Chennai:
The realty sector may undergo a total change once Chennai Metro Rail
starts functioning in the city, according to a senior official of
Jones Lang La Salle (JLL).
Shankar Arumugham, national director-Strategic Consulting, JLL, said
that land prices along the Metro line corridors would shoot-up by 15
to 20 per cent once Chennai Metro Rail starts functioning.
He said the land along the Metro Rail corridor would be used for
commercial utilisation. “The land parcels along the corridor would go
up significantly as it has happened in Delhi and other places,” he
said.
Shankar, who heads the strategic consulting business for Chennai,
Coimbatore and Colombo, told Agrtatrade, an initiative taken for
growth and development of Agarwal Samaj, said that unlike other
cities, Chennai should have gone for additional FSI once a transport
corridor is being developed.
He said that Chennai Metropolitan Development Authority is looking
into it. It is likely that CMDA may agree to only .5 rise in floor
space index and may be increase it once the infrastructure is in
place.
He said that Chennai and Bangalore are coming out of the unsold
residential stock problem due to infrastructure projects.
He also stated that 50 per cent of the residential real estate
projects are coming up in South Chennai where there are lot of growth
corridors. However, in North Chennai it is only 7 per cent but the
absorption rate is much higher than south Chennai.
He also said that the real estate investment trusts (REIT) are more
like mutual funds are likely to take off only three or four years
after they start operations.
He also highlighted that small time developer can benefit from REITS
as the minimum requirement is Rs 2 lakh
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