Posts Tagged ‘suburbs’

The Plotline of Investment

December 3, 2012 Leave a comment

Invest in Plots Chennai


Many people are looking at plots in the peripheries of the city as a means of short and medium-term investment.Arjun Narayanan finds out more

Land is undoubtedly emerging as a much sought after asset for investments.While purchasing a plot by end users is common,there are many who look for plots as a short to medium term investment.Since availability of plots within the city limits seems beyond question,the obvious choice is the outskirts,where a lot of manufacturing companies have set up shop.
Buying a plot calls for lower finances and allures many investors for this very reason.”I personally feel that property requires more money and the appreciation that happens in case of an apartment is not as high as in case of a plot,”says Mahipat Bhandari,a city-based businessman,who has purchased a plot in Kayarambedu.
It is areas like these that are up for grabs on the investment map today.”The area towards GST,Oragadam,Sriperumbudur and the stretch along the ECR,after Muttukaadu,are attracting investors and developers today.The connectivity is improving in these areas and many educational institutions and hospitals are being proposed here.These aspects work like a trigger for developers and investors,who are looking for plots in the suburbs of the city.It works well as a long-term investment,”says Wilson Mathews,Director,Sales and Marketing,TVH.

With increased economic activities and growing income,space for residential property has become an issue in Chennai.Employees of multinationals and manufacturing enterprises (that are set up on the outskirts) are also planning for a permanent residence in these areas and as that happens,what was once a suburb has now become a part of the city.”Even a few years ago,Tambaram was seen as a suburb.But today,it has become a part of the city.There are many IT professionals residing in the area there and facilities are increasing there,”says Rakesh Jain,a city-based entrepreneur,who has invested in a plot near Guduvanchery and has plans not to sell the plot for at least the next three years.”After seeing some appreciation,I am planning to get into a joint development with a builder,”says Rakesh,who holds the plot jointly with another investor.
“Most real estate developments being proposed in recent times follow the joint development route.In such a case,a developer doesn’t invest money in land;both partners join hands to develop property,”says Wilson.Rakesh also sees a lot of merit in investing in a plot over a house.”Apartments require a lot of maintenance and that becomes cumbersome if you are living in another city.Besides,you can do a lot with a plot.Selling it becomes easier,”he says.

So how does a person clearly decide between investing in a plot and a house Wilson feels that one needs to prioritise his/her needs and keep the budget in mind,which means that the purpose of investment,the time in hand to remain invested,the source of funding and the desired cash flow are the key factors while making a decision.”Don’t bite off more than you can chew,”he says,with a note of caution.”If a person already has a house,then its ideal to invest in a plot in one of the locations in the suburbs.Growth is happening in the periphery of the city,”he says.A planned decision will then help a person invest in plots as a short term or medium term investment.

As published in Times of India, Times Property – December 2, 2012

Costs drive home dreams to Suburbs


Aspiring homeowners are now looking to relocate beyond the city suburbs, with private builders offering dream homes in affordable townships in these areas, complete with entertainment, schooling and hospital facilities.

With land becoming sparse and costlier within city limits, the only option for the builder is to amass at least 3,000 acres of land in rustic corridors off OMR, ECR or GST, says C. Devadasa Sundaram, chairman and MD, CeeDeeYes, whose upcoming township Chennai Pattinam, on OMR near Thiruporur has flats ranging from Rs 22 lakh to 45 lakh.

“A township is economically viable for both the builder and the consumer, only if we are planning to accommodate 3,000 families in comfortable two or three BHK homes, and provide schools for the kids, a mall, multiplex,” he says.

Even as private builders are catering to a large middle class segment that is ignored by government projects, they do seek participation from the state. “While we have taken care of other infrastructure like sewage, electricity and water, we have recently written to the government to improve the road facilities,” Mr Sundaram says.

Apart from smoothening unmotorable road tracts, the government must take a keen interest in reducing construction costs, says Nakshatra Roy, True Value Homes. “Material like doors, windows and tiles are much cheaper to import, but when faced with the levy of 30-40 per cent on such items, the builder will have no choice but to pass it on to the buyer, who is already burdened with EMIs,” explains Mr Roy.

