Chennai real estate market growing steadily


ChennairealestateChennai real estate market has been stable with moderate price appreciation of 8 10% in 2012. With inprogress infrastructure projects taking shape, the demand and capital values are expected to rise across all sectors. Focus on improvement of public modes of transport has been one of the major highlights in Chennai. This is evident from the expansion of the existing highways, work on Chennai Metro and the Outer Ring Road.

Approval of three new bridges connecting ECR and OMR at Neelankarai, Palavakkam and Kottivakkam is expected to impact the capital values. Going forward growth in Chennai would not solely be determined by the IT/ITES sector, but also the transport corridors of the above mentioned infrastructure projects. Chennai market is looking forward to the MRTS and BRTS projects to give the city a new face in 2014-15. 2012 has seen the city shift investor focus from the usual OMR, ECR to the WEST and NORTH of Chennai. The operationalization of the TIDCO & Ascendas SEZ at Tiruvallur and the operationalization of the new airport at Sriperumpudur in 2015 is driving interest in the North & West Chennai regions.

STOCK AND ABSORBTION

Global uncertainties and IT/ITES sector going slow with their expansion plans impacted the real estate scenario in Chennai with high vacancy rate. Though the focus on residential sector from developers end was high, and Chennai market saw remarkably high number of new launches in 2012. Sales were moderate in comparison to the new residential supply added to the market. In 2013 Chennai residential market is likely to see few launches compared to 2012 but improvement in sales with an overhang of 18-22 months.

Source:moneycontrol

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Rs 400 crore flyover to connect OMR, ECR in Chennai


omr-ecrA flyover connecting the Old Mahabalipuram Road and the East Coast Road is now a step closer to reality. The design of the flyover that would start near Tidel Park on OMR and land on ECR was given a go-ahead by a technical committee of the state highways department that met a few days ago. “The alignment of the flyover was decided in December last. Now we have decided where the arms will come and where exactly the flyover will land,” said an official of the state highways department.

TOI was the first to report when the alignment committee gave its nod in December last. The flyover will begin just after the small bridge on the Buckingham Canal on West Avenue Road. It will then cross the much-dreaded Lattice Bridge Road junction, turn right and then land on ECR near the Thiruvanmiyur RTO. “The final detailed project report will be submitted in three months. A tender will then be floated and work on land acquisition will start in a year,” said the official.

This is touted to be one of the most expensive flyovers in the city, given its size. “The cost has been estimated at Rs 400 crore,” said the official.

Unlike previous projects, land acquisition will be completed before construction begins. “This is to ensure that cost of construction doesn’t keep increasing with delays in land acquisition,” said the engineer. Construction of flyovers in Porur, Moolakadai and Thirumangalam has been delayed due to land acquisition issues.

Commuters on the stretch say that while the flyover would make a difference, the Tidel Park junction is still a bigger problem. “This flyover will make a difference, albeit a small one. It is a temporary solution and the bigger problem is at Tidel Park,” said Suresh Menon, a cinematographer who has been working with the Chennai Traffic Police on solutions for traffic management in the area. “While one would take 10 minutes to cross the traffic signal at LB Road, it takes at least 45 minutes to cross Tidel Park signal. Coming from Madhya Kailash, traffic piles up well past Thiruvanmiyur MRTS station,” he said.

Earlier this year, the state government announced that a 45-km elevated road would connect Madhya Kailash and Mahabalipuram. “We will soon appoint a consultant to study the feasibility of this project as well,” said a highways engineer.

Additional commissioner of police (traffic) Karuna Sagar said this was the only real solution in sight. “There is nothing else we can do to manage the traffic flow. It takes more than one signal cycle to clear traffic and hopefully the situation will improve after these projects,” he said.

