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The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

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The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

Last updated: February 14 2013
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  • The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

    There are many threads which debate about the value of plots/ flats/ rental yields and potential for rapid growth or moderate growth opportunities.
    the seasoned veterans and anti-conventional thinkers can you contribute to make this thread crisp and precise with SOLID real estate opportunities that has potential for growth.
    I understand that there is always opinions and bias but lets stay objective and avoid conflicts and promote some solid good ideas to collectively contribute and collaborate with good strong ideas.
    Provide insight into
    Top 5 areas for land buying
    Top 5 flat promotions
    Top 3 villa projects
    TOP 3 real estate sub-corridor

    >
  • #2

    #2

    Re : The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

    Thanks for initiating a very relevant thread as the IREF is now about too much of information and it is difficult to obtain meaningful data.

    Having said that you need to be specific whether you are looking for INVESTMENT or END USE. In my opinion investment appears to be daisy across corridors mainly because for 40 plus lakhs one does not get even a 1000 sq ft flat in any of the places in Chennai . Even shit is being sold for 50 lakhs plus. However the rental is not catching up at that fast pace.

    This is beacuse most of the houses are being bought by NRI for investment and they are ready to rent on rates so that the house is not vacant.One can get a good two bhk or rent any where from 13-15 k . So does it not make sense to put a FD at 10 % get interest of around 36-40000 per month rather than buying a house for 40 lakhs and getting a rent of 13- 15 k.

    now once may say appreciation on the flat . i don't know how much appreciation will be there is a 2 bhk costing 40 lakhs. Can it be come 80 lakhs in 7-10 yrs time ? i really dont know. seems unlikely. in the present circumstances FD appears better than RE for investment. If it is for end use then of course one can look at RE. But jest ensure that it is close to your place of work and scools for children as travelling on road by chennai is likely to be an increasing nightmare especially during office hours.

    Comment

    • #3

      #3

      Re : The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

      Originally posted by SRajagopalan View Post
      Provide insight into
      Top 5 areas for land buying
      Top 5 flat promotions
      Top 3 villa projects
      TOP 3 real estate sub-corridor
      >
      I work in IT and I am biased towards OMR. My preferences are:

      Top 5 areas for land buying (1C per ground or below)
      1) Sholinganallur
      2) Medavakkam
      3) Porur
      4) Navalur
      5) Kelambakkam

      Top 3 flat promotions (10K per sq.ft. or below)
      1) Hiranandani Upscale, Egattur
      2) The Crest, PMC, Velachery
      3) Prestige Bella Vista, Porur

      Comment

      • #4

        #4

        Re : The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

        Originally posted by he2007 View Post
        Thanks for initiating a very relevant thread as the IREF is now about too much of information and it is difficult to obtain meaningful data.

        Having said that you need to be specific whether you are looking for INVESTMENT or END USE. In my opinion investment appears to be daisy across corridors mainly because for 40 plus lakhs one does not get even a 1000 sq ft flat in any of the places in Chennai . Even shit is being sold for 50 lakhs plus. However the rental is not catching up at that fast pace.

        This is beacuse most of the houses are being bought by NRI for investment and they are ready to rent on rates so that the house is not vacant.One can get a good two bhk or rent any where from 13-15 k . So does it not make sense to put a FD at 10 % get interest of around 36-40000 per month rather than buying a house for 40 lakhs and getting a rent of 13- 15 k.

        now once may say appreciation on the flat . i don't know how much appreciation will be there is a 2 bhk costing 40 lakhs. Can it be come 80 lakhs in 7-10 yrs time ? i really dont know. seems unlikely. in the present circumstances FD appears better than RE for investment. If it is for end use then of course one can look at RE. But jest ensure that it is close to your place of work and scools for children as travelling on road by chennai is likely to be an increasing nightmare especially during office hours.
        Thanks He2007 my intent was investment on the thread and yes i fall under the NRI category who is looking for RE in chennai as a diversification tool
        I agree with your assessment on rentals and cap appreciation struggling as mostly its priced in.
        Given that what are the choices cheaper budget flats at 30-35 lakhs ?
        or land in up and coming locations or resale land in places like PKN or SHOLS where there is more room to growth ( atleast perceived)