Deccan Chronicle, 2 Aug 2010

Poised for growth – Oragadam


Oragadam,the industrial hub on the outskirts,is growing rapidly. However,are there enough residential projects in the area to accommodate the rising population RADHIKA RAMASWAMY and HARINI SRIRAM find out Real estate development in the city has been witness to several transformations over the past four to five years.While in certain areas residential development was a defining factor for industrial growth,in others,commercial and industrial growth have paved the way for improved infrastructure and connectivity.

Landscape of Oragadam

Oragadam,centrally located between Grand Southern Trunk and NH4,has been touted as Chennai’s largest and most developed industrial belt.With over 22 Fortune 500 companies (of which six are global car manufacturers ),the Sriperumbudur-Oragadam belt has seen tremendous industrial growth,in less than four years.The area is well-connected via road and rail and according to industrial experts,the presence of automobile giants like Renault-Nissan and Ford has triggered growth in and around Oragadam.In addition,JCBL Ltd,Essar Steel,BPCL,Delphi TVS Diesel Systems Ltd,GE Bayer and Silicons (India) Pvt Ltd have set up offices at SIPCOT Industrial Park.

Industrial impact

Has this industrial expansion paved the way for residential development in and around Oragadam Are there enough projects in the pipeline to cater to the large working population The State Industries Promotion Corporation of Tamil Nadu (SIPCOT) is spread over 347 acres in Oragadam and houses a number of industrial units and intends to expand in order to accommodate more industries and residential complexes.MRJ Premnath,General Manager,SIPCOT,says,”We have more than 10,000 employees,most of who commute to and from their homes in the city by company buses.It is high time that there are apartments or villas built in Oragadam,so that people do not have to spend two hours traveling.” Devendar Singh,Deputy Manager,Motherson Group of Companies,GST Road,is quick to agree.”For me, he says,traveling from GST Road to the city is a nightmare.I recently bought an apartment in Oragadam (in Temple Green,an Arun Excello project).In fact,nearly half the project is occupied by employees from my company.Living so close to work will cut down on travel time and reduce additional expenditure incurred by companies when providing transportation.We want more such projects in this part of the city,as it will benefit thousands of employees working in and around Oragadam.”

The flip side of the customers perspective is that sometimes,regardless of the facilities offered,moving to a new home outside the city is a less than appealing perspective. Kiran Chandan,Deputy Manager,Renault-Nissan,says,Despite working at Renault-Nissan,whose offices are in the Oragadam area,my wife and I moved from Tambaram to Kodambakkam.We did so,largely,because my wife works in Nungambakkam and commuting,for her,would have been difficult. Kiran adds that commuting,for him,is quite a problem now.He continues,We have been looking,for some time,for an opportunity to move closer to Oragadam.Our budget,currently,is about Rs35 lakhs.So far,we havent really found anything. Oragadam used to be a sleepy little village even about three years ago.However,when SIPCOT was set up in 2007,the area underwent a sea change.The resultant flood of working professionals and their family,complete with residential and shopping demands had,and still has,the potential to wake the sleeping giant of urban development in the area.

Times Property, Times of India, 19 June 2010

Suburbs developing, amenities lagging behind

 Major projects as the elevated corridor along the CTH Road at Ambattur Industrial Estate have brought in more settlers to the suburbs, making it a challenging task for local bodies to upgrade basic amenities.  

Well-laid roads, transport, good water and pucca sewer system are the demands still unfulfilled.

Swanky buildings dot the landscape of suburbs along the Chennai Tiruvallur High Road and more are underway. But, the localities enroute present a picture of stark contrast.

Many residents recalled that the localities have undergone tremendous progress from housing quiet spaces with a few scattered houses, forcing people to stay indoors by the dark to the accommodating noisy ones reflecting the burgeoning population. The fast track development has been hardly matched with basic amenities.

