weekly Newsletter on Real Estate in ChennaiChennai Realty May 2011

www.chennairealty.bizVol. 1 : Issue 3

People Power Available in Stands from June 2011Chennai’s Exclusive Real Estate Magazine

Chennai likely to get 2nd airport

The recent election results have once again demonstrated the depth of democratic values and ethos that India has come to be known for. I feel particularly proud to be a Tamilian today.

When the entire country was watching in bated breath whether power and money could win elections in Tamil Nadu, the informed Tamil electorate has proved that they cannot be bought over by money or subdued by power. Had it gone the other way, it would have set an extremely bad precedent for political parties in other States to follow. For political parties, the results stand as a testimony that only good governance and welfare of all will matter in the long run and not just freebies.

Let’s pray and hope the public continues to act as informed vigilantes in times to come. This reaffirms our faith in our democracy and we surely should feel proud for being an Indian. Jai Hind!Happy Reading!Kishore KumarEditorChennai Realty.biz

INSIDE Branded Homes Wealth Monitor VC / PE Investments in India City Price Index New Project Launch

The Union Civil Aviation Ministry and state-run Airports Authority of

India (AAI) held a recent meeting to discuss the possible construction of a second airport for Chennai at Sriperumbudur near Chennai. Civil Aviation Ministry sources said it had been estimated that the current Chennai airport could be saturated by 2017 and pointed out that parallel runways cannot be constructed at the current Chennai airport.

Hence the need for a 2nd airport of international standards is definitely there and it would be up to the new government to take up this project to ensure Chennai continues to retain its global competitiveness vis-à-vis other cities like Bangalore, Hyderabad and Cochin where airports are functioning far more efficiently under Public-Private Partnership model.

Government of Tamil Nadu has already identified about 4820 acres in Sriperumbudur area for

this airport project of which nearly 2000 acres have already been acquired. It takes 3 – 4 years for a green field airport to be built from scratch which means for the new airport to be ready by 2017 the work would have to start at least by 2014. The new airport will make Chennai join the growing number of global cities with 2 airports.

The new airport is expected to provide employment for over 3400 people directly and another 5000 jobs indirectly.

FDI dips 28% to 4-Year LowHigh Inflation, Delayed Approvals, Corruption hit new investments

Foreign Direct Investments (FDI) has dropped 28% in

FY 2011 to touch a 4-year low of $27 billion. This was mainly on account of lower FDI inflows under services and construction, real estate and infrastructure. Also the recent increase in lending rates by RBI has led to slowdown in domestic investments has contributed to the slowdown of flow of FDI from key markets into India.

High inflation, delays in getting project approvals as well as problems with regard to land acquisitions are

some of the factors that have dampened spirits. As a result, new projects are getting delayed and in its

place prudent management of working capital and inventory has taken precedence. The value of

investment projects completed fell from about Rs 3.5 trillion in 2009-10 to Rs 2.7 trillion in 2010-

11, according to the Centre for Monitoring Indian Economy (CMIE).

“India’s image has taken a beating in the international arena. The

government needs to

simplify laws and be transparent,” said B Muthuraman, vice-chairman, Tata Steel, and president of the Confederation of Indian Industry (CII). This, he said, would help improve India’s competitiveness as a global manufacturing location.

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The Housing and Urban Development Corporation Limited (Hudco) will be sanctioning Rs 25,000 crore for various projects in the financial year 2011-2012.

Of this, Hudco is expecting to disburse around Rs, 8,000 crore in the current fiscal, while the remaining would be released as and when new projects are

identified, said a senior official from the Government of India

enterprise. A techno financing institution

in housing and urban development, Hudco finances both government and private projects related to real estate,

power, infrastructure and special economic zones.

Weekly Wealth Monitor

Chennai Realty

upComing EvEnTS

Budget Homes 201127 - 29 May 2011

Chennai Trade Center, Chennai

Luxury Homes 20117 - 9 July 2011

Chennai Trade Center, Chennai

Hindu Metroplus Lifestyle Show 30 May - 6 Jun 2011

Chennai Trade Center, Chennai

India Venture Capital / Private Equity Investments

Global hotel firms and leading domestic realty firms have come together

to market the latest in high style luxury living in the country – Branded Homes. Ritz-Carlton, a global leader in the hospitality industry is in talks with Bangalore-based Nitesh Estates to develop 2 ultra-luxury residential properties in Chennai and Bangalore. According to a company staffer, “Imagine a home not only defined by sophisticated style and sumptuous furnishings, but equipped with impeccable service delivered by The Ritz-Carlton. From housekeeping and valet services to gourmet dining and

Branded Homes – Next Big Thing in Luxury RealtyLuxury demandThe rush to build branded residences

is not without reason. According to a report by Knight Frank and Citi Private Bank, a higher number of high net worth individuals are choosing luxury properties in Asian cities.

