Chennai Report 2009

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CHENNAIA GROWING OPPORTUNITY IN RESIDENTIAL REAL ESTATE

0CTOBER 2009

THE GATEWAY TO SOUTH INDIA...

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Chennai, the commercial and cultural capital of South India, has managed

to retain its traditional roots while acquiring a cosmopolitan character. This

vibrant city has struck a beautiful balance between the modern and the

traditional. And the most fascinating aspect of this city is that it continues to

grow and expand with the passage of time. In this light, ICICI Property Services

bring to you the Chennai Residential Property Report - an in-depth view of

what makes the city tick, and the real-estate opportunities that it has to offer.

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Chennai: A Fact File

Chennai, formerly known as Madras, is the capital of the Indian state of Tamil Nadu. Popularly known as "Gateway to South India", it is located on the Coromandel Coast of the Bay of Bengal and is spread across 181.06 sq km. With an estimated population of 7.5 million (4.3 million as per 2001 Census), it's the fourth largest metropolitan city in India and one of the largest metropolitan areas in the world. Although the city has acquired a contemporary and cosmopolitan character, it still has preserved its traditional Tamil roots. It possesses a rich historical heritage that provides an incomprehensible charisma to the city.

Chennai is a prosperous abode of fascinating monuments and churches whose origin dates back to the era of Portuguese and British. The Portuguese invaded in the 16th century and were followed by the Dutch, and East India Company. The British were able to establish their undoubted domination in the city and the Fort St. George became the hub around which the British authority developed and expanded. Later, the city was acknowledged as the seat of Madras presidency and today stands as a momentous city of India.

In 1997 the city was renamed as Chennai from the earlier 'Madras'. The name change, symbol of the city's identification with its Tamil rather than colonial past, was associated with Chennaipatnam. Tradition suggests that Chennaipatnam was the name for one of the two villages located near the site Francis Day selected for the East India Company factory three hundred and fifty years earlier.

The city has embraced both the new and the old with ease and is still growing and has turned into a fast paced but full of life metropolitan city. Accredited to its location, Chennai boasts of a number of tranquilizing beaches, parks and historic landmarks which is a blessing of nature for the tourists as well as the residents. As a relief to the people, these beaches and natural surroundings come to liberate. With a very distinct culture, the people of Chennai have a special interest in music, dance and all other art forms of South India.

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Administrative Framework

Chennai, the capital city of Tamil Nadu, is the fourth largest Metropolitan City in India. The Chennai Metropolitan Area (CMA) comprises –

• The city of Chennai

• 16 Municipalities

• 20 Town Panchayats

• 214 Village Panchayats in 10 Panchayat Unions

The extent of CMA is 1189 sq. km. The CMA falls in three districts of the Tamil Nadu state viz. Chennai District, part of Thiruvallur District, and part of Kancheepuram District. The extent of the Chennai District (covered in Chennai Municipal Corporation area) is 176 sq. km. and comprises 55 revenue villages in five Taluks [viz. (i) Fort-Tondiarpet Taluk, (ii) Perambur-Purasawalkam Taluk, (iii) Egmore-Nungambakkam Taluk, (iv) Mambalam-Guindy Taluk and (v) Mylapore-Triplicane Taluk].

In Thiruvallur District, out of total district area of 3427 sq. km. 637 sq. km. in Ambattur, Thiruvallur, Ponneri and Poonamallee taluks fall in CMA.

In Kancheepuram District, out of 4433 sq. km. 376 sq. km. in Tambaram, Sriperumbudur and Chengalpattu Taluks fall in the Metropolitan area.

Population

1. Extent 1189 Sq. Km 176 Sq. Km2. Population

1981 46.01 Lakhs 32.84 Lakhs1991 58.18 Lakhs 38.43 Lakhs2001 70.41 Lakhs 43.43 Lakhs2011

(Projected) 88.71 Lakhs 49.50 Lakhs

CMA CITY

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Source: CMDA

Infrastructure

The city of Chennai is well connected internationally and to other parts of India vide all the modes of transport.

