AN OVERVIEW. Chennai residential micro markets have been stable with moderate price appreciation of 8 10% in the past one year.

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3 AN OVERVIEW Chennai residential micro markets have been stable with moderate price appreciation of 8 10% in the past one year. There is a shift in buyer focus from the usual OMR, ECR to the WEST and NORTH of Chennai. Porur, Medavakkam, Perambur, Madhavaram, Pallikarnai, Kolathur are a few such developing markets. Owing to the success of Velachery in the past few years, its neighbouring markets namely Medavakkam and Pallikarnai are also seeing high real estate demand. The localities along GST Road namely Pallavaram, Chrompet, Tambaram lie in close proximity to the city, airport and still have lower pricing. Localities beyond Vandalur till Chengalpettu are ideal for land investments. The proposed monorail will further improve the connectivity of GST Road with the other parts of the city. There is hesitation seen amongst buyers due to slow pace of infrastructure development in developing areas especially the OMR belt. Infrastructure development would play a vital role in making localities in OMR and other suburban areas liveable. Poor access, lack of proper water and drainage system top the list of grievances among Chennai suburb residents. Focus on improvement of public modes of transport has been one of the major highlights in Chennai. This is evident from the expansion of the existing highways, work on Chennai Metro and the Outer Ring Road. With in progress infrastructure projects taking shape, the demand and capital values are expected to rise across all sectors. Going forward, growth in Chennai would not solely be determined by the IT/ITES sector, but also by the transport corridors of the above mentioned infrastructure projects. Chennai market is looking forward to the MRTS and BRTS projects to give the city a new face in

4 Old Mahabalipuram Road (OMR) Old Mahabalipuram Road (OMR) popularly known as the IT Corridor of Chennai was conceptualized by Tamil Nadu Government in Owing to delays due to land acquisition and change in government, the first phase of OMR became operational only in TIDEL Park at Tharamani was the first IT establishment here and it placed Chennai into the IT map of India, henceforth changing character and lifestyle of Chennai as a city. Beginning at Madhya Kailash in Adyar the road stretches till Mahabalipuram. Some of the major localities on OMR are Perungudi, Thoraipakkam, Karapakkam, Sholinganallur, Navalur, Egattur, Padur, Siruseri, Kelambakkam, Thiruporur. OMR Phase 1 OMR Phase 2 Madhya Kailash - Siruseri Siruseri - Poonjeri 20.1 Km 26.8 Km Operational since 2008 Under Construction OMR Phase 1 Currently there are two tolls on OMR; first one is at Perungudi and second at Navalur The positioning of tolls also governs the locality preference of buyers The demand and capital values for residential and commercial properties are high from Madhya Kailash to Perungudi (before the first toll) Same way employees at companies in Siruseri prefer staying in projects where they don t have to pay toll for every day commuting

5 Analysing the buyer preference for various localities on OMR indicates that the distance from Chennai city is not the only deciding factor when it comes to buying a property Sholinganallur tops the list with over 30% buyers wanting to buy a property there, followed by Thoriapakkam, Kelambakkam and Navalur Budget, growth potential, proximity to employment centres, access, presence of social infrastructure play a critical role Locality Ranking for Major Localities on OMR 0% 5% 10% 15% 20% 25% 30% 35% Thiruporur Egattur Padur Perungudi Navalur Kelambakkam Thoraipakkam Sholinganallur OMR Phase 2 Asia s biggest SIPCOT has been developed at Siruseri on OMR for IT companies Many IT/ITES companies like TCS, Cognizant, igate have set up their base here generating huge employment opportunities and thereby a need for residences and related social and physical infrastructure in the area Unlike Chennai which is known to be an end user driven market, OMR has equally attracted both end users and investors Considered to be one of the prospering property destinations, now there are low rise and villa properties available beyond Kelambakkam as well But the area will take over 5-7 years to get developed Demand and Property Rates along OMR Are Also Governed By Placement of the Toll Gates. Currently There is One at Perungudi and Second One at Navalur

