Residential Projects/News in State Capital Region (SCR)

[vinodgopal]

Originally Posted by sridhar_n

But the promoters are saying that they are booked out... Becomes difficult when one lives outside India and cannot assess the progress of construction. These guys collect major part of the money in advance and we are left high and dry.

also the fact that there are a lot of folks doing resale business paying short term capital gains tax. They book flats and sell it for a profit in a year or two. So it looks empty (rather absorption is less as they cannot re-sell an already rented apartment) and just do trading.

[ranga]

Originally Posted by proprashanth

My friend who works at TCS siruseri says there are no takers for new apartments which are built/being built. Many new flats are unsold it seems??

The story is the same in other metros too.Many flats remaining unsold in Gurgaon and noida and other places in NCR.More than a lac flats being constructed/completed attracts no buyers in Mumbai region.Same is the case with Bangaluru.The situation in Kolkatta and Hyderabad is pathetic as flats remain unsold since 2007.Therefore chennai is not exception to it.However rosy picture is given both in print and visual media like NDTV property show and CNNIBNlive property news.Despite that more and more projects are announced year after year.Why?why don't u make a practical study around chennai instead of beleiving ur freind's saying.Even economic statistics like inflation,GDP growth,IPP index,l manufacturing figures and agriculture growth rates are not factual but the real figures are much worst which is not stated both by print and visual media.NPA position in PSU banks is alarming and the actual position is far worst than the figures reeled out by RBI and the ministry of finance.The Indian economic situation is worrisome and that made the govt to push vigorously in favour of FDI in retail trade that is a stimuli for other reforms galvanising FDI/FII investments inorder to reduce the dangerously ever expanding fiscal deficit.But high inflation is a stumbling block for reducing interest rates in order to pop up the economy and reduce the current account deficit.But if too many flats and office space remain empty with out sales than we are facing realestate bubble bursting and that will have cascading affect on all sectors of the economy including IT/ITES services.Remember backoffice job created in INDIA is not eternal.

[ranga]

Originally Posted by vinodgopal

also the fact that there are a lot of folks doing resale business paying short term capital gains tax. They book flats and sell it for a profit in a year or two. So it looks empty (rather absorption is less as they cannot re-sell an already rented apartment) and just do trading.

It happens more in a speculative market and chennai is more of an end users market.But one thing i as a tamil can say with confidence is that tamils generally are not appreciate even if there is a real growth or robust sales and dismiss cynically.Realestate builders from A.P are telling that their projects are sold much faster in chennai when compared to Hyderabad.Whom to believe?

[karkal]

Chennai new hotspot for interior design

Chennai: Growing market of luxury homes in Chennai has thrown open a demand for global lifestyle brands to dress up their interiors. Coupled with the opening of single and multi-brand FDI in retail, global home furniture makers are making a beeline to the city.

“Chennai and its suburbs boast of a full range of luxury properties starting from Rs 75 lakh up to Rs 10 crore, be it pent houses, villas or condos, are lapped up within two to three months of their launch,” said Mr G. Shakthi of Eyeball Media, whih conducted a luxury homes property fair recently.

There is a demographic inversion in the home buyer msarket with the average age of a buyer falling to 27 from 40 years in the last decade, says an Assocham data. Also, factors such as growing nuclear family set up, increased re-location of people and dual income in households leading to greater affordability are driving the home furniture market

Sensing the opportunity, many designer brands including French major Gautier are either setting up direct shop or opening franchisees in the city.

The latest in the list is German furniture brand Rolf Benz teaming with Adithya Agencies.

Recently, furniture major Simply Sofas opened a sprawling 20,000 square feet showroom showcasing a collection of motion sofas, fine dinner sofas, and ‘stressless’ recliners and home theatre seatings. “We’re excited to bring to the Indian market 12 internationally renowned brands that will cater to our customers’ needs,” said Maruthi Rao, managing director of Simply Sofas.

“With the opening up of FDI in retail, foreign brands have suddenly been presented with a huge potential market which they are sure to make the most of it.
Also, with more Indians travelling abroad, they have informed choices which has created a market of its own,” said independent interior designer Rohan Kangath.

