Industrial development fuels residential, commercial demand in Oragadam

Chennai

Oragadam, a town located at the outskirts of Chennai is flushed with demand for residential and commercial units, triggered by overseas automobile and IT investments. The demand has translated into a surge in real estate prices. The proposed international airport near Oragadam has also complemented the area’s realty growth.

“With rapid growth of the automobile industry and IT sector, requirement for residential and commercial properties has increased. The market has also seen investments from foreign countries like Japan, Korea and Singapore. The consequent employment opportunity is increasing the need for housing, both own and rented,” explains Suresh Jain, Managing Director, Vijayshanti Group.

Residential scenario

Several renowned builders like Inno Group, Arun Excello and MARG ProperTies have launched projects in the locality. As per the Magicbricks.com data, the average sale price of multi-storey apartment is Rs 3,080 – 3,551 per sq-ft T Chitty Babu, CMD, Akshaya Pvt Ltd, says, “Compared to rest of the country, Chennai property prices are moving in tune with cost escalation. The market is readily absorbing launch of new projects and this has positively impacted the growth.”

A range of housing options are coming up in the region. Inno GeoCity is offering 4,000 houses spread across 131-acre Township with all social amenities. Rich India Cityscapes is coming up with row houses and semi Independent villa project called ‘VILLAGIO’. Another real estate major MARG ProperTies is coming up with a community housing project ‘Brindavan’ having 1,848 apartments with superior amenities. Arun Excello has recently announced a 100-acre gated community project ‘Temple Green Heights’ to offer 2,600 houses. Other new projects like Hirco Palace Gardens, Tata Housing, Temple Green, Raga Properties etc are also coming up in the locality.

Commercial scenario

The area is a manufacturing base for leading auto and auto component manufacturers, FMCG companies, logistics and warehouse service providers, IT and ITES firms, etc. The Oragadam SIPCOT (State Industries Promotion Corporation of Tamil Nadu) area is home to wide array of industries like engineering, bio-tech, IT and electronics units. Renault-Nissan, Daimler, Johnson Lifts and others have fuelled real estate growth in the locality.

Royal Enfield Motors is establishing a greenfield production facility. The unit is expected to commence production shortly.

Divya of MARG ProperTies says, “Anticipating the potential, many new industries are also exploring prospects in the area. Oragadam and Sriperumpudhur region is likely to offer employment opportunities for 300,000 people in 2013 and this would certainly have a positive impact on the residential market”.

Neha Nagpla, MagicBricks.com Bureau

Chennai developers make all efforts to woo buyers

Chennai

Promotion is one of the four major pillars of marketing and it is through this mechanism that the product gets a visibility in the consumer mind space. Two weeks ago, Akshaya Pvt Ltd launched its 150th project Abov, the tallest residential tower of Tamil Nadu and the event was noted for its innovation and even its larger-than-life allure.

Akshaya had created a 15 feet high model of the skyscraper for the event and has placed the model at the Chennai airport and has plans to take it to the airports in Bangalore, Mumbai and Delhi. T Chitty Babu, CEO, Akshaya Pvt Ltd, feels that a project that is grandiose like Abov, needs a lot of work to back it up. “Innovation is required in every sphere of work, and in terms of marketing a product, a lot of work is required,” he says. Akshaya also has a cut model in its offices, where customers can get an idea about the apartments they plan to buy. A five-minute walk through is also designed for their projects.

To make their presentations more engaging, the developers are also willing to go the extra mile and import the technology required for the effort. “We have got something called virtual reality, where the inner portals of the apartment can be viewed according to the movement of the hands. Then we have brought our kinect tables, where four people can view four different aspects of a property at a time. Both these technologies have been brought from Singapore and were the first of their kind in India,” says Chitty Babu.

