Investment insights ofCHENNAI PROPERTY
INVESTMENT INSIGHTS OF CHENNAI PROPERTYCHENNAI 1.0Madras in the 1600s was a cluster of scattered hamlets, each settlement ...
CHENNAI 2.0From a macro-level perspective, the growth of the city of Chennai has been predominantly focused in itssouthern...
Urban Node 5 – Ponneri: Part of Tiruvallur district, Ponneri taluk has a total population of 331,406 (2001census figures),...
Chennai City may be divided into above corridors based on homogeneous industries in and around the area.The above map high...
b. Mixed Corridor                                GST Road is one of the first roads on the outskirts of the city to witnes...
COMPARATIVE CHART OF CHENNAI’S CORRIDORS               Corridor Name        Profile of the people        Living Standards ...
2. The benefits of living near recreational areasIf given a choice to live in a crowded, noisy street or near a peaceful, ...
Step 1: Research, Research and ResearchDo extensive research on growth corridors of your city. There are many reports/arti...
6. Superior amenities and facilities such as club house, roads, maintenance, security, blacktop roads andstreet lights are...
6. NRIs guide to buying Property in IndiaIt is a dream for any Indian to buy a piece of land in India. Infact, most of the...
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Tips on-purchasing-plots


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Why Swarnabhoomi CityScape

Swarnabhoomi Cityscapes, an ambitious venture of MARG Swarnabhoomi to fulfill the dreams of people to own a plot. Swarnabhoomi Cityscapes proudly launches a wide range of highly appreciable villa plots on scenic ECR. There are number of reasons why you should choose Swarnabhoomi Cityscapes

From the house of MARG Group, one of the fastest growing infrastructure companies in India with 3000 crores worth of projects in progress
All the villa plots are flavored by MARG’s trust and transparency
These villa plots are located around MARG Swarnabhoomi, a 1000 acre aspiration city – Huge scope for high appreciations
Part of MARG Swarnabhoomi’s vision of 10,000 acre regional development
The region attracted other investments like proposed NTCP power plant, BGR Energy plant, TTDC sports complex and theme park
Access to shared facilities at MARG Swarnabhoomi
Strategically located to address work-life balance

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Tips on-purchasing-plots

  1. 1. Investment insights ofCHENNAI PROPERTY
  2. 2. INVESTMENT INSIGHTS OF CHENNAI PROPERTYCHENNAI 1.0Madras in the 1600s was a cluster of scattered hamlets, each settlement having grown around a temple as itsnucleus and with its own unique history. Mylapore was by far, one of the most prominent areas of the time.Around 1733, the congestion in George Town, a business hub led to the weaving community migrating toChintadripet and Collepetta near Tiruvottiyur, since abundant open space was available for their trade.Triplicane also grew in importance, but second only to George Town. St. Thomas Mountgrew in its religious significance, and Mount Road became prominent with the construction of the MarmalongBridge in 1724. Once the Corporation, the civic body that governs Chennai as we know it today, wasestablished, the city was divided into 8 divisions and the Government selected 4 Commissioners from theresident communities. The railway line from Royapuram to Arcot was laid in 1864. To facilitatetrade, theharbour – strategically positioned to the east of George Town – was completed in 1896. Some of the importantmilestones during the period 1901 to 1941 included the commissioning of the electrified suburban meter-gauge railway line between Beach and Tambaram in 1931, giving a fillip to the development process ofsuburban areas, and the development of the area occupied by the long tank at Nungambakkam as a plannedresidential neighborhood by the Corporation.The population of the city rose to 8.6 lakh by 1941. The city occupied an area of about 80 1
  3. 3. CHENNAI 2.0From a macro-level perspective, the growth of the city of Chennai has been predominantly focused in itssouthern and southwestern areas, thanks largely to the new developments on East Coast Road, OldMahabalipuram Road and other regions of excellence like Sriperumbudur that have attracted many foreign-based companies to set up shop here. The rapid pace of growth has led to a corresponding but seriousdemand for better intra-city transportation to help people commute between their places of work andresidence. Besides, the economic boom has resulted in an increased demand for urban space, leading toskyrocketing land prices.CHENNAI 3.0The five urban nodes of Greater Chennai: Metro cities in the makingUrban Node 1 – Madurantakam: Kancheepuram district, well-known for its temples and silk Sarees is locatedon the north-eastern coast of Tamil Nadu. Spread over a total geographical area of 4,43,210 hectares and acoastline of 57 km, the district is divided – for administration purposes – into 3 revenue divisions comprising of8 taluks with 1214 revenue villages. To facilitate development, it is divided into 13 development blocks with648 village Panchayats. Madurantakam