There is an International airport in Chennai that connects to other parts of the world and the regions within the country. The airport has separate terminals for International flights (Anna Terminal) and Domestic flights (Kamaraj Terminal). Chennai airport is the main hub for arrivals and departures in south India. It services around 8 million passengers a year, over half of which are flying domestically. Although modernization works have been undertaken in the past a further extensive upgrade is planned to be carried out by 2011.

Chennai is superbly connected to other parts of India by the 'Golden Quadrilateral' transport project. Metropolitan Transport Corporation (MTC) buses operated and owned by the Tamil Nadu government ply throughout the city.

Metro Rail

The Government of Tamil Nadu has approved in principle the two initial corridors mentioned as below –

Chennai has an excellent suburban train network with four routes: 1. Chennai Central 2. Arakkonam 3. Tambaram- Chennai Beach and 4. Chengalpet. Chennai Central and Egmore are the two train terminuses for long distance trains from other parts of India.

Corridor Length

Washermenpet to Airport 23.085 km

Chennai Central to St. Thomas Mount 21.961 km

Total 45.046 km

The Government of India is also keen on implementing this Project and has approved the Chennai Metro Rail project in January 2009. Tentatively, the project is programmed for completion in the financial year 2014-2015.

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Source: www.tn.gov.in

SEZ Update

There are about 29 notified SEZs in Chennai as of July, 2009 spread across 1321 hectares. Most of them are concentrated in Kancheepuram. Majority of the SEZs belong to IT/ITES (62%) as is reflected in the below pie chart, electronics, hardware & related services being the second best (14%).

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SEZ classification as per Usage

IT/ITES67%

auto ancillaries

Engineering Sector incl.

3%Footwear

3%

FTWZ3%

Hardware & Software

3%

Electronics of Telecom

hardware & support Services

3%

Electronics Hardware &

Related Services15%

Multi-use3%

Source: Ministry of Commerce & Industry, Dept. of Commerce

A detailed list of all the SEZs in Chennai is tabulated as below:

ETA Technopark Pvt. Ltd.

Hexaware Technologies Ltd.

Jay Gee Hitech Infraventures Pvt Ltd

Electronics Corporation of Tamil Nadu

IT/ITES

IT/ITES

IT/ITeS

IT/ITES

10.4

11

11.89

80.8

OMR

OMR, Siruseri

Sriperumbudur Taluk,

Kancheepuram District

Tambaram Taluk,

Kancheepuram District

NameArea

(in hectares)Type Location

Sr.No.

Arun Excello Infrastructure Pvt. Ltd. IT/ITES 11.1Kancheepuram1

Chennai Business Park Private Limited IT/ITES or BPO 11.8Manchipuram 2

IT/ITES 10.9Siruseri & Kazhipattur villagesCognizant Technology Solutions IndiaPvt. Ltd.

3

DLF Infocity Developers (Chennai) Ltd. IT/ITES 13.3Kancheepuram4

Electronics Corporation of Tamil Nadu IT/ITES 152.7Kancheepuram5

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ETL Infrastructure Services Ltd. IT/ITES 10.6Tambaram Taluk9

Flextronics Technologies (I) Pvt. Ltd.Electronics Hardware &

Related Services101.2Sriperumbudur, Kancheepuram10

Foxconn India Developer Pvt. Ltd. IT & Electronics Hardware 10.4Sriperumbudur Taluk,

Kancheepuran District11

12

J Matadee Eco Parks Pvt. Ltd FTWZ 40.6Sriperumbudur, Kancheepuram

District 13

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M/s. Hacciendaa Infotech & Realtors