Of course, these promotional methods work only when they are designed with the target audience in mind. “It depends on multiple factors. When I launch a high-end product, they require promotions which are tailor-made for the customer base I have in mind. Mass advertisements still hold their value and that explains the increasing number of front-page advertisements for project launches these days,” says Suresh Krishn, Managing Director, Isha Homes. When it comes to the high-end market, it makes sense to employ tailor-made promotions, considering the fact that the target base is less, when compared to the mass market. Suresh feels that in these cases, there is no hard-selling that is done. “We know these customers from our previous interactions and know their tastes. What we do in the evening launches are to showcase what we have. A walkthrough or a miniature model will help them visualise better and make the right choice,” he says.

Advertising is a traditional tool and if innovation is what a developer wants to go for, then sky is the limit. S Ramakrishnan, CEO, Marg ProperTies, feels that there is a need to constantly come up with something new depending on the project. “While one can always go for advertisements, promotion works at many levels. For example, one can tie up with a matrimonial site to promote the projects. Once people feel the need to move out to a new home after their marriage, this will be the right moment to make a pitch and it works,” says Ramakrishnan. Marg, he says, has always believed in a combination of traditional and modern methods of promotion, using a 360 degree approach.

It is a well-known fact that customers today are spoilt for choices. While at one level, these promotions are meant to meet those requirements, there is also an attempt to create a desire for something new. “While organising events like music shows do help, the internet, today, is full of options. Once you know how to sell the concept, then these tools can be put to best use,” says Ramakrishnan, who feels that all promotional methods evolve over time and are required for all the segments of customers.

“Whether it is an affordable home, a smart township or ultra luxury villas, there is a need to reach out. The core idea remains the same; it is the final form that differs in each case,” he says. All this requires excellent PR and a degree of uniformity in the communication. “From a call centre employee to a CEO, everyone must speak the same language. Only then can the communication be effective,” says Ramakrishnan. While the effectiveness of these tools can only be gauged in the time to come, one can definitely expect a lot of activity in the promotional scene in the real estate sector in the days to come.

Source: Times Property, The Times of India, Chennai

Oragadam – fastest growing suburb in Chennai

Chennai

Till a decade back, Oragadam, a town located on the outskirts of Chennai, was sleepy with vast silent tracts of land. But today the locality presents itself as one of the fastest growing suburbs of Chennai. The locality known as the biggest automobile hub in South Asia is evolving into a multi-faceted industrial zone and will soon be developed into self-contained areas with residential spaces, educational institutions, hospitals and other social infrastructural facilities.

So what are the driving factors? The locality is strategically located between two national highways- NH-4 and NH-45. It is also well connected to the Chennai port, the Chennai Central railway station and an international airport. The area houses leading auto manufacturers, auto component companies, logistics or warehouse service providers, IT and ITES operators and a host of FMCG companies.

Due to the rapid industrial and infrastructural development, the area has caught the eye of the builders, which further created lot of residential development in the Oragadam region in the last few years.

To cater to the growing demand and working population, there are many renowned developers such as Inno Group, MARG ProperTies, Rich India Cityscapes and Tata Housing etc. already have their presence in the locality.

On a chat forum – Guru Talk organised by MagicBricks.com, S. Ramakrishnan, CEO, MARG ProperTies, said, “Oragadam is the latest on the radar of many real estate developers in Chennai. This place is doing well in terms of infrastructure development. The locality has huge potential to grow in the next 5 years.

“The multi-storey apartments in Oragadam region are available between the ranges of Rs 2,500 – 3,500 per sq ft”, he added.

Many believe that the locality is becoming major attraction for NRIs too. “NRIs working in the IT or manufacturing belt are seeking property in the suburbs close to the workplace which is further escalating the residential demand”, said, U. Mohan, local realtor, from Konnect Realty.

