Latest news from the chennai real estate market

Karapakkam Pakkam

Posted: September 26th, 2015 | Author: | Filed under: Real Estate | Comments Off

In today’s fast-paced world, the biggest consideration when choosing a home is location. When you must pack so much into 24 hours, you have no desire to while away chunks of time in bumper-to- bumper traffic or on long commutes! The ideal neighbourhood, in the minds of most couples, is one that has trouble-free neighbours and building society, is well-connected, is fairly close to both of their workplaces, and has proximity to a good school, access to proper medical care, and a few nice places for relaxed evenings out in the vicinity. Unfortunately, it’s very difficult to reach your ideals, and so most people compromise, subjecting themselves to long commutes with little chance to de-stress.

With workplaces moving to the suburbs or to SEZ zones, most people who earlier were considered to live ‘centrally’ are finding themselves in this boat. With the vast majority of Chennai’s IT companies situated along the OMR, now dubbed the ‘IT Corridor’, central Chennai dwellers are the ones who find themselves stuck in traffic everyday, with the time lost commuting far outweighing any time saved and weekends mostly spent recuperating.

Fortunately, real estate along the OMR is booming, with apartment buildings and residential colonies springing up regularly. Many erstwhile remote suburbs are now residential hubs with close proximity to every convenience and amenity found in the city, including top restaurant chains, malls and movie theatres.

Karapakkam the location of Doshi Housing’s new project, Risington, is one such residential hub. Located roughly at the centre of the IT Corridor, it is an excellent hub for commuting practically anywhere on the OMR via superfast 6-lane highway. The neighbourhood itself boasts an abundance of BPOs and IT/ITES companies, including Tata Consultancy Services, Elcot SEZ, MARG Junction Mall, Sanmar Engineering Technologies, Prestige Cyber Towers, and so on. It is also home to several upcoming real estate projects, including Riverside Mall, as well as several local and international restaurant chains.

But what about education and healthcare? Karapakkam also happens to be home to an international school – Hindustan International School, just 3.2 km away from our site. The National Institute of Management Studies, Da Vinci School of Architecture, and KCG College of Technology are also in this zone. Apollo Hospitals, as well, is a feature of the area, at just 2.3 km away!
So if you work on the IT Corridor and are sick of commuting, dreaming of the ideal home and waiting for it to come along, you know what to do – move where the action is!

Good News: Interest Rates Are Set To Drop

Posted: January 20th, 2015 | Author: | Filed under: Real Estate | Comments Off


In our previous post, we wrote of the improving sentiment in the Indian real estate sector, that housing activity is slowly on the upswing with improved market conditions.

What is investment but buying? Economic factors impact buying trends. When prices are high, people have less money to spread over various needs and hence big ticket investments have to be deferred. People stop buying to cope with inflation. When prices fall, the market mood becomes positive and investors feel encouraged to buy anything, property being no exception.

Today’s rate cut

The RBI announcement1 of a cut of 25 basis points in the bank repo rate2 from 8% to 7.75%2 has been received with much optimism. Although the rate cut was expected and is really quite small, the timing comes as a pleasant surprise, and real estate gurus are calling it a great way to begin the new year.

When the RBI cuts the lending rate*

The repo rate is the rate at which the central bank of a country (the RBI in India) lends money to commercial banks. It logically follows that when the RBI reduces the repo rate, banks in turn pass on the benefit to attract investors by reducing the cost of consumer loans. The current housing loan rates are anywhere between 10.5% and 12%. A rate cut will benefit the home loan customer by reducing the EMI and experts are advising investors to opt for the floating rate of interest and not to tie themselves to a fixed rate. Obviously, this is because today’s reduction is viewed as the the beginning of the ‘rate cut cycle’2; a cut of at least 100 points or 1% is expected in 2015.

‘Accomodative’1 Monetary Policy Stance

Although builders and realtors feel that a greater rate cut is necessary (at least 200 points) it certainly feels like a revival of the India Growth Story of the early 2000s before recession struck. The Economic Times quotes Anuj Puri, Chairman and Country Head of the global property consultant, JLL India: “I expect this cut in interest rate to be the first of several to come3, and these will cummalatively make a big difference to home loan borrowers. As of now the current rate cut will help revive market sentiment, which is very timely.”