Private LimitedIT/ITES 26.6

Sholonganallur village, Old

Mahabalipuram15

New Chennai Township Pvt. Ltd.Engineering Sector

including auto ancillaries125Kancheepuram16

New Chennai Township Pvt. Ltd. Multi-Services 121.9Kancheepuram17

Platinum Holdings Pvt. Ltd. Hardware & Software 10.6Kancheepuram18

Shriram Properties & Infrastructure Pvt. Ltd. IT/ITES 10Perungalathur19

IT/ITESSNP Infrastructure Pvt. Ltd 11.1Tambaram, Taluk,

Kancheepuram District20

IT/ITESEstra Park Private Ltd 10.2Aiyappanthangal, Porur,

Chennai7

6

8

9

Source: Ministry of Commerce & Industry, Dept. of Commerce

189.8

10.2

State Industries Promotion Corporation of

Tamil Nadu

Unitech Infopark Ltd

services including trading

Electronics of Telecom

hardware & support

& logistics activities

140.7

Electronics Hardware and

related support services

including trading &

logistics operations

IT/ITES

Sriperumbudur

Mancheepuram

Mancheepuram

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State Industries Promotion Corporation of

Tamil Nadu22

62.2State Industries Promotion Corporation of

Tamil NaduFootwearKancheepuram23

11.7Syntel International Pvt. Ltd. ITKancheepuram24

28.5Tata Consultancy Services Ltd. ITSiruseri & Egattur25

10.24Tril Infopark Ltd IT/ITESKanagam Village /

Thiruvanmiyur Village , Chennai26

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57.5Velankani Technology Parks Pvt. Ltd.Electronics Hardware &

Software & ITES

Sriperumbudur Taluk,

Kancheepuran District28

18.6Zillion Estates Pvt.Ltd. IT/ITESKancheepuram29

Madhavaram

Avadi

Ambattur

Villivakkam

Ayanavaram

Tondiarpet

Nungambakkam

Vadapalani

Saidapet

PorurValasaravakkam

ManappakkamMandaveli

Velachery

Pallikaranai

Karappakkam

Sholinganallur

Selaiyur

Tambaram

Bay of BengalT. Nagar

Kodambakkam

Ashok NagarKK Nagar

Alwar Thirunagar

aO

d M

hl

ra R

oa

la

ipu

md

ba

Adyar

Kilpauk

Egmore

Raja Annamalai Puram

Adambakkam

AlwarpetSaligramam

Sriperumbudur

Madipakkam

Kelambakkam

MRC Nagar

Anna Nagar

Mogappair

Urapakkam

Korattur

Perambur

Parry

Nolambur

South Chennai

North Chennai

Central Chennai

West Chennai

Note: Map not to scale and is for illustration purposes only

Major Locations within Chennai

We have classified the real estate space in Chennai into four distinct zones – North, South, West & Central. The major locations in each of these zones have been presented below.

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Retail Space

Majority of the malls are in the Central parts of the city. Spencer Plaza on the Mount Road, Central Chennai, is the biggest mall with an area of around 1 million sq. ft. constructed in three phases. Details of all the malls have been tabulated as below:

Organised Retail Development

Source: ICICI Property Services

1 Abirami Mega Mall Purasaiwalkam North 0.15 Operational

2 Ampa Center one Poonamalee High Road Central 0.30 Completed but not operational

3 Chettinad Plaza OMR South 0.30 Completed but not operational

4 City Centre RK Salai, Mylapore Central 0.35 Operational

5 Express Avenue Off Mount Road Central 0.80 Under construction

6 Indi Mall Nanicakam Manipkan Road Central 0.10 Operational

7 Ispahani Centre Nungambakkam High Road Central 0.05 Operational

8 Riverside Mall OMR South 0.75 Under construction

9 Spencer Plaza Mount Road Central 1.00 Operational

Sr.No.

Total Areain million

sq. ft.(Approx.)

Status(as on July 2009)

ZoneSite LocationMall Name

Supply of Residential Units coming up by June 2012

Chennai would see a supply of approximately 63.48 million sq. ft. of residential space by the year 2012 with nearly two-third of the units concentrated in South Chennai. Also within South Chennai, the 2 BHK and 3 BHK are the most popular segments as they account for over 90% of the overall supply.

