Chennai Realty May 2011

www.chennairealty.biz
weekly Newsletter on Real Estate in Chennai Vol. 1: Issue 1

New Vision Launch date : 21st May 2011

New Team
Infinite
Possibilities!
Dear Patron,
I am happy to present to you the
1st edition of ‘PropWatch’, our
weekly newsletter that tracks major
developments and important stories
in the real estate sector across India
and abroad. The intention is to give
a quick overview on issues which will
have a direct or indirect effect on the
real estate sector in Chennai.
This newsletter is yet another step in
our modest attempt to bring a new
dimension to media reporting on
real estate and construction sector
in Chennai. We believe in the saying
‘Nothing is Ever Perfect; There is
Always Room for Improvement’. Hence
we request your honest feedback on
this newsletter which will help us
learn, improve and innovate as we
continue our journey to becoming a
reputed voice of Chennai’s real estate
industry.
Happy Reading!
Kishore Kumar
Editor
Chennai Realty .biz
Available in Stands from June 2011
e-Stamping system launched in Tamil Nadu
S tock Holding Corporation of India
(SHCIL), a public sector financial
services provider, has lauched
e-Stamping system in Tamil Nadu.
With e-Stamping it is now convenient
for anyone to pay stamp duty online
without the hassles involved in
obtaining a stamp paper or franking
a document. The e-Stamping system
has been introduced to replace the
use physical stamps. The system is
secure and reliable and ensures the
stamp duty paid reaches the government safely. The system has done away with the risks associated with the
physical stamping of documents.
Important features include:
• e-Stamp is available at no extra cost i.e you pay only the amount of stamp paper required
• A single e-stamp can be purchased for any denomination
• Third party verification of e-stamp certificate is possible for genuineness
• An e-stamp can be purchased by paying cash /Demand draft , RTGS or NEFT
This facility has been made available throughout Chennai, Kanchipuram and Thiruvallur districts through
the branches of SHCIL and through select branches of Indian Bank, Corporation Bank and Central Bank. For
further information, contact Ms. S Karpagam, Area Manager, SHCIL-Chennai or visit www.shcilestamp.com

S & P Foundation launches

ASK ties up with Real Value
ASK Real Estate Special
Opportunities fund, a realty-
focused private equity fund
has invested Rs.50 Cr in
a special purpose vehicle
(company) floated
Chennai-based Real Value Group. The money
would be used for developing a residential
project at Kottivakkam in Chennai which will
see Real Value Group develop 6.75 lac square
feet of space on a plot of 4.32 acre. The
project is located close to Taramani Railway
station and in the vicinity of the IT corridor
on OMR and entertainment corridor on ECR
in Chennai.
Founded in 1995, Real Value Promoters
has completed over 7 million square feet of
construction and have another 6.5 million
under pipeline. The company currently has 3
on-going projects, Neel Kamal and Sai Surya
both on OMR and Sai Skanda at Velacherry.
Pipeline projects are coming up at Oragadam
and Greenways Road.
Living Spaces
by
C hennai based, S & P Foundation has
launched its latest project offering ‘Living
Spaces’, Mogappair West Extn. Phase I to be
developed over 10.9 acres would have 592
apartments with a total built up area of 7 lakh
square feet with apartment sizes ranging from
550 sft to 1790 sft.
The entire project spread over 80 acres will
be developed over 5 years at an investment
of over Rs.1500 crores. When completed, the
township will have 2800 apartments and 300
villas. Living Spaces incorporates modern
infrastructure and social amenities catering to
a diverse community to meet their individual
tastes, lifestyles and budgets.
For further information, visit www.sandp.co.in
Chennai caught in “Sand Storm”
C hennai developers are facing severe
shortage of construction sand
leading to the price of sand going up
With
requiring
Chennai
about
10000 loads (200,000
by 3.5 times from Rs.15 per cubic feet tons of sand) every day,
to over Rs.40 per cubic feet. Sometime there is a serious need
back the prices went as high as Rs.60 per for developers to look at
cubic feet as the High Court had banned alternative options to
the use of machines for sand quarrying sand as construction
operations and manual labour becoming cannot happen
scarce.
The closure of sand quarries in the
without the basic
materials such as
neighboring districts of Kancheepuram, sand, cement and
Tiruvellore, Vellore and Villupuram steel.
meant that sand had to be transported
Nature takes
from as far as Tiruchi which is 330 kms
from Chennai. Add to this the wastage, about 600 years
to convert rock into
over sized particles and heavy moisture
1-inch of sand and
content, the price works out to as high
as Rs.60 per cubic foot for concrete and with large scale construction happening
Rs.80 per cubic foot for plastering sand. all year round there is simply no sand
The severe shortage has led to hoarding to mine. The prices of cement and steel
of sand making its availability very hard have already skyrocketed in the last 1
forcing builders to go slow on their year putting builder’s margins under
projects. severe pressure.
 Chennai Realty