[proprashanth]

Originally Posted by ranga

The story is the same in other metros too.Many flats remaining unsold in Gurgaon and noida and other places in NCR.More than a lac flats being constructed/completed attracts no buyers in Mumbai region.Same is the case with Bangaluru.The situation in Kolkatta and Hyderabad is pathetic as flats remain unsold since 2007.Therefore chennai is not exception to it.However rosy picture is given both in print and visual media like NDTV property show and CNNIBNlive property news.Despite that more and more projects are announced year after year.Why?why don't u make a practical study around chennai instead of beleiving ur freind's saying.Even economic statistics like inflation,GDP growth,IPP index,l manufacturing figures and agriculture growth rates are not factual but the real figures are much worst which is not stated both by print and visual media.NPA position in PSU banks is alarming and the actual position is far worst than the figures reeled out by RBI and the ministry of finance.The Indian economic situation is worrisome and that made the govt to push vigorously in favour of FDI in retail trade that is a stimuli for other reforms galvanising FDI/FII investments inorder to reduce the dangerously ever expanding fiscal deficit.But high inflation is a stumbling block for reducing interest rates in order to pop up the economy and reduce the current account deficit.But if too many flats and office space remain empty with out sales than we are facing realestate bubble bursting and that will have cascading affect on all sectors of the economy including IT/ITES services.Remember backoffice job created in INDIA is not eternal.

Please don't scare me. I've just purchased a land.
Let's say the property bubble eventually bursts, the market rate may come down by 10% to 20% max right?

[karkal]

Interesting to know, ppl go so negative on Chennai RE on the discussions but on the side go and buy their own.

[ranga]

Originally Posted by karkal

Chennai new hotspot for interior design

All the political parties in TN with the exception of congress have opposed vehemently FDI in multi brand retail then what is this beeline news in DC about?DMK also opposed it in both the houses and infact called it sarcastically Foreign direct invasion but voted in favour with the silly excuse of keeping BJP out from coming to power when this vote does not defeat the govt.Are they thinking that the people in TN are simpleton if not asses.The result of all this futile excercise that FDI favour vote won but no FDI will come like the Nuclear liability bill won but no civil nuclear plant in future will be set up in this country.

[karkal]

Chennai has come a long way in Interior Design especially in posh locations like Alwarpet,ECR and MRC Nagar after the arrival of East Asians mainly from Japan started renting in these places.

Even in my case, without getting into the numbers I spent significant amount, to make it fully furnished with good interior design so that it is acceptable for me and my family to live but had to rent it out as I live abroad.

Especially in these days when people spend crores to get a house in good locations, will definitely be willing to spend a few lakhs to get the house spruced up with proper interior design. As the famous tamil saying goes, "aal pathi aadai pathi".

The only sad part is that the builders haven't caught up that much with the exterior design as much as people for the interior design.

Single Brand Retail FDI is not opposed by anyone and I think malaysian furniture brands are already significantly present in Chennai through their Indian partners. I also heard IKEA is already scouting/finalized the deal near OMR and its only natural other players like Rolf Benz are also interested in this market.

[jaish]

I think lot NRIs purchases flat and keep it empty since nobody is there to maintain it. I know so many people in qatar who owns minimum 5 to 6 flats that remains empty.

[karkal]

Minimum usage of manifold luxuries

Brokers say that in most buildings, not even five per cent of the residents use the swimming pool. Photo: Bijoy Ghosh

Apartment complexes offer pools, gyms, clubhouses and more. But do residents make good use of them?

A long, lazy swim just a lift-ride away. Children frolicking in a play area. A state-of-the-art-gym and a comfortable club house.

The attractions of many high-rise apartment buildings in the city are manifold, packed as they are with amenities of all kinds. But how many of those who live in such complexes actually put these facilities to good use?

Buyers say there are two main reasons they invest in such apartments. While for some they are indicative of social status, several others want them for the amenities their children can use. But despite that being a driving force to investing, many residents admit they do not really use the facilities provided.

