Chennai Realty - June 2011

www.chennairealty.biz1 Chennai Realty I June 2011

Chennai RealtyChennai's Exclusive Real Estate Magazine

Vol : 1 Issue : 1 June 2011

` 30

CHENNAI 2020The shape of things to come!The shape of things to come!

FocusChennai's Top 100 Projects

Project of the monthS & P Living Spaces

Developer of the month

Mehul Doshi


Editor & PublisherKishore [email protected]

Editorial ConsultantInkWell Publishing

Production ManagerPrasanna

Design HeadNarayanan Sathish

Marketing ManagerLeslie Anburaj+91 [email protected]

Sales ManagerGeo Bruce+91 [email protected]

SubscriptionKeerthana+91 [email protected]

PhotographyStalin Ramesh

Website DeveloperVinzing Designswww.chennairealty.biz

Circulation HeadVS Ravi

Dear Patron...I am happy to present the 1st edition of Chennai Realty.biz, Chennai’s Exclusive Real Estate Magazine. It's been an exciting three months for us - from conceptualisation of stories, to getting the magazine print-ready for circulation. We have had our share of tribulations and pressures, but doggedly worked through to ensure we set a very high benchmark as Chennai Realty.biz also happens to be Chennai's 1st professional real estate magazine. We have designed the magazine keeping in mind the overall interests of home buyers and owners, giving them a 360-degree overview of the real estate sector – right from industry analysis, trends, forecasts, home styling, architecture, Vaastu, to finance, legal advise and technology. Do enjoy reading the cover story which will give you an understanding of Chennai's real estate market and how it is likely to shape up by the year 2020. My other favourites in this edition are the articles on Vaastu for your children’s room, and ideas on how to set up your perfect home-office. We understand that ‘location of choice’ is the foremost requirement of home buyers. To aide this, we have put together a list of the Top 100 projects across Chennai, classified on the basis of their location – North, Central, South, West and Suburbs. This should help potential home buyers compare properties in the location of their choice. I am particularly delighted to share our website www.chennairealty.biz,which is aimed at keeping you abreast of the latest happenings in the industry on a daily basis. Once you visit our site, you can also sign up for our weekly e-newsletter – PropWatch. We are committed to making Chennai Realty.biz a useful tool in the hands of home buyers and owners, and are all-set to deliver quality content in an easy-to-read format – bringing a new dimension to media reporting on the real estate and construction sector in this city. We believe in the saying: Nothing is ever perfect; there is always room for improvement. Your feedback and suggestions will help us learn, improve and innovate as we continue our journey to make Chennai Realty.biz areputed voice of Chennai's real estate industry.

Kishore KumarEditor - Chennai Realty.biz

Editor’s Note

Chennai Realty.biz is solely owned, published and designed by Dimension 4 Infomedia LLP. Whilst every effort was made to ensure the information in this magazine was correct at the time of going to the press, the publishers cannot accept legal responsibility for any errors or omission, nor can they accept responsibility of the standing of the advertisers or editorial contributions. The views expressed do not necessarily reflect those of the publisher.

Marketing and Registered OfficeNo. 53-A, Church Street,

Thangam Colony,Anna Nagar,

Chennai - 600 040, INDIAContact: 044-26160216

Printed by NPT Offset Pvt Ltd

TNTAM/2011/0086


12 WHAT'S HOT: The face of Chennai's realty sector – from now to 2020!

FEATURES

26 Comfort Zone: Sharad and Ratika Haksar share their favourite space with us

28 Vaastu Speak: Here's the best way to do up your children's room

30 Tech Talk: Home automation redefined!

32 Trend Turner: Work from home with these useful tips

34 Health Quote: What's your IAQ? Find out...

44 Space Wise: TVH Consumer Products has something for everyone

INDUSTRY FOCUS

18 Project of the Month: Living Spaces by S & P Foundation

22 Developer of the Month: Mehul Doshi

36 Policy Police: What does RERA mean to you?

38 Expert Speak: All your queries... answered!

40 Smart Money: An interview with Mathew Joseph, Regional Head–HDFC awaits

42 Vanakkam India: An expat's guide to the real estate industry in India

NEWS YOU CAN USE

8 Realty Bytes: A quick update from the industry

46 Chennai's Top 100 Projects: Choose the one that best suits your needs

57 Cityscape: Chennai's residential and commercial scene in detail

60 Handy Guide: Looking for a handy man? Here are some tips!

62 City Musing: Dine and Spend in style

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Preview


Real estate activity represents a key engine of economic growth. Residential as well as commercial

