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Friday, November 27, 2015

Owning a home in Chennai is a boon or bane?

This is not to dissuade anyone to buy home in Chennai. But the fact is the fact! Chennai is among the top real estate destinations in India. The prices of properties, both within and outside the city, are steadily going up irrespective of the fact that some of the pin codes still to have basic facilities like black-top roads, clean drinking water, clog-free drainage network and reliable power supply.

As an added bonus, people’s most cherished homes and swanky cars can go under water during the monsoon season aided by depressions in Bay of Bengal. One can imagine the plights of the residents residing in city’s fringe areas, who had spent fortune to own a home there.

Scenic Chennai outskirts are under the thick cover of flood water

They have only houses sans basic amenities - No roads, no sewage and water connections, poor transportation facility, unsafe and unhealthy surroundings, lack of security and utility services like bank, post office, ATMs hospital, etc, and the list just goes on and on. But the real estate prices in these areas are touching the roofs making the salaried class to only day-dream of having a home in Chennai.

But is it worth owning a home in Chennai?

The recent rains brought by a depressed in Bay-of-Bengal and its aftermath flood inundating the so-called posh areas of Chennai and most sought-after areas in the city outskirts have opened up the floodgates of debates again among the denizens that whether or not the city is a megapolis, which is ill-prepared to withstand a few hours of rainfall.

Most of the areas having very high real estate value like Velacherry, Kotturpuram, Anna Nagar, Mugappair, KK Nagar, Ashok Nagar, Porur, Kolathur, Kodambakkam, Valarasavakkam, T-Nagar, to name a few, have been inundated with knee-deep to hip-level water while the entire world witnessed what has happed to the residents of West Tambaram, where water entered houses and remained there for more than a week. More than 100 people lost their lives in the state and properties worth crores have been lost. One could only see the top of the parked cars on the roadsides in several ‘posh’ areas.

Thambaram-Mudichhur high-way was completely invisible, and areas on both sides looked like a huge lake dotted with partly submerged buildings. Residents remained indoors for days as rescue and relief operations were selective and lackadaisical, allege residents.

Why the areas of West Tambaram, which have not seen such floods over several years, gone under water, making the residents to use of boats to reach various places to meet their daily needs? Rain water got mixed with drainage in several areas and people had horrific experience in finding food and answering nature’s call.

Some of the residents allege that real estate sharks, to sell a chunk of their land in low level areas, had illegally changed the course of the rain water flow in West Tambaram which had resulted in flooding in other nearby residential colonies. Several of the water bodies in and around the cities have been usurped by illegal residential colonies, which resulted in flooding in adjoining areas.


Take for example, Alappakkam near Valasaravakkam, which had a huge lake, now became a full-fledged residential area. So, whenever, Porur or Chembrambakkam reservoir overflows, excess water instead of coming into the Alappakkam Lake, now inundates adjoining areas in Virugambakkam, says real estate experts.

Same holds true for areas around Kattupakkam, Kolathur and Madipakkam. Shocking it may be, but as per a recent report in a leading daily, the Porur Lake in West Chennai, whose original area was around 800 acre, has shrunk to a meager 200 acre now, thanks to the overwhelming illegal constructions under the aegis of some political powers and real estate sharks.

So, no one is sure whether one area is safer than other in Chennai. May be this time an area would have been spared from flood, but may not be the next time, thanks to the intelligent planning of officials which lacks farsightedness and wide-spread illegal construction activities by unscrupulous real estate companies.

Another issue in Chennai is the mindless practice of re-laying of roads by the Corporation. Instead of ‘milling’ the road to remove the old asphalt and then re-lay the road, they lay the fresh aggregate on the old road itself, thereby increasing the road’s level by two to four inches every time. This makes the houses on the either side of the road dwarf in few years making them vulnerable to floods.


The construction of ambitious rain water drains, which had started way back in 2011, has not seen its light yet, despite spending fortune on the project. In many areas, flood water entered due to incomplete drain works. Roads have to be cut to drain out the excess water in several areas. Almost all roads in Chennai have been affected due to the recent rain, and to repair or relay them, the government needs huge funding and man power.

This year’s flood is not a “once-in-blue-moon affair for Chennaiites. They are used to such conditions and have been suffering for years. It was in 2005, 2008, 2009, 2011 and then now in 2015. Every time, precious lives lost, crores worth properties perished, but no lesson learnt.

