Weekly Newsletter on Real Estate in Chennai Chennai Realty May 2011 www.chennairealty.biz Vol. 1 : Issue 3 People Power Available in Stands from June 2011 Chennai’s Exclusive Real Estate Magazine Chennai likely to get 2nd airport The recent election results have once again demonstrated the depth of democratic values and ethos that India has come to be known for. I feel particularly proud to be a Tamilian today. When the entire country was watching in bated breath whether power and money could win elections in Tamil Nadu, the informed Tamil electorate has proved that they cannot be bought over by money or subdued by power. Had it gone the other way, it would have set an extremely bad precedent for political parties in other States to follow. For political parties, the results stand as a testimony that only good governance and welfare of all will matter in the long run and not just freebies. Let’s pray and hope the public continues to act as informed vigilantes in times to come. This reaffirms our faith in our democracy and we surely should feel proud for being an Indian. Jai Hind! Happy Reading! Kishore Kumar Editor Chennai Realty.biz INSIDE Branded Homes Wealth Monitor VC / PE Investments in India City Price Index New Project Launch T he Union Civil Aviation Ministry and state-run Airports Authority of India (AAI) held a recent meeting to discuss the possible construction of a second airport for Chennai at Sriperumbudur near Chennai. Civil Aviation Ministry sources said it had been estimated that the current Chennai airport could be saturated by 2017 and pointed out that parallel runways cannot be constructed at the current Chennai airport. Hence the need for a 2nd airport of international standards is definitely there and it would be up to the new government to take up this project to ensure Chennai continues to retain its global competitiveness vis-à-vis other cities like Bangalore, Hyderabad and Cochin where airports are functioning far more efficiently under Public-Private Partnership model. Government of Tamil Nadu has already identified about 4820 acres in Sriperumbudur area for this airport project of which nearly 2000 acres have already been acquired. It takes 3 – 4 years for a green field airport to be built from scratch which means for the new airport to be ready by 2017 the work would have to start at least by 2014. The new airport will make Chennai join the growing number of global cities with 2 airports. The new airport is expected to provide employment for over 3400 people directly and another 5000 jobs indirectly. FDI dips 28% to 4-Year Low High Inflation, Delayed Approvals, Corruption hit new investments F oreign Direct Investments (FDI) has dropped 28% in FY 2011 to touch a 4-year low of $27 billion. This was mainly on account of lower FDI inflows under services and construction, real estate and infrastructure. Also the recent increase in lending rates by RBI has led to slowdown in domestic investments has contributed to the slowdown of flow of FDI from key markets into India. High inflation, delays in getting project approvals as well as problems with regard to land acquisitions are some of the factors that have dampened spirits. As a result, new projects are getting delayed and in its place prudent management of working capital and inventory has taken precedence. The value of investment projects completed fell from about Rs 3.5 trillion in 2009-10 to Rs 2.7 trillion in 2010- 11, according to the Centre for Monitoring Indian Economy (CMIE). “India’s image has taken a beating in the international arena. The government needs to simplify laws and be transparent,” said B Muthuraman, vice-chairman, Tata Steel, and president of the Confederation of Indian Industry (CII). This, he said, would help improve India’s competitiveness as a global manufacturing location. To Subscribe, Call - 87544 89129
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PropWatch - Weekly Real Estate Newsletter from Chennai Realty.biz, Edition 3
About Chennai Realty.biz: Chennai Realty.biz is Chennai’s first professional real estate industry magazine. Right from the stock of paper to the timeless quality of its content, rich visual texture of artwork, Chennai Realty.biz will provide a 3600 in-depth understanding of the real estate industry in Chennai in an easy to read format. Chennai Realty.biz will have a different DNA and refreshing style from the plethora of lifestyle magazines in the market. Chennai Realty.biz will be a monthly magazine and would also straddle the internet with its online edition www.chennairealty.biz available for the benefit of Chennaiites across the globe. The magazine will focus on news, views, analytical information on residential, commercial, retail and industrial real estate featuring major developments, price trends, market forecast, celebrity lifestyle, builder & project rating, current updates from construction, architecture and interiors. Chennai Realty.biz is all set to bring an innovative and focused trend in property marketing in Chennai that would feature Top 100 Projects across Chennai in an easy to read format which will help the buyer shortlist projects that meet their requirements and make an early decision on their purchase. In addition to the magazine available across leading book stores in Chennai, around 8000 copies of the magazine would be circulated to select HNI’s, hotels, clubs, beauty salons, associations etc. Further, another 240 copies are being mailed to 45 NRI’s associations across 28 countries. And Chennai Realty.biz puts a premium, above all else, on journalism that’s refreshingly different. Company Profile – Dimension Four Infomedia LLP Dimension Four Infomedia LLP, publishers of Chennai’s first professional real estate magazine ‘Chennai Realty.biz’, is the coming together of seasoned real estate professionals with over 100 man-years of industry experience between them. The team comprises a mix of professionals from the real estate, media and software industry. In addition to publishing, Dimension Four Infomedia LLP will provide one-stop solutions for the real estate sector to our clients in order to meet their individual needs. Dimension 4 offers a wide range of databases, forms, and reports. Our extensive knowledge base entails even implementation of complete ERP & CRM systems. At Dimension 4, we are continually expanding upon our knowledge and services to assist clients in generating maximum returns on their investment. Our Mission is to provide quality, updated and value based information to our customers to help understand the real estate market in its entirety. To achieve this, we have designed our magazine such that it becomes a valuable tool in the hands of the reader providing them information on a wide range of topics. Along with the reputation and high standards associated with our brand, we ensure a team of dynamic and exceptional professionals in the real estate industry through continuous learning and training provide the right information from the market. Our team stays keenly attuned to the latest trends not just in properties, but also in current financing options, legal procedures, and home trends so that customers are correctly advised. Our Vision is to become a respected real estate magazine recognized for its integrity, sincerity, productivity and service excellence. At Chennai Realty.biz, we have a passion for what we do which is helping people to make informed buying as its trust that’s most important element of the entire buying/selling process.
