Chennai’s residential market witness 4pc growth in launches

CHENNAI:

Chennai’s residential market in realty sector is witnessing a four per cent growth in launches when compared with top seven cities across the country, according to International property consultant Knight Frank.

The report states that residential launches in the city which dipped from 5,815 in the first half of 2016 to 4,800 units in second half has shot up to 6,035, a gowth of 4pc.

This is significant when compared with cities like Mumbai, National Capital Region, Bengaluru, Pune, Hyderabad, Kolkatta and Ahmedabad where in the residential launches have failed to outgrow the growth experienced in first half of 2016.

Even the sales in Chennai residential market has picked up when compared with the residential market in six other other cities. As per figures available in the report, residential sales in Pune has gone up from 15,688 units in the first half of last year to 17,480 units this year. The sale of residential units in Chennai had gone up from 8,450 during the first half of last year to 8,850 units in the first half of this year.

Kanchana says that majority of the new launches that took place during the first half of this year was below Rs 50 lakh. “This indicates the shift in the focus of developer who is now cosidering affordable housing projects,” she added.

She said that Pallavaram, Mahindra World city, Siruseri, Pudupakkam, Navalur, Thalambur and Sholinganallur in South Chennai saw maximum development. This was due to proximity to office hubs, well rounded social infrastructure and lastly they were affordable.

Interestingly, South Chennai also has the highest inventory of unsold residential units. As per statistics, the city has 28,110 unsold units of which South Chennai alone has 16,642 unsold units. Kanchana said that the unsold inventory in the city has currently fallen by 30pc during the last two years.

Interestingly, Chennai’s office space is also facing a supply crunch as a result rentals have increased significantly. Kanchana says that Old Mahabalipuram Road business district saw a rental growth of eight per cent.

Despite, new completion of office space projects nearly tripling year on year, it is much below the market appetite. “The supply of office space is 3.7 million square feet of office space when compared to 12.2 million of transcated office space,” says Kanchana.

The vacancy level in OMR during 2015, which was once 50pc has nearly halved. Similarly, OMR witnessed 55pc of transacted office space during first half of 2017 with occupiers taking up space in relatively lower priced business pockets.

Overall the year had continued to be gloomier for the realty housing sector in the eight cities with the residential price index being lower than the price index.

Factfile:

--A significant chunk of new launches took place below INR 50 lakh – indicating an emphasis on the affordable housing sector

-- The share of projects launched with an average ticket size under INR`50 lakh has expanded from 39% in H1 2016 to 69% in H1 2017, while the share of those projects with average ticket sizes under INR75 lakh has grown from 52% to 89% during the same period

-- Pallavaram, Mahindra World City, Siruseri, Pudupakkam, Navalur, Thalambur and Shollinganallur in South saw maximum developments

-- Southern and western Chennai together accounted for a massive 96% of the residential products coming online during H1 2017

--- Unsold inventory levels have plummeted nearly 30% over the last 2 years to 28,110 unit

-- Residential price growth has been weakening in the Chennai residential market and H1 2017 prices were in line with this trend, growing by a modest 1% YoY

writingonblog uncensored: Lankan bid to smuggle precious stones through cond...

writingonblog uncensored: Lankan bid to smuggle precious stones through cond...: CHENNAI: The Air Intelligence Unit of customs department foiled an attempt by a Sri Lankan national to sneak in semi-precious stones by ...

Lankan bid to smuggle precious stones through condoms foiled

CHENNAI:

The Air Intelligence Unit of customs department foiled an attempt by a Sri Lankan national to sneak in semi-precious stones by hiding it in condoms and in his rectum at Anna International Airport.

The Sri Lankan national Mohammed Irfan, who arrived from Colombo by Sri Lankan Airlines flight was intercepted by the AIU, who after searching him in person found 191 semi-precious stones (Rubies, Yellow and Blue Sapphires) worth Rs 10 lakh.

Interestingly, this is one of the five cases of smuggling detected by AIU which seized a total of 76 lakh worth gold, semi-precious stones and foreign currencies during last one week.

Of the five incidents, three cases pertain to gold smuggling, one each for semi-precious stones and foreign currency.

In another case, gold worth 1.15 kg worth rs 31.90 lakh was seized from passenger K Khadar Basha, who arrived from Riyadh by Saudia Airlines. He was intercepted at Green channel and during examination the gold was found to be concealed in an Electric Hot Plate. He was arrested with two others who came to receive him.

Similarly, a Indian national Syed Riyaz Basha, who arrived from Kuwait Airlines flight Ku-343 was intercepted at Green Channel. He concealed 450 grams of gold worth Rs 12.50 lakh in the handle of kid’s scooter. In another incident, 300 grams of gold concealed in a hollow metallic rod was seized from Indian national Syed Mohammed Ali, who arrived from Riyadh by Air Arabia flight.

