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2014 Estimation of Demand & Supply For Owner Occupied Apartments in Chennai
October 17 2012 , 12:10 AM   #61
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In order to get 2.5 FSI in Chennai, What is the eligibility criteria ?
October 17 2012 , 12:31 AM   #62
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Quote:
Originally Posted by k11
Chennai has better Infrastructure
Better roads, rail, port - much better than BLR. Strategically located.
Better Infra - more business - higher ecocnomic growth - higher prices.
Also Blore has much worse power cut issues even after taking current chennai power crisis into consideration. ORR is equally devoid of water as some areas of OMR, perhaps little more may be. My friends living along ORR and HSR layout are screaming about no water !

Also the transport connectivity around Blore, in general, is very hapazhard. There are too many buses along some areas and none is many parts. Sometimes you have to walk 2 kms to get to the next bus stand and Autos are becoming as costly as Chennai. There are many missing links!

Positive in Blore is BDA getting their act together and maintaining green spaces even in suburbs with parks etc and another good is not many big dump yards around residential places.

Another main point I have seen in Blore is it has more floating population and hence may be not many who want to settle down there, and even if they do, they look at cheaper options and pick something that could keep them running for the next few years. Many people from North/Central india have a tendency to migrate to Gurgaon, Noida after few years of work in Blore. This might constitute to a large part of Over supply which keeps RE prices in check.

As someone suggested there is not much of a tendency to hoard parcels of land as investments (by getting sucked into a hype) with the sole intention to do a random over priced sale in future! Altho, Blore defnitely has lot of locked flats even in CBD like Jayanagar, JP Nagar etc.

The abundance of malls, multiplexes which cater to the nuclear family lifestyle in Blore, has allowed people to look places like ORR as a decent place to settle down. Hence , there are self sufficient pockets of areas offering living spaces. For eg: I see that people in Hebbal rarely visit jayanagar (on the other side) in a year.
October 17 2012 , 07:19 AM   #63
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Quote:
Originally Posted by k11
Sea on one side - Geo Limitation
City is very small compared to BLR and HYD, so less space to expand.
174 Sqkm is the size of city with 50L population. Very high density.
Bangalore city is well above 700 sqkm.
174 sq km is old data. New size of the city is 425 sq.km Having the sea on just one side is hardly a geo-limitation. If you fit the city into a square, may be one side of the square cannot expand but the other three sides can. Current CMA span of 1189 sq km shows that expansion can happen on other three sides.

Quote:
Originally Posted by k11
Banaglore has high FSI, 3.5 is standard. 4-5 FSI is common.
Chennai still has 1.5-2.5 FSI.
More Apts are possible, hence price have crashed
True. However, above is not a hard coded geological constant for Chennai. It poses a significant risk in fact and runs the risk of TN Govt deciding to change the FSI upwards if the land prices touches unaffordable levels (if not already) where it can drive the business out of the city and elsewhere. Govt can and will be forced to do the unthinkable when the situation demands.

May be they will not do a Bangalore overnight but increase in FSI by 20-25% can have far reaching effects on land and apt prices.

Maverick
October 17 2012 , 07:31 AM   #64
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There have been studies undertaken to assess impact of higher FSI on property prices, Manhatten and Singapore were used for cities with high FSI. It was found that higher FSI didn't result in lowering of property prices.

Also in earlier posts K11 or someone else mentioned increasing FSI will affect green cover. It is not true, Singapore and Manhatten are again prime examples of how green cover can be maintained despite of higher FSI. In Singapore, there is no guarantee that every resident in an apartment in central area will get a car park. It is a priced commodity enjoyed by select few.

If you visit Raffles place or Marina bay areas you can easily understand how it is possible to have a good share of parks and open spaces in the midst of densely packed skyscrapers. Ultimately it all boils down to good town planning and effective enforcement.
October 17 2012 , 07:58 AM   #65
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Quote:
Originally Posted by Love4Land
There have been studies undertaken to assess impact of higher FSI on property prices, Manhatten and Singapore were used for cities with high FSI. It was found that higher FSI didn't result in lowering of property prices.
Above data may be factually correct but need not apply everywhere and there are lot of other factors at work. It is apples to oranges when you bring the above to Chennai and Blore discussion.

If FDI in retail is said to bring efficiencies in supply chain and bring down prices, why Govt is selective and hard on where it will work? Its for the same reason why Walmart is not allowed to operate in every county they wish to.
October 17 2012 , 11:34 AM   #66
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Quote:
Originally Posted by k11
Chennai has better Infrastructure
Better roads, rail, port - much better than BLR. Strategically located.
Better Infra - more business - higher ecocnomic growth - higher prices.
Yes, this is what I try to say.

From outside we think Bangalore is more developed primarily due to malls, high rise apartment and weather etc

But overall, looking into all aspects of infra, chennai has the edge.
October 17 2012 , 11:54 AM   #67
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Maybe due to high FSI in Blr, supply is more keeping the prices lesser in Blr?
Could be due to politicians also chennai RE prices are more? its the option for them to convert black money(from scams ...) to white.
October 17 2012 , 08:13 PM   #68
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Quote:
Originally Posted by Love4land
There have been studies undertaken to assess impact of higher FSI on property prices, Manhatten and Singapore were used for cities with high FSI. It was found that higher FSI didn't result in lowering of property prices.

Also in earlier posts K11 or someone else mentioned increasing FSI will affect green cover. It is not true, Singapore and Manhatten are again prime examples of how green cover can be maintained despite of higher FSI.
US cities like New York and Chicago have higher FSI but they have strict zoning policy. You cannot build anywhere you want.

Chicago city buildings have 4-5 FSI standard provided the provide public amenities like grocery store, car park and others. In the suburbs, some areas need minimum half acre to build 3Ksqft home.

In India we would never get zoning, so FSI is the only way to control explosion of haphazard building.

So I agree with the current govt policy of maintaining strict FSI.
That's what makes Chennai most attractive for future among cities in S India.
October 17 2012 , 10:48 PM   #69
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Bangaloreans will always say their place is better. Chennai people will always say their place is better. It's a never ending argument.

But Bangalore is not becoming cheap after all, there are suburbs in Bannergetta Road which are more expensive then main locations in Velachery. There is a new layout near Outer ring road which is going at 11K /sq.ft. So don't write off Bangalore, most appreciation in 2012 was in Bangalore compared to even Mumbai or NCR, forget Chennai. But I want to end this argument here.

Of course I am a investor in Chennai, so would be happy to see better appreciation.
October 18 2012 , 03:13 AM   #70
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Definitely Bangalore is not cheap but I think the difference between Bang and Chennai is in Bangalore the average rates for apartments did not go up so much say banargetta roads area may be few apartment complex might be higher based on builder brand image but the average will be relatively low but in Chennai if a area goes up the whole area goes average goes up say for example Thiruvanmiyur to get an apartment below 10K is near to impossible. Not only a good builder like Ramaniyam builders apartments goes to that rate even a single plot multiple apartments near that also will go for almost same resale value.
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