properties form an important part of asset formation; foremost it satisfies one of man’s basic requirement. It also provides an assured stream of return and utility value to the owner of the property by way of rental earning, durable consumption in the form of shelter and other residential/commercial services, as well as being a collateral for availing loans. Residential and commercial property accounts for a sizable share of the wealth of a nation.

The demand for real estate properties, particularly for private homes, depend primarily on the earning capacity of the prospective owner as also his borrowing capacity, interest rate structure for property loans and taxation policies.

Rise and fallLack of transparency in the residential property market transaction, absence of a single centralised regulator in a vast country like India and limited availability of price information pose important challenges in keeping track of real estate

City-wise Price Rise Index

In the first issue, Chennairealty.biz gives you a clear, researched and detailed analysis of the city's real estate activity and what we can expect by the turn of 2020...

CHENNAI 2020 price dynamics. Movement in prices of real estate, particularly residential housing, is not only essential to the macro economy, but also to individual households. Internationally, construction of housing price index is an established practice amongst developed countries. Though the residential property market in India is very active, there are no organised markets which estimate the demand/supply forces, and track price movements. NHB RESIDEX is a pioneering attempt by National Housing Bank (NHB) to measure residential prices in India. The launch of

What's Hot


Project of the month

LUXURY ‘LIVING SPACES’S & P Foundation is all set to change the face of urban luxury living with its latest project offering – Living Spaces

Location is our biggest advantage; living spaces is just 6 km from

Anna Nagar and is well-connected to major roads and the railway network in the area, making it

easy for the residents to commute to the city and back. In addition, the project has been approved by all major banks and financial

institutions for home loans

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In a conversation with Chennai Realty.biz, Mehul Doshi, Executive Director, Doshi Housing shares his views on the real estate scenario and prospects for Chennai. Excerpts from the interview -

How would you describe the overall real estate scenario in Chennai?The Chennai market has matured over the last few years with people finding more comfort living in apartments than independent houses. Of course, the rising land prices has also contributed to this change in attitude. Chennai has always been an end-user market with the demand for homes coming from actual buyers and not too much of speculative buying. The renewed IT growth, coupled with growth in manufacturing will continue to push the demand for residential units within and around Chennai for the next 2 years. There is a situation of oversupply in terms of commercial and IT space right now, but the current stock is likely to be absorbed over the next two years.

Why, in your opionion, have property prices gone up by as much as 30 percent in the last year in the city?The property prices have gone up on account of two issues. One: the long delay in getting approvals from CMDA and other

government authorities from as much as six months to two years before a project takes off, which directly adds to the cost of the land that remains idle till the project is launched. Two: the cost of construction material has sky-rocketed in the last year. Today, our average construction is around ` 1,600 per sqft for a regular apartment.

Of late, there has been a spurt of projects being launched before getting the necessary

approvals in place. How does it affect the buyer and what precautions can they take to minimise risks?The buyer is taking a huge risk by investing in a project without CMDA approval as there is no guarantee that he will eventually get what he paid for. In addition, there would be unforeseen delays resulting in money blockage. Our advice to customers would be to invest in projects that have duly received an approval from the CMDA as a measure of safety, and to look at projects where ground level construction has already started.

