Chennai drives more NRI buyers

Chennai

The rupee volatility against US dollar and other linked currencies, overseas institutions’ lending at 4 per cent and favourable exchange rates have all convinced NRIs/PIOs to take advantage of the instant opportunity and plunge into real estate investment in Chennai. In a nutshell, it has become 20 per cent more affordable for NRIs/PIOs due to rupee parity rates alone. Leading developers have reported a quantum jump in the number of enquiries over a period of 3-4 months.

According to industry sources, most of them prefer built units for ready occupation of their parents or relatives and some are looking for periodical return on investment. They are willing to pay the extra premium to get the built units over ongoing projects in and around the city. The preferred price range for apartments varies from Rs 30 lakh to Rs 1 crore. This is apart from the surge in demand for developed plots and villas in and around the city. However, leading land developers do not agree with the view and see no perceptible shift in trend for demand.

There are others who feel that the preferred investment locations are OMR, ECR and parts of Velachery as considerable development is visible in those areas. Competitive lending rate from overseas financial institutions is yet another tilting factor that has encouraged a number of NRIs to mobilise upfront payment overseas for investment in real estate back home. A few of them are even finding it more convenient to raise local funding than through home loans with Indian housing finance companies and banks now.

Moreover, favourable exchange rates have given them additional benefit to borrow locally and remit to India. India has been consistently maintaining its top slot in NRI remittance in the world received from Indian Diaspora globally. Even though Gulf countries are taking more time to recover in the aftermath of economic meltdown, expatriates are now convinced that the job market has become stable unlike a year ago, say Gulf realty outlets. This has resulted in the quantum of NRI enquiries for investment in immovable property in the city going up by 50 per cent over last year, say leading developers.

Interestingly, the demand from NRIs in USA has increased considerably. Local funding at competitive lending rates and loans for expatriates maintaining good credit history at zero per cent interest rates have nudged NRIs to take advantage of the current situation and plough back money into real estate back home.

V Nagarajan, Property Consultant

Source: http://content.magicbricks.com/chennai-drives-more-nri-buyers-2

Velachery emerges as a key locality in South Chennai

Chennai

Velachery is growing at break-neck speed but it still manages to retain its old world charm. Take a walk down the Taramani Link Road and the by-pass road and you can see a huge crowd of hip, 20-something girls and boys hanging out at the local eateries or busy shoppers making a beeline to high-end branded showrooms that dot the main road.

Walk a little further and you are greeted by skyscrapers and large residential complexes. Amidst traffic snarls and a new landscape, this sleepy neighbourhood has etched its own metamorphosis. The new Velachery is vibrant, and is a work in progress.

“Velachery is one of the older localities with good social infrastructure. However, land is scarce as most of it has already been developed. But it is in the throes of development as builders are keen on setting up projects here,” says R Williams, a senior citizen and a resident of the area for the past 38 years.

“In the last five to six years, the locality has undergone a sea change. A lot of old buildings, particularly large bungalows, have been razed and very high-end commercial and residential buildings have come up. These have changed the very face of Velachery,” explains Stanton Morrais, Director, Vindhya Homes. “Velachery has developed into a residential hub today providing quality residential developments, commercial offices and glitzy malls with good retail options. One of the main reasons why Velachery is witnessing a huge facelift as compared to other older localities of the city, like Adyar, is its proximity to OMR. Another reason for the development in the area is its huge contribution to the IT industry. Nearly 30 to 40% of IT employees are from this neighborhood. Their exposure to modern developments abroad and demand for quality residential space has pushed up the real estate development in this area,” he adds. However, residents in the locality still like the area for its innate old world charm. “Despite the change it is witnessing, Velachery retains the flavor of good old Chennai,” adds Stanton.

N Ravichandran of True Value Homes (TVH) says, “The government lacks clarity in promoting infrastructural developments here. This locality has the potential to be a very huge separate township by itself. People of all income groups are nested here and witness the growth of the locality everyday. However, frequent powercuts and long-pending road widening projects are impediments to its growth.” Water supply lines, better sewerage system, development of link roads and stormwater disposal systems are expected to be completed soon. Besides these, a number of other projects are being implemented in the area. A number of projects – Monorail, satellite bus terminus, lake beautification, Phoenix Mall, Grande Mall, etc, have been planned in this area.

Once all the proposed retail malls, commercial buildings, hotels and commodity markets are operational in the next couple of years, there will be a surge in economic activities in the area. This will also lead to demand for real estate, both residential and commercial, in the area. “This locality has good connectivity and it will improve further in the coming years. I wanted to purchase an apartment here when I came back from the US in 2005 and I’m glad that my investment in here has proved to be a wise decision,” says Srikanth Menon, an employee of Cognizant Technology Solutions.

“Residential apartments in the locality command a very good price, particularly projects that offer the latest amenities. Prices for residential built-up areas range from 5,500 to 8,000 per sq ft, depending on the type of construction. With the opening of the Pallavaram Highway which leads to the International Airport at Meenambakkam, Velachery is the new gateway to South Chennai and is fast emerging as one of the most sought-after hotspots of the city,” says G Ramanarayanan, a real estate consultant in the locality.

Source: Times Property in The Times of India, Chennai