Neha Nagpal, MagicBricks.com Bureau

Source: http://content.magicbricks.com/oragadam-fastest-growing-suburb-in-chennai/

Chennai records one of the biggest jumps in residential prices

Chennai

A recent study points out that Chennai has recorded one of the biggest jumps in the residential property market in India. What can this be attributed to? Chennai, as we have come to believe, is a conservative market. But the recent price rise in the city’s residential market paints a different picture.

The National Housing Bank (NHB) Residex Index shows that Chennai has registered a 204% increase in prices of residential property in the period between 2007 and 2012. While the price rise may seem exponential, developers argue that it’s not really the case.

S Ramakrishnan, CEO, Marg properties, says, “It is true that there has been an increase in prices, but that’s the case with all the cities. The main reason behind the increase is the fact that, to begin with, base prices in Chennai were much lower than other cities. This correction is inevitable. The city is still not as expensive as Mumbai or Delhi. Property prices tend to go up in anticipation of infrastructure development which is why the growth corridors continue to see a lot of real estate activities. Having said that, Chennai remains an end-user driven market and hence, the price rise is a normal phenomenon.”

Some developers like Devesh Bhuva of Prince Foundations believe that the increase in guideline value has contributed to the huge price hike. He says, “In addition, prices of construction materials, labour and fuel have gone up. All these factors have added to the price of a residential property. With prices set to rise further, this seems to be the right time to invest in a property.”

Vineet Singh, Business Head, 99acres.com, sees this as a healthy sign of growth and stability. “Chennai is a relatively strong and stable market as indicated by the year-on-year healthy increase in price. There is adequate supply and demand in this market and the increase of 11 percent is not abnormal. Therefore, end-users/first home buyers can look to buy property at the current rate as prices are expected to grow at a similar pace over the next twelve months as well,” he says.

As per a study by the portal, property prices in both Ambattur and Anna Nagar witnessed a 16% increase in Q1-12 over Q1-11. Mogappair saw a 22% appreciation during the same period with per sq ft rates being around Rs 3,500 in Q1 2012 . T Nagar, Urapakkam and Medavakkam saw prices appreciate within the range of 15% and 23% in Q1-12 over Q1-11. During the same period, Madipakkam and Pallikaranai saw prices move up by 6% and 3% respectively. Thoraipakkam, on the other hand, saw prices dip by 2% during the same period.

A steep rise in demand, according to Ganesh Vasudevan, Business Head and Vice President, Indiaproperty.com, is undoubtedly the main reason why prices in the city have hit the roof. “Buyers are looking at homes that range between Rs 25 lakh and 40 lakh, which falls above the affordable-home range,” he says, “Inadvertently, a bulk of the ready-to-occupy homes, that these buyers opt for, lie in Urapakkam and Medavakkam, which also explains why these areas have seen a significant price rise.”

As a matter of fact, these areas have seen a far steeper price rise than a locality such as the Old Mahabalipuram Road (OMR), which has recently been the hotbed of real estate in the city. “That is simply because the ready-to-occupy homes on OMR are far lesser than those under construction,” says Ganesh.

Mukund Ramakrishnan (27), a city-based investment banker, recently purchased a 750-sq ft apartment in Sholinganallur. However, for the time being, he has moved in with his family to a rented apartment in T Nagar. “Buying an apartment close to OMR was a great investment and could well serve as an ideal home in the near future,” he says, “However, in my opinion, proximity to quality schools and social infrastructure is still something that the locality lacks.”

According to Mukund, living within the city does have its share of benefits, most of which, the suburbs lack. Since buying an apartment within the city has become close to impossible for the middle-class buyer, renting one out seems to be the only option. “It isn’t a bad option either,” Ganesh points out. “Despite the rise in prices, rental rates haven’t seen a proportionate increase because supply is abundant.”

Although most of the areas that have seen a sizeable price rise lie in South Chennai, Anna Nagar and its suburbs are perhaps the only exception to this rule. Prices in areas like Mogappair, Kolathur, Ambattur and Anna Nagar itself, have seen an average increase of 15.26% this year, over the last, with Mogappair topping the list at 22.07%.

