Hi Friends,

I had been to the FAIRPRO '09 Fair.My Impression after seeing, is that prices are stagnating for all ongoing projects and builders are trying hard to hold them up.

Prices are 10-20% lower for new projects in the pipeline and for ready to occupy flats.

The discount offered at the stall was very less and were in the range 150-500 Rs/sqft max.

For the benefit of fellow members I am posting the project/price details of some of the properties.



Akshaya Foundations

Adora - OMR - 3750/sqft
Aikya - Adyar - 12500/sqft

Alliance Group - Orchid Springs - 3199/sqft

Arihant Foundations

Heirloom - Thalumbur - 2499/sqft
Escapade - Thoraipakkam - 4150/sqft
Villa Viviana - Maramalai nagar - starting from 1 Crore

Asvini Foundations

Amarisa-phase1 - Ramapuram - 4500/sqft
Amarisa-phase2 - Ramapuram - 4250/sqft
Akshita - Madipakkam - 3800/sqft

Casa Grande

Riveira - Palikkarnai - 3450/sqft - before discount 3600/sqft
Silver Oak - Perungudi - 4300/sqft - before discount 4500/sqft
Madhuban - Madipakkam - 3300 /sqft - before discount 3500/sqft
Mylapore - R.K.salai - 12500/sqft
Plots
Ponmar -785/sqft - before discount 825/sqft
Maraimalainagar - 790/sqft - before discount 825/sqft

CeeDeeyes - Chenni Pattinam

Basic Rate - 1600/sqft All Inclusive - 2075/sqft

Chaitanya shanthiniketan

Sunnyvale - Ayanavaram - 4850/sqft
Serena - Rajkilpakkam - 2550/sqft
Gardenia - OMR - 1900/sqft
Green Park - Chitlapakkam - 3300/sqft

DLF

Gardencity - 3200/sqft - was told slash in prices expected in coming weeks.

Doshi Housing

Etopia I and II - Perungudi - 3895/sqft
Nakshatra - Tambaram - 2995/sqft - Completion May 2010
Tranquil - Velachery - 5500/sqft - Completion February 2010
Trinity park - Santhoshpuram,Vengaivasal - 3195/sqft - Completion April 2009
Serene Couny-Villas - Santhoshpuram,Vengaivasal - 2200,2600/sqft
LlanStephan - Chetpet - 9000/sqft - Completion May 2009
Sri Mahalakshmi - Ayanavaram - 4495/sqft - Ready to Occupy

ETA

Rosedale - OMR - 3100/sqft
Le Chalet - Villas - Sriperambudhur - 26 Lakhs - 37 Lakhs

Hiranandani Upscale - 4200/sqft

Hiranandani Palace Gardens - 3475/sqft

Indus Housing

anantya - Navalur,OMR - 2299/sqft + 400(other charges)
riviera villa - Navalur,OMR - 90 Lakhs onwards
habittera - urapakkam,GST - 2399/sqft + 400(other charges)
amber - Saidapet - 4750/sqft

Jain Housing

Ankush Prakas - Kilpauk - 7500/sqft - Ready to occupy
Amrit Kailash - Strahns Road - 4500/sqft - Ready to occupy
La Gardenia - Nungabakkam - 7500/sqft - Ready to occupy
Ansruta - Valluvarkottam, nungabakkam - 10000/sqft - Ready to occupy
Antariska - Kodambakkam - 4500/sqft - Ready to occupy
Eiffel Garden - Vadapalani - 4250/sqft - Ready to occupy
Saagarika - M.R.C Nagar, sea facing - 10000/12500 - Ready to occupy
Green acres - Pallavaram - 3900/sqft - Ready to occupy
Abhishek - Selaiyur - 3500/sqft - Ready to occupy.

