Latest Property News on 'Chennai'

CMDA Puts MBS on Fast Track in Chennai

Hot on the heels of hastening the planning permission mechanism for small buildings, the Chennai Metropolitan Development Authority has initiated steps to put the approval process for multistoreyed buildings (MSB) also on fast track in the Chennai metropolitan area. Only recently, the regulatory agency had done away with the necessity to obtain seven out of 13 no-objection certificates (NOCs) from various government agencies, hitherto mandatory for issuing the plan approval for MSBs. It was CMDA that used to communicate with agencies like the Fire and Rescue Services and the Chennai Metrowater Supply and Sewerage Board for obtaining NOCs after the builder had submitted the application and detailed plan for clearance. Going one step forward, CMDA has now permitted builders themselves to apply for NOCs and submit them along with the detailed plan for the agency’s approval.

“Our objective is to speed up the approval procedure in every way possible. It takes a lot of time for our staff to communicate with other departments. On many occasions, delay in getting NOCs used to hold up issue of planning permission,” said a CMDA official. By allowing builders to apply and obtain NOCs, the official said, much of the delay could be avoided. “We have also introduced an 18-point checklist for builders, while applying for permission for MSBs. Hereafter, applications will get scrutinised in totality and deficiencies will be informed to the promoter through a single communication. Those who rectify deficiencies will be issued planning permission within 75 days. In case the builder fails to set right the inadequacies, the applications will be rejected and the promoter will have to start the whole process again. Earlier, our officials used to point out deficiencies piecemeal and files were kept pending for even two years,” said the official. Read More »

Sluggish Growth in Real Estate Coimbatore

Laxity in promoting Coimbatore as next IT destination after Chennai,time-consuming approval process, speculative land prices, conservative nature of people and lack of political clout are some of the key reasons identified behind the sluggish growth in real estate in the techcity. Speakers at a forum organised by Confederation of Indian Industry (Coimbatore) and Jones Lang LaSalle Meghraj (JLLM) here on Tuesday. However, believed the realty sector has enough potential and it is poised to pick up growth in about six months to one-year.

In his presentation on Coimbatore Edge, Ramesh Nair, managing director of JLLM, Chennai and Hyderabad regions said branding Coimbatore, as a single entity is very important for the growth of the city. Also, the city has the capabilities to be promoted as a highly promising alternative IT/ ITES and a biotech destination. “There is a huge potential for local, national as well as international developers in the real estate sector in Coimbatore,” Abhishek Kiran Gupta, Head – Research, JLLM said. He cited high literacy rate, more number of people graduating out of many renowned colleges and the city’s contribution to the growth in the per capita income of the country. Read More »

GMR Bags Rs 1,100cr Chennai Ring Road Project

Bangalore-based infrastructure major, GMR Infrastructure Limited, today bagged the Chennai Outer Ring Road project in Tamil Nadu from the state government for Rs 1,100 crore. This is the 8th road project and first state highway project bagged by the company’s Highways division since 2001. GMR-led consortium emerged as the lowest bidder in an international competitive bid for the 29.65 km Chennai Outer Ring Road project in Tamil Nadu from Vandalur to Nemilicheri section on a design, build, finance, operate and transfer on annuity basis. The letter of award is expected to be issued in the next few days, the company said in a press release.

Under this project, the company will get a concession for 20 years which includes a construction time of 30 months. Commenting on the project, O Bangaru Raju, managing director, GMR Highways Private Limited said, “This greenfield project will ensure smooth flow of traffic and will be constructedt with world class standards. Once completed this will give a tremendous boost to real estate development and trade and commerce in the region.” The GMR Group has so far completed six national highway projects as per schedule. Last month, a consortium led by GMR Infrastructure had won the 181 km, 6-laning of Hyderabad – Vijayawada highway project on a Build, Operate and Trasfer (Toll) basis thorugh international competitive bidding route from NHAI.

MIBC asks Malaysian Companies to Invest in South Indian Real Estate

The newly formed Malaysia India Business Council (MIBC) is calling on more Malaysian companies to invest in South India, as the time was ripe for investments in the infrastructure and real estate sectors there. Leading the first MIBC delegation to Chennai, its president Datuk Krishnan Tan said Malaysian companies should look into an abundance of opportunities available in the southern region that is fast developing. “The ability to access the market is pretty good now, with the global economic slowdown and the cost (of doing business) has also come down.This is reasonably a good time for Malaysian companies to partake of investments in India,” he told Bernama in Chennai.

