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Property Price Trends in Chennai

Last updated: July 14 2020
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  • Re : Property Price Trends in Chennai

    Originally posted by Economist View Post
    Anna Nagar is all set for being the next big commericial Node.

    Thanks to TNHB for great town planning with excellent roads and public space.

    TNHB had allocated land for schools, bus terminus, commercial zones etc.

    Now with Metro and the Increased FSI on properties due to Metro will certainly help in the comming years.

    Scarcity of large block of land for development of office space will be a big limitation for Annanagar.

    What is the increased FSI near metro in Anna Nagar? Has it already been announced?

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    • Re : Property Price Trends in Chennai

      Originally posted by ferret View Post
      What is the increased FSI near metro in Anna Nagar? Has it already been announced?
      CMDA identifies consultant for study on densification around metro rail corridors; results expected in six months
      The Chennai Metropolitan Development Authority (CMDA) has identified a consultant for a detailed study on densification (primarily increasing the built-up space) of the Chennai Metro Rail Corridors.

      The study was expected to start in June but was delayed by the Tamil Nadu Urban Infrastructure Financial Services Ltd., which has only now identified a consultant. The study will now be completed in six months, senior officials of CMDA said.

      CMDA has signed an MoA with the consultant and the first meeting on densification will be held on September 5.

      Buildings within 500 metres on either side of the metro rail corridor will be permitted a higher Floor Space Index (FSI) based on the study.

      The decision on the FSI limit will be crucial for optimum use of the metro rail, as buildings surrounding it will be able to accommodate more people, potentially leading to an increased use of the trains.

      CMDA had initiated the process after CMRL made a proposal for densification along the metro rail Corridor a few years ago.

      As CMDA planners had expressed reservations on account of the absence of any study by CMRL to prove that densification would have a positive impact on metro rail, the study will be crucial for the review of the master plan of the Chennai Metropolitan Area.

      CMDA officials will stress the need to address issues pertaining to parking space near the proposed stations as part of the densification.

      The study is likely to explain how CMRL station on both sides of the rail influence the areas around it and affect present modes of transport.

      The consultant will also carry out a household survey within the ‘influence areas’ and review development regulations in the light of the metro rail network. The proposed monorail stretches will not be covered in the study as of now.

      The Inside information is CMDA is targeting for an FSI of 4 to 5 in certain part of the corridor.
      Last edited October 28 2012, 10:02 AM.

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      • Re : Property Price Trends in Chennai

        'Densification' - Another stupid policy by Govt.

        As if the City is not denser enough. There is already people sitting on top of one another. They should rather acquire more land for parking or street widening and exchange it for increased FSI.

        Giving away free FSI without anything in return will make sure that 'Densification' will lead to chaos, traffic, noise, lower livability and spoil the existing tree or two in the area.

        What happened to Feeder services, Govt seems to force the increase of metro use on one hand and on the other cancel the phase 3 and 4. Without proper extension and future phases will lead to inadequate coverage and Metro could very well become another white elephant like MTRS.

        I hope this does not happen.

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        • Re : Property Price Trends in Chennai

          Originally posted by k11 View Post
          'Densification' - Another stupid policy by Govt.

          As if the City is not denser enough. There is already people sitting on top of one another. They should rather acquire more land for parking or street widening and exchange it for increased FSI.

          Giving away free FSI without anything in return will make sure that 'Densification' will lead to chaos, traffic, noise, lower livability and spoil the existing tree or two in the area.

          What happened to Feeder services, Govt seems to force the increase of metro use on one hand and on the other cancel the phase 3 and 4. Without proper extension and future phases will lead to inadequate coverage and Metro could very well become another white elephant like MTRS.

          I hope this does not happen.
          As the metro rail chugs along a 45 km stretch across Chennai, it may open up a gold mine for the state government and provide the city a whole new look.

          The government chanced upon the financial potential of the metro rail while examining a proposal from Chennai Metro Rail Limited (CMRL) to introduce additional floor space index (FSI is the ratio of land area to the built-up area) within 500 metres of the metro corridor.