Jamals

Orchid - Palikkarnai - 3500/sqft
Palazzo - keelkattalai - 3700/sqft
Grandeur - Velappanchavadi(near saveetha dental college) - 3200/sqft

KGEYES

3 Projects on L.B.Road, Thiruvanmiyur - 6650/sqft
Delmare - Beach road,Thiruvanmiyur - 7000/sqft
Carolina - Velachery,Taramani - 4500/sqft
Swathi - Sastri Nagar,Adyar - 8500/sqft
Kalakshetra - 8000/sqft

Landmark Constructions

Tiara - Perungudi - 4000/sqft - Completion on August 2009
Aston Ville - Vadapalani - 5500 sqft - Completion on July 2009
Tudors Place - K.K.Nagar - 6500/sqft
The Address - Adyar - 11500/sqft
The Grange - Palavakkam - 7500/sqft
Cenralia - Chrompet - 2950/sqft - prelaunch
Gem Towers - AnnaNagar - To be launched.
Mahalakshmi Heights - Ashok Nagar - To be launched

L&T Estancia
Construction in Progress
1st-3rd Floor - 3950/sqft
4th -12 floor - floor rise charge of 20/sqft for each floor
13th - 17th - 4450/qft

L&T Eden Park - 3600/sqft

Mantri Synergy - OMR
2800/sqft - with 20/floor rise
Special offer - First Floor - all inclusive
1140 sqft - 33,67,000
870 sqft - 28,50,000

Navin Housing

Dayton Heights - Nelson Manickam road - 6500/sqft + 30/sqft floor rise from 2nd floor
Subha Mangala - Ramapuram - 4200/sqft
Brookfield - Nanmangalam - 3500/sqft
Merrylands - Medavakkam - 3500/sqft

Olympia Opaline - 3441/sqft - spl budget flats available

PACE Builders

Anna nagar west - 4195/sqft - before discount 4495/sqft
Selaiyur - 3195/sqft - before discount 3495/sqft
Valasarvakkam - 2795/sqft - before discount 3295/sqft

PS Srijan

The Grand - Velachery - 5250 sqft - before discount 5500/sqft - Floor Rise applicable from 4th floor

Rajparis

Harmony - Medavakkam - 3100/sqft

Rajarathnam Constructions

RC Prince Gardenia - Perambur redhill road,Kolathur - 3600/sqft

Rajkham

Independant houses - Ayyapathangal - 2600/sqft

Real Value

Sai Skanda - Velachery - 4200/sqft
Sai Surya - Palikaranai - 3800/sqft
OMR opp SIPCOT - 13.20 Lakhs onwards

Shriram Properties

Trishakti - SIPCOT - 2750/sqft
Shankari - 1990/sqft

Sidharth foundations

Tulip - k.k.nagar west - 4800/sqft - completion march 2009
Natura - medavakkam - 3100 /sqft - completion july 2009
Visvaleela - Annanagar - 8500 /sqft - to be launched
Dakshin - Urapakkam - price TBD - to be launched
upcoming projects in porur, thoraipakkam, rajkeelpakkam, mogappair.

SIS

Safaa - Urappakam - 3150/sqft

SSPDL

Crescent - Kelambakkam - Vandalur Road - 2500/sqft
Upcoming 2 villa project one in OMR and one in Sriperambathur.

Sumanth & Co

Thiruvanmiyur - 6000/sqft
Besant Nagar - 11500/sqft

TVH

Lumbini square - Pursaiwalkam - 5500/sqft + 30/sqft floor rise from 5th floor
Ouranya Bay(Premium) - OMR,Padur - 3100,3200 + 25/sqft floor rise from 5th floor
Ouranya Bay(Budget) - 2bhk - 20 Lakhs
3bhk - 30 Lakhs
Ekanta - Coimbatore - 3100/sqft
Revata - Mogappair east - 4500/sqft
Kamya - K.K,Nagar - 7000/sqft
Metro Golden Nest - Sriperambathur - 1bhk - 15 Lakhs
2bhk - 22 Lakhs
3bhk - 28 Lakhs

VGN Group

Minerva - Mogappair,Nolumbur - 2975/sqft
3 in 1, 4 in 1 - 3800/sqft
Mahalakshmi Nagar,Thiruverkadu - 3500/sqft
Plots
Mugalivakkam - 52 Lakhs/grnd
Selaiyur - 50 Lakhs/grnd
SPKoil - 34 Lakhs/grnd
Katankulathur - 22-27 Lakhs/grnd

Yuga Homes

Shem Park - chemmenachery - 3300/sqft
Upcoming in Koyambedu, R.A.Puram(8000/sqft)



There are lots of properties and also lots of potential buyers.There is sure a sense of uncertainity among the builders and also the buyers on when to make the next move.It was evident that correction in RE prices have started to happen.

