Re-Living Mylapore Days of an 80's born Chennai Boy..err Man
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Gen Y Desi IT employee
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Anonymous said…
Very insightful Prashanth.With the sub prime mortgages and dollar related worries making the industry jittery, the real estate scenario looks, well, un realistic. One important factor of the real estate boom at present in Chennai is that large land parcels have changed hands to buyers with deep pockets, like developers from beyond Chennai.Also some of the sustained gains from the stock markets have got into properties as well- again mostly from investors from outside Chennai. Third thing, have you noticed the influx of people from all over India into Chennai in the past 10 years? Mostly because of IT and ITES.It is a great thing culturally but it has also opened up Chennai to investors from every where.( Example-- My colleague is from Bihar--Her father visits her frequently-He became familiar with Chennai--he had subsequently purchased 20 grounds close to the OMR-- He will tell his friends..you follow?)Most of the money from big time developers is IPO Money which they deploy with impunity.All these people are willing to wait. The net result? Prices of land does not come down.Raw material costs on the other hand have gone up substantially. So much so that the Chief Minister had to intervene to prevent cartelisation in Cement. Topping it is the sentimental attachment we Chennaities have to our localities.Other folks also have but I feel we are a bit paranoid when it comes to locations..We still need our Mambalams, our T.Nagars, our Mylapores... So simple demand supply equations operate and real estate prices zoom. So what can we do? One logical thing which will happen is that sheer situational demand will start making people look at suburbs.. Those suburbs with developable infrastructure will start developing faster and you will find gradual migration happening to these localities, farther and farther away from the so called city centre. I think the Government is also conscious of this fact.. Look at these trends: a. The Government is actively promoting the CAPS Region. 2. Active discussions are taking place regarding New Chennai. 3. Tremendous promotion and lobbying is going on with the Mount Poommallee-Sriperumbudur belt promotion. 4.Metro Rail system is already under implementation and more importantly it is getting connected to the existing rail structure. 5.Kadalur- Pondicherry- Chennai rail link is also under consideration. Looking into all this, Prashanth I feel that the future is in the suburbs.
Comments
One important factor of the real estate boom at present in Chennai is that large land parcels have changed hands to buyers with deep pockets, like developers from beyond Chennai.Also some of the sustained gains from the stock markets have got into properties as well- again mostly from investors from outside Chennai.
Third thing, have you noticed the influx of people from all over India into Chennai in the past 10 years? Mostly because of IT and ITES.It is a great thing culturally but it has also opened up Chennai to investors from every where.( Example-- My colleague is from Bihar--Her father visits her frequently-He became familiar with Chennai--he had subsequently purchased 20 grounds close to the OMR-- He will tell his friends..you follow?)Most of the money from big time developers is IPO Money which they deploy with impunity.All these people are willing to wait.
The net result? Prices of land does not come down.Raw material costs on the other hand have gone up substantially. So much so that the Chief Minister had to intervene to prevent cartelisation in Cement.
Topping it is the sentimental attachment we Chennaities have to our localities.Other folks also have but I feel we are a bit paranoid when it comes to locations..We still need our Mambalams, our T.Nagars, our Mylapores...
So simple demand supply equations operate and real estate prices zoom.
So what can we do?
One logical thing which will happen is that sheer situational demand will start making people look at suburbs.. Those suburbs with developable infrastructure will start developing faster and you will find gradual migration happening to these localities, farther and farther away from the so called city centre.
I think the Government is also conscious of this fact..
Look at these trends:
a. The Government is actively promoting the CAPS Region.
2. Active discussions are taking place regarding New Chennai.
3. Tremendous promotion and lobbying is going on with the Mount Poommallee-Sriperumbudur belt promotion.
4.Metro Rail system is already under implementation and more importantly it is getting connected to the existing rail structure.
5.Kadalur- Pondicherry- Chennai rail link is also under consideration.
Looking into all this, Prashanth I feel that the future is in the suburbs.