          The proposal, which came up for discussion at a CMRL committee meeting, headed by chief secretary Debendranath Sarangi on February 14, has been forwarded to the Chennai Metropolitan Development Authority for commissioning a detailed study. “We expect the report to be ready in three months,” said a senior official.

          The potential for revenue generation through selling space is staggering. CMDA usually gives FSI of 2.5 for high-rise buildings in the city. If it is increased by 1.5 FSI along the metro corridor, the state can generate up to Rs 2.5 lakh crore in revenues through property tax (by adopting the yardstick of the prevailing premium FSI scheme). If FSI is increased by 2.5, the revenue will go up to Rs 4 lakh crore. Bangalore metro corridor is also working on a higher FSI model.

          Potential Gold Mine

          The govt may relax building restrictions, allowing for taller constructions within 500 m of the metro corridor The govt may generate at least 2.5 lakh crore if the plan, which has been proposed by Chennai Metro Rail Limited, is put into action.

          Extra FSI will up land price

          The proposal by CMRL is a transit-oriented development model, adopted in cities like New York, Singapore and Seoul. In the process, the city skyline will be dotted with skyscrapers and vertical villages.It aims to increase population density along the metro corridors and bring passengers within walking distance of stations.On the face of it, CMRL’s gain is optimal use of metro and faster returns on investment.

          However, every piece of land along the metro corridor in Chennai will not qualify for such benefits because it will also have to comply with other development control rules of the CMDA.

          Small plots will have to be pooled into large parcels to draw maximum potential.Even if 50% of landowners avail additional FSI over a period of time, the state will generate enough funds to write off its entire public debt of 1.18 lakh crore and take up many new infrastructure projects.

          On the flip side, land prices will go up wherever additional FSI is available. “However, it won’t lead to increase in apartment prices,” noted P Suresh, a builder.

          Many world cities have much higher FSI than Indian cities. New York has 15 FSI for the central business district (CBD), 10 FSI for the rest of the city and 0.5 FSI for suburbs. Singapore has 8 FSI in the CBD, 6 FSI for the rest of the city and 1.5 FSI for suburbs. Seoul has 10 FSI in the CBD, 8 FSI in the rest and 0.5 FSI in the suburbs.

          The issue is not just about real estate growth and filling the government coffers.The city planners have to be cautious in comparing Chennai with other world cities, said another official.

          “Their infrastructure for utilities (like water supply and sewerage) is capable of catering to the needs of a high population density. Chennai’s infrastructure, on the other hand, is inadequate. CMDA, Chennai Corporation and other service agencies have to upgrade infrastructure like roads, water and power supply to meet the growing demands. The good news is that funds will not be a constraint if we sell virtual space,” said the official.

          Being liberal on FSI alone will not facilitate infrastructural growth along transit corridors, said Suresh. “The CMDA has to shed its baggage and take a fresh look at its development control rules, without which more car parks and other support infrastructure cannot be created. The government can also look at preparing a detailed development plan for the entire metro corridor.”

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          • Re : Property Price Trends in Chennai

            Originally posted by Economist View Post
            provide the city a whole new look.
            Yes, definititely a new look.
            More crummy areas, haphazard buildings, more traffic, road blocs, more cars and vehicles. People need to be aware of these issue before they buy a flat in these areas just becoz metro is coming.

            Originally posted by Economist View Post
            Many world cities have much higher FSI than Indian cities. New York has 15 FSI for the central business district (CBD), 10 FSI for the rest of the city and 0.5 FSI for suburbs. Singapore has 8 FSI in the CBD, 6 FSI for the rest of the city and 1.5 FSI for suburbs. Seoul has 10 FSI in the CBD, 8 FSI in the rest and 0.5 FSI in the suburbs.
            Cities across the world have strict Zoning policy. Certain areas are designated as parks, commerical, residential, etc. India does not have one. Free for all, you can build anything anywhere. FSI is the only way to control population in city and encourage people to move to suburbs.

            We already have one of the highest population density of 27K per sqkm. FSI increase and lack of transportation/development in suburbs will make it 50K in no time.

