A rise in plotted development projects in and around Chennai

Chennai

Industrial growth, better connectivity and infrastructure development have led to a spurt in the number of plotted development projects in and around the city. While there is a constant demand for apartments, villas and other housing projects, over the years, there has been a rise in the demand for plots as well. S Ramaswamy, Assistant director, RECS Group, says, “GST Road, Sriperumbudur-Oragadam belt and ECR are the top three growth corridors that have seen a surge in the demand for organised plots. There is a good demand for plots in and around Chennai due to factors such as good road connectivity and the horizontal industrial development in the suburbs. The availability of transportation facilities plays a major role in the organised plot development market, especially on the outskirts of Chennai.” S Mohan, MD, Wisdom Properties, says, “Individual plot development in and around Chennai is on the rise.”

Mohan says, “The primary areas include the Southern Suburbs comprising Chengalpattu, GST Road, Oragadam till Kanchipuram and the Eastern Suburbs – areas till Mahabalipuram. Development in the Central suburbs that include prominent localities such as MRC Nagar, Triplicane, Teynampet, Nungambakkam and T Nagar will gradually pick up over the years.”

He adds that with the number of software and manufacturing industries foraying into the city, the demand for plots in peripheral and suburban areas of Chennai has increased manifold. “There are a number of employment opportunities in the city, and people migrate not only from other states but countries as well. This has further increased the demand for plots,” he adds.

Highlights of the three primary growth corridors

GST Road

- Proximity to already developed areas such as Tambaram and Guduvanchery

- Connectivity by rail and road to localities such as Oragadam and areas along OMR

- The presence of a number of industries such as the Maraimalai Nagar Industrial Estate, for instance

- A viable investment for future developments, thanks to the kind of residential and industrial development along this belt

Sriperumbudur-Oragadam

- Hub of industrial development in the city – An affordable alternative to investing in apartments

ECR

- Good connectivity and proximity to the city centre – Proximity to OMR and prominent IT establishments – Scenic beachway with good social infrastructure

Source: The Times of India, Chennai

Chennai’s residential property market buoyant

Chennai

Chennai’s residential property market has witnessed a steady growth in terms of pricing, demand and supply in the past two years post the economic recession. The city has typically been a base for the automobile/auto ancillary industry and is one of the premier port cities in the country.

With the advent of the IT sector, Chennai’s residential real estate market has become increasingly dependent on its growth and expansion for continued residential demand. The current scenario of job stability in this sector is at a much better position than it was during 2008- 2010, according to a recent survey by Knight Frank India.

Despite the subdued economic conditions, developers have gone ahead with their plans and several large scale projects have been announced during FY 2012. The period witnessed the launch of approximately 14,900 units which are scheduled to be completed in the next 2-3 years. This optimism shown by developers may be due to the fact that the Chennai market is primarily self-sustained and not much affected by the upheaval in global markets.

On the pricing front, nearly 74 per cent of the total number of residential units launched in FY 2012 fell within the Rs 5 million ticket size categories. Several prominent developers strove to tap the affordable housing segment with their new launches. Another 14 per cent of the residential units launched in FY 2012 belonged to the Rs 5.0-7.5 million ticket sizes, catering to the needs of the upper mid-end segment. On the other hand, just 9 per cent of the total units launched in FY 2012 surpassed the ticket size of Rs 10 million to fall into the premium segment.

As of March 2012, nearly 82,000 residential units are under various stages of construction in the Chennai market. While southern region will account for a significant share of around 59 per cent, west Chennai will contribute 33 per cent, followed by the northern region with 5 per cent and central Chennai with 3 per cent.

An important trend witnessed is the change in the preference for unit size. The preferred size for 3BHK flats has increased from 1250 sq ft to 1450 sq ft while for 2BHKs from 900 sq ft to 1150 sq ft. The vacancy level as on March this year was recorded at approximately 31 per cent with the southern part alone constituting 30 per cent while north and west Chennai have vacancy levels of 32 per cent and 33 per cent respectively. Central Chennai has a lower vacancy rate of 22 per cent.

Chennai’s residential market has been quite resilient to the looming threat of global economic turmoil but the market witnessed a dip in sales velocity in Q3 FY2012, compared to the previous two quarters. It has been envisaged that the corridor between Sholinganallur and Tiruporur in the southern belt will be the next investment destination for residential property in the city. Yet another option is the Sriperumbudur-Oragadam belt towards the west which is one of the best options with large manufacturing companies and MNCs expanding their footprint there.

V Nagarajan, Property Consultant

Source: http://content.magicbricks.com/chennais-residential-property-market-buoyant

Professionals drive demand for PG accommodation in Chennai

Chennai

Chennai is a major commercial, cultural and educational center in south India. It is home to some of the best education institutes and research centers. The emergence of industrial growth and employment opportunity in the city attract a steady stream of skilled professionals, which further fuels the demand of PG accommodation. But unlike Delhi, the city attracts more working population who come to establish their careers than students across India.