* For the investor and retail real estate buyer, the cut in repo rate means:

  1.     Lower EMIs or shorter payback period
  2.    Possibility to invest more / buy a larger home


*For the builder, it means:

1.    Easier borrowing from banks to complete projects that have been held up

2.    Faster sales and recovery from supply overload.




Real estate: Pricing trends 2014

Posted: December 30th, 2014 | Author: | Filed under: Real Estate | Comments Off


The ten most expensive and preferred cities in India to buy or rent property are (alphabetically listed) Bengaluru, Chennai, Ghaziabad, Gurgaon, Hyderabad, Kolkata, Mumbai, New Delhi,  Noida and Pune.

The mood is upbeat

With the change in government at the Centre, interest has revived in the real estate sector, which has been languishing in a trough these past few years. While experts find the current sentiment bullish, they also state that only positive policy changes will attract the buyer to invest in the real estate market.

Across the country, prices have stabilised since June this year. Also, supply has increased and property developers are making renewed efforts to complete projects and offer attractive terms to draw buyers. Business Today’s cover story in their September 2014 issue tells of developers  dealing with the issue of supply overhang by reducing prices and cutting back on new launches. This will surely help in price correction.  But, although, supply still exceeds demand at present, increasing demand is a very positive indicator of the health of the real estate sector in the country.

City indices across the country have been stable, except in Delhi where there was a drop in values in the last six months. Mumbai stabilised and rose by 4% and Chennai by 3%, while Hyderabad dipped by 2%. All other cities recorded negligible change.

Liquidity flow has eased

Prime Minister Modi has announced his vision of Affordable Housing for All by 2020. Budget 2014 has classified properties between Rs 25 and Rs 50 lakhs as being in the affordable range. In addition, increase in the upper limit of affordable housing loans to individuals from Rs 25 lakh to Rs 50 lakh in metros, and from Rs 15 lakh loans to Rs 40 lakh in other centres, will make housing more affordable to a larger market-segment and impact long-term sales.

Foreign Domestic Investment (FDI) and private equity (PE) investment have added to the liquidity flow.  Further, according to the real estate web platform, Magicbricks.com1,The recently cleared final guidelines for setting up and regulating Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) will also boost the market. Sovereign and Pension Funds have been opened into real estate and are expected to provide a new source of funding to help developers.”

A new trend across Indian cities

Apartments continue to be the most preferred property type in the country, followed by housing plots. Bangalore, Pune and Kolkata are reported to offer the maximum options in properties in the Rs 30-50 lakh range.

The trend this year has been an increased demand for housing units costing Rs. 5 crores and above. Speaking of Chennai, Sudhir Pai, Business Head at, has stated that in the quarter ending September 2014, demand for premium luxury properties (Rs 5.0 to 10.0 crores) increased by 11%, a figure that is higher than in Bengaluru at 8%  and Hyderabad at 9%. This bucks the notion that Chennai is not the most preferred city to invest in real estate in southern India. The reason for this could be that high-ticket property buyers  see the benefits of  investing in the current market before prices escalate.

In Chennai

Unlike other major cities in India, property-buying in Chennai has always been for the end-user with hardly any speculative buying.

While investment in commercial spaces has shown a healthy increase of 16% in Chennai too, properties worth Rs 40 to 60 lakh are the most preferred budget range across the city. Demand for 1 BHK units grew by 2 % from the 8 % in the previous quarter. Over 60 % demand was recorded for 2 BHK units. The 3 BHK continued to be the second most preferred BHK category with demand at 27 % and supply at 30 %. Demand for larger units (4 BHK and above) dropped from 4 % to 2 % in the Jul-Sep 2014 quarter.1

So …

All told, now is a great time to take the price advantage and invest in real estate. To sum up, the overall market outlook is more active now than in the past five years or so. Aditya Verma of advises, “As sentiment improves and transactions begin to pick up pace, we will see developers withdraw these discounts and schemes. So, between now and the middle of next year may be the best time to buy property.”2


  1. Magic Bricks

  1. Business Today