            Already the increased FSI has made situation worse in Bangalore. Chennai has implemented premium FSI which was scary, but thank god it was not popular as the fee was high.

            I like NCR. It has less apts per acre than Chennai or other southern cities.
            They follow low FSI/FAR policy.
            Last edited October 28 2012, 11:18 AM.

            Comment


            • Re : Property Price Trends in Chennai

              Originally posted by k11 View Post
              Yes, definititely a new look.
              More crummy areas, haphazard buildings, more traffic, road blocs, more cars and vehicles. People need to be aware of these issue before they buy a flat in these areas just becoz metro is coming.


              Cities across the world have strict Zoning policy. Certain areas are designated as parks, commerical, residential, etc. India does not have one. Free for all, you can build anything anywhere. FSI is the only way to control population in city and encourage people to move to suburbs.

              We already have one of the highest population density of 27K per sqkm. FSI increase and lack of transportation/development in suburbs will make it 50K in no time.

              Already the increased FSI has made situation worse in Bangalore. Chennai has implemented premium FSI which was scary, but thank god it was not popular as the fee was high.

              I like NCR. It has less apts per acre than Chennai or other southern cities.
              They follow low FSI/FAR policy.
              Agree mate, everything looks good on Paper.

              The proof of the pudding is in the execution.

              Going by the track record of our town planers and government any development to world standard is questionable.

              We all live in dreams that one day we will have a few world class business/commercial centres in Chennai.

              Comment


              • Re : Property Price Trends in Chennai

                I would rather rely on access to some highway like OMR, GST, PH road, Tiruttani hgwy, Bypass rd, etc than some half baked offering like Metro or Monorail (which is still in paper).

                Road transport will remain the key, especially for upper middle class/IT/MNC people in Chennai.

                Metro/Mono will get my attention if there is sufficient coverage from most suburbs to city and there is enough feeder services (AC buses).

                New Airport is the same story. Nothing concrete. No private company willing to build it.

                Some Suburbs and Extended Suburbs are getting hyped up becasue of this. Prices have reached record levels, it will take decades for any improvment.

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                • Re : Property Price Trends in Chennai

                  In today's article in The Hindu, Chennai lacks good architecture buildings from both public and private offices. Given the price that the central city demanding it is regrettable that we do not have world class building architecture other than that British left us few good buildings. Wake up Chennai!

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                  • Re : Property Price Trends in Chennai

                    Originally posted by sunr2i View Post
                    In today's article in The Hindu, Chennai lacks good architecture buildings from both public and private offices. Given the price that the central city demanding it is regrettable that we do not have world class building architecture other than that British left us few good buildings. Wake up Chennai!
                    I don't think that article needs to be taken seriously. For one, it lauds the LIC building to be an architectural masterpiece. 'nuff said. I know it was touted as the tallest building in the country when it was erected! But it's just a huge matchbox standing vertically up, and for the first time I am coming across that building receiving kudos for its architecture.

                    City architecture and planning is not just about one good looking building. Buildings in the area must conform to a certain style, the reason why the British built indo-saracenic vintage buildings carry that aura. In most countries the planning council permission will be denied if the architecture style isn't aligned with the adjacent ones. Venice for instance - some of the buildings are ultramodern from the inside, but carry the same style from outside. We do have several buildings which will age very well and are examples of good architecture. But, that's no good without good road and zone planning.

                    Comment


                    • Re : Property Price Trends in Chennai

                      Originally posted by murugesh View Post

                      British built indo-saracenic vintage buildings carry that aura. In most countries the planning council permission will be denied if the architecture style isn't aligned with the adjacent ones.
                      I love Indo-saracenic building they are beautiful ( Madras Uni is one of my favorite)

                      In most developed countries, new building have to be "sympathetic Development" that reflects the heritage of the surrounding architecture.

                      Most heritage listed building are ultra morden inside but heritage classic outside.

                      Most countries have Heritage council that preserves buildings ( including private homes - carrying out repairs & maintenance at free of cost to the private owner)

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