Requesting members to respond with their thoughts on the current trend.
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  • Originally Posted by ramki830
    Regarding the Metro and its impact on RE in Chennai, I believe that a lot of people are pessimistic on Metro because they have seen how MRTS has done poorly.

    But there is a big big difference. MRTS is a poorly executed typical sarkari project that has sucked taxpayer money slowly , built over 30 years and the entire route planning process was so poorly done. But since it is just out of public money, there was no accountablity.

    Metro and Mono will not be that way - costly and valuable capital from private sector and MNC Financiers is going to build it. And the people who are financing it are not going to sit and suck lollipops and see the project go MRTS way. They will do everything to ensure a quick profitable turnaround.

    The Metro stations look to be well designed and reasonable accessible and so will surely attract much much more traffic. And dont be surprised if Govt raises FSI selectively in Metro served areas to boost RE. So there is large room for hope and if one has large money, I would dare say he or she should bet on RE in areas close to upcoming metro stations for making superior returns.

    And one more point - comparing the situation in Chennai to US/UK is not relevant because - unlike in western countries, private transportation (cars) wont be affordable for majority of Indians even after 30 years. Leave aside cost of owning a car, India's urban areas simply are not designed to hold cars . We simply dont have meaningful parking space nor we will get such parking space.

    In last few years, ownership of cars has gone several fold in city but road space and parking space are stagnant . Net result is travelling on road is getting slower year by year. Most of us dont notice it, but as someone using roads (bus, two wheeler etc) heavily for last 10-15 years, i am clearly noticing long term trend - road travel getting slower while travel in Suburban/MRTS is at same speed. More so during peak hours !!!

    Even the rich want to commute fast and dont want to waste time on roads. If given a decent travel experience, they will surely prefer metros and instead keep their BMW locked in their apartment parking spaces. And it helps more if your apartment with spacious parking space is next door to a nice looking Metro station !!!


    Nice writeup Ramki. Just wondering if there are any affordable (< 6000 psft) metro rail zone areas with gated community projects (with decent amenities like swimming pool, kids play area, parks/landscapes etc) for investment purpose?
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  • Originally Posted by veenasaran
    Nice writeup Ramki. Just wondering if there are any affordable (< 6000 psft) metro rail zone areas with gated community projects (with decent amenities like swimming pool, kids play area, parks/landscapes etc) for investment purpose?



    Emaar township Tondiarpet. They recently launched "Grace" but all are 1 BHK units, not sure if they have larger units in other blocks.
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  • Originally Posted by ramki830

    The Metro stations look to be well designed and reasonable accessible and so will surely attract much much more traffic. And dont be surprised if Govt raises FSI selectively in Metro served areas to boost RE. So there is large room for hope and if one has large money, I would dare say he or she should bet on RE in areas close to upcoming metro stations for making superior returns.

    And one more point - comparing the situation in Chennai to US/UK is not relevant because - unlike in western countries, private transportation (cars) wont be affordable for majority of Indians even after 30 years. Leave aside cost of owning a car, India's urban areas simply are not designed to hold cars . We simply dont have meaningful parking space nor we will get such parking space.

    In last few years, ownership of cars has gone several fold in city but road space and parking space are stagnant . Net result is travelling on road is getting slower year by year. Most of us dont notice it, but as someone using roads (bus, two wheeler etc) heavily for last 10-15 years, i am clearly noticing long term trend - road travel getting slower while travel in Suburban/MRTS is at same speed. More so during peak hours !!!

    Even the rich want to commute fast and dont want to waste time on roads. If given a decent travel experience, they will surely prefer metros and instead keep their BMW locked in their apartment parking spaces. And it helps more if your apartment with spacious parking space is next door to a nice looking Metro station !!!


    I do not think Cars are unaffordable anymore.
    TATA and other companies are making sure that cities will be flooded with cheap cars and clog all the existing roads.