So, no prize for guessing, whether owing a home in Chennai is a boon or a bane? 

The article also appeared on Merinews.com.

Despite rate cut, real estate sentiments remain lukewarm: ASSOCHAM

Despite the recent rate cut of 50 bps by Reserve Bank of India (RBI) and great offers made by developers on the festive season, the investment in the property have remained lukewarm in and around the NCR region due to lack of confidence in state of economy, delay in project execution, lack of fresh employment generation and overall slowdown, reveals the ASSOCHAM recent study. 

"The sentiment in the housing market is really at a low key. The prices have almost crashed but they are still un-affordable. Be it Rohini, Dwarka, South Delhi, Noida, Gurgaon, the prices of property are down by 25-30% as compared to the last two years.”, said D S Rawat, Secretary General ASSOCHAM while releasing the survey.

The ASSOCHAM conducted a random survey of nearly 125 real estate developers in Delhi-NCR. The survey reveals that demand for buying property have decreased by over 30% over the last year.

As per the ASSOCHAM paper, inordinate delays in getting necessary approvals from multiple regulations and authorities result in cost and times overruns. The resale or secondary market is also dull this festival season as there is very little resale going especially in the NCR and surrounding areas, adds the survey.

According to survey, the residential market has witnessed a steep decline by 25-30% in new launches as well as demand resulting a significant shrinkage. The unsold inventory pressure in NCR region is the highest among all other cities.

According to the majority of real estate developers in NCR regions said, about 62% of the unsold real estate in NCR is in areas which are currently uninhabitable. The problem has been confounded by delays in regulatory clearances and litigations, points out the survey.

The NCR residential market still has an estimated 1,70,000 units of unsold inventory which is approximately 30% of the units under construction, adds the survey. As per the survey, there are nearly 8.5 million workers engaged in building and other construction activities in India. 

The ticket price 3-bedroom, 2 BHK  and single room flats has seen correction by 30 per cent in Noida, 25 per cent in Gurgaon and 15 per cent in some key areas of Delhi but still, the demand stays subdued, adds the survey.

Modular kitchen, LED televisions and air conditioners are among the most common freebies on offer this Diwali. Some developers offered hefty discounts to the basic sale price for early investors. Many others warned of sharp revision in property rates post Diwali. However, the lure of freebies failed to charm home buyers, the survey noted.

Majority of the developers have complained that inordinate delays in getting necessary approvals from multiple regulations and authorities resulted in cost and time overruns.

To counter the slump in sales, developers have been offering some discounts and incentives. But even these steps have failed to attract buyers. The sales continued to remain low despite developers offering attractive pricing schemes and discounts to attract buyers.

Festive season considered to be auspicious for home buying and offering bargains, contributes over 30 percent of annual realty sales. But with the prevailing depressed market sentiment, the sector has been witnessing muted sales since the festive season of 2015, recording 30-35 percent lower sales compared to the healthy period of 2010-11.

Besides offering standard freebies like parking and club facilities, modular kitchens, air-conditioners, developers are taking just 5-10 percent of the house price as booking amount and that too in installments, with the balance payment on possession.

Thursday, November 26, 2015

Govt approves Rs 3120 cr to improve infrastructure for 102 cities under AMRUT

Seeking to improve basic infrastructure in urban areas, the Ministry of Urban Development has approved an investment of Rs. 3,120 cr for enhancing water supply, sewerage network services, storm water drains, non-motorised transport and availability of public spaces in 102 cities, under Atal Mission for Rejuvenation and Urban Transformation (AMRUT). 

An inter-ministerial Apex Committee chaired by Madhusudhan Prasad, Secretary (Urban Development) approved State level Annual Action Plans for 2015-16 with an investment of Rs. 438 cr for Haryana which has 18 Amrut cities, Rs. 573 cr for Chattisgarh (9 cities), Rs. 416 cr for Telangana (12 cities), Rs. 588 cr for Kerala (9 cities) and Rs. 1,105 cr for West Bengal which has 54 Atal Mission cities. 

Total investment in water supply projects in 58 mission states will be Rs.2,386 cr, sewerage projects-Rs. 495 cr in 17 cities, Storm water drains- Rs.106 cr in 9 cities, Urban transport - Rs.61 cr in 9 cities and Rs.72 cr for development of parks and green spaces in all the 102 cities, a PIB release said.