“Mogappair is perhaps the closest you can get to Anna Nagar, whose homes like most other urban havens, are virtually impossible to purchase,” says R Rajarathanam (28), software professional, “Luckily I bought an apartment in Collector Nagar, Mogappair, last year, before prices hit the roof.”

Although these skyrocketing prices might just point to an industry in the pink of its health, Ganesh feels that a slight demand-supply mismatch is perhaps the only fly in the ointment. “Madipakkam, Mogappair, Medavakkam, Urapakkam and even Nolambur have seen a significant price appreciation owing to the large demand that exists in these pockets,” he says. “However, strangely, many new apartments are being constructed in areas like Porur and Sriperumbudur, which means that demand in the former might well continue to exist.”

Is the price hike justified, though given the fact that most parts of the city and the suburbs have poor or no infrastructure to support growth? “I agree,” says Ramakrishnan, “The Government needs to take proactive measures to improve the infrastructure in these areas. People are ready to invest if there is adequate social infrastructure. And it is not a good idea to earmark more than 25 percent of your salary towards investment in property, as repaying your loan and managing your finances may prove to be a burden. The good news is that there are projects in the suburbs that are well within the reach of an average homebuyer. So, this is a good time to invest and there is really no need to panic over the price hike.”

Harini Sriram and Jude Sannith, Times Property, Chennai

Source: http://content.magicbricks.com/chennai-records-one-of-the-biggest-jumps-in-residential-prices

Oragadam – fastest growing suburb in Chennai

Chennai

Till a decade back, Oragadam, a town located on the outskirts of Chennai, was sleepy with vast, silent tracts of land. But, today the locality today presents itself as one of the fastest growing suburbs of Chennai. The locality known as the biggest automobile hub in South Asia, is evolving into a multi-faceted industrial zone and will soon be developed into self-contained areas with residential spaces, educational institutions, hospitals and other social infrastructural facilities.

Due to the rapid industrial development, the area has caught the eye of builders, which further created a splurge in residential and commercial activities in the Oragadam region in the last few years.

Residential scenario

As more and more manufacturing units have started their operations around Oragadam, the residential demand in the locality is also seeing upward trends. To cater to the growing demand and working population, there are many renowned developers such as Inno Group, MARG ProperTies, Rich India Cityscapes and Tata Housing etc. already have their presence in the locality.

On a chat forum – Guru Talk organised by MagicBricks.com, S. Ramakrishnan, CEO, MARG ProperTies, said, “The Oragadam is the latest on the radar of many real estate developers in Chennai. This place is doing well in terms of infrastructure development. The locality has huge potential to grow in the next 5 years.

“The residential space such multi-storey apartment in Oragadam region is available between the ranges of Rs 2,500 – 3,500 per sq ft”, he added.

“Being a host to all major automobiles and manufacturing companies, the locality is evolving as a huge township and has become major attraction for NRIs too. New local users working in the IT or manufacturing belt are seeking property in the suburbs close to the workplace which further escalating the residential demand”, said, U. Mohan, local realtor, from Konnect Realty.

The Inno Group has announced Inno GeoCity, which offers 4,000 houses spread across 131-acre Township with all social amenities. On the other hand, keeping an affordable housing concept in mind, Rich India Cityscapes are coming up with row houses and semi Independent villa project called ‘VILLAGIO’.

Another real estate major MARG ProperTies, is coming up with a world class community, Brindavan with 1848 apartments and top notch amenities. Strategically nestled between Oragadam and Sriperumbdur, Brindavan is the next big investment opportunity by the most trusted builders of Chennai.

Spotting the potential of Oragadam, leading builder Arun Excello has just announced a massive world class gated community named Temple Green Heights, a 100-acre township which offers 2,600 houses.

The new projects like Hirco Palace Gardens, Tata Housing, Inno GeoCity, Temple Green, Raga Properties etc are also coming up in the locality to cater the growing population in the suburb.

