REAL ESTATE IN CHENNAI TODAY

Mahaveer Lunawath, Director of Arihant Foundations & Housing, spoke to www.chennaibest.com, about the current real estate scenario in Chennai.

The commercial segment is doing very well. For any finished product, there are immediate takers. Software companies are the major players. The demand is more for rentals than for outright purchases. But, that is the way the market is.

Because, the companies do not want to invest big money in property. Rentals are the best option for them.

The old Mahabalipuram Road has caught the fancy of many IT companies. Your comments.

Yes, a lot of big giants like Polaris and Infosys have arrived there. The software companies want to make a huge set-up, so they are choosing the Old Mahabalipuram road. We are also planning to make a big IT park there. We have acquired around 16 acres of land there.

I can say that residential sector is experiencing a boom in Chennai. There is a solid demand for residential properties. The demand is growing every day.

Kilpauk is the most happening area in the city. If you launch any project in Kilpauk, you are sold out in record time. Next comes Adyar and Anna Nagar. People are moving south till Valmiki Nagar.

They are good areas. But I think people are hesitating due to the water problem.

Let us come to the hottest buzzword in real estate - Vaasthu Shastra. Your comments.

Vaasthu shastra has become a rage over the past five years. People have become very sensitive about Vaasthu and the trend has really caught on with everyone. We make sure that in our constructions, the major points like master bedroom, kitchen and the entrance are done as per the rules of Vaasthu.

It is very good for the construction industry and it gave us a big boost. We see a good future for the Chennai market two years from now.

Mumbai is a totally different player. It has its presence in the global map. The country's biggest corporates are there. When it comes to Chennai, the market is always steady. It has never seen a downfall. And the prices never skyrocketed in the boom period, like it did in other cities. The city never experienced a setback. The Chennai scenario was always stable. In Hyderabad - the market is at its worst. But it has a good future.

In general, the quality of construction in Chennai is the best in the whole country. The structures in Chennai are even better than the structures in Delhi or Mumbai or anywhere in the country.

Yes, very much. People want quality flats. They are ready to pay more for better quality. And most of them buy apartments only once, so instead of going for a second grade apartment, they want only the best. They have understood the market and have become choosy in buying only the best quality. And also the security aspect - people are very conscious about this.

A lot of NRIs and corporate people form the major clientele.

Good Fittings, Health club, security, ample parking space and good flooring. If it is a mega project, then swimming pool, good landscaping, probably a shopping mall, clinic, restaurant. Our project in Koyambedu has all these features.

Not really. In luxury flats if we use high quality marble flooring. We might settle for ceramics in a comfort flat. We provide good fittings in a luxury flat. The fittings in a comfort flat may be of second grade. It differs only in the aesthetic point of view. From the civil engineering point of view, there is no difference.

It is a question of confidence level. Whether the builder will be able to sell the property or not. Because amenities add to the cost of a luxury apartment and you have to provide extra land for things like swimming pool and parking. Many builders end up reducing their profits because they are afraid of selling it at a higher rate. What if there are no takers? Not every builder can venture into this segment.

You see, it is the distance factor. Not everyone can afford to live in villas outside the city and come to the city every day for doing business. Time, traffic and cost of petrol are major factors. And not many good schools and colleges are available there. There is this security aspect too.

Both benefit mutually. In today's market, no builder has enough funds to buy property outright. He gets a share of the land in the joint venture scheme. Again for the seller, he is getting a place in his own premises. It is a good proposition for the buyer and the seller.

The cost of the land is less when compared to interiors, so many people are investing in suburbs. Mostly, the lower income and middle class people go for buying in the suburbs.

Definitely Velachery. Poeple are moving to the south of Chennai.

In suburbs, people invest or buy an apartment only when they see that it is complete. They are ready to invest only after observing the stage of constrution. They have a mental block as to whether the project will be completed. Whereas inside the city, most flats are booked as soon as the construction starts.

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