The Apex Committee approved investments in different basic urban infrastructure areas as proposed by respective state governments. Ministry of Urban Development will provide an assistance of Rs.1,540 cr which is about 50% of total project expenditure approved on Thursday. 

With these approvals, the Ministry has so far cleared a total investment of Rs.11,654 cr in 272 Atal Mission cities for improving infrastructure for ensuring water and sewerage connections to all households in Atal Mission cities besides enabling water supply as per the norm of 135 litres per capita per day for urban areas etc. 

At present only about 50% of urban households are provided with water connections and water supply is about 75 lpcd. Availability of sewerage connections is very low. Atal Mission seeks to bridge this deficit. 

As per the State Annual Action Plan (SAAP) for 2015-16, presented by the Haryana Government, water supply at present in all the 18 mission cities is below the norm for urabn areas. It is only 43 litres per capita per day in Jind, 88 lpcd in Sonipet and a maximum of 130 lpcd in Gurgaon. 

In other mission cities of Rohtak, Ambala Cant, Thaneswar, Sirsa, Hisar, Palwal, Karnal, Yamuna Nagar, Kaithal, Bhiwani, Ambala City, Rewari, Panipat, Bahadurgarh and Jagadhari, present water supply is in the range of 102 lpcd to 127 lpcd.

Siddha Group Builds World's Longest Rooftop Skywalk in Kolkata

Siddha Group, one of Eastern India's leading real estate developers, has launched world's longest rooftop skywalk, 'Starwalk', as a part of 'Siddha Galaxia, its affordable luxury apartments on Rajarhat Main Road, Kolkata. 

Sanjay Jain, Managing Director, Siddha Group and renowned actor Gargi Roy Chowdhury who unveiled the project, said:


"With Siddha Galaxia, we aim to redefine modern living in Eastern India. The major draw there is Starwalk, a rooftop skywalk at the 14th floor level, connecting eight towers with a 1.1 kilometre long rooftop skywalk and open landscaped greens, water bodies with fountains, sit-outs and a deck for telescope viewing. It will be the world's longest rooftop skywalk, offering a whole range of outdoor experiences, 140-feet above the ground level which makes this the world's longest jogging track at the highest level." 

"To meet the demand of open spaces within close reach, features like skywalks have become a necessity now. It's a quick-fit solution for the residents who want to experience open greens, leisure and collective activities within the complex. For them, the project's igh-in-the-sky activities will be a fascinating experience! I am quite sure that Siddha Galaxia would be unique and trendsetting - a luxury statement for an average middle class," added Jain.

Siddha Galaxia Phase II, featuring Starwalk, will be completed within the committed time frame. Phase I, ready already, has six towers while the Phase II will have eight. Siddha Galaxia is one of the largest affordable luxury complexes in Rajarhat. With open greens, Siddha Galaxia will eventually have 2500+ families and 10,000+ residents.

The project will also feature a star-studded Club, 'Stella', for its residents. The club spreads across 40,000+ sq ft with all modern facilities and amenities.

Located on the Rajarhat Main Road near City Centre II, Siddha Galaxia will offer spa, steam and massage room, yoga and meditation zone, health zone, gymnasium, swimming pool, aqua aerobics, badminton court, tennis court on the MLCP, squash court, multi-activity room, library-cum-lounge, indoor games room, coffee shop with WiFi, crèche, toddlers' zone, an AC banquet hall, plus, a 24-hour surveillance and security system, ensuring the experience of an ultra comfortable lifestyle at convenient prices starting from Rs 40 lakh.

DHFL Launches National Influencer Outreach Program

Dewan Housing Finance Corporation Limited (DHFL), India's second largest housing finance company in the private sector, has recently launched a national influencer outreach program in a bid to reach out to the tech-savvy younger generation in the age group of 18-25 years. 

This segment turns out to be the main influencer group for the prospective home loan customers in the lower and middle income (LMI) segment. The Company has launched two infomercials as part of the initiative to educate customers on the intricacies of home loans and would be launching a new video every month to update the customer on various home loan queries. This video will not only educate the customer on easy accessibility to home loans but also will imbibe confidence within them for buying their dream home.

The infomercials launched by the Company plan to convey the message to the younger generation that it is very simple to avail a home loan besides also educating them on the processes involved for applying for a home loan. The duration of each infomercial is close to three minutes and will be showcased across all digital mediums. The Company will also conduct workshops through its large network in the tier II and tier III locations. The video plans to reach out to over 5 lakh viewers through various social networking platforms.