6 The residential property rates on OMR and its neighbouring micro markets have escalated by close to 15 times since 2000 Comparing the actual market rates to the rates buyers are ready to pay Padur and Kelambakkam are closest to buyers expectations followed by Sholinganallur, indicating better future returns Kelambakkam, Sholinganallur and Padur, are investment destinations on OMR Locality Property Rate 2010 Property Rate 2013 PERUNGUDI THORAIPAKKAM SHOLIGANALLUR NAVALLUR EGATTUR PADUR SIRUSERI KELAMBAKKAM THIRUPORUR NA Budget Preference of Buyers (per Sqft unit rate) 80% 70% 60% 50% 40% 30% 20% 10% 0% Perungudi ThoraipakkamSholinganallur Navalur Padur Kelambakkam Thiruporur < >5000 Some of the Problem areas: As of today, the capital values are appreciating but most of the localities on OMR lack liveability Beyond lack of social infrastructure, the area lacks basic amenities like sewage lines, municipal water, security, water logging, service roads, foot paths Connectivity is another big issue faced by residents and office goers along with everyday traffic congestion Small villages still exist along Phase 1 of the road creating bottle necks There are projects announced by the government but unless work happens these micro markets will not become preferred destinations by end users Localities close to the Perungudi Sewage Treatment Plant frequently face issue of sewage over flow leading to foul smell and blocked roads

7 Recent Infrastructure Projects announced to improve connectivity: Elevated corridor on OMR connecting Chennai city to Feasibility Stage Mamallapuram Three new bridges connecting ECR and OMR at Neelankarai, Design and Approval Stage Palavakkam and Kottivakkam Flyover connecting Old Mahabalipuram Road and East Coast Road Design and Approval Stage (Tidel Park Junction Lattice Bridge Road ECR) Outlook There are speculations in the market that there is a possibility of OMR suffering from oversupply situation in the future In our view going forward growth in Chennai would not solely be determined by the IT/ITES sector, but also the transport corridors of inprogress projects Infrastructure development would play vital role in making localities on OMR liveable

8 East Coast Road (ECR) East Coast Road is the scenic two lane road connecting Chennai to Thoothukudi in Tamil Nadu. It runs along the Bay of Bengal and is a popular weekend getaway destination for Chennaiites. Being developed as an entertainment corridor it houses many famous resorts, theme parks, water parks and theatres. There are plans to extend it till the Southern tip of Indian Subcontinent at Kanyakumari. Locality Property Rate 2013 (psft) Neelangarai, Palavakkam are the hottest destinations on ECR belt and are seeing high demand from buyers The belt is highly prone to accidents Congestion on adjacent OMR belt has shifted IT traffic on OMR during office hours On infrastructure front most of the roads are narrow and there is no proper drainage and sewage disposal system in place The new bridges connecting ECR and OMR at Neelankarai, Palavakkam and Kottivakkam will improve the connectivity between OMR and ECR 80% 70% 60% 50% 40% 30% 20% 10% 0% Buyers prefer staying on ECR belt as its close to the city and yet away from the hussle bussle of the city Congestion on adjacent OMR belt has shifted IT traffic on OMR during office hours ECR is also preferred by senior IT professionals working on OMR belt Land, posh beach houses, farm houses and villa communities are popular residential types on ECR ADYAR THIRUVANMIYUR VALMIKI NAGAR PALAVAKKAM INJAMBAKKAM UTHANDI MUTTUKADU OMR-ECR LINK ROAD In past five years property rates have escalated by more than double here Buying land is not an easy task here as most the land is owned by locals from the small fishermen villages present on ECR Beyond Uthandi and Muttukadu the area is sparsely populated Budget Preference of Buyers (per Sqft unit rate) Thiruvanmiyur Kotivakkam Palavakkam Neelangarai Uthandi < >5000

9 Pallavaram Chrompet - Tambaram Grand Southern Trunk Road (GST Road) is one of the busiest National Highways connecting Chennai to Trichy. Starting from Kathipara Junction at Guindy the highway connects the Chennai International Airport and many upcoming residential and commercial localities like Pallavaram, Chrompet, and Tambaram. These localities are close to the city and are well connected via both road and Chennai Rail. The commercial establishments on GST Road didn t pick pace due to governments focus on establishing OMR as the IT Hub. For the same reason the localities along GST Road didn t see similar price appreciation and demand as residential properties on OMR belt did. But in past two years post their inclusion under city limits, these areas have seen heightened interest from both developers and buyers side owing to affordability, proximity to the airport along with good connectivity with the city and OMR. Some Facts Road Connectivity GST Road, Pallavaram Thuraipakkam Road, Tambaram Road, Chennai Bypass Road Locality Ranking - Pallavaram, Chrompet, Tambaram Public Transport Distance from Tambaram Chennai Suburban Rail Network via Beach Tambaram Chengalpattu line, Monorail (proposed) Airport : 10 Kms OMR : 15 Kms Mahindra World City : 25 Kms Shriram Gateway : 3 Kms 0% 20% 40% 60% Pallavaram Chrompet Tambaram