Most city-based properties are unaffordable today, is it possible to deliver a 2-BHK (900 sqft) at less than ` 25 lakh? It is possible if government comes forward to support developers with land banks at reasonable prices. Sometime back, there was an initiative, where the Tamil Nadu Housing Board invited developers to get involved in joint development on a Public-Private Partnership but it never took off as the policies and procedures were not clear. In fact, developers have suggested that the government should develop ‘Special Residential Zones’ on the lines of Special Economic Zones, where tax benefits

could be extended, making it possible for developers to offer a 2 BHK apartment at less than ` 10 lakh. Faster approvals and nominal taxation will help the real estate sector grow.

What is your take on the proposed RERA (Real Estate Regulatory Authority - Ref: Page 36)? Will it help the industry become transparent and liable? Even without RERA, our industry is highly regulated. We feel the proposed RERA should also apply for government agencies involved in providing approvals and not just be biased against developers.

But don’t you feel there is an urgent need to regularise the industry, given the fact that there are no entry barriers or standards?You are absolutely right in pointing this out. While regulation is very much required and necessary, it should not defeat the purpose which is to make the industry transparent and liable in the best interests of the customer. Organisations like CREDAI have made it mandatory for their members to adhere to a strict Code of Conduct which goes a long way in making it obligatory for all developers to adhere to certain corporate governance standards.

It seems that while developers from Mumbai, Delhi, Bengaluru and even Hyderabad have come to Chennai, there are very few Chennai developers who have gone to those cities. Why? One fact could be that most of the companies that have come to Chennai are listed entities, flush with funds and are aggressive in acquiring land banks at high prices, while Chennai developers have been more cautious on land banking.

Finally, what does Mehul Doshi enjoy most about this industry?I was inducted quite early into this business and have always fancied it as it gives me the satisfaction of catering to one of the basic demands of humanity.

Developer of the month


Vaastu Speak

While there are multiple choices for children’s room décor, the knowledge of Vaasthu Shastra

can go a long way in enhancing your child’s creative thinking and good health. Following some of these simple principles, can help your child grow in a positive environment and aide in their health, education and well-being.

Westward Bound: By far, west is best direction for a child’s room. If you have a daughter, the room should face the north-west direction, whereas boy’s room can be in northern or eastern part of the house. Caution: Avoid the south-west direction.

Furniture: The bed should be located in south-west portion of the room with the head in south or east direction. Avoid doors exactly opposite the bed. Almirahs and cabinets should be placed facing south or west. Position the furniture a few inches away from the walls, as it saves the positive energies of body and mind.

TV, computer and music systems: It is recommended to place the TV or music systems in north-west corner and the computer in south-east corner of the room.

Study table: The study table should be placed in such a way that the child faces east, north and north-east while studying. It is said to boosts both memory and concentration and improve creativity. Books should ideally be kept facing south-west, south or west. Also remember to avoid clutter.

Lights: Fix your lights on the south wall and south-east corner in children’s room as

NO CHILD’S PLAY!

Designing a children’s room is no more child’s play. Parents are required to keep in mind the changing tastes of their children, so that they are not only made to feel comfortable, but also grow up smart and healthy – Suresh, Subhavaasthu


Slingbox by SlingMediaCool gadget that lets you to watch your home TV via the Internet on your computer or cell phone!

Tech Talk

Home Massage ChairAfter a rough day, come home to a gentle soothing massage.

7-day Weather ForecasterThis 7-Day Weather forecaster gives you the tools to be prepared all week for the weather conditions ahead

It all started with the invention of the TV remote, which made tasks like choosing channels and adjusting volume much

easier, without moving from your couch. And, that was the beginning of the home automation revolution! Having embraced the advancement in technology, our lives have become much easier than ever before. We are already using some simple forms of automation like, remote controls, garage door openers, security alarms, and door video phones. Now, with the launch of many new gadgets in the market, home automation is just a swipe of the credit card away!

Luxury or necessity? For those who follow cutting-edge technology news, it's no secret that home automation technology is becoming hugely popular. ‘Smart homes’ are not just cool, but also offer an immense amount of functionality that cannot be matched by homes that do not incorporate automation. Most people would agree that home automation is here to stay, and that it will only become more advanced as time goes on. The following are some of the coolest trends in home automation technology for your home…

The Next Big Thing!

