Chennai Economy thread

[karkal]

Real estate footprint on the rise in South India

The Jones Lang Lasalle report ‘Estate South 2012 – Accelerating Growth' notes that ‘Southern India has for long been the silent crusader, building and strengthening its real estate development as one of the most sought destination in the country'

The three cities of Hyderabad, Bangalore and Chennai together account for nearly 45 per cent of country's office stock and southern cities represent 56 per cent of the country's mall supply between 2012 and 2016 and for residential estate, on average, these cities record nearly one-third of the country's new launches in the past five quarters.

The Jones Lang Lasalle report ‘Estate South 2012 – Accelerating Growth' that sought to analyse the real estate footprint of South India ends up noting that ‘Southern India has for long been the silent crusader, building and strengthening its real estate development as one of the most sought destination in the country'.

Towards this, the report cites new milestones as commercial advantage of Bangalore, infrastructural progress of Hyderabad, industrial and residential highlights of Chennai or the emergence of upcoming cities such as Kochi, Coimbatore, Visakhapatnam and Mysore.

In terms of transparency levels across 20 major cities during last year, Andhra Pradesh, Tamil Nadu and Karnataka featured in the top ten ranks for five parameters that included availability of market information, reforms in Urban Local Bodies, progressive business environment, inclusive and sustainable development and protection of Property Rights.

On the office real estate front, the Jones Lang Lasalle report noted that it is primarily driven by the IT/ITES sector as it offers large office spaces at affordable rents providing lower operational costs to occupiers. “Over 64 per cent of the country's IT SEZs were housed in the Southern cities,” it observed.

Also, with a total stock of nearly 140 million sft in the major cities here, the vacancy rate by the end-2012 was expected to be 16 per cent, considerably lower than the pan-India vacancy rate of over 20 per cent.

For the retail real estate, Jones Lang Lasalle initiative documented that with 59 malls in pipeline, Hyderabad, Bangalore and Chennai represent 56 per cent of the country's mall supply in coming years. Most of the mall stock here are Grade ‘A' as opposed to those in Northern and Western regions and the retail stock is set to breach 40 million sft by end-2016 as it increases its share to 36 per cent of the pan-India stock.

The region does not lag behind others even for residential estate and the launches in southern cities during past few quarters were at par with the western region. New launches in the price range of Rs.4,000 per sft or below continue to dominate the residential market here, the report said.

According to Jones Lang Lasalle, residential markets here remained resilient in the past few quarters relative to the significant decline recorded in the sales volume of Mumbai and NCR. Always a price sensitive market with buyers focussed on affordability, these cities had developers adopting a strategy to lure potential buyers by offering right products at right price band.

[iaafosc]

LIst of cities by GDP according to the Pricewaterhouse Coopers

Mumbai 219 Bn $
Delhi 167 Bn$
Kolkata 104 Bn $
Bangalore 69 Bn $
Chennai 66 Bn $
Hyderabad 58/60 Bn $
Ahmedabad 49 Bn $
Pune 48 Bn $
Surat 36 BN $
Kanpur 26 Bn $

One thing i noticed is that both GJ and MH have two cities in the top ten ......Not sure where CBE is ......tried checking it out but not finding anything...

[vinodgopal]

Originally Posted by iaafosc

LIst of cities by GDP according to the Pricewaterhouse Coopers

Mumbai 219 Bn $
Delhi 167 Bn$
Kolkata 104 Bn $
Bangalore 69 Bn $
Chennai 66 Bn $
Hyderabad 58/60 Bn $
Ahmedabad 49 Bn $
Pune 48 Bn $
Surat 36 BN $
Kanpur 26 Bn $

One thing i noticed is that both GJ and MH have two cities in the top ten ......Not sure where CBE is ......tried checking it out but not finding anything...

It is surely higher than Kanpur i am sure. But TN has done little to promote other big cities other than Chennai.

[satchitananda]

I believe these figures were posted earlier sometime and disssected. There are lots of questions at these numbers and lots of postings elucidated that there are more than one ways to arrive at numbers.

[deepaksubramaniyan]

Coimbatore + Tiruppur together might figure out in Top 10 i think....

BTW how chn GDP lesser than Blr?

I mean nothing harsh... But i feel CHN supposed to be an alrounder in terms contribution to GDP... IT, auto, mech etc...

[bharani.nitt]

Originally Posted by deepaksubramaniyan

Coimbatore + Tiruppur together might figure out in Top 10 i think....

BTW how chn GDP lesser than Blr?

I mean nothing harsh... But i feel CHN supposed to be an alrounder in terms contribution to GDP... IT, auto, mech etc...

Chennai's GDP is taken to be the GDP of just the area of 174 sq.kms(excluding the extended limits of Chennai Corp) and the economy of the entire Chennai Metropolitan Region (of 1189 sq.kms) is not taken into account, whereas Bangalore computes it's GDP based on an area of 741 sq.kms.