Commercial scenario

Driven by the huge domestic demand, skilled labour pool and huge suppliers network in and around Chennai, the Oragadam industrial corridor has transformed Chennai’s industrial space. The area houses from leading auto manufacturers, auto component companies, FMCGs, logistics or warehouse service providers, IT and ITES operators and a host of FMCG companies.

The Oragadam SIPCOT (State Industries Promotion Corporation of Tamil Nadu) area contains a diversity of industries, including engineering, bio-tech, IT and electronics units. The cream of technology majors such as Renault Nissan, Daimler AG, Komatsu, Allison Transmission, Unipres, NSK ABC, Mega Tech, Delphi TVS, Seco Komos, Momentive, Johnson Lifts, JCBL Marbles, GKN Driveline and Tenneco have their set ups in the locality.

Having attracted huge investments from 120-130 small to big companies from across different sectors, the corridor is expected to attract more investments in the coming years.

The iconic bullet motorcycle maker Royal Enfield Motors has finalised its plans last year to establish a new greenfield production unit in Oragadam, near Chennai at an investment of Rs 350 crore. The plant will come up on a 50-acre site and is expected to have a total production capacity of about 150,000 units a year. The unit, which will employ 300 people directly, is expected to commence production by early 2013.

Divya from MARG ProperTies, said, “Looking at the potential, there are many new industries are also eyeing on the area. There is an employment opportunity for 3 lakh applicants is expected in Oragadam and Sriperumpudhur location in 2013, which would certainly have positive impact on residential market too”.

Infrastructure and connectivity

Oragadam owes its strategic advantage to the multi-modal connectivity. The locality is strategically located between two national highways- NH-4 and NH-45. . It is also well connected to the Chennai port, the Chennai Central railway station and an international airport. In addition the locality is home to a number of schools and colleges. The locality also provides facilities hospitals and entertainment zones.

The locality is a 20 minute drive from the famous temple town of Kanchipuram and 30 minutes drive from Tambaram and Vandaloor. It is 15 minutes from the Pilgrimage and Industrial hub Sriperumbudur.

The special thrust has been provided by the State Government to create a World class infrastructure such as 6 lane Highways, road and rail transportation.

The Railway Ministry had forwarded a proposal for a rail link from Avadi to Guduvancheri via Sriperumbudur and Oragadam to the Planning Commission for appraisal.

A rail connection to the industrial belts of Sriperumbudur and Oragadam has been a long-pending demand of thousands of units, including car manufacturers, located in the two regions located west of Chennai.

With the rail link, the two hubs will be linked to two major lines – the Chennai-Jolarpet-Katpadi line and the Chennai-Gudur line – that connect to other parts of the country.

In addition, the Tamil Nadu government is building the Rs 300 crores Oragadam Industrial Corridor Road. Mohan, a local realtor said, “This project which is to be executed by the Tamil Nadu Road Infrastructure Development Corporation (TNRIDC) and funded through the State Highways Department, is expected to give a thrust to industrial activity in the Oragadam-Sriperumbudur cluster. It will also provide additional connectivity between Grand Southern Trunk Road i.e. NH 45 and Grand Western Trunk Road i.e NH 4 or Chennai – Bengaluru Highway.

Oragadam’s good connectivity with Bengaluru, Kolkata, Vizag, Vijayawada, Kochi, Trivandrum and a few major cities in the western region has also set an unprecedented example for other industrial corridors.

Neha Nagpal, MagicBricks.com Bureau

Source: http://content.magicbricks.com/oragadam-fastest-growing-suburb-in-chennai

Developers focus on mixed development projects

Chennai

Most large residential projects in the suburbs of the city are focussing on mixed development, with apartments and villas catering to multiple economic segments housed in the same project.