is one of the taluks of Kancheepuram and is located towards thesouthwestern part of the district. According to 2001 census figures, Madurantakam taluk had a totalpopulation of 254,845, about 9% of the total district population.In terms of its prospects for future development, Madurantakam has been identified as one of the potentialurban nodes, thanks to its connectivity by road and rail with various districts in Tamil Nadu and PuducheryUnion Territory.Urban Node 2 – Sriperumbudur: Another taluk in Kancheepuram district with a total population of 316,918,Sriperumbudur has already seen a number of big-ticket investments both from the State andCentral governments, as well as multinational companies. Towards strengthening various sectors such ashousing and health among others, more investment is required in this urban node.Additionally, the State government is also focusing its attention on improving the road sector in theregion.Urban Node 3 – Tindivanam: A municipality town in the Villupuram district of Tamil Nadu, Tindivanam talukhad a total population of 413141, according to the 2001 census. This has also been identified as one of thepotential urban nodes for development, being strategically connected by road and rail withseveral districts across Tamil Nadu and Puduchery Union Territory.Urban Node 4 – Arakonam: One of the taluks in Vellore district, the 2001 census pitches Arakonam totalpopulation at 459,643 persons. Agriculture is the predominant occupation; however a superior road and railnetwork connecting the taluk with districts in Tamil Nadu and Andhra Pradesh has encouraged heavyindustries to set up base in and around Arakonam. 2
  4. 4. Urban Node 5 – Ponneri: Part of Tiruvallur district, Ponneri taluk has a total population of 331,406 (2001census figures), about 12% of the district’s total population. Ponneri is situated close to the Ennore port, andthe backwaters around it can be developed from a tourism perspective. Besides, the State government hasfocused its efforts into improving the infrastructure in the area.CHENNAI – OVERVIEWChennai, the capital city of Tamil Nadu, is spread over a total area of 1, area) with anestimated population of approx. 8.66 million in 2010. The physical infrastructure of the city is fairly welldeveloped with reasonably good roads, railways, air and sea transport networks. Chennai‟s airport providesboth domestic and international connectivity and is located off GST Road, and 16 km from the city center.Chennai is the third largest commercial and industrial centre in India, and is known for its cultural heritage andtemple architecture. The city, known as the „automobile manufacturing hub‟ of India, is a preferredmanufacturing destination with over 35% share of Indias automobile industry. According to a survey by CyberMedia and Tholons, Chennai is one of the 6 cities from India and one in top 8 cities in the world featuring in theemerging outsourcing destinations.Chennai serves as the manufacturing base of large multinationals like Ford Motors, Hyundai, Saint-Gobain,Nokia and Flextronics. It is also home to IT/ ITES majors like Infosys, Wipro, Polaris, Accenture, I-Flex, TCS,Cognizant and many more companies.GROWTH CORRIDORS OF CHENNAI 4
  5. 5. Chennai City may be divided into above corridors based on homogeneous industries in and around the area.The above map highlights the key growth corridors of the city:a. The IT Corridor IT Corridor is a major road in suburban Chennai, India, beginning at the Madhya Kailash temple in Adyar and continuing south till Mahabalipuram, ultimately merging with the East Coast Road. This is popularly called as the IT Corridor because this stretch has become home to many IT/ITES companies.The IT Corridor Project is being implemented in two phases – Phase-I(20 km) between Madhya KailashTemple Junction and Siruseri, and Phase-II(26 km) between Siruseri and Mahabalipuram. The 2.1 km longECR Link Road connecting IT Corridor at Sholinganallur and East Coast Road at Kudumiyandithoppu is alsoincluded in Phase-I. As part of the Phase-II, two bypasses would be provided in Kelambakkam andThiruporur. With the commissioning of Phase I, the travel time from Madhya Kailash to Siruseri has beenreduced by half an hour.The prestigious TIDEL Park is home to a number of BPO and IT/ITES companies. Almost all major IT/ITEScompanies like Satyam Computer Services, HCL Technologies, Tata Consultancy Services, Accenture India,TECCI Park, Wipro Technologies, Cognizant Technology Solutions, Scope International, Photon Infotech,Polaris Software Lab, and Infosys are situated along the IT Corridor. Prominent Government Institutes andtechnical/ educational institutions are also situated along the Corridor. The corridor stretches from Tidel Parkin Tharamani to SIPCOT IT Park in Siruseri. All IT bigwigs like Infosys, TCS, CTS have their own facilities inthe It corridor.Besides, Small Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) has developed a Cyber City,spread over 2000 acres (8 km²) in Siruseri, abutting the IT Corridor. A number of IT/ITES Companies are in theprocess of setting up their facilities in the Cyber CityThe burgeoning population of information technology professionals is having a logical influence on real estatedevelopment, with a slew of residential apartments coming up along the IT Corridor. The total investment insuch projects in this area is estimated at a whopping Rs 550 crore. There are currently about 70,000 peopleemployed in the IT and BPO companies along this corridor alone. The impetus for real estate developmenthas come from projections that about an additional one lakh people will be employed in the IT belt in the nextone to two years. 5
