The Next Real Estate Investment Destination

7/24/2019 The Next Real Estate Investment Destination

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CHENNAI

The Next Real Estate Investment Destination


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Agenda

- Chennai Overview

- Major Investors in the City

- Chennai vis--vis Other Cities in India

- Real Estate Scenario

- Zoning of Chennais Real Estate Market

- Chennai House Ownership Trends

- Distribution of Household Income

- Supply of Residential Units

- Distribution of Residential Units

- Drivers of Growth

- Price Trends


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Chennai Overview

Chennai: Capital of Tamil Nadu State Level GDP: Rs. 308,136 Crores

Chennais Share of States GDP: 39%

Automobile, IT/ITES, Hardware Manufacturing and Telecommanufacturing hub

Chennai per capita to increase to Rs.51,705 by 2015 fromcurrent Rs.35, 310 level

*source: www.investingintamilnadu .com


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Major Investors in the CityAutomobile & Auto Components

Electronic Hardware

Information Technology


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Chennai vis--vis Other Cities

*source: Indian Statistical Dept


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Real Estate Scenario Second largest employment generator in the

country after agriculture Attractive sector:

- $ 18 billion industry

- Growing at 35%

- Expected growth over the next decade 30%

80% of real estate development is residential.

The rest 20% comprises of office spaces,malls, hospitals and hotels

Currently contributes 11.08% to Tamil Nadutertiary sectors Net Domestic Product

Chennai has seen the maximum gain of 130per cent in property prices since 2009


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Zoning of Chennais Real Estate Market

*source: Chennai Realty


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Chennai House Ownership Trends



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Distribution of Income Across Segments (in %)

Income Level per Annum Residential Preference % of Demand

Less than Rs. 5 lakhs 1-BHK 12 %

Between Rs.5 8 lakhs 2 BHK 62 %

Between Rs.8 12 lakhs 2.5BHK 16%

AboveRs. 12 lakhs 3 BHK 6 %


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Supply of Residential Units by June 2012Chennai would see a supply of approximately 63.48 million square feet of residential space by

the year 2012 with nearly two-third of the units concentrated in South Chennai. Also withinSouth Chennai, the 2-BHK and 3-BHK are the most popular segments as they account for over90% of the overall supply.



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Distribution of Residential Units across Chennai



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Distribution of Residential Units across Chennai



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Drivers of Growth

Chennai will be home to 8.75 lac white collar jobs by2015

Proposed infrastructure including a new airport, 142kms of expressway, MRTS stretching 45 kms by2015 and another 55 kms by 2020, 19 flyovers andunderpasses, 15 BRTS corridors by 2020

Proposed Financial City, Sports City, Medical City,Satellite Townships spread over 2,433 hectares

Largest automobile hub in India and among top 10automobile cluster hub in the world

Largest electronics cluster, Sriperumbudur, in thecountry

Growth in I.T and I.T.E.S sector

Modern Port and Inland Port infrastructure*source: Chennai Realty


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Current Price Trends Past, Present & Future*

Location Avg Capital Value 2 BHK (Rs./sft)

2000 2011 2020

ADYAR 2000 12500 64500

ALWARPET 2100 13000 67080

EGMORE 1800 8500 43860

BOAT CLUB 4000 25000 129000

MYLAPORE 2000 12000 61920

THIRUVANMIYUR 1600 11000 56760

ANNA NAGAR 1650 10000 51600

KILPAUK 1650 10000 51600

MOGAPPAIR 800 5000 27000

CHROMEPET 900 4700 25380

MANAPAKKAM 800 4500 24300

NANGANALLUR 850 4300 23220

T NAGAR 2500 12000 61920

VELACHERI 850 6500 35100

NUNGAMBAKKAM 2500 14000 72240

VALASARAWALKAM 850 5500 29700

PUZHAL NA 1 800 9288

PAMMAL NA 2700 15255

TIRUVALLUR NA 2100 11865

SIRUSERI NA 3500 20125

PADUR NA 2700 15525

KELAMBAKKAM NA 2500 14375

SRIPERUMBUDUR NA 2100 11865

VANDALUR NA 2500 14125

ORAGADAM NA 2000 11300*source: Chennai Realty


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Residential Rate Watch

June 2011



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Commercial Rental Rate Watch June 2011

Sub Markets

Average Rent in May 2010

(Rs. / sft per month)

Average Rent in June 2010 (Rs.

/ sft per month)

CBD(Anna Salai, Nungambakkam,

RK Salai,T

Nagar,Egmore,Alwarpet)

Grade A 70 - 90 70 - 100

Grade B 55 - 65 55 - 70

Off CBD

( Guindy, Kiplauk, Taramani,Adyar, Anna Nagar)

Grade A 50 - 65 55 - 65

Grade B 42 - 47 45 - 50

Suburban Business District

(Velachery, Perungudi, Mount

Poonamallee Road)

Grade A 35 - 45 40 - 50Grade B 30 - 40 30 - 40

Peripheral Business District

(Perungalathur, Sholinganallur,

Siruseri, Ambattur, GST Road)

Grade A 35 - 40 30 - 40

Grade B 25 - 35 25 - 35


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Thank you!

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The Next Real Estate Investment Destination