Weekly Wealth Monitor

19700
Sensex
Sensex
25000
Gold (10in
Gold (10gms gms in Rs.)
Rs.)
22140
Forthcoming Events
21732
19590
19600 20000
19500 Hindu Metroplus Lifestyle Show
15000
19400
19300
Lifestyle 30 May - 6 Jun 2011
Gold (10 gms in Rs.)
19200 19135 Sensex 10000
Chennai Trade Center, Chennai
19100 5000
19000 408
18900 0

Last week This week Last week This week Up / Down

Luxury Homes 2011
Real
Crude (per 7 - 9 July 2011
Crude (per Brl in Brl
Us$)in US$) Estate
-6.76
RETAIL 140 125.58
Chennai Trade Center, Chennai
121.4
120
INFOTECH 30.68
100
Metal Buildings & Steel Structures
BANKING 27.54 80
Last Year
Expo 2011
-37.21 REALTY
Last week 60

40
Crude (per Brl in US$)
Construction 23 - 26 June 2011
-15.73 20
Pragati Maidan, New Delhi
CONSTRUCTION 4.18
0
-60 -40 -20 0 20 40 Last week This week Up / Down

TVS Group – To Mall-oh-Mall

drive into
Low Cost Housing
C hennai is all set to see an upsurge
of shopping malls in the next 12
months. Till recently, Chennai which

T he Chennai headquartered
automotive group, TVS is all
set to drive into the real estate
played home to the 1st shopping
mall in the country in Spencer Plaza,
was lagging far behind in the supply
sector with the planned launch of of quality retail space behind other
their low cost housing project near metros like Bangalore, Hyderabad
Sriperumbudur at Nanmangalam and even Cochin. Citi Centre and the
about 50 kms from Chennai. TVS recently opened Express Avenue has
Housing, a company incorporated provided little succor for the average
in March 2010 would be developing Chennaiite who still feels lack of
28 acres at Nanmangalam which proper shoptainment options in
when completed will house over Chennai.
2500 apartments. Key aspect of
the township project involves Prominent malls at Chennai:
development of 1 BHK apartments S.
in the size range of 385 – 500 sft to Mall Name Location Developer Area (sft) Status
No.
be priced between Rs.7 and Rs.10 1 Express Avenue Royapettah Express Group 9 lacs Operational
lacs. The project is scheduled for 2 Ampa Sky Walk Aminjikarai Ampa Housing & Development 3.5 lacs Operational
launch in the 2nd half of the year. 3 Chennai Citi Centre Mylapore B S Abdur Rahman Group 1. 5 lacs Operational
4 Chandra Mall Virugambakkam National Compan 1.5 lacs Scheduled for launch
Though there is a huge opportunity
5 Spectrum Mall Perambur Ganga Foundations 1.2 lacs Scheduled for launch
on ‘Low Cost Budget Apartments’, 6 Ramee Mall Teynampet Ramee Group 1.5 lacs Scheduled for launch
the concept has seen little interest 7 Coromandel Plaza Semmencherry Suryavardhan Estates 2.8 lacs Scheduled for launch
from developers who feel that 8 Grand Mall Velacherry P S Srijan Group 3 lacs Scheduled for launch
there is very little margin for them 9 Riverside Mall OMR, Karapakkam Marg Group 10 lacs Scheduled for launch
to operate in the sphere and with 10 Forum Mall Vadapalani Prestige Group 17 lacs Scheduled for launch
the giving rapid rise in the cost of 11 Forum Mall Nandanam Prestige Group 12.75 lacs Scheduled for launch
construction materials and interest 12 Ozone Mall Anna Nagar Ozone Group 14 lacs Scheduled for launch
rates, it will be difficult for them 13 Allied Mall Siruseri Allied Housing 7 lacs Scheduled for launch
to sustain profitability unless it’s a 14 Velacherry Mall Velacherry Kshitij Group 21 lacs Scheduled for launch
very large project of over 100 acres. 15 Skycity Mall Poonamallee High Road Dugar Group 8 lacs Scheduled for launch
The challenge again is that the low
income segment is not covered by Infosys co-founder to
traditional home loan institutions WELSPUN INFRA ACQUIRES 35 PERCENT invest in hospitality sector
which affect their affordability for STAKE IN LEIGHTON CONTRACTORS N S Raghavan, one of the co-founders
buying a home of their own. of Infosys, is expanding his presence