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Contact us: Dimension Four Infomedia LLP No.53-A, 1st Floor, Church Street Thangam Colony, Anna Nagar Chennai – 600 040, INDIA Tel: 044 26160216; Telefax: 044 26160068 Email: [email protected]; [email protected] Web: www.chennairealty.biz
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weekly Newsletter on Real Estate in ChennaiChennai Realty May 2011
www.chennairealty.bizVol. 1 : Issue 3
People Power Available in Stands from June 2011Chennai’s Exclusive Real Estate Magazine
Chennai likely to get 2nd airport
The recent election results have once again demonstrated the depth of democratic values and ethos that India has come to be known for. I feel particularly proud to be a Tamilian today.
When the entire country was watching in bated breath whether power and money could win elections in Tamil Nadu, the informed Tamil electorate has proved that they cannot be bought over by money or subdued by power. Had it gone the other way, it would have set an extremely bad precedent for political parties in other States to follow. For political parties, the results stand as a testimony that only good governance and welfare of all will matter in the long run and not just freebies.
Let’s pray and hope the public continues to act as informed vigilantes in times to come. This reaffirms our faith in our democracy and we surely should feel proud for being an Indian. Jai Hind!Happy Reading!Kishore KumarEditorChennai Realty.biz
INSIDE Branded Homes Wealth Monitor VC / PE Investments in India City Price Index New Project Launch
The Union Civil Aviation Ministry and state-run Airports Authority of
India (AAI) held a recent meeting to discuss the possible construction of a second airport for Chennai at Sriperumbudur near Chennai. Civil Aviation Ministry sources said it had been estimated that the current Chennai airport could be saturated by 2017 and pointed out that parallel runways cannot be constructed at the current Chennai airport.
Hence the need for a 2nd airport of international standards is definitely there and it would be up to the new government to take up this project to ensure Chennai continues to retain its global competitiveness vis-à-vis other cities like Bangalore, Hyderabad and Cochin where airports are functioning far more efficiently under Public-Private Partnership model.
Government of Tamil Nadu has already identified about 4820 acres in Sriperumbudur area for
this airport project of which nearly 2000 acres have already been acquired. It takes 3 – 4 years for a green field airport to be built from scratch which means for the new airport to be ready by 2017 the work would have to start at least by 2014. The new airport will make Chennai join the growing number of global cities with 2 airports.
The new airport is expected to provide employment for over 3400 people directly and another 5000 jobs indirectly.
FDI dips 28% to 4-Year LowHigh Inflation, Delayed Approvals, Corruption hit new investments
Foreign Direct Investments (FDI) has dropped 28% in
FY 2011 to touch a 4-year low of $27 billion. This was mainly on account of lower FDI inflows under services and construction, real estate and infrastructure. Also the recent increase in lending rates by RBI has led to slowdown in domestic investments has contributed to the slowdown of flow of FDI from key markets into India.
High inflation, delays in getting project approvals as well as problems with regard to land acquisitions are
some of the factors that have dampened spirits. As a result, new projects are getting delayed and in its
place prudent management of working capital and inventory has taken precedence. The value of
investment projects completed fell from about Rs 3.5 trillion in 2009-10 to Rs 2.7 trillion in 2010-
11, according to the Centre for Monitoring Indian Economy (CMIE).
