The Hindu : Tamil Nadu / Chennai News : Demand for houses extends to the suburbs

Online edition of India's National Newspaper
Sunday, Dec 24, 2006
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Tamil Nadu

Tamil Nadu - Chennai

Demand for houses extends to the suburbs

M. Dinesh Varma

30 builders, promoters participate in the `Property Show'

CHECKING OUT OPTIONS: Visitors at the three-day `Property Show' organised by Builders' Association of India that began at Raja Muthiah Hall on Saturday. - PHOTO: V. GANESAN

CHENNAI: The middle class chase for a home has extended to the suburbs. The gap between demand and supply for urban housing is growing and an acute shortage of land coupled with skyrocketing prices of the few remaining housing sites in the city seem to have triggered a boom elsewhere ... in Porur, Kolathur, Nolumbur, Rajakilpakkam-Selaiyur and Madhavaram.

Virtually, all the 30 builders and real estate promoters participating in the three-day `Property Show' that began at Rajah Muthiah Hall on Saturday had projects coming up in the rapidly developing outskirts of the capital.

This is the fourth edition of the annual show being organised by the Builders' Association of India. UTI Bank is co-hosting the event.

Participants had a housing solution to suit every budget, from Rs.18 lakh to around Rs.60 lakh. Most projects are scheduled for completion in 2007.

South India Shelters is selling its Danube project on the Velachery-Tambaram road just beyond Pallikaranai. Conceived in three blocks interconnected by a corridor, the 150 flats coming up here with a January 2008 deadline are available in the Rs.37 lakh-Rs.58 lakh range.

The EVP Housing project in Porur involves a mega township of 1,400 dwelling units, scheduled to be ready for occupation by December 2007. The two-bedroom and three-bedroom flats come for between Rs.20 lakh and Rs.34 lakh.

Jain Housing is building 420 flats in 14 blocks in the Rajakilpakkam-Selaiyur stretch and another 512 units in 16 blocks at Nolumbur.

The Selaiyur flats, in the Rs.24-40 lakh range, are expected to be ready by September 2008 while those in Nolumbur cost between Rs.28 to Rs.45 lakh.

Vasavi Builders has projects at Nanganallur and Perungudi, Raja Rathnam Constructions projects in Moolakadai and Madhavaram and RKN Construction in Tambaram, Saidapet and Choolaimedu.

Realtors say customers these days are more willing to explore the suburban option.

"Developing satellite townships is the only viable way forward and Government policy should support housing enterprise away from the capital apart from laying down infrastructure," said L. Moorthi, chairman, Builders' Association of India.

The UTI Bank is trying to make an impact by bringing down stipulated deposit from its 15 per cent of margin money to 10 per cent for housing loans. "As a further incentive, customers need to pay just five per cent of the margin upfront for a booking and the rest at the time of delivery of the flat," said G. R. Sairaj, manager, Retail Asset Centre, UTI Bank.

A buyer needs to make 5 per cent of an initial payment and the bank would fund 90 per cent of the building cost. The remaining amount can be paid during the handing over of the house. The bank also offers free property insurance during this period. Loans are also be offered for purchase of plots.

The show is on till Monday from 9.30 a.m. to 8 p.m. Entry is free.

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