Thursday, 6 December 2012

Demand for budget housing soars in Chennai


Chennai’s developers are upbeat as demand for budget housing is reaching a new high. If the recent project launches and instant absorption in specified time schedule is any indication, then property developers may have to focus more on vital factors like location, product mix and pricing in future projects to ensure quick exit route.

Akshaya’s launch of the much publicised project ‘TODAY’, on Old Mahabalipuram Road (IT Corridor) in Thaiyur, drew overwhelming response from investors across the city. Over 1 million sq ft area covering 1021 residential units had translated into a net revenue of Rs 360 crore at Rs 2850 per sqft and advance booking of Rs 21 crore in a matter of just three days. Out of 2134 units, over 50 per cent of the inventory was cobbled up. The current sale price is Rs 3,000 per sq ft for an extended day which is expected to be revised soon. An investor can acquire 612 sq ft 2 BHK unit at Rs 17.44 lakh.

In yet another instance, Dugar Housing has launched 1 BHK – 3.5 BHK units in Ambattur at a price of Rs 3,450 per sq ft when competing products were quoted at Rs 4,500 – Rs 5,000 per sq ft in Ambattur. Though the offer was extended for a limited period, 90 per cent of the units out of 160 apartments launched were sold out in a matter of days. Here again product pricing ranges from Rs 25 lakh – Rs 80 lakh. Location, pricing and amenities played a major role in driving the sales, according to industry sources.

On the villa front, it is again the product, location and pricing that tilted the balance in favour of the developer who conceived the idea appropriately and understood the pulse of the market. Casa Grande had launched villa projects in the price range of Rs 1.05 crore – Rs 1.6 crore. Apart from the land area of 1500 sq ft in a strategic location like Sholinganallur junction and Thalambur main road, 4 BHK units were offered with 2325 sq ft built up area. If the product and location are right, then irrespective of the pricing, the acceptance level would be instant, say market sources.

The recent launches and successful marketing had taught several lessons for the city’s developers to revise their future strategy while offering the product-mix.

V Nagarajan, Property Consultant

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