“India’s image has taken a beating in the international arena. The
government needs to
simplify laws and be transparent,” said B Muthuraman, vice-chairman, Tata Steel, and president of the Confederation of Indian Industry (CII). This, he said, would help improve India’s competitiveness as a global manufacturing location.
To Subscribe, Call - 87544 89129
The Housing and Urban Development Corporation Limited (Hudco) will be sanctioning Rs 25,000 crore for various projects in the financial year 2011-2012.
Of this, Hudco is expecting to disburse around Rs, 8,000 crore in the current fiscal, while the remaining would be released as and when new projects are
identified, said a senior official from the Government of India
enterprise. A techno financing institution
in housing and urban development, Hudco finances both government and private projects related to real estate,
power, infrastructure and special economic zones.
Weekly Wealth Monitor
Chennai Realty
upComing EvEnTS
Budget Homes 201127 - 29 May 2011
Chennai Trade Center, Chennai
Luxury Homes 20117 - 9 July 2011
Chennai Trade Center, Chennai
Hindu Metroplus Lifestyle Show 30 May - 6 Jun 2011
Chennai Trade Center, Chennai
India Venture Capital / Private Equity Investments
Global hotel firms and leading domestic realty firms have come together
to market the latest in high style luxury living in the country – Branded Homes. Ritz-Carlton, a global leader in the hospitality industry is in talks with Bangalore-based Nitesh Estates to develop 2 ultra-luxury residential properties in Chennai and Bangalore. According to a company staffer, “Imagine a home not only defined by sophisticated style and sumptuous furnishings, but equipped with impeccable service delivered by The Ritz-Carlton. From housekeeping and valet services to gourmet dining and
Branded Homes – Next Big Thing in Luxury RealtyLuxury demandThe rush to build branded residences
is not without reason. According to a report by Knight Frank and Citi Private Bank, a higher number of high net worth individuals are choosing luxury properties in Asian cities.
Aiming to cash in on the swelling number of globe-trotting wealthy Indians, international hotel chains such as Ritz-Carlton, Four Seasons, Starwood Group, Carlson Hotels and a host of Indian developers such as Nitesh Estates and Oberoi Realty are betting big on branded residences in the country. While Four Seasons is doing two such projects, with Westcourt in Bangalore and in Mumbai with the Jatia family, Mumbai-
based Oberoi Realty is in talks with global hotel brands such as St Regis Residences, Mandarin Oriental Residences and Ritz-Carlton Residences for its Worli project. Nitesh Estates is doing three projects, in Bangalore, Chennai and Goa. US-based Trump Organisation has already tied up with Mumbai-based Rohan Lifespaces to launch Trump-branded residences in South Mumbai.
But the buyers need to have deep pockets, as these apartments do not come cheap. For example, the residences being developed by Nitesh Estates in Bangalore and Chennai are priced between $1 million (Rs 4.4 crore) and $3 million (Rs 13.2 crore), depending on size and other factors. Sizes vary from 3,000 to 4,500 sq ft.
dedicated concierge, you’ll enjoy five-star living.” Ritz-Carlton has a track record of servicing such residences in Singapore, New York, Bangkok and San Francisco.
BRANDED HOMES: WHO IS DOING WHAT
Developer/owner Brand Location
Nitesh Estates Ritz Carlton Bangalore,
Chennai
Westcourt Four Seasons Bangalore
Jatias Four Seasons Mumbai
Rohan Lifespaces Trump Mumbai
19135
18519
18200
18400
18600
18800
19000
19200
Last week This week
Sensex
Sensex
22140 21870
-270
-5000
0
5000
10000
15000
20000
25000
Last week This week Up / Down
Gold (10 gms in Rs.)
Gold (10 gms in Rs.)
125.58
109
-16.58-40
-20
0
20
40
60
80
100
120
140
Last week This week Up / Down
Crude (per Brl in US$)
Crude (per Brl in US$)
-15.73
-41.21
27.54
15.2
16.7
-60 -40 -20 0 20 40
CONSTRUCTION
REALTY
BANKING
INFOTECH
RETAIL
Last Year
Last week
HUDCO TO SANCTION ` 25K CRORE FOR PROJECTS IN FY12
Chennai Realty
Ashwini Foundation, a leading Chennai-based property
developer, plans to invest over Rs.1169 crores to develop seven residential projects over the next 3 years.
The company is involved in developing the following projects: On the upcoming projects, the company plans to launch the Kolapakkam and Kuthambakkam projects in Q1 of 2012.
The company has plans of developing an affordable housing projects consisting of 2000 apartments in Madurai.
Established in 1999, the company has executed projects of over 5 lakh square feet of residential development in Chennai and Coimbatore.