10 Tambaram is one of the fastest growing Chennai suburb Residential demand in Tambaram will increase further once work begins for the proposed Monorail High vacancy rate in existing commercial office spaces at Shriram Gateway and other establishments The road and rail network for the localities already exists Chennai Airport will be the closest metro station for the upcoming Metro Rail Major Residential Projects in Pallavaram, Chrompet, Tambaram: PROJECT DEVELOPER PROPERTY PRIICE (INR psft) Pallavaram Aspire Royal Splendour 4600 Developers Vibrants Sankar Builders 5000 Chrompet Wood Berry Green Peace 6850 Serene Aashirwad 3800 Tambaram Florencia Color Homes 3600 Adithi Gayatri Realties 3200 White Pearl AKB Homes 4900 Budget Preference of Buyers (per Sqft unit rate) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Chrompet Pallavaram Tambaram < >5000 Over 55% of buyers wanting to buy property in Tambaram are ready to pay over INR 3000 psft This is in conjunction with the current market rate in the area INR psft is the most preferred budget for the three localities Pallavaram being only 4 and 7 Kms from the airport and Kathipara Junction respectively has capital values ranging between INR psft The running rate in Velachery which is at a similar distance from the airport is above INR 6500 psft, indicating future growth potential Unit Size Preference of Buyers Maximum demand is for decent sized 2 3 BHKs Pallavaram, Chrompet and Tambaram have good growth potential With improvement in social and physical infrastructure these localities will become more habitable and one can expect over 20% price appreciation 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Chrompet Pallavaram Tambaram < 900 sqft sqft sqft sqft > 1800 sqft

11 Vandalur Guduvanchery Chengalpettu GST Road or NH-45 is a long 400 Km highway connecting Chennai to Trichy. It can be divided into sections as per the scale of development, real estate activity and proximity to Chennai city. Many upcoming residential and commercial s localities like Vandalur, Urapakkam, Maraimalai Nagar, Guduvanchery, Singaperumal Koil, and Chengalpattu lie on the second stretch of GST Road. These localities started getting developed post establishment of 1500 acre Mahindra World City at Chengalpattu and Ford s manufacturing plant at Maraimalai Nagar. Estancia IT SEZ also lies on this belt of GST Road. Good Road Connectivity, existing Suburban Train Network and proximity to the airport are some of the factors that have lead to home buyers preferring these localities. Some Facts Road Connectivity GST Road, Vandalur Kelambakkam Road, SH-57 (Oragadam Road), Chengalpattu Thiruporur Road, Kanchipuram Chengalpattu Road, Chennai Bypass Road Public Transport Chennai Suburban Rail Network via Beach Tambaram Chengalpattu line, Monorail Distance from Vandalur (proposed) Airport : 15 Kms OMR : 20 Kms Mahindra World City : 20 Kms Shriram Gateway : 1.5 Kms Locality Ranking - Vandalur, Guduvanchery, Chengalpattu 0% 20% 40% 60% 80% Chengalpattu Vandalur Guduvanchery

12 Mahindra World City is one the major landmarks and has a dedicated station The road and rail network for the localities already exists The South West Suburban Rail from Chennai Beach to Chengalpattu connects all the major locations to the city The under construction 6 lane Outer Ring Road from Vandalur Nazarathpet Nemilichery will connect GST Road to NH4 and NH 205 The proposed Monorail will connect Vandalur to Velachery Chennai Airport will be the closest metro station for the upcoming Metro Rail Budget Preference of Buyers (per Sqft unit rate) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Vandalur Guduvanchery Chengalpattu < >5000 Major Residential Projects in Vandalur, Guduvanchery, Chengalpattu: Being outskirt localities the most preferred budget for property purchase is under INR 3000 psft Also the price preference is directly proportional to the distance of the locality from the city Chengalpattu is one of the hot and growing locations for land investments Apartment prices are also affordable in Vandalur and Guduvanchery Residential demand will increase in this belt especially Vandalur once the Outer Ring Road becomes operational and work begins for the proposed Monorail Unit Size Preference of Buyers The Maximum demand is for a decent sized 2BHK with over 25% buyers looking for a sqft property As the expanse of the city increases these areas will grow Good investment option with long term perspective in mind Land is a better investment option here compared to apartments 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Vandalur Guduvanchery Chengalpattu < 900 sqft sqft sqft sqft > 1800 sqft