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North 1 BHK 550 180 0.12 BHK 1039 3201 3.323 BHK 1433 2702 3.87

Total 6083 7.29

South 1 BHK 550 1850 0.912 BHK 970 19945 19.343 BHK 1200 14202 17.044 BHK 1850 710 1.315 BHK 2300 345 0.79

Total 37052 39.39

West 1 BHK 550 850 0.462 BHK 1047 8746 9.153 BHK 1369 3796 5.2

Total 13392 14.81

Central 2 BHK 1094 459 0.53 BHK 1652 866 1.434 BHK 2000 30 0.06

Total 1355 1.99

Average Size Apartment of a flat No. of Total Area

Zone Size (in sq. ft.) Units (Million sq. ft.)

Total Supply ready by June 2012 in Chennai 57882 63.48


Distribution of residential supply (no. of residential units) in the pipeline across Chennai

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Distribution of Residential Supply

11%

64%

23%

2%

North South West Central

North Chennai

Major Locations

Ayanavaram, Kilpauk, Korathur, Madhavaram, Perambur, Tondiarpet,

• At Tondiarpet in North Chennai is located the fishing harbour.

• The harbour makes up a popular attraction in the north. The region is inhabited by a localpopulation, most of which are employed in the popular industries located here.

• The eastern boundary of the northern localities is limited by the famous Buckingham Canal.

• The presence of the second major port here makes it an important trade centre.

• The northern locality also houses some of the reputed companies like Parryware, IndianBank and also the Chennai Port Trust, etc.

• Commercial supply of approximately 3 million sq. ft. is expected by end of 2010 whichtranslates to over twenty seven thousand new employment opportunities.

• Prince Foundations, Vijayshanthi, EMAAR MGF are some of the prominent developers in thisregion.

• EMAAR MGF has its ongoing project 'Esplanade' at Tondiarpet, which plans to houseover 450 units.

Villivakkam.

Residential Market in North Chennai

SaleableArea(sq. ft.)

Average Apartment Size of 2 BHK (in sq. ft.) 1039

Average Apartment Size of 3 BHK (in sq. ft.) 1433

Total supply (in mn. sq. ft.) by Jun 2012 7.29

Total supply (in no. of units) by Jun 2012 6083Source: ICICI Property Services

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Distribution of Apartment Type in North Chennai


Distribution of Apartment Type: North Chennai

3%

53%

44%

1 BHK 2 BHK 3 BHK


Esplanade 4.8 millionPhase 1 onwards

Prince Prince 1.75 millionVillage Foundations onwards

The 9.5 millionMetrozone onwards

TVH Lumbini True Value 8.2 millionSquare Home onwards

4.5 milliononwards

Some of the Residential Projects in North Chennai

Date of Completion

Project

Capital Values (Rs.)

for 2BHK as inSep 2009

No. ofUnits

Developer

EMAAR MGF Aug 2010256

588 Mar 2012

Ozone Group 1600 Dec 2011

435 Ready

Chaitanya 400 Mar 2012Sunny Vale

Residential Property Rates in prime residential markets of North Chennai

Property Price Movement Index (March 2005 - June 2009)

North Chennai

Annanagar Kilpauk Perumbur Ambattur Tondiarpet Avadi

Source: ICICI Mortgage Valuation Group (Assuming 100 as a base reference no. for March -2005)

0

50

100

150

200

250

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350

400

Mar2005

Mar2006

Mar2007

Jun2007

Sept2007

Dec2007

Mar2008

Jun2008

Sept2008

Dec2008

Mar2009

Jun2009

Outlook Key: R - Rising • F - Falling • S - Stagnant • SW - Stagnant but likely to weaken • SS - Stagnant but likely to strengthen

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Purusuwakkam 5500-7000 10000-15000 S

Annanagar 5000-6500 10000-15000 S

Aynavaram 3500-4500 6000-8000 S

Ambattur 3000-3500 4000-7000 SWSource: ICICI Property Services*Rates mentioned are based on Built-up area & are subject to amenities, upkeep & may vary from apartment to apartment within the same building.

