Monday, June 04, 2007

Chennai land prices costlier than London

The bubble is exported to the farmlands of the United Kingdom. Globalization in reverse causes the formation of the West India company. Ace is expecting a return of 4x in 2 years. If people are so foolish, they surely need to be parted with their money

CHENNAI: With real estate prices turning unaffordable to the common man, a city-based firm has come out with the offer of much cheaper properties in London, Dubai and even New Zealand.
Real estate promoters Ace International has put up for sale of 200 plots, some 20-25 kms off Central London and 12 kms from Heathrow airport. The 2,600-4000 sq ft plots cost Rs 15-20 lakh, half of what it costs in the Chennai suburbs.
"This is perhaps for the first time that promoters are taking up the marketing of plots in some other country," V Santhanraman, Director of the firm, told PTI.
The firm has taken up marketing of the plots offered by some prominent developers in London, including UK Land Investments and Marc Properties.
The firm, which has been into the marketing of hotels in countries like China, Malaysia and Singapore and that of buildings for educational and other purposes and plantations, was approached by the London developers, said Santhanraman.
"The outside world has come to know about the buying capacity of Indians and the globalised economy has facilitated the free purchase and sale of land anywhere across the globe," he said.
The firm also claims to help the customer in completing all government and legal formalities regarding the purchase, resale and construction of houses in the plots.
Santhanaraman said his firm would offer site visits to the customer after collecting 20 per cent of the total cost of the plot as advance. The firm would arrange the visiting visa, accommodation and air ticket of the customer.
"He (customer) could then have a look at all the transaction and ownership details of the land. Once registered in his name, we will have a unique account in the government department UK Land Registry's website, which he can access from here also," he said, adding unlike in India, owners need not worry about encroachments as the land laws are strict there.
The customer can sell it off as and when the prices appreciate or construct a house, for which he has to reside in the UK for four to five years.

Santhanraman claimed that the appreciation of real estate prices in the UK was excellent. "We have been keeping track of the prices and it is projected to appreciate 300-400 per cent in two years."

The company was also coming up with similar projects in Dubai and New Zealand.
Ace would soon announce the sale of 1000 sq ft flats in Dubai at the rate of 25-30 lakh, he said adding, the firm has associated itself with some of the leading developers in Dubai like Emaar Highrise and Damac Properties for the purpose.
Another project is an enclave of seven bungalows in New Zealand, construction of which were underway.
"The appreciation of prices in New Zealand stand at 15-20 per cent", he added.
According to Santhanraman, the company was receiving good response to the London project after an advertisement was put up in a leading newspaper. He hoped to sell out all the plots in London within a month.
"The demand for real estate is so high here and the prices in London are so tempting when compared to sky-rocketing land prices in India, especially in Chennai," he said.
Echoing his view, R V Sundar, a senior official of leading developer Ceebros said that the buying capacity of Indians, especially IT professionals, has pushed the real estate prices in the country to new highs.
"During the past one-and-a half year, the prices escalated at a rate of more than 50 per cent. Even a 4000 sq ft plot in the Chennai suburbs will cost you around Rs 40 lakh," he said.
The shortage of lands within the city areas has also contributed to the price rise, he added.
With real-estate prices in Indian cities escalating and becoming out of reach for the middle class people, cities like London and Dubai seem to come in handy for them, quipped Santhanraman.

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