    Median income of people living in the city is high enough to get a car.
    A second hand car Maruti costs 50K. An unskilled day laborer can earn 500/day easily. So a hundred work days could get him a car.

    Thats why I said Govt need to focus on roads too. They have not built a good expressway in the city. All the 'one way-ing' of traffic helped for the most part until now. Not sure how it would work in future.

    I like the idea of charging a user fee for all motorists in Chennai (like London as @Vettipayyan pointed out). Make every two wheeler pay 2K a year and all cars 5K a year. Give a discount of 2K for car users who have a covered parking spot in their houses. Give unlimited FSI for private parking buildings.
    Do a PPP and build some private parking structures in all areas. Public parking in the city should be raised to 50rs 4-hour minimum for cars and 25rs for a two wheeler. Sell parking permits for certain streets for 500-1000rs a month. City can easily raise 2K crores a year. They can spend this money to build toll free expressways, road widening and also most importantly fund a transportation allowance to subsidize public transport for the poor.

    All this nice looking Metro station and stuff. We need to see how long our population will hold out until they start spitting, and dirtying the stations. Students will be ready with their pencils and pens to write messages in the interior of the train and rip off/damage the seats. Just by having Metro will not turn Chennai into Singapore.

    All this FSI debate, I am totally against increasing FSI without putting proper zoning rules including parking areas and parks/open spaces.

    Without it, this increased FSI creates slums.
    Many lower middle class areas where people have overbuilt, today resembles slums. It does not make sense to buy Apts in these future slums.
    I feel some slums are better sometimes with their wider roads and bit more space, although they stink sometimes.

    In my view, if they have to increase FSI in metro areas, they should do it only for MSB (Multi Storeyed Buildings) with less than 30% plot coverage and 2X the required parking. That will enable high rises, restrict slums and will give some incentive to redevelopment.

    If govt is going to increase it haphazardly like B'lore. Then I am sure these areas will become unlivable. I do not see a point in investing anything above 1Cr in such areas for a flat.

    If you own a house in these areas, then it is a jackpot for residents. They can build extra units.
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  • Originally Posted by defu22
    P Chidambaram asks banks to put pressure on real estate developers to lower property prices - The Economic Times

    5 Lkh flats lying vacant -- not sure were the details has come from


    It is a known fact, mostly in Delhi and Mumbai. In Chennai I would expect quiet a number of vacant units around Siruseri and plenty of vacant units in Sriperumbudur/Oragadam belt.

    Good thing in Chennai/Bangalore is speculator activity is low, like one buyer purchasing 20-50 units in bulk in a single project. Such things are rampant in NCR and Mumbai.

    Price correction in Mumbai is bound to happen whether banks intervene or not.
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  • @Love4Land
    I dont think in chennai speculator activity is low. Probably compared to mumbai and delhi in chennai number of projects also would be less and big projects entry into chennai came late so it looks it is less.
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  • Why Investor Participation is low

    Supply in Chennai is very less compared to NCR/MMR market.
    Selection of properties is very limited.

    Returns on outskirts have not been spectacular especially on OMR.

    High downpayment amount makes money locked up.
    Builder do not like investors, they want end users.

    High Transfer fee, because of high stamp duty.

    Hassle to sell, bad broker network.
    Illiquid market.

    Not enough discount on pre-launches, very few pre-launches.
    Less Risk = Less Discount = Less Returns

    Finally funding is getting harder. Bank are becoming strict.
    High interest rates donot help either.

    Rental market is bad very low yeild, especially in suburbs outside of OMR/Mahindra City.

    No proper planning in suburbs by Govt.
    Most places are bad in social and basic infrastruture. Siruseri is the only place that looks to have some potential.
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  • Originally Posted by k11
    Why Investor Participation is low

    Supply in Chennai is very less compared to NCR/MMR market.
    Selection of properties is very limited.

    Returns on outskirts have not been spectacular especially on OMR.

    High downpayment amount makes money locked up.
    Builder do not like investors, they want end users.

    High Transfer fee, because of high stamp duty.

    Hassle to sell, bad broker network.
    Illiquid market.

    Not enough discount on pre-launches, very few pre-launches.
    Less Risk = Less Discount = Less Returns

    Finally funding is getting harder. Bank are becoming strict.
    High interest rates donot help either.