A. Raghavachari, 35, has been living in such an apartment for a year now, but has barely checked out any of the facilities owing to lack of time. “With our hectic work schedules, my wife and I don’t have the time to swim or hit the gym. During the weekends, household work keeps us occupied. We bought this house because when our two-year-old son grows up, he may be able to use it,” he said.

Whether or not they use any or all of the facilities, all residents pay a maintenance fee for everything the building has. This ranges from anywhere between Rs. 2 and Rs. 3.50 per sq.ft. depending on the builder and the amenities provided, said an independent property valuer. “Also, at the time of buying, the owners pay a lifetime club membership fee, which is around Rs. 150 per sq.ft.,” he said

Malini Guruprasad, who bought an 875 sq.ft. apartment recently near Shollinganallur, on Old Mahabalipuram Road, said it was considered prestigious to reside in an apartment that had such amenities. “Most of my friends and those of my husband’s own such apartments, so it serves as a status symbol for us. Moreover, our daughters aged eight and six spend time in the evenings and on weekends in the play area. So we don’t mind paying the maintenance for the other services as well,” she said.

The amenities in some buildings go so far as tennis courts and indoor sports arenas, in addition to play areas and pools. But brokers too, said that many of these remain unused. For instance, not even five per cent of the buildings’ residents use the swimming pool, said C. Sridhar Varadaraj, vice president of Hanu Reddy Realty.

“Most residents do not use the pool because they are not comfortable swimming when other people are around. The gym is put to a little more use than the pool, but it is still not used by a majority of the people. Even those who use the gym do so because they view it as a social activity,” he said.

Some people like K.V.R. Sreenivas though, think that such apartments are good investments, as with these amenities they fetch good resale values if the owners want to sell them. “I have not used the facilities so far because I have not found time yet. But I invested in such an apartment because in the next five or 10 years, practically every residential building will be built with such facilities. So in case I want to sell it in the future, I want to get a good price for it,” he said. Mr. Sreenivas bought a 908 sq.ft. apartment in Padur, on OMR.

However, builders claim that it is only the pool which is seldom used. They say residents flock to the other amenities such as the gyms, tennis courts and children’s play areas. P. Suresh, director of builders Arun Excello said, “In one of my GST projects, I have provided a tennis court and there are people playing on it even at 11 p.m. You can offer such facilities only when you cater to a large population. Everybody uses at least one amenity in the building,” he said.

[krishnaswamy]

Living a suburban nightmare

The icing is perfect, it is just the cake that isn't ready yet. Residents of apartment complexes along Old Mahabalipuram Road (OMR) say that while life in the suburbs is supposed to be cleaner, cheaper and more relaxed, reality isn't as pretty as the postcard.

"While the complex may have everything an owner wants - from swimming pools to landscaped gardens - for a person working in the city, the commute is draining both physically and financially," says software engineer A Kumar, who moved out of Lancor's Central Park back into the city. "If you are not a house-owner, you will have to pay `35 a day just on the toll," he says.

There are no public transport options other than buses, and most of them do not ply on the inside roads. "My fuel bills are up 40% from when I was living in the city," he adds. While the MTC recently announced four new routes along the OMR stretch, residents feel it is still not enough.

Also, with basic amenities such as electricity, sewage and garbage disposal, and drinking water supply still not in place in some complexes, residents say costs for all these basic services are on the rise. "As we are outside the corporation limits, we have to figure out what to do with the garbage and sewage," says a member of the Mantri Synergy Residents Association. These residents have created a YouTube channel airing their grievances about living along the OMR. For 750 apartments, the association spends every month `8 lakh on diesel for the generators owing to the power cuts, `8 lakh on drinking water, `4 lakh on sewage disposal and around `1.5 lakh on garbage disposal.

Cost of employing maids and drivers is 20% more in the area than in the city, say residents. K Krishnan, a resident milk costs `4 more a packet than in the city, however, urban planners say that people moved to the suburbs knowing that they are getting affordable housing options partly because the amenities are not yet in place.