It is seen as a step towards inclusive living and a part of the evolution of integrated townships. Breaking the tried-and-tested concept of constructing apartment blocks, developers, these days, are experimenting with mixed development, wherever possible.

These projects are typically spread across large tracts of land that run to more than 25 acres and they contain apartments of varying sizes (1, 2 and 3 BHKs), villas, bungalow apartments, duplex houses, all in the same project. Says S Ramakrishnan, CEO, Marg Properties, “Such projects are possible only when large tracts of land are available and they can, naturally, be planned only in the suburbs and outskirts of the city. Optimisation of land costs is an important factor here. So from the developer’s perspective, it makes financial sense to only venture into such development in large planned townships.”

Marg Swarnabhoomi, spread across 1,000 acres on ECR, is a case in point. The residential wing of the project has a variety of housing options across economic and lifestyle categories – a mix of high rise apartments, affordable homes, smart homes, to name a few. This model is gaining popularity and developers believe that this approach makes social and economic sense, in the case of large projects. As Kalyan Jayaprakash, Director – Acquisitions, Inno Group and Director, Inno Geo City, explains, “In large-format developments, it is important to cater to multiple segments and create something for every aspiring home buyer. It fosters inclusive living; if you cater to only one segment, you will be creating ghettos.” The group drew inspiration for the project from similar successful models in Europe.

Inno Geo City, spread across 130 acres in Oragadam, has row houses, bungalow apartments, villas, 2 and 3 BHKs, with a host of amenities. He adds, “The idea is to create small sustainable cities that are self-contained and hence, environmentally-friendly. Well-planned townships such as these must ensure that all economic groups from rural and urban sections are accommodated.”

Such projects also offer better saleability as it caters to multiple economic segments, says Suresh Krishn, MD, Isha Homes. However, most of these projects are in various stages of planning and construction; so there is no completely functional model in and around Chennai, as of now. Suresh is of the opinion that though this is a good concept, managing such properties will pose challenges. “Each type of development – villas, apartments, etc – requires a completely different set of amenities, including security systems. Planning and maintaining such projects is going to be a challenge and since the city doesn’t have a working model yet, we’ll have to wait and see how this pans out,” he adds.

Developers like the Mumbai-based Mahindra Group have believed in catering to various segments in their projects. When they started work on the ambitious Mahindra World City project in Paranur, the company was sure that they wanted to build a city that was not only best in class, but which will also cater to different segments of society, says Sangeeta Prasad, Chief Operating Officer. “When we planned Mahindra World City, we realised that we have to take into account the different demographics and psychographics of the people who will live there. We believe in an inclusive philosophy where projects will cater to all segments,” Sangeeta says. “Our Aqua Lily project, is for example, a mix of villas and apartments. “There definitely is trend towards such developments; however, it may not be feasible all the time because it could result in a mish-mash. When people look at buying a house they usually prefer an environment that matches their sensibilities,” she says.

R Kumar, Managing Director, Navin Housing & Properties (P) Ltd, views it is a welcome trend and feels that more developers should focus on catering to different segments of society. “It is a builder’s responsibility to provide a well functional, eco-friendly complex that will cater to people from different categories in society. The trend is here, but this can be implemented only in large projects like mini townships that have huge tracts of land at the developer’s disposal,” he says.

“For the developer, it makes a lot of sense as it will be allow him to utilise FSI to the maximum as a mixed segment will include villas, roughhouses and apartments. Our company is quite keen to work on a project like. But our first attempt failed due to the restrictive approval policies of the CMDA (Chennai Metropolitan Development Authority).” “The best examples of mixed development can be seen in Mumbai suburbs like Andheri where several developers have taken up such projects. They are the need of the hour in Chennai too, but the CMDA here has several restrictive policies that deter developers from taking up such projects. If the CMDA officials could be convinced about its benefits, we could soon see more of such developments in future,” he says.

Source: Harini Sriram and Sangeetha Nambiar, Times Property, Times of India, Chennai