  6. 6. b. Mixed Corridor GST Road is one of the first roads on the outskirts of the city to witness development many decades ago. Better road and rail connectivity, proximity to airport, availability of water in plenty in many of the localities have made people opt for residential accommodation near GST Road.The workforce of the industrial belt at Maraimalai Nagar, Padappai and Oragadam areas finds living along theGST Road more convenient than in localities near their workplace. The areas had witnessed a flurry ofconstruction activity in 2006 and 2007, leading to an increase in the availability of housing stock.GST road is a preferred destination for middle class families who continue to opt for residentialaccommodation.c. Manufacturing CorridorSriperumbudur, which is also known as Detroit of India has seen rapid industrialization, attracting hugeinvestments due to its proximity to Chennai port, infrastructure growth, establishment of STPIs and SEZs andavailability of quality manpower.Hyundai was one of the initial investors when they established their Indian car operations in 1999 inSriperumbudur. Later, Saint-Gobain and Nokia, Ford, Hindustan Motors, Mitsubishi, BMW and lately Nissanset up operations turning this Chennai suburban town into a large scale industrial hub. As of 2008,Sriperumbudur is a special economic zone with more than $2 billion invested by companies like Flextronics,Foxconn, Jabil, Dell and Samsung. The town is also regarded as Indias answer to Shenzhen, China,although it is not yet a SEZ. Every month, Sriperumbudur corridor is often reported in the news for some newindustrial projects. The industrial corridor between sriperumbudur and oragadam is rapidly developing withplenty of apartments by giant developers.d. Warehousing & Supply Chain CorridorThe NH-5 & TPP Road being strategically located in good proximity to the sea port and railway station is anestablished Logistics & warehousing corridor in the city. Logistics traffic by road has been growing at acompound annual growth rate of 7.5%. Key Logistics & Warehousing functions include transportation,Freight-Forwarding, and some value-added operations like Management of Information Systems (MIS). 6
  7. 7. COMPARATIVE CHART OF CHENNAI’S CORRIDORS Corridor Name Profile of the people Living Standards Cost of Property IT Corridor IT professionals, white Good Road Connectivity, Most expensive and highly collar employees and Serenity, Rich living appreciating land parcels Students conditions than any other corridor of Chennai Mixed Corridor Mix of white Collar & blue Good Road & Rail This corridor is next collar employees. Includes Connectivity. Mixed bag expensive corridor after IT some of the IT companies living conditions with all corridor. It is also economic sections considered as a very hot destination for residential investments Manufacturing Blue collar employees with Good Road Connectivity. This corridor is next hot Corridor very little percentage of The area is dominated by destination for residential expats & white collar blue collar employees property after Mixed employees since it is a manufacturing Corridor corridor Supply Chain & Transporters, Blue collar Good Road Connectivity. This corridor has lowest Logistics Corridor employees property prices. Scope for land appreciation is also very less1. Real Estate Investment OptionsProperty Investment is the talk of the day as it offers better returns oninvestment than any other investment option. Residential properties inparticular are certainly rewarding than any other property investmentopportunity. There are several options in the market that are equallyrewarding as the residential properties. Alternatives includeResidential and Commercial plots and Commercial office space.Commercial retail space is one option which can be decided depending on the location and builder.Ÿ This option offers little rental appreciation.Ÿ Investments in these avenues are huge and remain blocked for a while as a result of which you may not be able to exit.Ÿ The commercial properties may require modifications since companies look for ready to move propertiesŸ May not be suitable for most of the property Investors because of the ticket size – Not a viable optionResidential plot is the best option for property Investment because of the following reasonsŸ Buildings Depreciate over a period of time, while Land only appreciates”Ÿ The lifestyle of living in apartments can’t match the lifestyle of living in an own piece of exclusive land & houseŸ Purchasing a piece of land and constructing your own house is always a cheaper and better option. We can construct our houses according to our own tastes and requirements. Where as in apartments, its only compromise!!Ÿ Plots and Independent houses have always had better appreciation than apartmentsŸ Plot owner will have redevelopment rights on his property. On the other hand, in most group housing projects, apartment owners do not have this kind of right.Residential Apartments 7