Home Cinema ProjectorsHome Cinema Projectors offer the ultimate

way to experience larger-than-life movies and sporting events in the comfort of your home.

NANO O2 Advanced Air PurifierExciting new technology — patented Photocatalytic Oxidation using nanotechnology.

You come back home from work and would like to relax on your couch in front of the television. Wouldn’t you like it if the air-conditioner was already turned on; your favorite music album playing on loop? No, we not talking about employing an army of servants to do this for you! Just push a button and make all this happen…

SMART HOMES

Roomba 570The best robotic vacuum yet…


Health Quote

Breathe Fresh!

Vijayalakshmi stays an in apartment in Velachery, which she bought for ` 30 lakh, a few years ago. However, the quality of the building went unchecked and the paint not only

started peeling off but the rooms had an offensive smell, if left locked for a few hours. She recalls, “Over time, my son started having breathing and

respiratory issues. The doctor narrowed it down to allergic reaction to plastic paints.” They nipped the root cause of the ailment at the bud and

re-painted the home with bio-organic paints.No doubt, there is a haze in the air surrounding us. The ozone

layer and smog are what come to mind when discussing air quality, especially during the summer, when it is much more prevalent. As per the latest

statistical data of WHO (World Health Organization), the sad fact that 70 percent of rural Indian homes do not have ventilation while cooking on solid fuels and traditional stoves comes to light. It also corroborates that out of 6,00,000 deaths every year in South East

Asia due to indoor air pollution, 80% are in India.Additionally, higher percentages of indoor air pollution is found in places with low

ventilation. This particular air pollution is linked to ‘sick building syndrome’ where people feel sick and show symptoms like nausea, vomiting and chest pain, but no specific source of the illness is diagnosed. While these symptoms go away when the person is exposed to outdoor air, many after-effects of heavy indoor air pollution show up later in the form of

respiratory diseases and cancer – especially with carbon monoxide and asbestos inhalation.

Watch out!Some of the main causes of indoor air pollution include

• Microbes - bacteria, mold, fungi• VOC (Volatile Organic Compounds) - These are compounds / material that

emit gases over a period of time and include furnishings, lacquer, paints, cleaning supplies, pesticides, plastic toys, building materials, copier and printers, glues, adhesives, permanent markers, etc.• Pollen / Hair – Pollen from plants and hair from pets

such as dogs and cats.

When we talk about the quality of air, most people mistake it for the environment outside. But what about the indoor air quality (IAQ) – the air inside our homes? Ironically, IAQ can be worse than the outside air we are breathing – Anita Choudhary

34 Chennai Realty I June 2011


Policy Police

Finally, there will be some sort of a benchmark on how, what and where to build – a move from the

Union Ministry of Housing and Urban Poverty Alleviation that will hopefully change the face of our cityscape for the good. The Real Estate Regulatory Authority (RERA) Act proposes to establish a regulatory authority to control and promote construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties. It provides for compulsory registration of all real estate projects where: (i) The area of land proposed to be developed exceeds 1,000 square meters or 10,000 square feet; or(ii) The number of apartments proposed to be constructed exceeds four.For obtaining registration, besides furnishing other details and information, the developer would have to furnish a bank guarantee equal to 5 percent of the estimated costs of development work to the local authority or other authority having power to give permission for construction or development of land. The registration is valid for three years. Where delay in completion of the project is for reasons beyond the control of the developer, the developer can seek two renewals of one year each.

Obligations of developerThe Act details the obligations and responsibilities of the developer –

• The project cannot be advertised before it is registered with the authority. This registration will ensure that the project has obtained all sanctions.

• The advertisements should be specific and clear. There should not be any misleading images or highlights about the project.

• Builders should use proper terminologies and will be required to give a detailed specification of carpet area, super built-up and floor area. In addition, they also need to give information about all the extra charges levied for common spaces such as corridors, parking and lifts, etc.

• The act makes it compulsory for the developer to enter into an ‘Agreement for Sale’ in a specified format with the prospective buyer, before accepting any deposit or advance.