With its proximity to the city, Ambattur is the most sought after location for IT companies. K.Purushothaman, Regional Director, NASSCOM, said “Software companies started exploring the potential of Ambattur Industrial Estate due to availability of manpower. Nearly four million sq. ft. of office space is available. Rentals are cheaper than on the OMR up to Perungudi.”

Two major projects of Padi grade separator and the 3-km elevated corridor, a component of the Chennai bypass project being constructed by the National Highways Authority of India, have had their impact on traffic and housing development.

Officials of Ambattur and Avadi municipalities said the number of settlers have increased in the recent years. While the number of assessees has shot up by 10 per cent at Avadi, it has grown from 88,451 to 91,334 in one year at Ambattur.

Nearly two lakh passenger car units use the grade separator daily. However, the elevated corridor from Ambattur industrial estate to Pattaravakkam railway station is yet to be completed. It envisages connecting NH 45 along Tambaram with NH 5 along Madhavaram.

The project meant problems for residents as NHAI has failed to provide proper storm water drains. K.Durairajan, president of Gnanamurthy Nagar Residents’ Welfare Association, said “after the NHAI project, Gnanamurthy Nagar gets flooded even after a few days of showers as there was no proper channel to drain rain water.”

The CTH Road also has its share of woes. On an average, about 40,000 passenger car units use it. Motorists spend almost two hours to travel from Avadi to the city owing to increase in traffic and narrow, damaged stretches. Though the Padi grade separator has reduced congestion, the problem would not get solved unless the CTH Road widening project is implemented, residents said.

With a price?

The transformation of Ambattur from an industrial zone to a booming Information Technology Enabled Services (ITES) hotspot has come at a price. Much has to be done by the local bodies to address the growing needs of people.

S.Vijaya, a resident of Korattur, said interior roads in many localities, including Lenin Nagar, Ram Nagar and Vijayalakshmipuram, are in shambles. As the long-pending demand of a sewer system is yet to be fulfilled in the two municipalities, many apartment complexes release sewage into open spaces.

Transport is also a major issue in the areas along CTH Road. Residents said many bus services, which used to start from Ambattur, have been extended to Avadi due to inadequate facilities in the Ambattur OT bus terminus. There are no services to Koyambedu or Parry’s Corner from Ambattur. Restoration of EMU train services to Padi and Anna Nagar would be a boon to commuters.

Conceding that the facilities are far behind compared to the demand, the municipality officials said besides water supply and underground drainage schemes, many projects are in the pipeline.

Officials at Ambattur said “About 80 per cent of the 2,500 roads would be relaid from January 2011. We are waiting for the road digging work for the Metrowater projects to be completed. Once the comprehensive SWD project is executed, inundation in Ambattur would be prevented.”

K.Ganapathy, a resident of Krishnapuram, suggested mini bus services must be operated to connect interior areas. The railway bridge close to Ambattur Uzhavar Sandhai has to be widened.

Admitting that overcrowded buses was a daily ordeal for commuters, a senior MTC official said there was inordinate delay in fleet upgradation over the past decade. New fleet acquisition has been taken up only in the last two years.

Funds have been allocated for concrete flooring to upgrade facilities at Ambattur OT terminus. “Once mini-buses start plying, localities like Ambattur, Avadi and Pattabiram will be better served through shuttle services,” he added.

On the rail connectivity, R.Ramanathan, Chief Administrative Officer (Construction), Southern Railway, said “The Anna Nagar-Villivakam link will become an inter-modal hub once the Metro Rail commences operation. Services have been suspended due to low patronage. We are also considering direct connectivity from Villivakam to Velachery through the MRTS network.”

Limited volume of trains is operated on the Gummidipoondi stretch as only two lines were available in the northern and western segments. Funds are awaited for a proposal to increase the number of lines.

Officials of NHAI said the 20-km stretch of CTH road from Padi to Avadi would be widened to 10 metre wherever possible as a temporary measure. After the completion of the road over bridge in Pattaravakkam, the elevated corridor would be commissioned in September.

Once the Chennai bypass and Outer Ring Road projects are implemented, traffic on CTH Road and Inner Ring Road would be reduced considerably in two or three years.

The Hindu, 14 June 2010