A galaxy of high profile Malaysian companies, mainly from the real estate and infrastructure sectors, are visiting two progressive cities in south India —Chennai and Bangalore — to scout for business opportunities Overall, India’s construction industry, which includes real estate, infrastructure like roads, ports and airports, and industrial construction, is worth RM511 billion (US$145 billion) and represents the second largest economic activity after agriculture. According to official estimates, the real estate market was valued at RM56 billion (US$16 billion) in 2006 but is forecast to tip RM212 billion (US$60 billion) by 2010. Read More »

CPI to lease Prime office space in Chennai

If the lure of political power was not enough to convince the Leftists of the advantages of pragmatism then the state of the economy seems to have done the trick. The Communist Party of India (which, incidentally, has admitted that Left’s withdrawal of support to the previous UPA government was a mistake) is all set make the most of its resources in this economy by leasing out prime office space in Chennai.

But, if the picture that comes to mind is that of an stolid, dimly-lit Soviet style construction or even that of a worn-out , colonial-era structure being given out on rent, banish the thought. The party’s Chennai unit, which works out of one the city’s most prized commercial areas in T-Nagar , is set to get itself a modern, multi-storey building complete with a plush auditorium and a roomy car park. The party hopes to give out four floors of the new six-storied corporate style building on South Boag road to commercial establishments such as banks on rent once it is ready. While the line on who can rent the office space is being drawn at anyone who is not “anti-social” for the moment, it would be interesting to see if MNCs would make the cut for the Communists. Read More »

RE/MAX India Enters Chennai market

RE/MAX, the world’s largest real estate franchising network entered India on the shoulders of Mr. Samir Chopra on 19th January 2009. RE/MAX India has signed its first regional franchisee at Chennai. Ace realty owner, Mr. V.S. Raman has become the regional owner for Chennai. With this initiative, RE/MAX having more than 7,000 open offices in 74 countries has taken it’s first step towards building a nationwide network of real estate community. Speaking on the occasion, Mr. Samir (Sam) Chopra - Chairman & Managing Director RE/MAX India said that “RE/MAX India is happy to welcome Mr. V.S. Raman as its first regional franchisee. We view this as a great opportunity to associate RE/MAX with V S Raman whose expertise in Realty would help in leveraging the brand in this part of the country.”

Adding to this Sam said, “We are confident that RE/MAX India will gain new heights under the leadership of Mr. Raman, who is a person with high integrity levels, the kind of person which the world’s leading brokerage network would want in its elite team of region owners”. This is a first of its kind initiative taken by RE/MAX India which is working towards organizing and bringing professionalism in the unorganized real estate market of India. Mr. V. S. Raman said that “We are proud to bring RE/MAX to Chennai. We look forward to being a vibrant part of the RE/MAX community and playing an important role in the real estate transactions in Tamil Nadu” Also, RE/MAX India is planning to open Franchisees in major towns and regions of the country. Bringing into its network, the leading brokers of the specific regions and trying to create an unprecedented network and referral system.

Tata Real Estate and Infrastructure Limited Plans 20,000 Crore Investment

TRIL has hired Sanjay G. Ubale, a former IAS officer to head its real estate and infrastructure foray. Tata Realty & Infrastructure Limited (TRIL), a wholly-owned subsidiary of Tata Sons, has unleashed it mega investment plans for the sector. The company, part of a $62.5 billion Tata group, has said that it plans to develop real estate and infrastructure projects of around Rs 20,000 crore in next three years. It has raised a $700 million offshore fund to invest in its real estate project for the same. TRIL has hired a former IAS officer to head its real estate and infrastructure foray. Sanjay G. Ubale, MD & CEO of TRIL, was till recently Secretary, Special Projects with Government of Maharashtra, where he was responsible for redevelopment and transformation of Mumbai. The projects are being developed with various strategic partners. The $700 million fund is based out of Mauritius, and 18-20% of the capital has already been deployed.