AverageCapital Values

(Rs./sq. ft.)

Location OutlookRentals for

2 BHK(Rs. / month)

Comparison of actual (A) and real & logical (R&L) price movement

The real & logical (R&L) price is considered to move in line with the consumer price index. Below chart brings out a comparison between quarterly property price movements and changes in consumer price index for North Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation figures for each zone.

As the above graph indicates, the property prices in North Chennai have been increasing more thanproportionately as compared to the consumer price index, and till recently, the trend seems to continue.

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North Chennai

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North (A) North (R&L)


South Chennai

Major Locations

Adambakkam, Chromepet, Madipakkam, Medavakkam, Nanmangalam, Padur - Kelambakkam - Karapakkam

- Sholinganallur - Semmencherry on Old Mahabalipuram (OMR), Selaiyur, Tambaram, Urapakkam,

Velachery.

• South Chennai features many popular attractions including some of the famous pilgrim sitesin the city.

• The region also houses certain historical landmarks, which often forms tourists' hotspots.

• At Meenambakkam is grounded the Chennai Airport. The airport features both national andinternational terminals.

• Southern Railways provide railway services and a vast network of roads hooks up the place.

• Some of the important tourist spots located in the southern suburbs are Elliot's Beach,Guindy Park, Theosophical Society, Sivan Park, Periyar Science and Technology Centre,Kapaleeswarar Temple, Karaneeswarar Temple, Soundareswarar Temple, MarundeeswararTemple, Santhome Basilica, etc.

• The region hosts a number of residential places and commercial centres.

• Grand Southern Trunk Road or GST road offers one of the best transportation infrastructurein Chennai in terms of connectivity as it is well connected by road, rail and air; which is thecore factor for the emergence of this new corridor.

• The GST stretch has witnessed good industrial and commercial development and has` emerged as the SEZ corridor of Chennai and includes the Mahindra World City, a public

private initiative, which houses IT giants like Infosys, Wipro and leading auto companies like BMW, Renault. The Shriram Group is setting up around 5 million sq. ft. of IT park - “TheGateway” within a SEZ on the GST road near Tambaram.

• OMR is also termed as the IT corridor of Chennai. IT majors like Infosys, Wipro, TCS,Cognizant, 3i Infotech, HCL, Polaris have their offices located here.

• Commercial supply of approximately 16 million sq. ft. is expected by end of 2010 whichtranslates close to 0.15 million new employment opportunities.

• Key developers like Purvankara, HIRCO, DLF, India Bulls, L&T, Mantri, etc have a presence inthis region.

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SaleableArea(Sq. ft.)

Average Apartment Size of 1 BHK 617



Total Supply (in mn. sq. ft.) by Jun 2012 39.39

Total Supply (in no. of units) by Jun 2012 37052

Residential Market in South Chennai


Distribution of Apartment Type: South Chennai

5%

38%

2%

1%

54%

1 BHK 2 BHK 3 BHK 4 BHK 5 BHK

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Distribution of Apartment Type in South Chennai

Some of the Residential Projects in South Chennai

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Metro Polis Akshaya Homes 3.6 million onwards 436 Jun-2010