[deepaksubramaniyan]

Originally Posted by bharani.nitt

Chennai's GDP is taken to be the GDP of just the area of 174 sq.kms(excluding the extended limits of Chennai Corp) and the economy of the entire Chennai Metropolitan Region (of 1189 sq.kms) is not taken into account, whereas Bangalore computes it's GDP based on an area of 741 sq.kms.

Then considering almost 5 times smaller than BLR in size as per stats, CHN GDP stands 5th in the list.... Gr8

Any idea what would be the GDP if we consider 1189 sq kms?

[vinodgopal]

it would be atleast 100 b usd.

[nonamio]

Simple exercise will give an idea of economic activity in a city. Try to look for the number of job openings (naukri.com or someing popular) in a city for all types of jobs. The number will give you overall economic base (most of the time), may not be the exact GDP number but it can give ranking.

Of course yearly average will give precise ranking.

[vinodgopal]

Originally Posted by nonamio

Simple exercise will give an idea of economic activity in a city. Try to look for the number of job openings (naukri.com or someing popular) in a city for all types of jobs. The number will give you overall economic base (most of the time), may not be the exact GDP number but it can give ranking.

Of course yearly average will give precise ranking.

in-genius way of figuring out the GDP. wow! Ramanujam will be proud of your math. And if you want to count the population of the city, the simple exercise is to count the number of houses in your neighborhood and assume an average of 4 members per family and using an integral calculus formula sample it for the rest of the areas in that neighborhood times the number of areas in that city.

Wow! food for thought. (This is where i shout Eureka and go screaming out of my home naked huh?!)

[saysenthil]

Originally Posted by iaafosc

LIst of cities by GDP according to the Pricewaterhouse Coopers

Mumbai 219 Bn $
Delhi 167 Bn$
Kolkata 104 Bn $
Bangalore 69 Bn $
Chennai 66 Bn $
Hyderabad 58/60 Bn $
Ahmedabad 49 Bn $
Pune 48 Bn $
Surat 36 BN $
Kanpur 26 Bn $

One thing i noticed is that both GJ and MH have two cities in the top ten ......Not sure where CBE is ......tried checking it out but not finding anything...

This is the oldest stuff I have seen. .. There is a dedicated thread for this...

Check that here....

http://www.skyscrapercity.com/showthread.php?t=1024501

[Cosmicbliss]

Originally Posted by saysenthil

This is the oldest stuff I have seen. .. There is a dedicated thread for this...

Check that here....

http://www.skyscrapercity.com/showthread.php?t=1024501

One very worrying thing that strikes me is that in the last few years Jaipur has advanced a lot, with the new Metrorail, ring road, malls, BRTS and so on. Its very likely that Jaipur has overtaken Kanpur in the 10th biggest slot. If so, UP-Bihar with 300 million people have no city at all in the top 10 cities of India. If you add WB, with 100 million people, then effectively 400 million people have ONE city between them in the Top 10 cities of India. Considering that Kolkata itself has lagged other cities in job and wealth creation and employment opportunities in general, pretty much the whole eastern region is falling behind. The other point is while GJ/MH have 2 cities each, KA-AP-TN have only city each. I don't see this changing in the future because in all the 3 southern states, the focus has been on the capital city and not on Mysore, Vizag and Coimbatore respectively. Only in Kerala probably Kochi has the potential to come up. The real kicker for the South India growth story will be the emergence of a Pune or Surat in the South India, a big city outside the 3 metros which can become a metro.

[vinodgopal]

Originally Posted by Cosmicbliss

One very worrying thing that strikes me is that in the last few years Jaipur has advanced a lot, with the new Metrorail, ring road, malls, BRTS and so on. Its very likely that Jaipur has overtaken Kanpur in the 10th biggest slot. If so, UP-Bihar with 300 million people have no city at all in the top 10 cities of India. If you add WB, with 100 million people, then effectively 400 million people have ONE city between them in the Top 10 cities of India. Considering that Kolkata itself has lagged other cities in job and wealth creation and employment opportunities in general, pretty much the whole eastern region is falling behind. The other point is while GJ/MH have 2 cities each, KA-AP-TN have only city each. I don't see this changing in the future because in all the 3 southern states, the focus has been on the capital city and not on Mysore, Vizag and Coimbatore respectively. Only in Kerala probably Kochi has the potential to come up. The real kicker for the South India growth story will be the emergence of a Pune or Surat in the South India, a big city outside the 3 metros which can become a metro.

Jaipur has a huge tourism industry buddy. Plus a historical significance and the fact that most people are big time merchants and businessmen. A doodhwalah inside the pink city near hawa mahal was making Rs.20,000 a day and that was in 2006/7 season when i was there!