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15 Medavakkam Pallikarnai - Velachery Velachery has seen massive real estate development and increase in capital values during past few years. Owing to popularity of Velachery, its neighbouring destinations - Medavakkam and Pallikarnai are also fast developing as residential suburb. Proximity to the city and the Chennai airport, easy accessibility to major employment hubs OMR, GST Road and improvement in social infrastructure are the key factors which have resulted in an increase in preference for these localities. Also the proposed monorail from Vandalur to Velachery will enhance the connectivity of these micro markets. Micro Market Road Connectivity Public Transport Velachery Velachery Main Road, Tharamani Road Chennai Suburban Rail Network Locality Ranking - Medavakkam, Pallikarnai & Velachery: Medavakkam Tambaram Road, Medavakkam - Mambakkam Main Road, Medavakkam - Sholinganallur Road Pallikarnai Pallavaram Thuraipakkam Road, Velachery Main Road Absence of Rail Network Absence of Rail Network 0% 10% 20% 30% 40% 50% Pallikaranai Medavakkam Velachery

16 With increasing property rates in the city localities close to the city are becoming popular Due to limited availability and high pricing of residential projects in Velachery nearby localities Medavakkam and Pallikarnai have also seen an outburst in real estate demand Demand also increased after announcement of Monorail from Vandalur to Velachery via Medavakkam and Pallikarnai Major Residential Projects in Medavakkam, Pallikarnai & Velachery: PROJECT DEVELOPER PROPERTY PRIICE (INR psft) Medavakkam Pace Aagam Pace Builders 5500 Ruby Elite Ruby Builers 5800 Fortune Manor Sumangali 4600 Homes Pallikarnai Akash Ganga Rajkham Builders 4200 Windermere Puravankara 4500 Velachery Arcadiaa Malles 6600 Construcions The Quadrants Color Homes 6900 Budget Preference of Buyers (per Sqft unit rate) 60% 50% 40% 30% 20% 10% 0% Medavakkam Pallikaranai Velachery < >5000 Unit Size Preference of Buyers Over 50% of buyers wanting to buy property in Velachery are ready to pay over INR 5000 psft INR psft is the most preferred budget for Medavakkam and Pallikarnai But buyers are slowly accepting the increase in pricing in the area with close to 25% ready to pay over INR 4000 psft, which is close to the actual market rate in the area 45% Velachery is transforming into uppermid residential destination with over 60% buyers looking for spacious homes These localities are highly preferred by IT professionals With better connectivity via Monorail the capital values in Medavakkam and Pallikarnai will appreciate by over 20 30% 40% 35% 30% 25% 20% 15% 10% 5% 0% Medavakkam Pallikaranai Velachery < 900 sqft sqft sqft sqft > 1800 sqft