The non-Tamilian populations that migrate to Chennai for jobs prefer to stay in PG accommodation as it provides the best and cheap temporary staying options. “Demand for PGs is driven by the working class in Chennai. This is due to the fact that most of the educational institutes have accommodation facilities and students prefer to stay within their campus,” says Ramesh Babu from Bhairv Foundations, a local realtor.

“This demand is comes more from boys as most of the non-Tamil working population is male. Men have more mobility for employment as compared to women,” he adds.

According to realtors in Chennai there is a huge demand for PG accommodation but supply is lower than the demand. Therefore the rents are high in a few localities which can be afforded by working section of the society.

“The advance for a rented apartment is as high as 6-10 months whereas for PG it is limited to just 1 month. 90% of the IT professionals do not settle here and hence PG is safer bet for them,” says Vipul Chaudhry, a local realtor from Earth Homes.

MagicBricks.com finds out which are the localities in Chennai that offers good PG accommodation and at what price.

The areas like Anna Nagar, Triplicane, OMR, Thrivanmiyur are few localities which high in demand for PG accommodation owing to its high residential occupancy rate, accessibility and connectivity. These areas are well surrounded with many schools, colleges, IT Parks, plus all facilities like shopping complex, transportation facility, such as buses, electric trains, etc.

Also, these areas offer a rent that easily fits into the pocket of a working population.

The PG accommodation in Thrivanmiyur and Triplicane areas are almost same. The rent varies between Rs 1200-8500 per month, depending upon the occupancy whereas the PG in locality like Anna Nagar starts at higher price.

This is because the area is one of the prime residential areas in Chennai that hosts number of well established schools and colleges, places of worship, shopping areas with both independent shops and chain stores and numerous restaurants. There are also a number of mid size hospitals and nursing homes catering to the local population.

Anna Nagar is also well connected with roads and railways. The locality has two bus terminuses and railway station. Therefore the area is best suited for outsiders who come with concerns of getting to know their way about, and learning to deal with people in an alien land. Here the rental values for PG accommodation starts from Rs 5000 and can goes up to Rs 8000 per person depending upon the facilities.

Another locality Chennai which has seen the spurt in demand for PG accommodation is Oragadam. The town is known for its various industries and workshops pertaining to the automobile sector. Oragadam has seen major investments from foreign companies in recent times. International Automobile majors like Daimler, Renault – Nissan, Komatsu have set up their car manufacturing plants here and will use it as a base for sourcing for their international markets. This has further open many job opportunities, and hence, the rush of working population looking for PG accommodation is obvious. Looking at the commercial development happening in the locality, the local realtors, said that today Oragadam is high in demand for PG accommodation by the migrants coming to work in the city.

Neha Nagpal, MagicBricks.com Bureau

Visuals by Harsha Khattar

Source: http://content.magicbricks.com/professionals-drive-demand-for-pg-accommodation-in-chennai

Oragadam gets a facelift

Chennai

From a docile suburb to an industrial hub of Chennai, this is how Oragadam has been transformed in a brief span of five years. With the state government signing MoU for setting up auto majors’ expansion plans, Oragadam has been driving the attention of both ancillary industries and real estate developers to change the skyline of the city.

The city appropriately called as the Detroit of South Asia has six global car manufacturing companies. A few years ago the entire country produced less than a million cars. Today, six car manufacturing plants in the corridor alone account for 1.28 million cars to make Chennai as one of the top 10 global car manufacturing centres.

A number of MoUs have recently been signed by the state government with the auto majors. Ashok Leyland-Nissan joint venture will invest Rs 4,150 crore to set up a commercial vehicle manufacturing plant in Tamil Nadu and most of the investment would be for the greenfield plant in Oragadam. Daimler India which has a plant in Oragadam will double its investment in the state to Rs 4,000 crore. Allotment of 50 acre of land has been made in Oragadam by the government to set up a two wheelers factory by Royal Enfield, a unit of Eicher Motors at an investment of Rs 350 crore creating 300 new jobs. The proposed new investments would create 3,000 new job opportunities and additional 20,000 indirect jobs.

An estimated 120,000 people are currently employee in the Oragadam-Irungattukotai-Sriperumbudur corridor. This is expected to go up to 200,000 as more and more ancillary companies become operational in the coming months.

There are not many housing projects to cater to the mid-segment and lower mid-segment in the area. Arun Excello has launched affordable housing project in Oragadam.

Whereas Hirco has undertaken development of over 369 acres in the area. More developers like Prince Foundations, Inno geo city, KGS, True Value Homes, ETA Properties, Vijayshanthi Builders, and Tata Housing are developing residential projects. The state highways en route to Padappai will witness a number of residential projects in the coming months. Land values are inching high due to surge in demand.

A number of state highways from GST road and Sriperumbudur are now leading to the Oragadam junction and with the expansion of roads, connectivity levels will further improve. However, retail and entertainment centres, schools and hospitals are the need of the hour to encourage more people to shift to suburbs.

V Nagarajan, Property Consultant

Source: http://content.magicbricks.com/oragadam-gets-a-facelift

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