Source: The Times of India, Chennai

Old Mahabalipuram Road paves the way for realty development


Savithanjali - Marg Properties

Savithanjali -Rs. 37.01 – 52.78 Lac -2-3 BHK Apartment / Flat- Marg Properties

The setting up of TIDEL Park on Rajiv Gandhi Salai or Old Mahabalipuram Road (OMR) in 2000 changed the landscape of the stretch forever, paving the way for the development of the IT corridor, as we know it, today. This development, naturally, led to the creation of a premium residential housing market along the belt starting from Madhya Kailash, all the way to Thiruporur, and beyond. OMR may have seemed like a distant suburb a few years ago, but now, it is very much a part of the city.

“OMR, up to Sholinganallur, is essentially an extension of the city, and should not be considered a suburb anymore. Take Velachery, for instance. Until recently, it was considered a low lying suburb that was only in the news during monsoons. But now, it’s a thriving residential and commercial zone, and very much a part of the city.”

The location of OMR – its proximity to Adyar, for example – has attracted large scale residential development here. This gives the area a distinct pricing advantage, . “The prices (per sq ft) are almost half of that in Adyar,” he adds, “So, at a
distance of less than 5km from Adyar, one can procure an apartment for half the price.” Another factor that works to its advantage is its proximity to ECR. Badal Yagnik, MD, Jones Lang LaSalle, Chennai, says, “Prices on ECR are 50-60% higher than that along OMR. And both corridors are witnessing plenty of development in the residential/ commercial sectors.”

Although it was the IT sector that initially fuelled growth along OMR, it’s no longer the sole growth driver.  “It’s the demand for housing that has been driving growth in this area over the last few years.” Last year, for instance, the city saw office absorption to the tune of 5 million sq ft, while this year, it is only 2 million sq ft. A large chunk of this space lies on OMR. Despite the fall in absorption rates, the demand for housing has been soaring along the OMR.”

While the stretch from Madhya Kailash to Sholinganallur has been witnessing maximum demand, even beyond Sholinganallur, the demand, though not as robust, exists. “Prices along the Madhya Kailash-Sholinganallur belt have been increasing by 20% year-on-year. However, some of the best schools are coming up in large townships planned in the latter half of OMR.

Places like Padur, for instance, are set to grow, with malls like Marg Junction, and residential projects planned in the vicinity.” Any further development on OMR is bound to happen after the toll gate, due to non-availability of land on the stretch from Madhya Kailash to the toll gate. while prices (per sq ft) range around 7,500 until Sholinganallur, they are about 3,000 to 4,000 in the area from the toll gate to Thiruporur, and lesser as you move further.

