Saturday, October 19, 2013

Expanding Metropolis beckons property developers



Chennai:
As the city’s infrastructure is getting a new shape with various development projects being undertaken across the metro, property developers are trying to cash in on it during the fourth edition of the two-day property show Expanding Metropolis in Chennai Trade Center from October 19.

The event sponsored by Bank of Baroda and The New Indian Express already has more than 40 property developers and 25 plot promoters taking part in the event.

This also comes in the wake of developers buying around Rs 1,500 crore worth of prime land parcels in Chennai during the last 10 months highlighting developers’ confidence in the city’s residential market.

A spokesman of Amarprakash Builders and Developers, one of the top home construction companies in India that has set up its stall in Chennai Trade Centre, says that the sales have increased 27 per cent when compared to last year.

“We are mainly targeting non-resident Indians following the depreciation of the rupee,” he says. 

Interestingly, many property developers in the city are still positive despite a slowdown and it can be seen with many developers wanting to participate in Expanding Metropolis.

Interestingly, this also comes at a time when Chennai Metropolitan Development Authority is planning to expand Chennai Metropolitan Area to 8,878 square kilometers. This includes the whole of Chennai, Thiruvallur and Kancheepuram Districts and the Arakkonam Taluk of Vellore District.

“We are also looking at this development,” says the spokesman from Amar Prakash.

L C S Citymakers’ marketing manager Sasi Rekha says that the participation in the property show is to build their brand. The real estate developer already has properties in Pallikaranai and Adyar. “We have participated in nearly all the property shows, she says.

Although the market is not rosy for property developers now but it is better than last year, she says.

Interestingly, property developers feel the city when compared to other metros has huge potential although it has been hit by slowdown. “Many quality projects are still selling,” says a property developer. It is believed that Chennai has around 40,000 units of unsold homes and around 10 months of its inventory unsold due to sudden spurt in the real estate prices.

This quite low if one goes by a recent study. The city has a 10 month of unsold inventory when compared with cities like Gurgaon (14 months), Hyderabad (12 months), Kolkata (12 months), Pune (14 months), Mumbai (34 months) and  Bangalore (23 months), the study states.

With major infrastructure projects such as the metro rail, Phase III of MRTS from Velachery to St Thomas Mount and the Outer Ring Road appearing closer to reality, it seems the real estate developers have more to smile. Furthermore, the proposed monorail, prepherial Ring Road project, Greenfield Chennai-Bangalore Expressway and the new Greenfield airport is also triggering a huge anticipation

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