Belvedere Akshaya Homes 3.3 million onwards 260 Dec-2011

Garden City DLF 3.2 million onwards 3493 Jul-2011

Etopia I Doshi Housing 3.9 million onwards 155 Oct-2009

Doshi Nakshtra - I Doshi Housing 3.3 million onwards 125 Dec-2010

Eden Park L&T 4.8 million onwards* 650 Dec-2010

Ouranya Bay True Value Homes 3 million onwards 1044 Sep-2011

Upscale Hiranandani 8.5 million onwards 1080 Aug-2010

Palace Garden HIRCO 4.7 million onwards 970 Jun-2011

Greens India Bulls 2.7 million onwards 1134 Jul-2011

Swan Lake Purvankara Builders 3.2 million onwards 609 Sep-2010

Synergy Mantri Builders 2.32 million onwards 624 Mar-2010

Bollineni Hillside BSCPL 3.08 million onwards 1300 Jun-2010

Cosmo City Provident Housing 1.69 million onwards 2174 Jul-2011

Unihomes Unitech 1.3 million onwards 1040 Sep-2011

Merryland Navin's 4.33 million onwards 70 Oct-2009

Serenity Sabari reality 1.1 million onwards 936 Apr-2011

Lotus Pond Vijayshanthi 1.1 million onwards 400 Jan-2012

Adena Akshya 1.7 million onwards 199 Oct-2011

Gold City Dugar MME 1.01 million onwards 400 Sep-2011

* Capital Values mentioned for a 3 BHKSource: ICICI Property Services

Building DeveloperUnits

available

Projectcompletion

CapitalValues for2BHK as inSep 2009

Residential Property Rates in prime residential markets of South Chennai

Source: ICICI Property Services*Rates mentioned are based on Built-up area & are subject to amenities, upkeep & may vary from apartment to apartment within the same building.


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Property Price Movement Index (March 2005 – June 2009)

Source: ICICI Mortgage Valuation Group (Assuming 100 as a base reference no. for March 2005)

South Chennai

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450

Mar2005

Mar2006

Mar2007

Jun2007

Sept2007

Dec2007

Mar2008

Jun2008

Sept2008

Dec2008

Mar2009

Jun2009

Velachari Pallikarnai OMR Tambaram Medavakkam

Velachery 4000-5000 8000-10000 S

Sholinganallur 3500-4000 7000-10000 SW

Pallikarnai 2800-3300 5000-8000 SS

Madipakkam 2800-3200 5000-7000 S

Padur 2000-3500 5000-6000 F

Kelambakkam 1800-2500 4000-5000 F

Tambaram 3000-3400 6000- 8000 SW

Location

AverageCapitalValues

(Rs./sq. ft.)

Rentals for 2 BHK

(Rs. / month)Outlook


The real & logical (R&L) price is considered to move in line with the consumer price index. Below chart brings out a comparison between quarterly property price movements and changes in consumer price index for South Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation figures for each zone.

Over the years, there has been a widening disparity with respect to the pace at which property prices have increased in South Chennai as compared to the consumer price index. This gap has reduced to a certain extent in the last few quarters, due to softening of property prices.

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South Chennai

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South (A) South (R&L)


West Chennai

Major Locations

KK Nagar, Manapakkam, Mogappair, Nolambur, Porur, Saligramam, Sriperumbudur, Vadapalani.

• The western areas are less congested compared to other regions. The localities providesome of the best apartments and residential quarters in the city.

• West Chennai features a number of planned townships. Localities like Anna Nagar consist ofregular planned blocks of residential places. The Ambattur region, which forms an extensionof the city, comprises one of the leading industrial estates in the city and at large.

• The region is amply provided with hotels, hospitals, schools, banks and other commercialenterprises.

• The Vadapalani Temple, grounded at Vadapalani region, is a popular place of worship in West Chennai.

• Commercial supply of approximately 11.4 million sq. ft. is expected by end of 2010 whichtranslates to over 1 lac new employment opportunities.

• ETA Star Property Developers has their on-going project "Jasmine Court" with over 200 unitsin Kattupakkam while Jain Housing are developing “Nakshatra" which has over 550 units inNolambur.

Ambattur, Aminjikarai, Annanagar, Avadi,

Residential Market in West Chennai

SaleableArea(sq. ft.)