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18 Employment North Chennai is primarily an industrial area and is governed by business and trader community, locomotive workshops, government offices and port related activities. Chennai Port and Ennore Port are located in this region. Contrary to South Chennai which currently boasts of over 75% of Chennai s office space stock, North Chennai houses none. Restricted employment opportunities have resulted in sluggish real estate growth in this region. Connectivity Currently Chennai has 4 suburban rail networks. The North Line connects the Northern parts of Chennai namely Tondiarpet, Ennore, Gummidipoondi with Central Chennai. The West line from Chennai Central to Tiruvallur is the oldest rail network in Chennai around which the city thrived and development started. It also divides the Northern part of the city from Central and Western areas. One of the major arterial roads the Chennai Kolkata Highway (NH5) starts at the Basin Bridge and connects Chennai port with North Chennai. Besides this road connectivity in North Chennai still remains a question with thousands of commuters struggling every day. The long due underpass in Villivakkam was inaugurated in June 2012 and has improved the traffic conditions to an extent. The Perambur flyover and Perambur Locoworks road over bridge are two of the major projects to be implemented in North Chennai in recent years. They are expected to ease traffic congestion in the area. The Chennai Bypass Road is in close proximity to the western end of North Chennai and thereby gives better connectivity to the micro markets Korattur, Madhavaram. Connectivity continues to remain one of the biggest concerns for north Chennai residents with thousands of commuters struggling every day Infrastructure North Chennai is known to be the neglected area by the government authorities. Connectivity, flooding due to lack of storm water drain network, contaminated drinking water and improper sanitation system are some of the major grievances of the residents. Outer Ring Road The second phase of the Outer Ring Road (Nemilichery Nallur Minjur) will connect NH 205 to the NH 5 in North Chennai via a six lane highway. Currently the first phase of the Outer Ring Road connecting Vandalur to Nemilichery is under construction. Chennai-Ennore Port Road Connectivity Project Expected to be completed in June 2013, the project is a SPV (Special purpose vehicle) comprising of National Highways Authority of India, Chennai Port Trust, Government of Tamil Nadu and Ennore Port Ltd., as partners. The project was conceived in 1998 at an estimated cost of Rs.150 crores. Work started

19 only in January 2011 with a revised estimate of Rs.600 crores. The project is considered vital for the future development of Chennai Port, as it is planned to upgrade the city roads, connecting the Port to the hinterland and thereby improve the efficiency of cargo evacuation. Chennai Residential Market Zone Wise Distribution of Stock 16% 1% 15% Chennai Metro Rail Even though the under construction Chennai Metro doesn t directly connect North Chennai but the nearest station at Anna Nagar will help improve the connectivity of North Chennai localities with the airport, Vadapalani, St. Thomas Mount and other South Chennai micro markets. 68% CENTRAL NORTH SOUTH WEST (Source : IndiaProperty.com) Stock and Absorption The residential supply in North Chennai is subdued and constitutes of only 15% of the total under construction stock in Chennai. Lack of job opportunities and thereby limited demand and lack of vacant land parcels closer to the city are some of the reasons for it. The demand here comes from the industrial, port and public sector employees who have worked and lived in the area throughout their lives. North Chennai being older Chennai has traditional set of buyers. Unlike South and West Chennai most of the investors in North Chennai are residents of North Chennai itself. The area would see steady growth in the future with stand alone houses giving way to low-rise apartment complexes. With improvement in connectivity and better infrastructure facilities in the future one can expect an increase in demand for residential properties in north Chennai. Capital Value Residential Property Rates in Major Residential Markets of North Chennai MICRO MARKET CAPITAL VALUE (INR psft) Kolathur Tondiarpet Korattur Madhavaram Perambur Puzhal Puzhal (Land) Having traditional set of buyers, North Chennai sees demand from its existing set of residents mainly industrial, port and public sector employees

20 Budget Preference of Buyers in North Chennai 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Unit Size Preference of Buyers in North Chennai 40% 30% 20% 10% 0% < 700 sqft sqft sqft sqft > 1500 sqft (Source : IndiaProperty.com) < 30 L L L L > 100 L (Source : IndiaProperty.com) North Chennai has high percentage of middle class population with over 70% buyers looking for properties under INR 50 Lacs budget with over 55% of the buyers having a preference for unit size ranging between sqft. Major population in North comprises of public sector employees, railway workers and port employees who desire to settle down close to the areas where they have spent major part of their lives working. Micro Markets Perambur, Tondiarpet, Kolathur are the major residential localities of the region. With number of under construction projects, Madhavaram is growing as an in-demand residential micro. Locality Preference of Buyers in North Chennai 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Kolathur Korattur Madhavaram Perambur Puzhal Thiruvotriyur Tondiarpet Villivakkam (Source : IndiaProperty.com)