  8. 8. 2. The benefits of living near recreational areasIf given a choice to live in a crowded, noisy street or near a peaceful, green park, you would instantly pick thesecond. And you would be right. After all, who would not want to live near a lush, pleasant Park or RecreationalArea?There are innumerable advantages of living near a green zone. Recent studies have shown that people livingnear Parks and Recreational Areas are more active. Living near an open green space encourages people towalk around more, ride bicycles and such people are less prone to obesity and weight issues. The presence ofgreen zones and parks nearby reduce the green house effects and offer a natural unpolluted environmentwhich is beneficial for your body and mind. This is applicable to children, teenagers and adults. The presenceof a green and healthy environment like a park or a Recreational Area has positive effects on the mental levelas well. People living in the vicinity of parks are more relaxed and show less signs of stress and worry.If your house is located near a park, then your property will have an ‘Increased Market Value’. The value willdepend on a variety of factors like the size of the park, distance of the park from your property, details of theneighborhood etc. Such locations have economic advantages to the municipal or civic governments too.People living near parks enjoy many economical benefits that are unknown to urban residents.A house that has a beautiful and peaceful park nearby will immediately grab the attention of prospectiveclients if the property comes on the market. People are always looking for a house that is an ideal retreat fromcrowded and noisy streets.The advantages of living near a park are countless, enabling anyone to effortlessly answer the abovementioned question. A house near a lush green park with fresh air and zero pollution is everybody’s dreamand you should definitely keep these points in mind when looking for properties in the market.3. A must process to go through before purchasing a plotWhen we think about Property Buying in Chennai, the first thing that comes to mind is the reliability of the deal.Everyone wants to make sure that they only get the best Property Deal, so as to ensure that their hard-earnedmoney doesn’t go in vain. Indeed, most of us have worked our lives out, saving the money only to buy a dreamproperty. And when the opportunity comes, you can get deceived of all your savings without having the faintestidea of what exactly happened. In order to avoid such unfortunate situations, we need to go through thefollowing process. 8
  9. 9. Step 1: Research, Research and ResearchDo extensive research on growth corridors of your city. There are many reports/articles available on interneton very high potential growth corridors. After decent amount of research, you could able narrow down fewpockets, which are suitable to your requirements based on your working/living area.Step 2: Identify Potential layouts in the narrowed down areasOnce again thorough research is the mantra. The best option is to stick to reputed promoters. Even thoughreputed promoters might be bit expensive, their adherence to fulfill the promises to safeguard their brands isalways a safe bet. After all, it is a life time investment.Step 3: Visit the layouts personally and see the appreciation value with your eyesNo matter how much research we do on the internet, it may not help us to understand the potentiality of thearea. A physical visit is what all is required. Traveling to nearby places of the layouts will give you the brief ideaof possible returns. Also, direct interaction with the nearby community will give you more insights on theparticular areaStep 4: Show and talk to your family and known circlesBefore making a decision, Show the place to your family members and know circles and take their opinions.The idea is to make as much noise as possible. You will come to know about any misrepresentations if any bydoing this.Step 5: Collect the documents and take a legal opinion from AdvocatesStep 6: Negotiate and make a deal 4. Why to purchase from a reputed promoter?Every Indian wants to be the owner of his or her piece of land or plot. However, it is essential to know about thepromoter of the property. There are number of cases of fraudulent/misrepresentation in Indian real estatetransactions. Just finding the right location or layout is not enough; one needs to be very careful with the sellersince there are numerous ways to cheat the purchaser. It takes a complete background check on theseller/promoter before completing a clear transaction. Following are some of the reasons to purchaseproperty from a reputed promoter.1. Reputed promoters will have an obligation to fulfill the promises committed while selling the property2. Big players spend more time, money and efforts to continuous search for better locations which have brightfuture prospects in terms of living conditions and return on Investments etc3. A small case on a reputed player may end up with huge compensation to the end user. Ultimately resultingin clean and better transaction with the end user4. Reputed promoters spend crores of rupees on brand building. They won’t take the chances of spoiling thebrand equity by providing an ill deal/transaction5. Reputed players will always have better deals while purchasing land parcels. This sometimes helps themto offer a better deal than the small time players 9