Total Supply (in mn. sq. ft.) by Jun 2012 14.81



23

Distribution of Apartment Type in West Chennai

Some of the Residential Projects in West Chennai


Alliance Bouganvilla Alliance 6.5 million onwards 300 Dec 2010

PrinceFoundations

Minerva VGN 3.81 million onwards 572 Dec 2010

Infinity Vijayshanthi 1.6 million onwards 588 Dec 2011

Subha Mangala Navins 4.2 million onwards 62 Completed

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Distribution of Apartment Type: West Chennai

6%

66%

28%

1 BHK 2 BHK 3 BHK

Date of Completion



Project DeveloperNo. ofUnits

Residenzia 1.87 million onwards 294 Dec 2010

Residential Property Rates in prime residential markets of West Chennai


Property Price Movement Index (March 2005-June 2009)



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West Chennai

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Aiyyapanthangal Mogappair Ramapuram Vadapalani

Nolambur Vanagaram Sriperumbudur Porur Saligramam

Aiyyapanthangal 3000-3200 6000-8000 S

Valsaravakkam 3500-4200 8000-10000 S

Mogappair 3000-4000 6000-8000 SS

Porur 2500-3500 6000-8000 SW

Saligramam 4000-4500 8000-10000 S

Location

AverageCapitalValues

(Rs./sq. ft.)

Rentals for 2 BHK

(Rs. / month)Outlook


The real & logical (R&L) price is considered to move in line with the consumer price index. Below chart brings out a comparison between quarterly property price movements and changes in consumer price index for West Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation figures for each zone.

In West Chennai too, there exists a wide disparity between the property prices and the consumer price index, as is seen from the above chart.

West Chennai

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West (A) West (R&L)

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Central Chennai

Major Locations

Adyar, Alwarpet, Egmore, Kodambakkam, Mahalingapuram, Mandaveli, Nungambakkam, Parrys, T Nagar.

• Central Chennai is a major commercial hub in the city.

• The region as such is replete with business enterprises, and includes presence of corporateslike CRISIL, Indian Oil etc.

• This region also houses a number of tourist attractions in the form of monuments andbuildings established by the East India Company.

• The central region of Chennai city comprises suburbs like George Town, Egmore,Triplicane, Nungambakkam and Royapetah.

• The localities feature some of the best hospitals, educational institutes, foreign banks andshopping arcades.

• Also present are some popular tourist attractions like Fort St. George Complex, GovernmentMuseum, Parthasarathy Temple, Aamir Mahal, Big Mosque, etc

• Commercial supply of approximately 0.94 million sq. ft. is expected by end of 2010 whichtranslates to over eight thousand five hundred new employment opportunities.

• True Value Homes and Chaitanya are amongst the prominent developers in this zone. TrueValue Homes is developing an over 400 units project in Purasawakkam while Chaitanya isassociated with "Sunny Vale" in Ayanavaram.

Residential Market in Central Chennai


SaleableArea (sq. ft.)




Total Supply (in mn. Sq.ft.) by Jun 2012 1.99


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Vrudhi KGYES 12.7 million onwards 27 Oct-2010

Rani Meyammai Chettinad 18.0 million Towers Housing onwards

Dayton Heights Navins 11.7 million onwards* 88 Dec-2009

Doshi Housing LLANSTEPHAN 18.0 million onwards 29 Ready

Distribution of Apartment Type in Central Chennai

* capital value mentioned for a 3 BHKSource: ICICI Property Services


Distribution of Apartment Type: Central Chennai

34%

64%

2%

2 BHK 3 BHK 4 BHK

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Some of the Residential Projects in Central Chennai

Date of Completion

Project DeveloperNo. ofUnits



250 Ready

Property Price Movement Index (March 2005 - June 2009)

Central Chennai

Adyar Saidapet MRC Nagar Mahalingapuram Kodambakkam

Mandaveli Egmore Alwarpet R.A.Puram Nungambakkam T Nagar


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Average Capital Rentals for 2 BHKValues (Rs. / sq. ft.) (Rs. / month)