• The draft has made it mandatory

for developers to allow all prospectivebuyers to inspect all documentspertaining to

The Union Ministry of Housing and Urban Poverty Alleviation has published the draft of the Real Estate (Regulation of Development) Act which proposes to lay down what is expected to be a common regulation for the real estate sector across India. This is expected to bring a lot of transparency and make the real estate developers a more disciplined lot. The key provisions of the Act have been summarised for your easy reference – Kishore Kumar

Get Ready For RERA!


Smart Money

How would you rate the Chennai real estate market to other metro markets like Mumbai, Delhi and Bengaluru?The dynamics of the real estate market in Chennai has changed in the last 6-7 years. The entry of pan-India players and large townships by local developers has changed the face of realty development in this city, which earlier never had large projects. The Chennai market, unlike other markets, is more end-user driven and price-sensitive. The prices in Chennai have not increased as sharply as they have in Mumbai and Delhi in the last year.

Tell us about the demand for home loans, given that interest rates are going up…The demand for home loans has been good and our loan disbursement growth has been on expected lines.

Where do you see the interest rates going from here? A lot would depend on the stand the RBI takes to control inflation.

What percentage of your home loan portfolio in Chennai is for second/third homes?About 12-15 percent of our business comes from the resale market.

HDFC has always been a very strong brand for home loans. What new initiatives are you taking to retain this lead?Customer service has always been our primary objective. Every customer touch point in our organisation is aware of this objective. Our strength is in our workforce where we have staff who understand the nuances of the business and can guide the

customer through the process.Besides this, our expertise in providing complete home loan solutions and introducing loans that meet the customer’s needs have helped us over the last 33 yrs. We have also believed in catering to customer expectation needs: the property portal www.hdfcred.com helps customers choose a property out of various listings.

What do you feel about the increase in the numbers of developers in Chennai?Developers who have shown progress in construction are doing well. Also, projects where the prices are in-line with the market and have not increased sharply are continuing to do well.

Your advice to first time home buyers…Buyers should choose a credible developer who has good track record in quality and adherence to delivery timelines. Construction progress at the site is another important factor to be looked into. Choose the right Housing Finance institution which will provide complete assistance in the due diligence of the property and not merely a home loan. HDFC has, over the years, provided complete assistance to customers when it comes to property purchase.

What is your take on the future market scenario for residential, commercial and retail segments across Chennai?The off-take of residential properties has been good in the last 12 months. Going by the trend, the sale scenario is expected to be good, provided developers do not increase prices and there is considerable progress in construction. The commercial IT supply is still a concern; both in terms of sales and lease, it has not kept in pace with supply.

CHOOSE WISELY! In this interview, Mathew Joseph, Regional Head – HDFC, talks about the real estate scene in Chennai, gives readers tips on choosing the right home and more…


It is known that Non-Resident Indians (NRIs), Persons of IndianOrigin (PIOs) and Foreign National

of Non-Indian Origin can acquire Immovable Property (either residential or commercial) in India by way of purchase, gift, inheritance, or share of joint property received upon partition of family/property, etc as per the guidelines laid by the ForeignExchange Management (Acquisitionand Transfer of Immovable Property in India) Regulations, 2000 (FEMA). But, there are some crucial guidelines to be followed while buying property…

Purchase

The Reserve Bank of India (RBI) has permitted the following categories of NRIs/PIOs to acquire ImmovableProperty (other than agricultural land, plantation or farm-house property) by way of purchase, provided the payment is made out of Foreign Exchange InwardRemittance or any Non Resident Bank Account in India, that is (Non Resident External (NR(E)), Foreign Currency Non Resident Account (FCNR(B)) or Ordinary Non Resident Rupee Account

a/c (NRO) in connection with acquisition of Immovable Property in India –

• A Non Resident who is a citizen of India

• A Non Resident who is a Person of Indian Origin (PIO)

• A Non Resident who has established in India a branch office or other place of business (excluding a liaison) office

There are no restrictions on the number of residential/commercial properties that can be purchased.