Aiming to cash in on the swelling number of globe-trotting wealthy Indians, international hotel chains such as Ritz-Carlton, Four Seasons, Starwood Group, Carlson Hotels and a host of Indian developers such as Nitesh Estates and Oberoi Realty are betting big on branded residences in the country. While Four Seasons is doing two such projects, with Westcourt in Bangalore and in Mumbai with the Jatia family, Mumbai-

based Oberoi Realty is in talks with global hotel brands such as St Regis Residences, Mandarin Oriental Residences and Ritz-Carlton Residences for its Worli project. Nitesh Estates is doing three projects, in Bangalore, Chennai and Goa. US-based Trump Organisation has already tied up with Mumbai-based Rohan Lifespaces to launch Trump-branded residences in South Mumbai.

But the buyers need to have deep pockets, as these apartments do not come cheap. For example, the residences being developed by Nitesh Estates in Bangalore and Chennai are priced between $1 million (Rs 4.4 crore) and $3 million (Rs 13.2 crore), depending on size and other factors. Sizes vary from 3,000 to 4,500 sq ft.

dedicated concierge, you’ll enjoy five-star living.” Ritz-Carlton has a track record of servicing such residences in Singapore, New York, Bangkok and San Francisco.

BRANDED HOMES: WHO IS DOING WHAT

Developer/owner Brand Location

Nitesh Estates Ritz Carlton Bangalore,

Chennai

Westcourt Four Seasons Bangalore

Jatias Four Seasons Mumbai

Rohan Lifespaces Trump Mumbai

19135

18519

18200

18400

18600

18800

19000

19200

Last week This week

Sensex

Sensex

22140 21870

-270

-5000

0

5000

10000

15000

20000

25000

Last week This week Up / Down

Gold (10 gms in Rs.)

Gold (10 gms in Rs.)

125.58

109

-16.58-40

-20

0

20

40

60

80

100

120

140

Last week This week Up / Down

Crude (per Brl in US$)

Crude (per Brl in US$)

-15.73

-41.21

27.54

15.2

16.7

-60 -40 -20 0 20 40

CONSTRUCTION

REALTY

BANKING

INFOTECH

RETAIL

Last Year

Last week

HUDCO TO SANCTION ` 25K CRORE FOR PROJECTS IN FY12

Chennai Realty

Ashwini Foundation, a leading Chennai-based property

developer, plans to invest over Rs.1169 crores to develop seven residential projects over the next 3 years.

The company is involved in developing the following projects: On the upcoming projects, the company plans to launch the Kolapakkam and Kuthambakkam projects in Q1 of 2012.

The company has plans of developing an affordable housing projects consisting of 2000 apartments in Madurai.

Established in 1999, the company has executed projects of over 5 lakh square feet of residential development in Chennai and Coimbatore.

For details, visit www.asvini.com or call 044 24544500

Ashwini Foundations to invest Rs.1169 crores in residential projectsProJecT Name LocaTIoN TyPe oF

UNITSNo. oF UNITS

STaTUS

Amanya Nelikuppam 1, 2 & 3 BHK 1008 Under construction

Atvarika Kelambakkam 2 & 3 BHK 56 Under construction

Akila Heights Sembakkam 2 & 3 BHK 338 Under construction

Asvini NRD Towers Avadi 1, 2 & 3 BHK 646 Under construction

Avani Kovaipudur, Coimbatore

Villas & Twin Houses

21 + 30 Under construction

- Kolapakkam 2 & 3 BHK 32 Planned

- Kuthambakkam 1, 2 & 3 BHK 300 Planned

Eyeball Media announces the 2011edition of Chennai’s

most popular budget property exhibition, Budget Homes 2011. The exhibition will be held on May 27-29, 2011 at Chennai Trade Centre in Nandambakkam.

