collectorates, where farmers cited lack of water supply from Mettur reservoir for selling prime land. The worsening power crisis has also taken a toll on agriculture. “Erratic power supply has hit us badly,” said M Balasundaram, a farmer from Thiruthuraipoondi. A drive down State Highway 23, between Tiruvarur and Thiruthuraipoondi, shows huge foundation pillars marring the pastoral beauty of the region, giving enough indication of the real estate activity.

In Chennai, the southern suburbs and Chengalpet see overwhelming response from buyers. “Layouts in Madurantakam , Sriperumbudur, Uthiramerur and Thiruporur sell like hot cakes,” sources in the registration office said.

In all, 26.53 lakh properties have been registered last year, fetching 8,056 crore for the state exchequer, which is 600 crore more than last year.

Source: The Times of India, Chennai

Real estate sector looks hopeful after Lok Sabha Results

With the 2014 Lok Sabha election results declared and Narendra Modi-led NDA coalition heading towards forming the government at the centre with formidable majority, the real estate industry is looking forward to stability and growth for the sector.

The new government formation has brought hope for the industry experts, who are now expecting revival of the real estate sector with economic reforms and policy revivals. They are expecting that the new government will bring in regulatory bill, industry status and necessary policy changes that have been held for long. Magicbricks brings in what the industry expects from the new government. Read more

India has won! Good days ahead: Modi

  • NO GENERATION GAP: Narendra Modi with his mother Hiraben and other family members at her residence in Gandhinagar today. Photo: Vivek Bendre
    NO GENERATION GAP: Narendra Modi with his mother Hiraben and other family members at her residence in Gandhinagar today.

“India has won! Good days are ahead,” BJP’s prime ministerial candidate Narendra Modi said on Friday in his first reaction to the poll trends that indicate an impending BJP victory in the Lok Sabha polls.

“India has won! Bharat ki Vijay. Ache din ane wale hai (good days are ahead),” Mr. Modi, who is all set to become prime minister, tweeted.

Mr. Modi later met his mother to seek her blessings.

In initial trends, BJP alone was leading in 275 seats — its best ever tally in Lok Sabha polls, while the NDA is set to cross the 300-mark. The earlier best by BJP was 182 seats in the 1999 Lok Sabha polls when the party formed its government led by Atal Behari Vajpayee.

Top BJP leaders including L.K. Advani and Rajnath Singh congratulated Mr. Modi for the party’s electoral victory.

Buoyed by the party’s stellar performance, celebrations started at the party’s Delhi headquarters right from the time initial trends started trickling in and workers and leaders danced to the beats of ‘dhols’ and distributed sweets.

Mr. Modi, who is contesting from Vadodra and Varanasi was leading at both the places. While he was leading with a hefty margin of over 5.6 lakh votes in Vadodra, in Varanasi he was leading by over one lakh votes.

Source: Chennai Hindu