  10. 10. 6. Superior amenities and facilities such as club house, roads, maintenance, security, blacktop roads andstreet lights are only possible with reputed players7. Most of the small time layout promoters sell the amenities earmarked plots, which belong to the entireassociation of the layout. This may not be the case with reputed promoters8. Dealing with professionals is always better than dealing with non-professionals. It offers peace of mindwhile going through the transaction processThough it might be a bit expensive proposition dealing with reputed promoters, it offers clean, transparent andhappy transaction. After all, it is a once in lifetime investment.5. Documents to be kept ready before approaching for a loanThe first step to acquiring a property for any salaried person is to apply for a land/home loan. There are somedocuments that the banks or other financial institutions ask for before sanctioning Home Loans. The followingpapers with completely filled Application Form need to be submitted:1. A Photo-Identity ProofŸ Driving licenseŸ PassportŸ PAN CardŸ Ration CardŸ Letter from a recognized Government authority2. Income Proof for Self employed IndividualsŸ Brief description of businessŸ Papers of Tax ReturnsŸ Registration PapersŸ Copies of balance sheets3. Income Proof for Salaried IndividualsŸ Pay slipsŸ Appointment letterŸ Taxation documentsŸ Documents Required While Buying A Home:There are a few papers that you must collect from the seller before signing the deal to buy a property. Thesedocuments ensure that you do not get cheated. Also it is intelligent to get these documents checked byprofessional experts such as advocates or land consultants. The list of the documents includes:1) The Original Property Agreement Document2) Property Title3) DTCP approval copy or CMDA approval4) Site layout copy5) Commencement certificate (issued by the Municipal Corporation of the area)6) Chitta/Patta/AdangalThe best way to complete the paperwork on time is to take assistance of reliable Placement Advisors. There isno dearth of Property Agents that offer assistance to people. However, one should conduct an online searchproperly and rely on a company that has a unique online identity and maximum visibility on internet 10
  11. 11. 6. NRIs guide to buying Property in IndiaIt is a dream for any Indian to buy a piece of land in India. Infact, most of the property investments are by NRI’s.Traditionally, Indians are found of owning a piece of land. Indian laws, over the years, have changed toaccommodate NRI’s aspirations to own a piece of land. The Reserve Bank of India regulates all the propertytransactions and all such transactions also fall under the purview of Foreign Exchange Management Act(FEMA).The definition of NRI according to FEMA is an NRI is a citizen of India who is resident outside India. A non-resident Indian can buy either a residential property or a commercial property in India. Also, An NRI canpurchase any number of residential or commercial properties. But, there is a small restriction that an NRIcannot buy agricultural land, plantation land or a farm house in India. He cannot even acquire such propertyas a gift. One small exception is an NRI can inherit such property.NRI’s can pay for these transactions either by way of funds remitted to India from abroad through regularbanking channels or through the balance in the NRE, NRO or FCNR Account. For such transactions, NRI’sneed not have to take permission from RBI.According to the Indian Income Tax Act, If Any person (resident or NRI) owns more than one house property,only one of them will be deemed as self-occupied. There will be no income tax on a self-occupied property.The other one, whether you rent it out or not, will be deemed to be given on rent. If you have not given thesecond property on rent, you will have to calculate deemed rental income on the second property (based oncertain valuations prescribed by the income tax rules). The same rule applies even if the NRI holds twohouses in two different countries. For example: If an NRI is a resident in USA and lives in his/her own house inUSA and owns a house property in India, he is liable to pay income tax on the deemed rent amount to Incometax department. The deemed rent is determined by certain valuation rules prescribed in the Income Tax Act.Even the inherited property attracts the Income tax on rent received.NRI’s can also access property loans for a buying property in India. According to Reserve Bank guidelines,the NRI can avail loan amount of up to 85% of the transaction. They can repay loans through normal bankingchannels.