The expo has been conceptualized with the aim of providing the customer to choose from a variety of property options from over 50 builders across Tamil Nadu. Projects spread over the entire city suiting the needs of today’s discerning budget conscious home buyers and investors will be showcased at the property expo.

For the developers, the event would provide a transaction-focused platform. Last year Budget Home 2010 saw over 35000 footfalls and generated over 800 spot bookings. Leading developers like TVH, NAPC Properties, Inno Geocity, Vijay Shanthi, VGN, Arun Excello and others have already confirmed their participation in this edition.

The exhibition will see participation from leading banks and financial institutions offering special schemes for those booking properties at the exhibition.

For details: 96000 84255

Budget Homes 2011curtain raiser:

Chennai Realty

Chennai ProPerty trends

Sub MarketS average rent in May 2010(rs. / Sft per month)

average rent in april 2010(rs. / Sft per month)

CBD (Anna Salai, Nungambakkam, RK Salai,

T Nagar, Egmore, Alwarpet)

Grade A 70 - 100 70 - 90

Grade B 55 - 65 55 - 65

Off CBD (Guindy, Kiplauk, Taramani, Adyar, Anna Nagar)

Grade A 50 - 65 50 - 65

Grade B 42 - 47 42 - 47

Suburban Business District(Velachery, Perungudi, Mount Poonamallee Road)

Grade A 35 - 45 35 - 45

Grade B 30 - 40 30 - 40

Peripheral Business District (Perungalathur, Sholinganallur, Siruseri, Ambattur, GST Road)

Grade A 35 - 40 35 - 40

Grade B 25 - 35 25 - 35

commercIaL

locationS capital value 2 bHk (rs./Sft)

rental value 2 bHk of 1000 Sft (rs./Month)

capital value 1 ground of 2400 Sft (rs. lacs)

budget preMiuM budget preMiuM average

central

AlwarpetNeelankarai Sholinganallur

800060003500

18000150004000

16000120008000

300001800014000

300 - 400150 - 20065 - 75

nortH

Anna NagarAvadiMadhavaram

900028503500

1400035004200

1200050006500

2600070008000

250 - 35065 - 7065 - 70

SoutH

AdambakkamMedavakkamTeynampet

500035009000

6500450015000

6500700015000

90001500030000

90 - 11060 - 70

275 - 300WeSt

ArumbakkamK K NagarRamapuram

600065004200

700080004800

800080006000

170001700010000

180 - 225180 - 23070 - 85

outer

Puzhal SiruseriSriperumbudur

18003000 2100

250040002400

400080005000

7000160007000

7 - 1035 - 4512 - 15

reSIDeNTIaL

coNSTrUcTIoN maTerIaL PrIce INDex *coMModity unit MeaSure previouS Week current Week

CEMENT Per 50 KG BAG Rs. 290/- Rs. 290/-

STEEL Non ISI 6MM / Ton Rs. 39, 000/- Rs.40, 000/-

STEEL TMT 8MM dia / Ton Rs. 42, 250/- Rs. 42, 250/-

STEEL 10-25 MM dia / Ton Rs. 41,100/- Rs. 41,100/-

STEEL RMS / Ton Rs. 44, 500/- Rs. 44, 500/-

STEEL STIRRUPS / Ton Rs. 46, 500/- Rs. 46, 500/-

STEEL VSP/SAIL 10mm dia / Ton Rs. 46, 800/- Rs. 46, 800/-

BRICKS 1 No. Rs. 6/- Rs. 6/-

RIVER SAND Cubic Feet Rs. 45/- Rs. 48/-

FLY ASH Per Ton (Ennore) Rs.120/- Rs.120/-

BLUE METAL 20MM / Cubic Feet Rs. 26/- to Rs. 28/- Rs. 26/- to Rs. 28/-

BLUE METAL 40MM / Cubic Feet Rs. 24/- Rs. 24/-

QUARRY DUST 0 – 2 MM / Cubic Feet Rs. 20/- Rs. 20/-

BITUMEN GRADE 80/100 Rs. 37,100/- Rs. 37,100/-

BITUMEN GRADE 60/7O Rs. 37, 675/- Rs. 37, 675/-

* C

ourte

sy :

BA

i, C

henn

ai “Wisdom is not a product of schooling but of the

lifelong attempt to acquire it”

Albert Einsten

Knowledge is

Power

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