Gifts

General Permission is granted to acquire any Immovable Property (other than agricultural land, plantation or farmhouse property) by way of gift from a person (donor) who is – • A Person Resident in India, or • A Person Resident outside India

(NRI) who is an Indian citizen or foreign citizen of Indian origin.

Provided, applicable Gift Tax if any has been paid at the time the immovable property is being gifted.

HOME CALLINGThough many Indians live abroad or are married to foreigners, they would like to come back to the country to own property. Here are some guidelines for NRIs, PIOs and foreigners to acquire property in India – Rohini Kumar

Vanakkam India

42 Chennai Realty I June 2011


NORTH TOWN

Location - Perambur Type of Units - 1, 2 and 3 BHKNo. of Units - 1,200Area - 990-1,396 sqftCompletion - June 2011Amenities - SP, GYM, MPHBuilder - Arihant Foundations & Housing LtdContact - 044-42244444

ORCHID SPRINGSS

Location - Near Padi Metro Rail StationType of Units - 1, 2, 2.5 and 3 BHKNo. of Units - 2,000Area - 692 - 2,244 sqftCompletion - December 2012Amenities - 5 Star CH, GYM, SP, SF, Health Club, Coffee ShopBuilder - Alliance GroupContact - 044-30451200

GOLDEN KINGS COURT

Location - TAS Enclave, Anna NagarType of Units - 3 BHKNo. of Units - 11Area - 2,084 -3,157 sqftCompletion - September 2011Amenities - SP, GYM, CH, KPABuilder - Golden Homes Pvt LtdContact - 044-26213388

DOSHI TULIP

Location - Kilpauk Type of Units - 2 BHKNo. of Units - 12Area - 900 - 1,200 SftCompletion - Ready to occupyAmenities - Back up generator, Wi-Fi Builder - Doshi Housing LtdContact - 044-43539160

SANTHA TOWERSLocation - Parithipattu, AvadiType of Units - 2, 2+ study BHKNo. of Units - 480Area - 808 - 1,114 SftCompletion - December 2011Amenities - CH, SP, KPA Builder - Santha Build Tech India Pvt Ltd Contact - +91 9962228090

AISHWARYALocation - Red Hills, Madhavaram RoadType of Units - 2 and 3 BHK No. of Units - 28Area - 885 - 1,315 sqft Completion - June 2011 Amenities - Covered car parking, power back upBuilder - Rajmeena BuildersContact - 044-26280880

RAJUS SAPPHIRE

Location - KolathurType of Units - 2 and 3 BHKNo. of Units - 28Area - 925 - 1,079 sqftCompletion - Ready to occupyAmenities - GYM, KPA, 3 Phase power supply Builder - Rajus Flat Promoters Pvt. LtdContact - 044-42645830

KGS VRUDHI

Location - KilpaukType of Units - 3 BHKNo. of Units - 27Area - 2,040, 2,160, 3,360sqft Completion - March 2012Amenities - 24-hr power back up, KPA Builder - KGS Developers LtdContact - +91 9361255110

RC LAURELS

Location - Madavaram Type of Units - 2 and 3 BHKNo. of Units - 48Area - 855 - 1,215 sqftCompletion - Under constructionAmenities - GYM, MPH, Association Room Builder - Rajarathnam Construction (P) Ltd Contact - 044-26748888

THE ARCHWAY

Location - Ormes Road- Kilpauk Type of Units - 3 BHKNo. of Units - 16Area - 2,224 - 2,324 sqftCompletion - September 2011 Amenities - 24-hr power back upBuilder - Jain Housing & Construction Ltd Contact - +91 8870701850

CH - Club House Gym - Gymnasium RES - Restaurant BS - Beauty Salon SCH - School

SP - Swimming pool KPA - Kids Play Area HOT - Hotel SM - Super Market ATM - Automatic Teller Machine

SF - Sports Facility GAR - Garden COH - Community Hall DS - Departmental Store MPH - Multipurpose Hall

Area : Chennai - NorthTOP 100 PROJECTS

Documents

Chennai Realty - June 2011