Source: Times Property

ECR shoreside is home to the stars


Stretching for over 60 kilometres of coastline, East Coast Road (ECR), the ‘state-of-the-art’ neighbourhood of Chennai is emerging as the hottest property and the most preferred destination for K’Town film stars. DC takes a look at why, despite being pricey, ECR is a prestigious address for the rich and famous. Be it superstar Rajinikanth, Ulaga Nayagan Kamal Haasan, Ajith or Ilaya Thalapathy Vijay. After a hard day’s work — whether in city studios or returning from outdoor locales, the ECR seems to be a peaceful haven everyone wants to retire to. The first ones to settle in this posh neighbourhood were the hot and happening celebrity couples Sarath Kumar-Radhika and Ajith-Shalini. After Sarath turned politician and became a popular figure in the area, his residence in Kalyani Nagar is always bustling with people. Sources reveal that Ajith who already lives in a secure posh apartment in Valmiki Nagar, has bought yet another beach abutting property to construct an independent villa. Actor Abbas and his fashion designer wife Erum Ali live on Seaward Road. Recent additions to the list of ECR migrants include maestro Ilayaraja, Vikram, Ramya Krishnan and Simran. The latest to be bitten by the ECR bug is young actor Jiiva who is building his ‘dream house’ and which, according to sources has a private beach. Abbas prefers to call it ‘home sweet home’ rather than house. “I love nature and always prefer to be close to the sea. My family lived in T Nagar initially, but when Erum and I wanted to move away from the hustle-bustle of the city, the first thing that came to our mind was quiet Thiruvanmayur.” He adds, “My house is basically functional with aesthetically designed interiors. What we wanted was a warm and cosy home rather than a mere structure.” The couple is popular in the social circle for hosting the best theme parties. Recently, Simran and her husband Deepak relocated to Chennai from Delhi and they chose to live in Uthandi in ECR. Says the pretty actor, “After a heavy day’s work, we need a peaceful atmosphere. It’s less polluted, less noisy and has a serene beauty.” Deepak says Simran is doing most of the interiors, picking up accessories whenever she travels abroad. He feels that every place has its advantages and disadvantages. “People say the sea breeze carries a lot of salt vapour which corrodes seaside houses over time. We are taking all measures, using anti-corrosive materials for the accessories and sanitary ware, and using wood for other areas”. Though Rajinikanth and Ilayaraja live in the heart of the city, their farmhouses in ECR provide them a refuge when they crave peace and relaxation. Rajini’s Kelambakkam farmhouse is famous for one more of his thoughtful gestures. The real superstar that he is, Rajnikanth has built a small shed outside his farmhouse where buttermilk and cool water is provided during the hot summer months. Hundreds of people thronging the place is a common sight; not only to relish the spicy buttermilk served there, but also hoping to get a glimpse of the star. Once, Alwarpet was synonymous with Kamal Haasan. The actor had made Alwarpet his abode, till a few years back, when he moved away from the city to the tranquil environs of Akkarai in ECR. Jiiva, who has bought property in a gated community in ‘Olive Beach’ near Ramya Krishnan’s house says, “I can call it my ‘Dream House’. I did lot of research before going for one near the beach. The house we are planning is more earthy and eco friendly. I once visited a sculptor’s house in France, which was built in the 16th century using natural materials. It was not lavish but very friendly and homely. I like the idea and will be applying it to my proposed residence. I am not going to use varnish or paint in my house”. What about facilities like schools and shops, and the problem of commuting to the city? Most of them feel ECR is worth the investment. Simran and Abbas concur. “Children are our priority. We have good international schools around here. Commuting is not a real problem – we can travel to work from anywhere. Nowadays, shootings are not restricted to the studios of Kodambakkam. We travel all over, to so many other places”. Jiiva feels that the ECR roads are broad and easy to drive on. “Even if my child has to travel to Adyar to school, it is not that far away”. A little birdie tells us that of late, Trisha has been toying with the idea of buying a property closer to her buddy Ramya Krishnan’s place and is seriously looking out for one!

Source:deccanchronicle

The Hot Locations Roundup – Chennai


Chennai is one of the most fast growing cities in the southern part of India. This metropolitan city is plotted with hot spots, attracting the crowd of property buyers and sellers. This article hopes to provide fruitful information to all such property enthusiasts.


Adyar:

Adyar is the most popular of the South Chennai neighborhoods. Flanked by the other famous localities of Chennai like Thiruvanmiyur, Besant Nagar, Guindy, Taramani and Kotturpuram, Adyar is also the poshest of the posh localities in Chennai. A part of the IT corridor, Adyar also has a good number of Multi-cuisine restaurants, shopping and lifestyle hubs strewn all over. Adyar is essentially a twin delight- a good mix of the thriving IT community and a supremely calm atmosphere. Investments in Adyar area is a great opportunity to complete that happiness bubble. Real Estate prices and new properties are costliest at Adyar but the golden egg is always worth the money.

 

ECR:

ECR  is Chennai’s backyard Venice. Loved by locals and expats alike, this super scenic highway traversing along the eastern coast connects Chennai to Cuddalore via the Union Territory Pondicherry. ECR houses Luxury apartments, Posh Bungalows, entertainment hubs and resorts all the way from Thiruvanmiyur-Pondicherry. ECR has become an extended neighborhood of the city and is very easily accessible from the IT hub that is the OMR. The promise of class coupled with luxury, the proximity to OMR and the prospect of living near the beach makes ECR the best place to invest and buy new property in Chennai.