Adyar 6500-9000 10000-15000 S

T. Nagar 6500-9000 10000-15000 S

MRC Nagar 7500-10000 15000-25000 S

Mandaveli 5000-7500 10000-15000 S

Egmore 6500-7500 7000-10000 S

Alwarpet 8500-10500 15000-20000 S

R. A. Puram 7500- 9000 10000-15000 S

Nungambakkam 9000-11000 15000-20000 S

Residential Property Rates in prime residential markets of Central Chennai


Location Outlook


The real & logical (R&L) price is considered to move in line with the consumer price index. Below chart brings out a comparison between quarterly property price movements and changes in consumer price index for Central Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation figures for each zone.

The property prices in Central Chennai have constantly increased at a pace higher than that of the consumer price index as reflected in the above chart.

Central Chennai

0

50

100

150

200

250

300

350

Mar

2005

Mar

2006

Mar

2007

Jun

2007

Sept

2007

Dec

2007

Mar

2008

Jun

2008

Sept

2008

Dec

2008

Mar

2009

Jun

2009

Central (A) Central (R&L)

30


Chennai Residential Real Estate Absorption Index

Chennai Residential Real Estate: Absorption Index

0

20

40

60

80

100

120

Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09

The residential transactions in Chennai declined during second and third quarter of 2008-09 due to the overall slowdown effect, however the last quarter (Jan 09 - Mar 09) has seen a spurt in the transactions, assisting the absorption index to attain levels as were at the start of the year.

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Location Attractiveness Index

We have short-listed below six prime locations in Chennai and critically examined them on various parameters like infrastructure, residential costs in the region, future employment prospects, etc. as detailed in the matrix below. OMR besides Mogappair appears to be scoring above other locations due to the reasonable residential costs coupled with proximity to commercial development and future infrastructure prospects.

Velachery GST

Porur (Poonamallee)

Mount-Mogappair-Ambatturbelt OMR Sriperumbudur

Infrastructure (connectivity, roads, proximity to markets, schools)

Residential Cost

Proximity to/Presence of organised retail

Proximity to Commercial Development

Future Infrastructure Development

Future Employment Generation

Good / Low CostAbove AverageAverage / Medium CostBelow AverageBad / High Cost

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About Research & Consultancy

ICICI Property Services is a division of ICICI Home Finance Company Limited, a 100% subsidiary of ICICI Bank.

ICICI PSG provides real estate solutions to home seekers, corporate investors, space occupiers and developers

/landlords. ICICI Property Services addresses the entire bandwidth of a real estate deal from concept to

conclusion. Research & Consultancy (R&C), a specialised group within ICICI PSG, offers both real estate advisory

and consumer demographic analysis backed by both primary & secondary research. The following chart explains

in brief the various services offered by R&C.

Feasibility Studies Asset Advisory Strategic Advisory Market Research

• Optimum Land Use

Analysis

• Site Analysis &

SWOT

• Catchment Analysis

• Trade & Tenant Mix

• Land Valuation

•Entry Strategy

•Pricing Strategy

•City and Region

Prioritisation and

Expansion Strategy

•Supply Estimation

•Demand Projections

•Expected Absorption

Trends

•Demographic Analysis

•Consumer Trends

•Consumer Behaviour

Analysis

• Location Analysis

• Market Analysis

• Size, Pricing, Phasing

and Positioning

(Space Programming

& Demarcation for

Optimum Utilisation

of space)

• Financial Analysis

33

DISCLAIMER

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The information set out in this document has been prepared by ICICI HFC Ltd. based upon projections which have been determined in good faith by ICICI HFC Ltd. There can be no assurance that such projections will prove to be accurate. ICICI HFC Ltd. does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information in this document reflects prevailing conditions and our views as of this date, all of which are subject to change. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance.

No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially.

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Chennai Report 2009

Documents

Transcript of Chennai Report 2009