T Chitty Babu, chairman and CEO, Akshaya Homes, says that in areas such as OMR where the rate of development in terms of housing is growing more rapidly than infrastructure, builders need to ensure the residential complexes are self-sustaining. "A developer only has control within the premises and needs to provide sewage treatment plants and rainwater harvesting to make the complex a selfsustaining unit," he says.

[karkal]

An example of how not to design


The newly-built complex for fishermen shows what is wrong with the State government’s approach to social housing

The newly-built housing complex, fronting the Marina Beach behind the lighthouse, is a shame.

Five housing blocks meant to rehabilitate fishermen in Nochikuppam are like matchboxes on stilts. They are a perfect example of how not to design and what is wrong with the government’s approach to social housing.

The building’s corridors are dingy, long and narrow. Tiny tenements are endlessly lined on either side of them in a row. Individual dwelling are like shoe boxes, with only one window in them.

The spaces below the ramps are so clumsy that they are bound to turn into large-sized dustbins. The only way to reach the terrace is by acrobatically squeezing through a two-foot by two- foot opening that can be approached using a metal ladder. A large courtyard in the middle of the compound stands isolated from the beach outside, where children energetically run around and play cricket. The entire design ignores the fact that the everyday lives of the fishermen who are going to inhabit these new buildings, would organically extend to the sea in front of them.

In defence, the Tamil Nadu Slum Clearance Board (TNSCB), which built this complex, may argue that this is not a luxury apartment but a low-cost unit built for free. They have targets to achieve and the cost is constraining. Do they mean that good design is only for the rich and the poor have to make do with pigeon holes?

Cost and creativity are not inversely proportional. The public purpose of architecture and social responsibilities of design can be realised in housing for the poor without incurring any additional expense. The TNSCB should revisit what architect Laurie Baker wrote, when he decades ago about the government’s insensitive approach. He criticised the concrete boxes built without any respect given to life and land. His demonstration in Chengalchoola, Thiruvananthapuram shows that numbers can be achieved without having to lose design quality.

If the TNSCB wants to look even further, there are plenty of instructive examples in cities across the ocean. In Iquique in Chile, designers did not force a finished product on its future inhabitants nor did they mechanically reproduce solutions. The design was anchored in local conditions and powered through consultations. Space was intensely used without compromising on design standards. Consultants who partnered with government invested in researching and innovating housing solutions.

There is another lesson to learn from the city design center, University of Illinois, which compiled best practices in affordable housing. Lowering construction cost is not the only way to make dwelling units cheaper. Houses can be made more economically efficient by “assuring lower lifetime operating and maintenance costs” and to achieve this, good design is imperative.

The problem with TNSCB is that it approaches housing as a number or a target to accomplish. The attention is only on the dwelling unit and the bureaucracy of building it. By creatively using land, open areas and terraces, limitations imposed by the size and costs can be overcome. Instead of a large meaningless open space, smaller courtyards, front yards, interesting lanes that connect the blocks could be created and flexibly used. Buildings can have better aesthetic quality without builders having to spend more. An enriching living environment can be created with some effort and sensitivity.

TNSCB would do well to read what Kathleen Dorgan and Deane Evans, authors of the essay Mainstreaming Good Design in Affordable Housing had to say: “high quality design is one of the most promising – and one of the most underutilized – strategies available for both improving the asset value and facilitating community acceptance of affordable housing.”

[iaafosc]

kathleen and Deane have written their essay with the notion " Only the best is good enough for the public" . Unfortunately, we are far behind that thought , by at least 20 years...be it Urban transportation, Public housing, Roads, Infrastructure, etc.It should be the duty of the people to snub and voice their dissatisfaction to the government, which thinks that it has achieved something wonderful and great , while in fact these facilities are merely passable ( and quite often poor), even by our standards.