    Rental market is bad very low yeild, especially in suburbs outside of OMR/Mahindra City.

    No proper planning in suburbs by Govt.
    Most places are bad in social and basic infrastruture. Siruseri is the only place that looks to have some potential.



    Looks like the script of a Tamil serial.. everything negative.. ;-)

    But the only diff. is here all these are real concerns :-)
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  • Chennai realestate - reg.

    Members,
    Hello ! For the flats already constructed as per perfect booking there is no cause to worry. For speculative investment, we have to analyse who would be the acutual end user. As we all know within Chennai city limits the apartment costs are very high. The plot costs within Chennai city (if any are left out) are for rich people only. Therefore, areas like OMR, Kelambakkam, GST Road, Thiruvallur, Avadi etc., are the places where flats are affordable. Within Chennai city limits, apartment costs would be determined by the market forces. We may all feel that without logic, if people have speculated, the results would be unpredictable. Some reports suggest 70% of the apartment costs in theory, is of the land in the area in the city anwwhere in the country. We have to see whether it is correct or not. If the economy grows too well and people make money either through good salary or business, then only real estate at the present costs would be all right.
    Regards,
    hariklgd.
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  • Originally Posted by k11
    Why Investor Participation is low

    Supply in Chennai is very less compared to NCR/MMR market.
    Selection of properties is very limited.

    Returns on outskirts have not been spectacular especially on OMR.

    High downpayment amount makes money locked up.
    Builder do not like investors, they want end users.

    High Transfer fee, because of high stamp duty.

    Hassle to sell, bad broker network.
    Illiquid market.

    Not enough discount on pre-launches, very few pre-launches.
    Less Risk = Less Discount = Less Returns

    Finally funding is getting harder. Bank are becoming strict.
    High interest rates donot help either.

    Rental market is bad very low yeild, especially in suburbs outside of OMR/Mahindra City.

    No proper planning in suburbs by Govt.
    Most places are bad in social and basic infrastruture. Siruseri is the only place that looks to have some potential.



    Chennai has always been end user market with investments flow mainly for family roots (Tamils both local and origin like SL, SGPR, MY, EUR), Andhrites, Malayalees and small % of Marwaris/Gujaratis. Neither it's magnet for Financial nor political career (Judiciary, Media, politicos etc..) at the moment- which Mumbai and Delhi have sway over.

    My observation has been Chennai is just gradually opening up for external investments/migration in past 6-8 years but it's generation behind compared to Mumbai. On optimistic note- Chennai has real potential to equate if not upstage other metros for following reasons:

    1. Power centre : Strong political parties, which is essential for city development- Whether it's airport/metro or if we bid for Asian Games in future?. Regulatory bodies like IRDA (in Hyd), Competition commission (M&A activities), RBI(will have more say in future with privatisation)need southern base. As and when Supreme court decides to set up southern bench it will revolutionise Chennai RE (back like 60s or 70s film industries) with migration from all 4 southern states + Mah . It will always remain as gateway of South, thanks to its geo-strategic location and ports.

    2. Affordability: Both Delhi and Mumbai is beyond reach on affordability for employees in service industries. It will choke creativity or new sunrise sectors (they missed IT boat just due to it). They are turning more like Monaco or Brussels.

    3. MNCs: South were always considered as laggards untill 90s thanks to PSU investments (which was the single source back then) , after liberalisation both Chennai and Bangalore, lately Hyd have set up their own niche in Mfg/IT/Pharma. MNCs don't have baggage when they invest, it's more based on ROI rather than political or ethnic reasons. Delhi and Mumbai have HQs but major chunk will be based out in South.

    4. Air Connectivity: Probably this is something we lack at the moment but I'm hoping with strong local entrepreneurship and MNC bases it's matter of time, will bring in much more tourists and business visitors add to it entertaintment and hospitality needs.

    5. Law and order: This one is the key ingredient for funds parking. It is something underestimated- why people (will) invest in Chennai + education and social infrastructure. If there are any political crisis like Telengana/unrest in Kar- people will flock to Chennai than other metros.

