0CTOBER 2009 CHENNAI A GROWING OPPORTUNITY IN RESIDENTIAL REAL ESTATE

Transcription

1 0CTOBER 2009 CHENNAI A GROWING OPPORTUNITY IN RESIDENTIAL REAL ESTATE 1

2 THE GATEWAY TO SOUTH INDIA... 2

3 3 Chennai, the commercial and cultural capital of South India, has managed to retain its traditional roots while acquiring a cosmopolitan character. This vibrant city has struck a beautiful balance between the modern and the traditional. And the most fascinating aspect of this city is that it continues to grow and expand with the passage of time. In this light, ICICI Property Services bring to you the Chennai Residential Property Report - an in-depth view of what makes the city tick, and the real-estate opportunities that it has to offer.

4 4 Chennai: A Fact File Chennai, formerly known as Madras, is the capital of the Indian state of Tamil Nadu. Popularly known as "Gateway to South India", it is located on the Coromandel Coast of the Bay of Bengal and is spread across sq km. With an estimated population of 7.5 million (4.3 million as per 2001 Census), it's the fourth largest metropolitan city in India and one of the largest metropolitan areas in the world. Although the city has acquired a contemporary and cosmopolitan character, it still has preserved its traditional Tamil roots. It possesses a rich historical heritage that provides an incomprehensible charisma to the city. Chennai is a prosperous abode of fascinating monuments and churches whose origin dates back to the era of Portuguese and British. The Portuguese invaded in the 16th century and were followed by the Dutch, and East India Company. The British were able to establish their undoubted domination in the city and the Fort St. George became the hub around which the British authority developed and expanded. Later, the city was acknowledged as the seat of Madras presidency and today stands as a momentous city of India. In 1997 the city was renamed as Chennai from the earlier 'Madras'. The name change, symbol of the city's identification with its Tamil rather than colonial past, was associated with Chennaipatnam. Tradition suggests that Chennaipatnam was the name for one of the two villages located near the site Francis Day selected for the East India Company factory three hundred and fifty years earlier. The city has embraced both the new and the old with ease and is still growing and has turned into a fast paced but full of life metropolitan city. Accredited to its location, Chennai boasts of a number of tranquilizing beaches, parks and historic landmarks which is a blessing of nature for the tourists as well as the residents. As a relief to the people, these beaches and natural surroundings come to liberate. With a very distinct culture, the people of Chennai have a special interest in music, dance and all other art forms of South India.

5 5 Administrative Framework Chennai, the capital city of Tamil Nadu, is the fourth largest Metropolitan City in India. The Chennai Metropolitan Area (CMA) comprises The city of Chennai 16 Municipalities 20 Town Panchayats 214 Village Panchayats in 10 Panchayat Unions The extent of CMA is 1189 sq. km. The CMA falls in three districts of the Tamil Nadu state viz. Chennai District, part of Thiruvallur District, and part of Kancheepuram District. The extent of the Chennai District (covered in Chennai Municipal Corporation area) is 176 sq. km. and comprises 55 revenue villages in five Taluks [viz. (i) Fort-Tondiarpet Taluk, (ii) Perambur-Purasawalkam Taluk, (iii) Egmore-Nungambakkam Taluk, (iv) Mambalam-Guindy Taluk and (v) Mylapore-Triplicane Taluk]. In Thiruvallur District, out of total district area of 3427 sq. km. 637 sq. km. in Ambattur, Thiruvallur, Ponneri and Poonamallee taluks fall in CMA. In Kancheepuram District, out of 4433 sq. km. 376 sq. km. in Tambaram, Sriperumbudur and Chengalpattu Taluks fall in the Metropolitan area. Population CMA CITY 1. Extent 1189 Sq. Km 176 Sq. Km 2. Population Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs 2011 (Projected) Lakhs Lakhs Source: CMDA

6 6 Infrastructure The city of Chennai is well connected internationally and to other parts of India vide all the modes of transport. There is an International airport in Chennai that connects to other parts of the world and the regions within the country. The airport has separate terminals for International flights (Anna Terminal) and Domestic flights (Kamaraj Terminal). Chennai airport is the main hub for arrivals and departures in south India. It services around 8 million passengers a year, over half of which are flying domestically. Although modernization works have been undertaken in the past a further extensive upgrade is planned to be carried out by Chennai has an excellent suburban train network with four routes: 1. Chennai Central 2. Arakkonam 3. Tambaram- Chennai Beach and 4. Chengalpet. Chennai Central and Egmore are the two train terminuses for long distance trains from other parts of India. Chennai is superbly connected to other parts of India by the 'Golden Quadrilateral' transport project. Metropolitan Transport Corporation (MTC) buses operated and owned by the Tamil Nadu government ply throughout the city. Metro Rail The Government of Tamil Nadu has approved in principle the two initial corridors mentioned as below Corridor Washermenpet to Airport Chennai Central to St. Thomas Mount Total Length km km km Source: The Government of India is also keen on implementing this Project and has approved the Chennai Metro Rail project in January Tentatively, the project is programmed for completion in the financial year