I hope I can live to see the day when world class public facilities become a citizen's right rather than alms or a gift horse from the government (which is sadly the situation presently).We, the people of Tn are also to blame.We have been notoriously accommodative and limp to the govt's shoddy practices and have learned to be content with cheap sops, which are practically spare- change compared to what we have potentially lost .We are absolving them of accountability for actions which could border on violation of several " Freedoms" and "Rights"in the west. Instead , we practice our flawed version of vengeance, " The Great Dravidian cycle" ( DMK->AIADMK->DMK-AIADMK->DMK->AIADMK->ad nauseum) , of which we should all be ashamed .

One more thing....what's the point of having sister cities like Kuala Lumpur and Denver if we are not going to learn anything from them.Why aren't there joint summits for infrastructure development, waste management ,urban Planning, etc. between our cpwd/corporation guys and their counterparts? Last but not the least, who is there to point out to the government that they have been found deficient in their governance?The opposition? No way...the opposition is as blinded by power and personal vendetta as the ruling party. Sometimes I feel a country like India ( and specifically TN ) needs an " Arab Spring" more than any other in the World.

[ranga]

Originally Posted by karkal

Minimum usage of manifold luxuries

Not using swimming pool in a sultry place like chennai?Don't these folks know that swimming is a good excercise which activates the entire body.In other metros it is difficult to find space in the pool.

[jaish]

They should have fence around pool as safeguard measure from children going there. Even yesterday loss of life of 6 yr old child. Even Singer Chitra lost her only child in Dubai in one villa with pool.

[Anniyan]

A sound engineer who apparently leaked a song of the Sivaji movie was also drowned in the pool at Sivaji success party.

[vinodgopal]

Originally Posted by Anniyan

A sound engineer who apparently leaked a song of the Sivaji movie was also drowned in the pool at Sivaji success party.

Success la muzhugitanga

[Anniyan]

Originally Posted by vinodgopal

Success la muzhugitanga

muzhuga adichitangannu solunga

[bozenBDJ]

Originally Posted by karkal

An example of how not to design


The newly-built complex for fishermen shows what is wrong with the State government’s approach to social housing

heck, even my own house looks better than this.

[karkal]

Residential market sees rise in values

Chennai witnessed the highest increase in prices in the mid-end segment while Hyderabad languished as a non-mover with marginal increase of 2-3%

India’s residential market has seen a rise in capital values in most micro markets across major cities. While there was an average price increase of 10 per cent (y-o-y) in mid-end properties, high-end properties grew 12 per cent in the same period, according to Cushman & Wakefield India’s latest report.

Chennai saw the highest increase in prices in the mid-end segment at 16 per cent followed by the National Capital Region ( NCR) at 15 per cent and Mumbai at 14 per cent. As most of the mid-end projects are located in the suburbs and peripheral areas, where the ticket sizes are smaller, demand from end-users and investors alike has been more consistent thereby pushing the values north.

Additionally, since input costs have been rising, new projects are being launched at higher rates per sft, though albeit overall ticket sizes may be smaller. Overall, for all the cities mentioned in the report, the economic base is broader and not solely dependent on the IT/ITeS sector, giving them stability against adverse economic conditions affecting any particular sector that could affect the demand-supply situation.

Among the individual locations, in the high-end segment Baner in Pune witnessed the highest year-on-year price appreciation of 57 per cent followed by Central Bangalore (44 per cent) and Gurgaon (35 per cent). In the mid-end segment, Gurgaon witnessed maximum appreciation of 31 per cent followed by Aundh in Pune (30 per cent) and South in Bangalore (30 per cent). Kompally in Hyderabad saw the highest annual correction of minus 4 per cent.

NCR, on the other hand, witnessed the highest average growth in values of high-end segment at 22 per cent followed by Pune at 20 per cent. Both the cities, the report stated, had seen the launch of a number of luxury projects with premium prices that are attracting interest from NRIs and HNIs from other cities as well.

The average capital appreciation in Bengaluru was moderate and in the range of 11-12 per cent in 2012. The city witnessed healthy demand from both investors as well as end users, as it offers a number of affordable options in the micro markets of Hebbal, Whitefield, Marathahalli, Jayanagar and Bannerghatta Road among other areas..

Meanwhile, Kolkata and Hyderabad languished as non-movers with only marginal increases of 2-3 per cent in select micro markets

.