21 Perambur Perambur is one of the early settlements of Chennai around which the city grew. It was primarily dominated by the railway employees working for Perambur Locoworks and Carriage works. It is considered as a good locality to live in North Chennai. Primarily a residential area, it is densely populated with pockets of commercial developments. The Spectrum mall is the only organised retail present in the area. The area has always been in demand amongst locals. It s in proximity to the Chennai Central station and Egmore Station (about 5 kms from both). Capital values in the area have appreciated by over 20 30% in the past 2 years. Being a low lying area with poor access, until recently the developers were not interested in Perambur. But over the years the infrastructure has drastically improved in the area and after opening of the Perambur flyover the connectivity issue also got resolved. One of the common trends in the area is individual houses getting converted into apartments having units. Also some of the old mills have given way to huge vacant land parcels, giving way to big residential developments in the area. The area holds good potential as it s close to the city with infrastructure in place along with decent property pricing. Kolathur Kolathur is one of the popular residential localities in North Chennai and is now part of the State Assembly Constituency. It is well connected to the city as it s adjacent to the Grand Trunk Road connecting Kolathur to Anna Nagar. The Chennai Bypass Road is also in close proximity to Kolathur, giving the locality easy access to the Western and Southern Chennai suburbs. Closest Suburban Rail stations to Kolathur are Villivakkam and Perambur Locoworks. The completion work of Perambur flyover and Perambur Locoworks road over bridge highly improved the access to the locality. It is a low lying area and is therefore floodprone. In recent times the storm water drain network in the area has improved. But electricity, contaminated water and sewage overflow remain few of the major issues in the area. Like any location accessibility plays a critical role in North Chennai in defining the residential demand for a micro market Ayanavaram Ayanavaram is one of the rare localities in North Chennai where the railway crossing is not a hurdle. Overall connectivity to the area is good. Close to the prime localities like Kilpauk and Pursaiwakkam, the micro market has high growth potential. The trend of individual houses getting converted into apartments is visible here. But except the main Konnur High Road, all the internal roads are narrow with small plot sizes. This is one of the restricting factors hindering the residential development in the area making the property prices comparable to Perambur which is location wise further ahead. Villivakkam Villivakkam is located next to the prime area Anna Nagar. Railway track crossing at Villivakkam is the biggest hurdle, limiting the residential demand and capital values in the

22 area. The Villivakkam underpass has improved traffic conditions in the area. Being a low lying area, the locality is prone to frequent water logging. The Konnur High Road and Jawaharlal Nehru Road are the major arterial road in the area connecting Villivakkam to Ambattur, Padi, Anna Nagar, Koyambedu. The plotted houses here are giving way to small apartment complexes. With poor infrastructure the area has not witnessed the growth which it should have because of its location. With government initiatives and improvement in physical infrastructure the area has potential to see high demand for residential properties. Madhavaram Madhavaram located along the Great Northern Trunk Road (also known as NH 5 or Chennai Kolkatta Highway) and the Chennai Bypass road is known for the Aavin milk dairy and mango groves. The locality has good future prospects as the government owns major chunk of the land here and the area is likely to remain green with minimal scope for unorganised real estate development. Because of its location, easy access to Chennai city, port and railways - CMDA developed a truck terminal here in The area often faces heavy traffic due to the trucks parked on the road. Some of the other issues that the locality currently faces are lack of adequate public transport facility, proper drinking water and poor sewage network. The Madhavaram Lake faces consequences of poor drainage and has been highly polluted over the years. Compared to South and West part of Chennai, properties in North Chennai are reasonably priced and improvement in connectivity and infrastructure would lead to steady growth in the area Puzhal Puzhal is located towards the end of the Chennai Bypass Road along the Great Northern Trunk Road. This gives it easy access to other parts of Chennai city and an advantage over rest of the developing localities in North Chennai. Currently the area lacks real estate activity but it is one of the localities in North Chennai to look for in the future. Access and affordability are two factors that will drive growth in the area. Located on the banks of Puzhal Lake or the Redhills Lake, the area is known for the Puzhal central prison which was setup in The Puzhal Lake is one of the major sources of fresh water supply in Chennai and prone to contamination from improper waste and sewage disposal from the prison resulting in both air and water pollution. The proposed monorail connecting Vandalur to Puzhal via Avadi has now been dropped owing to financial feasibility.

23 Outlook Residential market in North Chennai constitutes of a small percentage of 15% of the total under construction stock in Chennai. The area sees maximum demand from traditional set of buyers who have lived in the area. The demand here comes from the public sector employees, railway workers and port employee who have worked and lived in the area throughout their lives. Having high percentage of middle class population under INR 50 Lacs is the most proffered budget for residential properties. Lack of job opportunities, poor access due to presence of railway track, water logging, inadequate fresh water supply, improper sewage lines are few of the reasons for restricted growth in the past. With improvement in connectivity and better infrastructure facilities in the future one can expect an increase in demand for residential properties in North Chennai. The area would see steady growth in the future with standalone houses giving way to low-rise apartment complexes.