For details, visit www.asvini.com or call 044 24544500
Ashwini Foundations to invest Rs.1169 crores in residential projectsProJecT Name LocaTIoN TyPe oF
UNITSNo. oF UNITS
STaTUS
Amanya Nelikuppam 1, 2 & 3 BHK 1008 Under construction
Atvarika Kelambakkam 2 & 3 BHK 56 Under construction
Akila Heights Sembakkam 2 & 3 BHK 338 Under construction
Asvini NRD Towers Avadi 1, 2 & 3 BHK 646 Under construction
Avani Kovaipudur, Coimbatore
Villas & Twin Houses
21 + 30 Under construction
- Kolapakkam 2 & 3 BHK 32 Planned
- Kuthambakkam 1, 2 & 3 BHK 300 Planned
Eyeball Media announces the 2011edition of Chennai’s
most popular budget property exhibition, Budget Homes 2011. The exhibition will be held on May 27-29, 2011 at Chennai Trade Centre in Nandambakkam.
The expo has been conceptualized with the aim of providing the customer to choose from a variety of property options from over 50 builders across Tamil Nadu. Projects spread over the entire city suiting the needs of today’s discerning budget conscious home buyers and investors will be showcased at the property expo.
For the developers, the event would provide a transaction-focused platform. Last year Budget Home 2010 saw over 35000 footfalls and generated over 800 spot bookings. Leading developers like TVH, NAPC Properties, Inno Geocity, Vijay Shanthi, VGN, Arun Excello and others have already confirmed their participation in this edition.
The exhibition will see participation from leading banks and financial institutions offering special schemes for those booking properties at the exhibition.
For details: 96000 84255
Budget Homes 2011curtain raiser:
Chennai Realty
Chennai ProPerty trends
Sub MarketS average rent in May 2010(rs. / Sft per month)
average rent in april 2010(rs. / Sft per month)
CBD (Anna Salai, Nungambakkam, RK Salai,
T Nagar, Egmore, Alwarpet)
Grade A 70 - 100 70 - 90
Grade B 55 - 65 55 - 65
Off CBD (Guindy, Kiplauk, Taramani, Adyar, Anna Nagar)
Grade A 50 - 65 50 - 65
Grade B 42 - 47 42 - 47
Suburban Business District(Velachery, Perungudi, Mount Poonamallee Road)
Grade A 35 - 45 35 - 45
Grade B 30 - 40 30 - 40
Peripheral Business District (Perungalathur, Sholinganallur, Siruseri, Ambattur, GST Road)
Grade A 35 - 40 35 - 40
Grade B 25 - 35 25 - 35
commercIaL
locationS capital value 2 bHk (rs./Sft)
rental value 2 bHk of 1000 Sft (rs./Month)
capital value 1 ground of 2400 Sft (rs. lacs)
budget preMiuM budget preMiuM average
central
AlwarpetNeelankarai Sholinganallur
800060003500
18000150004000
16000120008000
300001800014000
300 - 400150 - 20065 - 75
nortH
Anna NagarAvadiMadhavaram
900028503500
1400035004200
1200050006500
2600070008000
250 - 35065 - 7065 - 70
SoutH
AdambakkamMedavakkamTeynampet
500035009000
6500450015000
6500700015000
90001500030000
90 - 11060 - 70
275 - 300WeSt
ArumbakkamK K NagarRamapuram
600065004200
700080004800
800080006000
170001700010000
180 - 225180 - 23070 - 85
outer
Puzhal SiruseriSriperumbudur
18003000 2100
250040002400
400080005000
7000160007000
7 - 1035 - 4512 - 15
reSIDeNTIaL
coNSTrUcTIoN maTerIaL PrIce INDex *coMModity unit MeaSure previouS Week current Week
CEMENT Per 50 KG BAG Rs. 290/- Rs. 290/-
STEEL Non ISI 6MM / Ton Rs. 39, 000/- Rs.40, 000/-
STEEL TMT 8MM dia / Ton Rs. 42, 250/- Rs. 42, 250/-
STEEL 10-25 MM dia / Ton Rs. 41,100/- Rs. 41,100/-
STEEL RMS / Ton Rs. 44, 500/- Rs. 44, 500/-
STEEL STIRRUPS / Ton Rs. 46, 500/- Rs. 46, 500/-
STEEL VSP/SAIL 10mm dia / Ton Rs. 46, 800/- Rs. 46, 800/-
BRICKS 1 No. Rs. 6/- Rs. 6/-
RIVER SAND Cubic Feet Rs. 45/- Rs. 48/-
FLY ASH Per Ton (Ennore) Rs.120/- Rs.120/-
BLUE METAL 20MM / Cubic Feet Rs. 26/- to Rs. 28/- Rs. 26/- to Rs. 28/-