Monday, May 31, 2010

New Chennai beckons buyers

Maraimalai Nagar on GST is finally realizing its true potential is providing a higher quality of living for Chennai residents. Land is cheap for now in this area which extends upto Mahindra World City and should provide early bird buyers a good entry point for the foreseeable future. Connectivity is good via the GST road and Southern Railways. If I were to place a bet on any semi-urban suburb in India, this would be it. All the development in this area reminds of me Aundh in Pune in the late 90's, or some areas of Bannerghatta road in Bangalore in the early 2000's. A 2400 sq ft plot can be bought for under 15L. Adding another 10L for construction one can construct a very good quality independent house. Just as the development by big bulilders in Bangalore propped up the infrastructure in semi-developed areas, one can easily expect the same to happen in Chennai.

Hindu has an article on Maraimalai Nagar and when the media starts picking up stories like this, it appears that the time has come for this area to become one of the most talked up places in Chennai. Investors and end-users should closely evaluate this destination if they have a time horizon of 3-5 years and beyond. In my opinion plot prices could easily double in the next 5 years.

Here is the Hindu article

13 comments:

Anonymous said...

Good place for madrasi and srilankan niggers to settle down. other than these people, I don't think anyone else will ever venture in this tamil hinterland.

Anonymous said...

Advanced economies face years of anaemic growth and the risk of a double-dip recession as their citizens have to cope with sluggish employment and highly indebted governments, economist Nouriel Roubini said on Monday.

A fiscal crisis in the euro zone has rattled financial markets in recent weeks as investors worry that fiscal austerity measures dictated by a $1 trillion European Union-International Monetary Fund rescue plan could stifle already hobbled global growth.

"Labour market conditions will remain very weak in some advanced economies," said the economist known as Dr. Doom and most famous for having predicted the US housing crisis.

Anonymous said...

Contd:

Emerging markets will have to remove economic stimulus to prevent asset bubbles from forming, Roubini said, seeing a risk of overheating in the so-called BRIC countries, which include emerging powerhouses Brazil, Russia, India and China.

shailesh said...

Lodha group faces tall task with recently acquired Mumbai plot

According to other experts, the project would have to have a well-designed mix of commercial and residential development to utilise the total permissible built-up area of 4,95,000 sq mt. They say Indians are not accustomed to staying in ultra-high-rise buildings that are taller than 80 storeys and, therefore, the Lodha group will not find too many takers for a standalone residential project (without any commercial facilities).

“The whole ballgame changes when you go above 80 storeys. In India, people are reluctant to stay in 20-storey buildings, forget 40- and 50-storey structures.

Super-high-rise towers do not work in India because the residents feel totally disconnected from the social environment. High-rise towers all around the world are a mix of residential and commercial development. In such towers, retail shops are right at the base of the tower, and above that residential, then hotels and, right at the top, offices. Developers try to keep residential housing as low as possible in such towers,” said Pranav Desai, partner architect, Atul Desai Consultants Pvt Ltd.

It would be funny to see dirtly laundry drying on 80th floor!!!

Anonymous said...

Even more funny! What do these people on the 80th storey during water shortage? Or pumps not being functional?

What about power outage during monsoons? Climb 80 storeys?

And God forbid...what happens during fires?? I don't think its worth paying 5 crores and then have all these risks..

Anonymous said...

Well, all these new apartments will be garbled up as soon as the foundation stone is laid. The neo rich have money and they want to live where the action is. Imagine, people paying Rs. 80,000 for a screw taking a risk of contracting herpes or AIDS, wouldn't hesitate to pay 5 cr for an apartment on 80th floor.

I know a sub inspector in worli whose salary is probably doesn't exceed rs 20000. He blows up 20,000 a day and he is worth 10 cr.

It is you and me writing and researching using this blog, don't have money

SS said...

WHO SAYS THERE IS A BUBBLE??????

Marathon Realty Limited FY 10 net vaults 251% to Rs146.69 crore

Here is the link:

http://www.dnaindia.com/money/report_marathon-realty-limited-fy-10-net-vaults-251pct-to-rs146-69-crore_1390662

Anonymous said...

Year to Date Stock Indexes:
ALl or down by given percentages:
Shanghai: 22%
Hang Seng: 11%
Brazil: 10%
Sensex:5%

India is only down 5% year to date.

Either this Sensex casino is in full swing and optimism is high among Indians ignorant of the looming world crisis or it will
adjust soon by going down by few thousand points.

Anonymous said...

By Geoff Dyer in Beijing
Published: May 31 2010 20:08 | Last updated: May 31 2010 20:08

The problems in China’s housing market are more severe than those in the US before the financial crisis because they combine a potential bubble with the risk of social discontent, according to an adviser to the Chinese central bank.

Li Daokui, a professor at Tsinghua University and a member of the Chinese central bank’s monetary policy committee, said recent government measures to cool the property market needed to be part of a long-term push to bring high housing prices under control.

He added that there were still signs that the economy was overheating and recommended modest increases in interest rates and the level of the currency.

“The housing market problem in China is actually much, much more fundamental, much bigger than the housing market problem in the US and UK before your financial crisis,” he said in an interview. “It is more than [just] a bubble problem.”

When things about India also come to light, Indians may not be ready for the rude awakening and aftermath shocks.

Anonymous said...

Same can be said for Canada, Australia, New Zealand, India the UK, etc.

Round Two of the Global Housing Bubble popping is coming up…

And everyone says "it is different here". Our country is prosperous and has no bubble.

A lot of money is going to be destroyed in the next few years.

US will appear to be Best among the worst after RE collapses all over the world.

Anonymous said...

The bad thing is that all these Govts. will start printing a lot of money. Which will result in massive inflation and devaluation of their currencies big time.

It is surprising that India has good brains who are running the country and still they are calling the speculative activity as economic activity. The Sensex and RE casino are not the real economy created by low interest rates and borrowed money.

Jaisi karni, waisi bharni.

Anonymous said...

Done that a few years back. Took a 2.5 gnd plot for about 1.5 lakhs each. Great area to build a second house.

rajni sharma said...
This comment has been removed by the author.