Chennai
With a decrease in large land pockets for construction, developers are now targeting smaller plots for re-development.
Parts of some of the older residential localities like Triplicane, Mylapore and Saidapet have recently seen developers constructing builder floor apartments on medium and small plots.
Due to the decrease of large land pockets for construction, mid-segment developers, who are planning to enter the above Rs 70 lakh segment, are now targeting smaller plots for re-development that previously housed several small tenements.
Take the case of Srinivasan N, a retired school teacher, who owns an ancestral property in Mylapore, a 40×50 square feet plot. The site housed an old building which had several tenants who gave him a nominal rent. His monthly income used to add up to Rs 50,000, an additional source of income for him and his wife, who otherwise would have been forced to subsist on the teacher’s pension that he was entitled to.
Today, developers are bidding for this plot to convert it into a no-frills apartment complex promising him ownership of two 2BHK units in addition to cash for the property. The apartments are expected to have all modern facilities be airy, well-lit, contain basement parking facilities, 24 hour power back-up and even a tie-up with a tanker company to ensure regular water supply. The site is expected to have four floors as per the current building plans.
“We have been made an offer by a well-known local developer to sell our property for Rs 7 crore with an additional two apartments from the complex, over and above this amount,” states a visibly excited yet cautious Srinivasan.
“This is good news, as it will help us live in more comfort than we could ever imagine. We only need to get a reliable builder who will give us a rent free place to stay till the construction is completed and stick by the signed agreement.”
The upcoming expressway, planned connectivity through the Metro and established commercial and retail developments have already made these areas self-sufficient.
“Several of these areas fall under the purview of the development authorities and hence, have planned and relatively broad roads and excellent connectivity to the city centre and even the suburbs, by train,” says Krishna Arusuvan, CEO, KA Developers & Real Estate Consultant, a company that provides property consultancy services in Chennai, Madurai and Coimbatore.
Industry watchers view the mushrooming of these builder floor apartments as more than a logical extension sprung out of sheer necessity of large land pockets within the city.
“As these old localities are close to the central developed areas of the city, professionals, sionals, especially IT personnel, prefer to stay here. The prices of these re-developed new apartments are generally in the price range of Rs 70-90 lakh, for a small, no frills apartment of about 1250 square feet area,” says Arun John, proprietor, AJ Realty Agents, a former IT professional himself, who has tied up with several of these small developers to market these apartments.
John goes on to explain the drive behind this trend, “Not all IT professionals can afford the Rs 1 crore and above offerings. This trend of developing smaller, no-frills, compact apartments at affordable price ranges addresses the requirement of the mid-segment, if developed in a 40×60 square feet plot. The smallest plots being developed, in some of these areas for instance, are former duplex homes set in a 30×50 square feet site. They come with basement parking, a security guard at the entrance, 24hour power back-up and at the most, a Wi-Fi connectivity thrown in at a price range of around Rs 60 lakh.”
So if you are living in an old home that your great grandfather built for his family, let go of your attachment and upgrade it.
Source – Sneha Sharon Mammen, Times Property, Magicbricks Bureau/ Chennai