W elspun Infra Projects Pvt

Ltd (WIPPL), a part of the
Rs 13,500-crore Welspun Group,
of the share capital of WIPPL is
held by Welspun Infratech Ltd, a
subsidiary of Welspun Corp Ltd
has acquired a 35 percent stake (WCL) and 40 percent by Welspun
for Rs 470-crore in leading project Infra Developers by way of an
development and contracting investment of Rs 150-crore and
firm Leighton Contractors, the Rs 100-crore, respectively. The
Indian arm of Australia’s Leighton balance Rs 220-crore is funded by
International. About 60 percent way of an external debt.
in the hospitality sector. Nadathur
Holdings, the investment vehicle
owned by Raghavan, has formed a
joint venture with Sri Lanka-based
Sunshine Travels.
This joint venture is expected to invest
approximately $50 Million in a phased
manner to develop, acquire and
manage hotel assets in different parts
of the country. In addition to investing
from the family-office fund, Raghavan,
runs a venture capital fund.
 Chennai Realty

Chennai Property Trends

residential
Capital Value 2 BHK Rental Value 2 BHK of Capital Value 1 Ground of
Locations
(Rs./Sft) 1000 Sft (Rs./Month) 2400 Sft (Rs. Lacs)

BUDGET PREMIUM BUDGET PREMIUM AVERAGE

Subscribe Today !
CENTRAL
Abhiramapuram 8000 14000 15000 24000  250 - 350 Chennai Realty
Monthly Real Estate Magazine
Perungudi 3800 4500 8000 12000 70 - 120
Triplicane 7000 13800 8000 16000 200 - 250
North
Ambattur 3000 4000 8000 12000 80 - 100
Purasawalkam 8000 12000 12000 24000 250 - 300
Shenoy Nagar
South
9000 12000 12000 18000 180 - 250
Knowledge
Alandur
Saidapet
5500
5000
7000
7000
8000
8000
14000
18000
85 - 95
160 - 200
is
Kottivakkam
West
6000 7500 8000 20000 150 - 180
Power
Koyambedu 6000 7000 8000 20000 130 - 150
Nungambakkam 10000 15000 16000 30000 250 - 350
Porur 3700 4200 5000 8000 55 - 60
Outer
Tiruvallur 2100 2700 5000 7000 12 - 18 Term Pricing
Kelambakkam 2500 3000 6500 14000 20 - 30
Oragadam 1800 2000 3500 6000 8 - 12
6 months
Rs. 150/-
(6 issues)
1 Year
Rs. 275/-
Commercial (12 issues)
Average Rent in May 2010 Average Rent in April 2010 2 Years
Sub Markets Rs. 500/-
(Rs. / Sft per month) (Rs. / Sft per month) (24 issues)
CBD 3 Years
Rs. 700/-
(Anna Salai, Nungambakkam, RK Salai, (36 issues)
T Nagar, Egmore, Alwarpet)
Grade A 70 - 100 70 - 90
Grade B 55 - 65 55 - 65
Off CBD
(Guindy, Kiplauk, Taramani, Adyar, Anna Nagar) Contact:
Grade A 50 - 65 50 - 65
Ms. Keerthana
Grade B 42 - 47 42 - 47 87544 89129
Suburban Business District subscription@chennairealty.biz
(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

Construction Material Price Index *

Commodity Unit Measure Previous Week Current Week
CEMENT Per 50 KG BAG Rs.270/- Rs.275/-
STEEL Non ISI 6MM / Ton Rs.38,500/- Rs.38,000/-
STEEL TMT 8MM dia / Ton Rs.42,100/- Rs.42,100/-
STEEL 10-25 MM dia / Ton Rs.40,900/- Rs.40,900/-
STEEL RMS / Ton Rs.45, 500/- Rs.44,500/-
STEEL STIRRUPS / Ton Rs.46,500/- Rs.45,500/-
STEEL VSP/SAIL 10mm dia / Ton Rs.46,800/- Rs.46,800/-
BRICKS 1 No. Rs.5.60/- Rs.6/-
RIVER SAND Cubic Feet Rs. 30/- Rs.35/- Albert Einsten
FLY ASH Per Ton (Ennore) Rs. 100/- Rs.100/-
BLUE METAL 20MM / Cubic Feet Rs.26/- to Rs/29/- Rs.26/- to Rs.28/- “Wisdom is not a product
* Courtesy : Bai, Chennai

BLUE METAL 40MM / Cubic Feet Rs.24/- Rs.24/- of schooling but of the
QUARRY DUST 0 – 2 MM / Cubic Feet Rs.15/- Rs.17/-
lifelong attempt to
BITUMEN GRADE 80/100 Rs.36,246/- Rs.36,606/-
acquire it”
BITUMEN GRADE 60/7O Rs.37,198/- Rs.37,558/-
 Chennai Realty

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