        Comment

        • #5

          #5

          Re : The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

          Top 3 apartments (my personal view)
          -Olympia Grande
          -Prestige Bella vista
          -Appaswamy Brooksdale

          Comment

          • #6

            #6

            Re : The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

            Originally posted by Love4land View Post
            Top 3 apartments (my personal view)
            -Olympia Grande
            -Prestige Bella vista
            -Appaswamy Brooksdale
            Im thinking may be to do a Surveymonkey survey and publish results it may be of good value let me try today

            Comment

            • #7

              #7

              Re : The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

              Probably you can try POLL options present in the IREF
              Originally posted by SRajagopalan View Post
              Im thinking may be to do a Surveymonkey survey and publish results it may be of good value let me try today

              Comment

              • #8

                #8

                Re : The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

                Originally posted by SRajagopalan View Post
                There are many threads which debate about the value of plots/ flats/ rental yields and potential for rapid growth or moderate growth opportunities.
                the seasoned veterans and anti-conventional thinkers can you contribute to make this thread crisp and precise with SOLID real estate opportunities that has potential for growth.
                I understand that there is always opinions and bias but lets stay objective and avoid conflicts and promote some solid good ideas to collectively contribute and collaborate with good strong ideas.
                Provide insight into
                Top 5 areas for land buying
                Top 5 flat promotions
                Top 3 villa projects
                TOP 3 real estate sub-corridor

                >
                Top 5 Areas for Land Buying with 10 year pespective not in order of topness:


                1. Velachery-Pallikaranai Belt (i include both in one category due to geographical continuity)
                2. Adambakkam (incl Alandur)
                3. Madipakkam (incl Puzhuthivakkam)
                4. Mugalivakkam/Porur
                5. Mogappair (West, East, Nolambur)

                Sholz/Semmanchery can also be considered in list.

                The main consideration for me is that - these are places, all added recently into corporation limits, where prices, physical and social infrastructure will transform in next few years and by 2025 will be looking no different from so called prime CBD areas such as Egmore, Aminjikarai, Kodambakkam, Adyar or Vadapalani. I also expect migration of all categories of people (incl HNIs and those professionals working outside IT sector) into these areas, due to severe lack of good housing options in older CBD AreasHence prices will go up and be 90% of what is in these areas by then. And these will be considered as New CBD areas by 2025 -30.

                Reg Flat promotions, can suggest only if I have visited or seen all the major flat promotions, so refraining from same.

                Reg RE sub -corridors, the only one I can suggest is something not even now recognized - the 15 km long Pallavaram-Thoraipakkam 200 Ft radial road. The road does not even have proper name, it got bad reputation due to marsh and garbage dump but that does not change the fact that it is one wide highway stretch closest to city's emerging CBD Areas and with lot of empty land parcels for big future developments. Keep a close watch on same.

                Comment

                • #9

                  #9

                  Re : The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

                  Originally posted by ramki830 View Post
                  Reg RE sub -corridors, the only one I can suggest is something not even now recognized - the 15 km long Pallavaram-Thoraipakkam 200 Ft radial road. The road does not even have proper name, it got bad reputation due to marsh and garbage dump but that does not change the fact that it is one wide highway stretch closest to city's emerging CBD Areas and with lot of empty land parcels for big future developments. Keep a close watch on same.
                  I looked at few plots in the last few months closer to 200 ft road. I believe many areas esp in Zamin Pallavaram are under ASI zone. Brokers were offering a huge discount of the plots as they dont want to deal getting NOC from ASI (if at all possible). There is not much activity going on the main road itself, other than few showrooms here and there. Not sure if the ASI zone is the main issue there.

                  Comment

                  • #10

                    #10

                    Re : The Future, Trends, Opportunities, Risks & Rewards of Real Estate Chennai

                    I think by 2025 many suburbs can get some major components of CBD but they will be only 75% of CBD they cannot match CBD I think. Reason is many suburbs have hapazard growth. Unless govt shows some special interest I dont think overall it will be on par with CBD.

                    Comment

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