Property development booming in Salem

High rise buildings have started dotting the skyline of Salem majestically with realtors of repute and sundry catering lavishly to the increasing demand for apartments and independent villas in this Tier-II city.

Activities

Salem has been witnessing a flurry of development activities to the tune of Rs. 3,000 crore in the last four years.

With the works on the 165-acre IT-cum-Special Economy Zone (SEZ) are almost over and the massive expansion of Salem Steel Plant with an integrated Special Economy Zone (SEZ) exclusively for steel-based industries under progress, the city is on the fast track of development in all spheres.

After Mumbai, New Delhi, Kolkata, Chennai, Hyderabad, Bangalore and Coimbatore, Salem has emerged as a hub for the booming real estate today.

The land has become precious with various development projects on in full swing. Hence apartments have become the 'in-thing.'

Officials point out that nearly 25 builders including the leaders in the field are engaged in constructing high-rise apartments that fetch premium prices from its buyers.

A vast stretch of land at the foothills of Yercaud and the sprawling complex of the leading movie house Modern Theatres have been converted into a massive housing complex.

Clearance

Even an acre of land in urban premises has been converted into a high-rise apartment. And many more await clearance from the local body.

These apartments are not mere boxes of sand and stone. They sport aesthetic look with landscaping, spas etc.

"People are ready to pay for what they want. Interior decoration has been the main demand," says a leading promoter.

The construction industry is throbbing today.

Manpower

"The shortage of skilled manpower is the major factor that worries us. The cost factor jacks up the price," he says.

Residential projects at prime localities in Salem city command rates ranging somewhere between Rs. 2,500 to Rs. 3,000 per sq ft depending on the location and quality of construction.

With just a three hour drive from Bangalore and Coimbatore, Salem is investors' choice today.

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Oragadam calling

Maraimalai Nagar, Sriperumbudur and now Oragadam. The first two are industrial zones that developed into self-contained areas with residential spaces, educational institutions, hospitals and other social infrastructural facilities. Now there are distinct signs that the third will also go the same way.


Oragadam, one of the biggest automobile hubs in South Asia, is evolving into a multi-faceted industrial zone. The Oragadam SIPCOT area contains a diversity of industries, including engineering, bio-tech, IT and electronics units. The cream of technology majors have set up shop: Renault Nissan, Daimler AG, Komatsu, Allison Transmission, Unipres, NSK ABC, Mega Tech, Delphi TVS, Seco Komos, Momentive, Johnson Lifts, JCBL Marbles, GKN Driveline and Tenneco.

Besides the SIPCOT zone, industrial units proliferate in other parts of Oragadam too.

“Three lakh people are expected to work in the industrial units at Oragadam in three years' time,” says P. Suresh, managing director, Arun Excello.

Expecting the demand for housing to go up, builders are making a beeline to this suburb, located south-west of Chennai.

A sign of this growing interest is three humungous townships. Hirco Palace Gardens is set on 369 acres of land, with 10,000 dwelling units planned. The first phase of this massive project is almost complete.

The Inno Group has announced Inno GeoCity, which offers 4,000 houses (independent and semi-independent) in an 131-acre township. Temple Green Heights, a 100-acre township by Arun Excello, will provide 2,600 houses.

Collectively, these three projects are aimed at the working population. The projects fit into a broad category; they have something for every purse. With flats offered at Rs. 3,400 per sq.ft., Hirco's township falls in the premium segment. It is clearly aimed at the middle-level to the top executive. With basic prices of Rs. 2,399 per sq.ft and Rs. 1,750 per sq.ft., Temple Green Heights and Inno GeoCity fit into the definition of affordable housing.

The social infrastructural facilities offered by these projects include schools and health care facilities. End users form a majority of buyers in these projects. Builders says buyers' decision has been motivated by the obvious advantages of living close to their workplaces and having a diversity of social infrastructure within easy reach. And, the charm of living in less crowded suburbs.

“As Oragadam is connected by a matrix of wide roads to other happening towns, residents have easy access to facilities that lie beyond. For example, residents of Oragadam can draw on the resources in Sriperumbudur, which has many educational institutions,” says Kalyan Jayaprakash, director, Inno GeoCity.

Four-lane and six-lane State Highways provide multiple entry points to Oragadam via flourishing towns (Padappai, Sriperumbudur, Walajahbad and Singaperumal Koil).

In industrial circles, Sriperumbudur and Oragadam are spoken of as twin towns. Together, these two towns account for an FDI of $16 billion.

Some believe Oragadam is poised to become an industrial superpower in that area. “Being connected to Oragadam will be the prime driver of development in many of the neighbouring areas. Oragadam will become the central point of a massive industrial revolution. It will impact development of areas within a 15 to 20 km radius,” says V. Suresh, principal executive officer, Hirco. “Oragadam shall be the catalyst of growth in the region.”