They have better and wider roads in some areas than even Bangalore or Pune or for that matter even Chennai. Also next to NCR it was the most visibly growing big city and even faster than Ahmedabad (which has been claimed to be the second fastest developing city in Asia wrongly). They had a SEZ back then and infact i even had a better salary offer there than in most south indian cities in GEMPACT however i rejected the offer. A friend of mine who bought a house in Vaishali Nagar for 25 lakhs, 5 years ago says he gets offer for 2.5 crores for the same house. And do we even have a village theme park like Choki Dhani in Chennai? They have it like a beautiful festifal - each day round the year where i have even seen hollywood actors visit there.

And you cannot find labour for cheap over there as everyone is a mini business magnet. A plumber earns about Rs.5000 a day and even a guy who books railway ticket was making huge money he bought a car in a couple of months. No comparison with Kanpur or Lucknow or even Indore. Jaipur is Jaipur buddy.

[Cosmicbliss]

Originally Posted by vinodgopal

Jaipur has a huge tourism industry buddy. Plus a historical significance and the fact that most people are big time merchants and businessmen. A doodhwalah inside the pink city near hawa mahal was making Rs.20,000 a day and that was in 2006/7 season when i was there!

They have better and wider roads in some areas than even Bangalore or Pune or for that matter even Chennai. Also next to NCR it was the most visibly growing big city and even faster than Ahmedabad (which has been claimed to be the second fastest developing city in Asia wrongly). They had a SEZ back then and infact i even had a better salary offer there than in most south indian cities in GEMPACT however i rejected the offer. A friend of mine who bought a house in Vaishali Nagar for 25 lakhs, 5 years ago says he gets offer for 2.5 crores for the same house. And do we even have a village theme park like Choki Dhani in Chennai? They have it like a beautiful festifal - each day round the year where i have even seen hollywood actors visit there.

And you cannot find labour for cheap over there as everyone is a mini business magnet. A plumber earns about Rs.5000 a day and even a guy who books railway ticket was making huge money he bought a car in a couple of months. No comparison with Kanpur or Lucknow or even Indore. Jaipur is Jaipur buddy.

My friend, wide roads and good roads alone does not a city make. Chandigarh has all these but Gurgaon has none of these-and guess which is a business hub? Guess which is not? Jaipur is doing well and more power to it. But it is a long way off from Bangalore/Hyd/Pune as yet. Job opportunities are indeed expanding but its not possible that EVERYONE is a merchant. There must be a large urban poor population. On the other hand, in North India it is I think the city with the best growth prospects and one which I would bet on the for the future. Along with Kochi, these are likely to be the next two metro cities. So far, I am happy with the moves the RAJ govt has been making for Jaipur be it 24x7 water supply, ring road, metro rail, model road project and Manipal Univ campus. I am really happy to see its progress and want it to be the next Metro. However, a long way to go still.

[murlee]

Originally Posted by vinodgopal

And do we even have a village theme park like Choki Dhani in Chennai?

What is Dakshinachitra then?

They have it like a beautiful festifal - each day round the year where i have even seen hollywood actors visit there.

Does Marghazhi music festival, Mamallapuram dance festival, Chennai Sangamam( now defunct) ring a bell?

[darkprinz]

Originally Posted by murlee

What is Dakshinachitra then?



Does Marghazhi music festival, Mamallapuram dance festival, Chennai Sangamam( now defunct) ring a bell?

Enna posukku nu ipdi solliputeenga

[vinodgopal]

Originally Posted by murlee

What is Dakshinachitra then?



Does Marghazhi music festival, Mamallapuram dance festival, Chennai Sangamam( now defunct) ring a bell?

that was an inexpensive and insignificant apeing of chokhi dhani. Choki Dhani is in night and its brilliance is unmatched. And for the rest in comparison, those are seasonal.

In Jaipur there are other such resorts too but only Chokhi Dhani is gala and attracts nearly a lakh visitors each day. Do you know Elizabeth Hurley once visited that place and was full of praise.

[Vicvin86]

Originally Posted by deepaksubramaniyan

Then considering almost 5 times smaller than BLR in size as per stats, CHN GDP stands 5th in the list.... Gr8

Any idea what would be the GDP if we consider 1189 sq kms?

The whole of TN GDP per few my town has nothing guys!

[nonamio]

Originally Posted by vinodgopal

in-genius way of figuring out the GDP. wow! Ramanujam will be proud of your math. And if you want to count the population of the city, the simple exercise is to count the number of houses in your neighborhood and assume an average of 4 members per family and using an integral calculus formula sample it for the rest of the areas in that neighborhood times the number of areas in that city.

Wow! food for thought. (This is where i shout Eureka and go screaming out of my home naked huh?!)

Its funny.. you did so much analogy to explain how stupid my point of view is . Nice read though.

But where did i say we can figure our the GDP..?

[Cosmicbliss]

Originally Posted by nonamio

Its funny.. you did so much analogy to explain how stupid my point of view is . Nice read though.

But where did i say we can figure our the GDP..?

Difficult to figure out city GDP.