 

Sriperumbudur:

Located just 40 Kms off Chennai, Sriperumbudur is a Special Economic Zone famous for its multitude of highbrow industries and manufacturing companies. Starting 2000, Sriperumpudur has witnessed rapid industrialization to become one of the biggest business hot- spots in the country. Particularly known for its wireless handset and automobile manufacturers, this once quaint little town garnered global attention when the preliminary signs of industrialization began with Nokia in 2006. Since then, many bigbrands have their major units propped at Sriperumbudur. With a workforce of over 30,000 and a world class public transport infrastructure , its only obvious that real estate is a big business in Sriperumbudur. New property requirements are on an all time high and more realtors are pouring in to Sriperumbudur to satisfy the balance in the demand-supply curve.

 

GST:

The Grand Southern Trunk Road, also known as the GST road is the arterial highway that connects Chennai to the Southern Parts of TamilNadu. The road starts at Kathipara Junction in Guindy, a very busy confluence of five roads, connecting Chennai to its airport and Southern suburbs. GST is not only an industrial high-spot but also a residential hub. The road is infested with sophisticated apartments, gated communities, popular colleges, et al making it the hottest of hot-spots to invest on and buy new properties. Investments along the GST road are also super safe since the real estate value in this area is only appreciating.

 

OMR:

Think IT in Chennai and it is hard to not discuss OMR.

OMR is not just the face of the now booming IT industry in Chennai but is also a beehive for real-estate development. IT projects have been dotting the OMR belt between Madhya Kailash and Mahabalipuram starting 2002 and ever since the TN government increased the floor space index to 3.75, roughly 1.5 times the prevailing value, there has been a phenomenal rise in the requirement for new property in this region. The prospect of excellent value for money, new property offerings from famous builders and proximity to work has convinced people to settle down in OMR which also plays host to a multitude of tech parks, shopping malls and lifestyle amenities.

Source:INDIAPROPERTY

AMRITA RESEARCH AND INNOVATION PARK – IT-ITES OFFICE SPACES – Marg Swarnabhoomi


Amrita Research & Innovation Park (ARIP) is part of a Multiservices Special Economic Zone of MARG Swarnabhoomi. With over 6 lakh square feet built-up space, ARIP addresses to every minute requirement of IT/ITES companies and is poised to cater to the new generation IT requirements. Packaged as an innovative solution, unlike traditional IT parks (mere infrastructure), ARIP offers 360 degree solutions right from IT/ITES space, accommodation, leisure & entertainment and education while learning.

Spread over 7.84 acres of land, ARIP consists of two equivalent towers of 2.76 lakh sq feet each. Two towers are connected with a walkway at 3rd floor. Apart from the basic IT infrastructure required for IT/ITES companies, ARIP is designed in such a way that it receives more natural light and air flow, making it energy efficient. A floor height of 4.05 meters makes the employees more comfortable to work with less fatigue. All these features combined with walk-to-work lifestyle to offer better productivity for the companies.

As a packaged solution, ARIP offers an unmatched lifestyle for the employees of its clients who live in MARG Swarnabhoomi. All the employees can avail the facilities of MARG Swarnabhoomi such as indoor & outdoor sports complex, CBSE based school, Medical services, ATM, Departmental store, and Multi-purpose auditorium etc. Plans are afoot to develop DhyanaDham, Adventure sports and water sports at MARG Swarnabhoomi.

Benefits to IT/ITES companies

  • ARIP is a part of Multi Services SEZ – companies can avail all the SEZ benefits such as corporate taxes etc
  • Located in serene environment, which encourages innovation and fresh thoughts
  • Reduced rental/lease costs
  • Reduced Operational Costs – power, transportation costs
  • Companies can concentrate on their core competencies – instead of concentrating on other activities like transportation and safety & security of the employees etc
  • Lesser travel time brings in better work-life balance and ultimately results in more productivity
  • Improved employee retention because of better work-life balance

Benefits to IT/ITES employees

  • Better work-life balance – an accomplished escape from the world of frustrations offered by the current cities
  • Savings up to Rs.8000/- in the monthly budgets including transportation costs and living costs etc
  • More free time to cherish unfulfilled dreams such as learning music, playing games/sports with families and education while learning etc
  • Healthy lifestyle because of serene, pollution free and frustration free environment
  • Safe secured place to live in

For more details, please contact 9790964952/ 8754481700 or multiservices@margswarnabhoomi.com

MARG LIMITED REVENUE GROWS BY 52%


Marg Limited is one of the best builders in chennai developed low budget flats in chennai.