The company has also announced several real estate projects it’s developing, which include IT/ITES SEZs at Chennai, Ahmedabad and in Hinjewadi. TRIL is also developing a 7 lakh sq. ft. retail complex in Amritsar, adjacent to which Taj hotels would also open a property. It is also evaluating a residential and mixed use development on a 35 acre plot at Gurgaon. For its infrastructure push, TRIL has partnered with a number of overseas companies. Its focus areas in infrastructure are roads and bridges, urban infrastructure (comprising metro/monorail projects), airports and logistic parks. Some of the projects it is considering are Metro projects (in partnership with Mitsubishi Corporation), New Delhi Railway Station redevelopment (with Grandi Stazioni), Amritsar & Udaipur Airports (with Changi Airports India), and roads & highways (with Atlantia S.p.A). Read More »

Poor Utilization of Commercial Space in Chennai

Oversupply and poor absorption of commercial space, particularly IT office space, continues in Chennai. The first quarter report for 2009 released by the Real Estate Intelligence Service (REIS) of the Jones Lang Lasalle Meghraj (JLLM), real estate consultant, states that the stock of commercial space, including IT space in Chennai, is about 30 million square feet and the vacancy rate is between 15 to 20 per cent. The stock of the commercial space is expected to increase and get close to 40 million square feet by the end of 2009. Simultaneously, the vacancy rate is expected to rise to 20 to 25 per cent.

According to the JLLM study, commercial rents in Chennai were down by 10 to 15 per cent since the last quarter of 2008. Weakening IT demand and disproportionate supply has created this oversupply situation. The JLLM explained that the Chennai saw a supply of 8.16 million square feet of commercial space, including 7.91 million square feet of IT space, in 2008. The absorption of commercial space was at 5.86 million square feet leaving about 2.30 million square feet vacant. The drop in rentals was observed to be more prevalent along Old Mahabalipuram Road than along Grand Southern Trunk (GST) Road. Read More »

Cash-Strapped DLF Sells its 66% Stake in Hindoostan Spinning & Weaving Mill

Cash-strapped realtor sDLF is selling its 66% stake in Hindoostan Spinning and Weaving Mill in central Mumbai to a Chennai-based serial entrepreneur for Rs 310 crore. India’s largest real estate company had acquired the mill land in 2007 jointly with Mumbai-based Akruti Builders for real estate. DLF vice-chairman Rajiv Singh confirmed the development. “The deal is happening, but we would not be able to share any further detail at this point of time. We can only say that the buyer is a corporate buyer. We will announce other details later,” he said.

Market sources, however, confirmed that the buyer is a Chennai-based serial entrepreneur presently settled outside India. The entrepreneur is a value investor who is currently negotiating several big-ticket deals. He is also making an attempt to reenter the Indian telecom sector, which he had quit some years ago. A senior DLF executive said the deal has already been struck. Only some formalities are remaining to complete the sale, he said, requesting anonymity. While DLF is selling its share of 5 acres, its partner Akruti is holding on to its share of 3 acres and might sell it to another buyer. Vimal Shah, managing director, Akruti City, declined to comment on the development. Akruti is looking at a higher valuation for the property, said a person privy to the development. DLF is also pursuing Akruti to sell its stake to the same buyer, he said, adding Akruti Builders is also in need of cash and may finalise a deal. Read More »

Chennai Builders Unite to Develop Good Pavements

After building dwelling units for Chennaiites all these years, builders in the city have now embarked on a new mission giving a facelift to the pavements with a view to restoring them to their rightful users, the pedestrians. Tamil Nadu chapter of Confederation of Real Estate Developers’ Association of India (CREDAI), a 76-member body of Chennai’s leading builders, has joined hands with Chennai City Connect to make good pavements a concrete reality. Prakash Challa, CREDAI Tamil Nadu president, said his organisation would provide all technical assistance such as the survey, planning and architectural designs of the pavements.

Chennai City Connect, an NGO, provides a platform for various bodies to come together for executing programmes for the betterment of the city and CREDAI is a member of this forum. In November, Chennai City Connect had signed up with the Chennai corporation to upgrade and maintain pavements. Challa said CREDAI members would sponsor the entire cost except the actual execution of the job, which the corporation will carry out. About 125 locations had been identified across the city for pavement upgradation works, he said and added that the pilot project would be carried out in Adyar. Akshaya Homes has volunteered to sponsor the Adyar pilot project. T Chitty Babu, Akshaya CMD said, “We have prepared the architectural design for developing pavements on both sides of the road from Adyar telephone exchange to L B Road junction and from Malar Hospital to Madhya Kailash, a distance of roughly 2km at a cost of Rs 8 lakh.” Read More »