    There are multiple reasons why Chennai may or may not live upto its potential. Chennai RE is more driven by end user sales or local investments. When India grows to say 5Tn $ economy opportunities are manifold and all it needs is one major project to invest on infra like Olympics (may sound preposterous atm :)/Asian/Commonwealth games.
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  • As I have said in earlier posts in response to news articles quoting Chennai as not being speculative market compared to others.. While in comparision this might be true but not in a positive way.

    I feel the way Chennaites are investing, its mainly out of fear of losing their dream of owning a home, in face of exorbitant price increase climbing ever since 2007.

    i myself have seen 8-10 ppl who come visit sites with me , express this opinion and when they are speaking with the marketing person at site, they typically say "Lets see. We are going to bank and will try to stretch our loan eligibility to the max".

    This is not a good sign as suddenly the affordability does not exist even for an average earning IT person. An average earning IT guy from 2000-2007 approx could have bought anywhere in many parts of city where there was less competition and not many cases of flats 50 % getting booked in first few months. Now the same person even though he is earning much better nowadays, has to go faaar away spending 60 L for a decent apartment. Also the loan rates are not favourable nowadays.

    There is an ever growing unrest among this middle class which is trying its max to squeeze every ounce of loan money and somehow book flat. Again this leads to many cases where flat bookings open up due to loan rejection or defaulters! I have noticed some cases like this in LCS anugraha, MFPL vruksha, Navin's Maris Dale to name a few.

    Now what happens in such a case is buyers are no more making calm decisions or decisions which would suit their requirements but booking something as per the current wave!
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  • Reg the points raised here by k11, one most important thing we all should note is that external investor/speculator participation in Chennai RE is lowest among big cities.

    The investor/speculators in Chennai RE, are all those settled within Chennai. Outside state folks invest in Chennai RE if and only when they plan to settle in this city.

    This i feel is a major factor that will prevent Chennai RE from sliding if RE in rest of India cracks. Even in OMR/ITH , people wont panic sell but rather would sit and wait. This is a big plus point of this City RE which we should not miss.
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  • Originally Posted by vettipayyan

    I feel the way Chennaites are investing, its mainly out of fear of losing their dream of owning a home, in face of exorbitant price increase climbing ever since 2007.

    i myself have seen 8-10 ppl who come visit sites with me , express this opinion and when they are speaking with the marketing person at site, they typically say "Lets see. We are going to bank and will try to stretch our loan eligibility to the max".


    While what you said is true, it is also a fact that there is excess demand for apartments in some specific areas close to city. There is still reluctance for people to settle in suburbs. This will and should change and that would in turn spur the development of city. Plentiful land is available only in suburbs, and people should settle there if they cannot afford the cost.
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  • Yes, Investor participation is low.

    But that also makes market illiquid sometimes. Lets say if you buy a units in a speculative area and if you want to get out during rought times, there might not be enough buyers (risk takers). It takes a lot of time to sell.

    I have witnessed this recently back in 09/10 period, when lot of people stepped out when there were some deals to be made.
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  • More observations on Chennai ,esp on points raised by k11:

    It is true that social infrastructure in Chennai is poor. Till 2006, we did not have even a single mall with multiplex. Till 2009, the only proper mall with multiplex was Chennai Citi Center. Even now, for the size and spending power of city,we have far fewer malls, and restaurants, esp in fast growing suburbs.

    Some reasons I could think are:

    1. Weather - Chennai scores poor and everyone incl diehard chennai resident like me would agree. Which means, those from outside who come to Chennai for employment will choose the city only if the income (be it a shopfloor worker or construction labourer or a high end executive) is substantial and competitive.

    2. water - Shortage means costlier water and this does affect the business prospects of some like restaurants.

    3. Language is also a barrier to some extent. Most people in city can understand english but if a North easterner boards an auto or bus, he or she is in for some difficulty.

    4. And because the state (districts of TN) are relatively much developed, labourers from interior TN come to city only at a price..

    I feel that due to these 4 factors, labour cost is higher and cost of doing business is somewhat higher in Chennai. All these are not big negatives but i feel these could be reasons why Chennai's infrastructure development is slow , esp in suburbs.
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