In a related incident, Abdul Salam Shamsudeen, bound to Singapore by Jet Airlines flight eas intercepted after he cleared immigration. During investigation, it was found that Shamsudeen concealed foreign currencies inside inner wear and checked-in baggage. The baggage consisted of Saudi Riyals valued at Rs 48,000 and 9,900 Euros equivalent to Rs 15.5 lakh.

writingonblog uncensored: Rs 925 cr Ponneri Industrial park layout likely to...

writingonblog uncensored: Rs 925 cr Ponneri Industrial park layout likely to...: C Shivakumar @ Chennai: The Rs 925 crore joint venture Industrial park being set up in Ponneri by Japanese major Sumitomo and Mahindra ...

Rs 925 cr Ponneri Industrial park layout likely to get DTCP approval

C Shivakumar @ Chennai:

The Rs 925 crore joint venture Industrial park being set up in Ponneri by Japanese major Sumitomo and Mahindra and Mahindra is likely to get clearance from Directorate of Town and Country Planning.

The project which was stalled due to clearances from Directorate of Town and Country Planning is likely to get approval after a Empowered Committee has okayed the project.

Sources in DTCP indicated that the layout map will be completed within two weeks. The project was one of those that was signed during the Global Investor’s Meet and was supposed to be completed in two phases.

The project is also facing issues over alienation of 41.765 acres of government land as well as transfer of 19.06 acres of belonging to Hindu Religious and Charitable Establishment.

Mahindra and Mahindra officials refused to comment on the issue.

The industrial park is to be set up near the proposed smart city planned by Japan International Cooperation Agency (JICA).

It is learnt that Under the joint venture Mahindra would be holding 60 per cent stake while Sumitomo Corporation would have 40 per cent stake.

Meanwhile, the layout of Rs 3,000 crore Coddissia Industrial Park in Mopperipalayam in Coimbatore has got the approval of DTCP and a Government Order has been passed to change land use from agriculture to industrial use, DTCP sources said,

DTCP also said that the second phase of Industrial Park being set up by KEF, India's only integrated offsite manufacturing company, in Krishnagiri is under scrutiny of DTCP. The first phase has already been approved, sources added.

This comes as the state has received just Rs 29,615 crore in investments of the Rs 2.42 lakh crore promised by various industrialists at the global investors meet in September 2015.

It is learnt that mots of the investments are yet to be realised due to various issues like identification of land and other approvals from different government agencies.

For some of the projects, the delay is due to pending allotment of land while in some projects, the developers were yet to submit the proposals to the planning agencies.

writingonblog uncensored: Now your rental agreements have to be registered!

writingonblog uncensored: Now your rental agreements have to be registered!: Chennai: Now your rental agreements will no longer be a secretive affair between you and your landlord. Under the new Act, each and e...

Now your rental agreements have to be registered!

Chennai:

Now your rental agreements will no longer be a secretive affair between you and your landlord.

Under the new Act, each and every rental agreement will have to be registered with Rent Authority who will provide a registration number and upload it in the website within 15 days of registration.

Not only that the Rent Authority, who will be appointed by district collector, could have a say in fixing or revising of rent, on an application made by the tenant or the landlord. He will also have a power to fix the date from which the revised rent becomes payable.  

In the absence of an agreement between the landlord and tenant on rent payable, the act gives landlord the option to terminate the tenancy.

Under the new Act, the landlord will have to give a signed written receipt for the amount paid to him as rent or deposit or advance towards such rent, under the new act. He will also give a three month notice before revising the rent.

The new act also gives powers for landlord to enter the premises by giving at least 24 hours prior notice to inspect the premises or carry out repairs or any other reasonable reason. The written notice shall specify the reason for entry that too between 7am to 8pm.

Interestingly, the Act states that no landlord or tenant shall cut-off or withhold any essential supply or service like supply of water, electricity, lights in passages, lifts, conservancy, parking, communication links and sanitary services in the premises occupied by tenant or landlord. In case of contravention, it will be restored pending n inquiry by the Rent Authority.

The act specifies that a tenant will not be evicted during the continuance of tenancy agreement. The recovery of possession of premises can be done if both landlord and tenant have failed to agree to the rent payable and that the tenant has not paid the arrears in full of rent payable and other charges for two months.

Factfile:

-- Every rent agreement will have to be registered and a registration number will be assigned and the details will be uploaded in the website

--- If a tenancy for a fixed term ends and has not been renewed, teh tenancy shall be deemed to be renewed on a month to month basis on same terms and conditions as were in the expired tenancy agreement for a maximum of six months

---- After the commencement of the Act, no tenanct without consent of landlord can sublet whole or part of premises held by him as a tenant

--- After the rent of premise has been fixed, if the tenant finds a decrease or dimunition or deterioration of accommodation or housing services in the premises, he may claim reduction in rent

--- The security deposit shall be refunded to the tenant within one moth after vacation of the premises after making due deduction of any liability by the tenant