Financial Highlights

Q3 2011-12

  • Standalone revenue up at Rs.483 crores in Q3 FY12, increase of 52% over Q3 FY11
  • EBITDA for Q3 FY12 is Rs.41.4 crores, increase of 18% over Q3 FY11 EBITDA of Rs. 35.2 crores
  • PAT of Q3 FY12 at Rs.18.4 crores as compared to Rs.15.9 crores in Q3 FY11

MARG Limited – Standalone Entity

Financial Performance

INR Crores

Q3 2011-12

Q3 2010-11

Q-o-Q Change

Revenue

483.0

317.3

52%

EBITDA

41.4

35.2

18%

PAT

18.4

15.9

15%

Chennai, January 27, 2012: MARG Limited, India’s leading diversified infrastructure development company, announced its financial results for the quarter ended December 31, 2011.

The company recorded a 52 percent increase in net sales, which stands at Rs. 483-cr in the third quarter of 2011 – 2012, as compared to Rs. 317.3-cr in the Q3 2010 -2011. The net profit for the quarter ended December 31, 2011 stands at Rs. 18.4-cr, a 15 percent increase from Rs. 15.9-cr registered in the same period last year. ?

Business Highlights

  • Karaikal Port handled 1.45 MMT of multi cargo during Q3 ending Dec 31, 2011 (YTD FY12 ~ 4.4 MMT)
  • KPPL received the final tranche of PE investment of Rs. 50 Crores from Ascent Capital
  • EPC revenue of MARG Limited at Rs. 465 crores in Q3 FY12, growth of 55% over the Q3 FY11 revenue of Rs.300 crores
  • Current EPC order book at around ~Rs.3250 crores, external orders account for ~35%
  • MARG ProperTies, the residential arm of the company sold 98 units (0.11 MSFT) in Q3 2011-2012. Total sales till Q3 FY12 at 409 units with sale value of Rs.127 crores
  • Construction of MARG Junction Mall, one of the largest mixed use developments in Chennai, is on schedule; deals for ~55% of the leasable space in the mall area have been finalized

Commenting on the company’s performance in the quarter ended December 31, 2011, GRK Reddy, Chairman & Managing Director, MARG Limited said, “Our results for the quarter ended December 31, 2011 are very encouraging. Despite the challenging business environment, our income has increased by a healthy 52 percent. This has laid the foundation for MARG to be a billion dollar organisation in the next two years. EPC will continue to be the core thrust area for MARG. MARG Karaikal Port, MARG Swarnabhoomi and MARG ProperTies will be the key growth drivers.”

Performance of Business Verticals

EPC Business

  • EPC revenue of MARG Limited at Rs. 465.2 crores in Q3 FY12, growth of 55% over the Q3 FY11 revenue of Rs.300 crores
  • Current EPC order book at around ~Rs.3250 crores, external orders account for ~35%
  • Continued strengthening of human capital and technological capabilities to focus on specialized projects in the industrial infrastructure space

Marine Infrastructure

Karaikal Port

  • Handled 1.45 MMT of multi cargo during Q3 FY11. Total cargo handled till Q3 FY12 is 4.39 MMT
  • Revenue of Rs. 57.9 crores during Q3 FY 2011-12 (Provisional); Total revenue till Q3 FY12 at Rs.163.9 crores, EBITDA at Rs. 68.7 crores and PAT at Rs. 25.3 crores
  • Received the final Tranche of PE Investment of Rs. 50 Crores from Ascent Capital
  • Handled 294 rakes for the Q3 FY12 and 1,569 rakes since commencement of rake operations
  • Financial Closure for Phase 2A Extension achieved for Rs. 437 crores with four banks
  • Successfully completed the Construction of Berth 3 & 4