The need for an educational approach arose because of the myths surrounding home loans and the indecisiveness on part of customers when it comes to applying for a home loan. The insights for the infomercials have been drawn from the expertise that DHFL enjoys for over three decades of servicing the low and middle income customer in the tier II and III towns and also through surveys conducted by the Company.

The video will further help increase awareness amongst the online searches on home loans, which stands at four and half lakh people seeking home loan information every month.

Speaking on the initiative, Harshil Mehta, CEO, DHFL, said, "The launch of our national influencer outreach initiative is a strategic move towards imparting knowledge to prospective home buyers, and complements the larger objective of the Indian government of achieving housing for all by 2022."

"The educative series is a step towards educating the target segment about the various benefits of a home loan and how the entire process can be made simple and convenient, thereby enabling them to take a well informed decision for buying their dream home," he added.

This influencer outreach program will further complement the recently launched "Bahanas" ad campaign by the Company to address the myths surrounding home loans. The infomercial will be showcased across branch networks and various digital platforms that are specifically targeted towards the LMI customers or the younger generation of LMI customers. It will be promoted on YouTube, Google+, news websites, Flickr, Pinterest, SlideShare, entertainment websites and high traffic online portals for maximum impact and reach.

Radius Launches Ultra-luxury Residential Project in Bandra

Radius Developers has launched ultra-luxury residential project titled 'Project Bandra', a joint venture between Radius Developers, DB Realty and ABIL, located off BKC Road near MIG Cricket Club.

Spreading across five acres, Project Banda offers 2, 3 & 4 BHK and will have 22-29 storey towers, the company said in a release.

Radius has ropped in well-known architect Hafeez Contractor for this project. While AEDAS will take take care of interior designs, POD Tierra from Singapore will do the landscaping for the project.


Project Bandra's innovative z-shaped layout offers views of the stunning Arabian Sea on one side and lush greens on the other. The unique master plan optimizes the natural essentials like ventilation and sunlight, ensuring that every single residence is airy and bright.

With pricing of the flat starts from Rs. 3.6 cr, the project will be completed by 2018.

Besides three majestic grand double height entrance lobbies spread over 37000 sq. ft. and multi-activity landscaped area, there are a host of amenities that will pamper and invigorate the residents. The project boasts of over 50% open and green spaces.

POD Tierra will develop over 3 acres of elevated lush landscape which will provide the rare sea of green in the heart of the city. Also included in the project are more than one kilometre long jogging track dotted with trees, gardens and orchard walks, 42,000 sq. ft. of amenities including luxurious clubhouse, equipped with world class amenities, state-of-the-art sky gym, swimming pool, toddler's pool, squash court and indoor games zone and a yoga and meditation center with spa, steam and sauna to help relax your body and mind.

Other amenities include, a barbeque deck, mini theatre, bowling alley, poolside cabanas, gourmet restaurant and café.

The project is located closer to Mumbai's largest and first international level CBD  - the Bandra-Kurla Complex (BKC), international schools, hospitals, malls, 5-star hotels, recreation and entertainment centers.

The project brings alive the walk-to-work concept and fosters a work life balance. It is also well connected to important destinations - everything from South Mumbai to the Airport, the city suburbs and the station lie within a 10-minute radius. Linked by the Bandra-Worli Sea Link, Western Express Highway and Eastern Express Highway.

Tuesday, November 24, 2015

Piramal Realty launches luxury tower in Thane for Dubai NRIs

Piramal Realty, a Part of the USD 4 bn Piramal Group, has recently launched Vivaan, one of the Most Premium Towers of Piramal Vaikunth located in the heart of Thane, exclusively for the NRI residents from Dubai.

Offering 2 BHK residences starting from 949 Square Feet carpet area, the limited pre-launch offer is available for select residences for NRIs in Dubai, a release stated.


Piramal Realty is a a diversified conglomerate with interests in Healthcare, Real Estate, Glass Packaging and Financial services, has recently received the largest private equity investment in Indian real estate from Goldman Sachs and Warburg Pincus.

Piramal Vaikunth is Located in the heart of Thane within 25 kms of the Mumbai International Airport.

The booking for Piramal Vaikunth has commenced from November 20. 

Vivaan is situated within the residential complex of Piramal Vaikunth at Balkum, Thane, which is 25 km from Mumbai International Airport.