Source : The hindu /*added buzzr for google buzz */

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Mahindra Lifespace launches gated community project

Mahindra Lifespace Developers has announced the launch of ‘Aqualily’, a premium residential community being developed within the Mahindra World City, an integrated city.


Mahindra Lifespace Developers is the real estate and infrastructure development arm of the $6.3 billion Mahindra Group.

Addressing a press conference here on Thursday, Arun Nanda, Vice-Chairman, Mahindra Lifespaces Developers, said that the project was being developed by Mahindra Residential Developers, a subsidiary of Mahindra Lifespace, and Arch Capital, an Ayala Group of Company from the Philippines.

Mr. Nanda said Arch Capital and Mahindra Residential Developers would have equal partnership in the proposed project. The project would be constructed as a gated community and would have 760 units comprising villas, twin houses and luxury apartments. The price would range from Rs. 90 lakh to Rs. 1.70 crore.
The units would be leased to the buyers and would not be sold as was conventionally done. He said the total cost of the project would be around Rs. 400 crore.

Source: The Hindu /*added buzzr for google buzz */

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Service Tax to push property prices up

The Government has via the Finance Act 2010 and the notifications issued thereunder introduced a “Deeming Provision” bringing real estate developers within the purview of Service Tax. The recent notification of the Deeming Provision makes the same effective from July 1, 2010. Chitty Babu, President - CREDAI Tamil Nadu, said that property prices will increase by approximately 2.5 per cent on account of the above levy.

He further stated that in places like Tamil Nadu where land is being registered separately and building sold /conveyed by a contract, an abatement of 66.3 per cent has been given and 10.3 per cent is payable on the balance towards service tax.

CREDAI Tamil Nadu has been given to understand that from July 1, 2010, all payments received will be subject to and/or liable for service tax. The above Deeming Provision is seen as a retrograde step by the Government as it negates the clarification issued by them by way of a circular in Jan 2009. Notwithstanding the same, developers in Tamil Nadu have been subjected to showcause notices for payment of Service Tax post the clarifying circular too.

CREDAI Tamil Nadu is a regulatory body representing over 230 odd Members in Chennai, Coimbatore, Madurai and Tiruchirapalli. Amongst the many representations made by CREDAI Tamil Nadu, the most recent one has resulted in the Government reducing infrastructure and amenities development charges.

CREDAI actively works with the Government of Tamil Nadu, Department of Housing and other related Government agencies and bodies, and works in tandem with its National Secretariat in New Delhi on representations to the Centre to sort out controversial or harsh policies that could have adverse implications on not just developers but also on home buyers.

CREDAI had made number of representations seeking relief from service tax in respect of developers and promoters. Unfortunately, the industry has not got any relief from service tax in the recent set of notifications issued by the Central Government.

Service tax is payable at the rate of 10.3 per cent on 33 per cent of the construction contract without Cenvat credit. This will further increase the prices of flats defeating the very objective of the Government in recent times. /*added buzzr for google buzz */

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Budget Home 2010

Nearly 15,000 properties will be on offer at the ‘Budget Home 2010' exhibition, which gets under way at Chennai Trade Centre from July 2. The three-day exhibition will feature stalls of 45 builders and offer a range of properties priced between Rs.30,000 and Rs.30 lakh.


Properties in Chennai and its suburbs and Tier II and III cities of Tamil Nadu, at affordable rates, will be showcased, said Shakthivel, Managing Director, Eyeball Media Private Ltd, which is organising the exhibition. “We would like make a wide range of properties available under one roof,” he told the media persons here on Tuesday. True Value Homes Vice-president Kishore Kumar said his company would focus on offering homes at nominal prices and the company has come up with a residential project in Sriperumbudur.


“Oragadam and Sriperumbudur have nearly 40,000 people working in 2,000 companies.

There is a very high demand [for residential properties] in these areas.

We also seek to provide end-to-end services such as property maintenance for the house owners at a nominal cost,” he said.

Marg Properties will highlight its township-project Marg Swarnabhoomi at the exhibition. “People don't mind commuting long distances.

As the city is saturating fast, outskirts are developing into potential residential areas,” said S.Ramakrishnan, Chief Executive Officer, Marg Properties. There is demand for nearly four lakh houses in Chennai and 70 per cent of the potential customers are looking for budget homes, he added.

Inno Geo City director Kalyan Jayaprakash observed that new projects are moving towards IT parks and industries as the demand for houses in those areas are escalating. Residential plots, independent houses, apartments and commercial properties in places, including Coimbatore, Madurai, Tirunelveli and Tiruchi, will also be on offer at the exhibition.

Source: http://www.thehindu.com/news/cities/Chennai/article492334.ece /*added buzzr for google buzz */

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