24 Quick Facts about Home Loans What is a Home Loan? A home loan is a loan taken for buying or constructing a house or to refurbish an existing residential property. Banks and registered housing finance companies are the sources to procure a home loan. The home loan is secured against the property for which the loan is taken. What is an EMI? An EMI (Equated Monthly Installment) is the repayment amount payable to the lending institution every month. It consists of a portion of the interest as well as the principal amount. The initial EMIs have higher interest component than principal. State the eligibility conditions for a home loan? Following are the prerequisites to acquire a Home Loan: a) An Indian resident or NRI, b) Above 24 years of age at the commencement of the loan, c) Below 60 or retirement age when the loan matures, d) Either self employed or salaried What are - Daily Reducing, Monthly Reducing and Yearly Reducing Home Loans? The interest on home loans in India is calculated either on monthly reducing or yearly reducing balance or at times daily reducing basis is also adopted. It is the time frame used to recalculate your principal amount. In the Annual Reducing system one continues to pay for the same principal amount for the whole year i.e. one pays extra interest on certain portion of principal amount which has already been paid. The EMI for the monthly reducing system is effectively less than the annual reducing system. In Daily Reducing system, the principal, for which you pay interest, reduces from the day you pay your EMI. What are fixed and floating rate of interest? Fixed Rate refers to the rate of interest that remains unchanged for the entire duration of the loan. In a Floating Rate the interest is market driven and according to the market lending rate. What are the other costs that usually accompany a home loan? Processing Charge and Pre-payment Penalties are the usual extra costs that accompany a home loan. But at times some financial institutions might also levy documentation or consultant charges. How do HFCs decide on the loan amount? Most of the financial institutions give up to a maximum of 80% of the cost of the house, depending on the financial ability of the loan applicant. The amount, for which the applicant is eligible, is determined by the age, income, number of dependents, monthly outgoing and repayment capacity. What is the usual time required for loan disbursement? On an average, loans are disbursed within 3-15 days post satisfactory completion of documentation and all other relevant procedures.

25 Your Property Purchase Checklist The task of buying a property is laborious. The buyer must not base his property buying decision on locality and budget alone. He must consider other critical aspects such as the appreciation value of the property, investment benefits from that property, builder reputation, home loan approvals and the legal hassles involved, if any. So here is a check list for you that will come in handy to you while you buy your property. YOUR CHECKLIST: PARTIES INVOLVED IN THE PROPERTY PURCHASE 1. Check if the property that you wish to purchase is in the Name of the Seller or if there is a Joint Venture Development involved. The Name and Land Title must be in the Name of the Seller 2. Get the identity and address proof of the Seller 3. To avoid any future disputes from Children of the Sellers (who are not minors), their signatures must be obtained on the bond / agreement 4. Any claim over the property by blood relatives of the Seller, in the future, must be handled by the seller and a clause ensuring the same must be inserted in the Sale deed 5. Through every stage of negotiation and purchase, check to see if there are any third party interests, suppression of previous transactions, prior agreements or litigations involved. PREVIOUS DUES PAID & SETTLED: 1. Check if all dues like Land Revenue, Municipal Tax, Water Tax, TNEB Charges, etc have been paid before the purchase is made 2. Also check if any loan has been obtained on the property. If yes, then include a clause in the Sale deed stating that the seller is responsible for all the dues dated before the purchase 3. In case of future disputes involving the seller, add a clause in the deed holding him responsible to clear and settle all such Villangam / Viharam IMPORTANT DOCUMENTS: 1. Ask for the Parental Document the Moola Pathram 2. The Sale deed must clearly show details of the property Door/Flat/Plot No., Land Area, etc 3. Obtain the No Encumbrance Certificate 4. Obtain receipts of all payments made Patta, Chitta, Adangal extracts and the receipts of Tax payments made Water/Property/Corporation/Municipality /TNEB/Revenue etc. unto the date of Purchase 5. Confirm the originality of Stamp papers. Check to see if the date of purchase of the Stamp paper matches the date of documents Now that you have a checklist, what are you waiting for? Start your property search NOW with Indiaproperty.com

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