Urban and Industrial Infrastructure

MARG Swarnabhoomi

Engineering SEZ

  • Virgo and TVS Kwik Patch have commenced operations
  • MOU signed with Twin Disc U.S for their new marine transmissions manufacturing unit, DC approval obtained
  • LOI’s signed with Tecpro Energy Systems and Eswari Electricals to set up their export oriented unit at the engineering SEZ

Science Park

  • Significant progress made on the Construction of phase-I spread over 210,000 sq ft of Wet Laboratory building, building would be ready for occupation by March,2012

Knowledge Hub

  • Premier Institutions in Australia have shown positive response for tie-ups for vocational education and other allied courses and the education services team is working on structuring business models
  • Talks are in final stages to sign MOU with a leading Malaysian university to set up an international campus in India for offering various courses in design, hospitality, tourism, languages, music and management education

Residential

  • Total of 245 units were sold during Q3 taking the total Swarnabhoomi residential sales since inception to 1687 units
  • “Four Seasons” , a new product in the high rise residential space category was launched in Q3

Real Estate

MARG ProperTies – Residential Business

  • Sale of 98 units (0.11 MSFT) in Q3 2011-2012. Total sales till Q3 FY12 at 409 units with sale value of Rs.127 crores
  • Since Inception (ITD), MARG ProperTies has sold 1660 units (1.79 MSFT) with a booking value of Rs.445 crores
  • Handing over of apartments to the customers has already started in Pushpadruma – 466 units scheduled to be handed over in Q4/2011-2012 and Vishwasakthi Phase 1 – 192 Units is scheduled for handing over in Q4/2011-2012.
  • MARG ProperTies is set to launch a new project in Q4/2011-2012 with 204 units with sale value of Rs.73 crores.

MARG Junction, OMR – Commercial Business

  • Development of the project is on schedule, expected to commence operations in FY13
  • Deals for ~55% of the leasable space have been finalised – healthy pipeline for remaining space
  • Key clients include PVR, Shoppers Stop, Hyper City; mini- anchors confirmed LOI are Reliance Trends, Blue – O and Timezone; Vanilla clients include HP, Ryaban, Archies, Levis, Wrangler, Lee, Woodland, Nike, Mufti, Cannon, Riyaa, Casio, Eva, Denizen, Marry Brown, Dosa Plaza, Kushal Jewelers, among others?
  • Agreement with Shangri-La executed for development of Hotel and Interior Design concept is finalized.

Other Highlights

Awards received

  • GRK Reddy recognized as ‘Outstanding Entrepreneur’ at Asia Pacific Entrepreneurship Award in November 2011 at New Delhi
  • MARG Limited recognized for its “Outstanding contribution in Port Sector projects” at the EPC World Awards 2011 held at Bangalore on 17th Dec 2011
  • In January 2012, GRK Reddy received the Special Jury Award at the Gateway Awards of Excellence 2012 in recognition of his visionary role in building the Karaikal Port

About MARG Group:

MARG Limited (BSE: 530543), incorporated in 1994 and headquartered in Chennai, is an infrastructure major with presence across the value chain. The Company is listed on the Bombay Stock Exchange and its shares are traded on the NSE under the category of ‘Permitted Security’.

With over two decades of reassuring presence and the credit of pioneering the development of economic growth centers, MARG’s portfolio spans across the entire infrastructure value chain – urban and industrial infrastructure, urban residential clusters, marine infrastructure & services, malls and EPC division. The group is expanding its sectoral presence with airport projects in Bellary & Bijapur and Multi-level car park projects. Listed by Dun & Bradstreet among “India’s Top 500 Companies 2010”, today MARG Group has projects worth more than Rs. 3000 crores under execution, a seasoned human capital of more than 1300, global partners in the Infra space and offices spread across India, Singapore and China.

For more information, visit http://www.marggroup.com

For More Details :

Company Website : www.margswarnabhoomi.com

For further information contact:

Sakthi Prasanna 
Hanmer MS&L 
M: +91 98842 77251