7 7 SEZ Update There are about 29 notified SEZs in Chennai as of July, 2009 spread across 1321 hectares. Most of them are concentrated in Kancheepuram. Majority of the SEZs belong to IT/ITES (62%) as is reflected in the below pie chart, electronics, hardware & related services being the second best (14%). SEZ classification as per Usage Multi-use 3% Electronics Hardware & Related Services 15% Electronics of Telecom hardware & support Services 3% Engineering Sector incl. auto ancillaries 3% Footwear 3% FTWZ 3% Hardware & Software 3% IT/ITES 67% Source: Ministry of Commerce & Industry, Dept. of Commerce

8 8 A detailed list of all the SEZs in Chennai is tabulated as below: Sr. No Name Electronics Corporation of Tamil Nadu ETA Technopark Pvt. Ltd. Location Tambaram Taluk, Kancheepuram District OMR IT/ITES IT/ITES Area (in hectares) Arun Excello Infrastructure Pvt. Ltd. Kancheepuram IT/ITES 11.1 Chennai Business Park Private Limited Manchipuram IT/ITES or BPO 11.8 Cognizant Technology Solutions India Pvt. Ltd. Siruseri & Kazhipattur villages Hexaware Technologies Ltd. OMR, Siruseri IT/ITES 11 J Matadee Eco Parks Pvt. Ltd Sriperumbudur, Kancheepuram District FTWZ 40.6 Jay Gee Hitech Infraventures Pvt Ltd Sriperumbudur Taluk, Kancheepuram District IT/ITeS Type IT/ITES 10.9 DLF Infocity Developers (Chennai) Ltd. Kancheepuram IT/ITES 13.3 Electronics Corporation of Tamil Nadu Kancheepuram IT/ITES Aiyappanthangal, Porur, Estra Park Private Ltd IT/ITES 10.2 Chennai ETL Infrastructure Services Ltd. Tambaram Taluk IT/ITES 10.6 Flextronics Technologies (I) Pvt. Ltd. Sriperumbudur, Kancheepuram Electronics Hardware & Related Services Sriperumbudur Taluk, Foxconn India Developer Pvt. Ltd. IT & Electronics Hardware 10.4 Kancheepuran District M/s. Hacciendaa Infotech & Realtors Private Limited New Chennai Township Pvt. Ltd. Sholonganallur village, Old Mahabalipuram Kancheepuram IT/ITES 26.6 Engineering Sector including auto ancillaries New Chennai Township Pvt. Ltd. Kancheepuram Multi-Services Platinum Holdings Pvt. Ltd. Kancheepuram Hardware & Software 10.6 Shriram Properties & Infrastructure Pvt. Ltd. Perungalathur IT/ITES 10 Tambaram, Taluk, SNP Infrastructure Pvt. Ltd IT/ITES 11.1 Kancheepuram District 125

9 9 21 State Industries Promotion Corporation of Tamil Nadu Sriperumbudur Electronics of Telecom hardware & support services including trading & logistics activities State Industries Promotion Corporation of Tamil Nadu Mancheepuram Electronics Hardware and related support services including trading & logistics operations State Industries Promotion Corporation of Tamil Nadu Syntel International Pvt. Ltd. Kancheepuram Kancheepuram Footwear IT Tata Consultancy Services Ltd. Tril Infopark Ltd Siruseri & Egattur Kanagam Village / Thiruvanmiyur Village, Chennai IT IT/ITES Unitech Infopark Ltd Velankani Technology Parks Pvt. Ltd. Mancheepuram Sriperumbudur Taluk, Kancheepuran District IT/ITES Electronics Hardware & Software & ITES Zillion Estates Pvt.Ltd. Kancheepuram Source: Ministry of Commerce & Industry, Dept. of Commerce IT/ITES 18.6

10 10 Major Locations within Chennai We have classified the real estate space in Chennai into four distinct zones North, South, West & Central. The major locations in each of these zones have been presented below. Madhavaram Korattur Avadi Villivakkam Perambur Tondiarpet Mogappair Nolambur Sriperumbudur Ayanavaram Ambattur Anna Nagar Parry Kilpauk Egmore Alwar Thirunagar Nungambakkam Kodambakkam Porur T. Nagar Valasaravakkam KK Nagar Vadapalani Ashok Nagar Saligramam Alwarpet Mandaveli Manappakkam MRC Nagar Saidapet Raja Annamalai Puram Adyar Adambakkam Bay of Bengal Madipakkam Velachery Urapakkam Tambaram Selaiyur Pallikaranai O ld M a h a ba lipu ra m Roa d Karappakkam Sholinganallur Kelambakkam North Chennai South Chennai Central Chennai West Chennai Note: Map not to scale and is for illustration purposes only

11 11 Retail Space Majority of the malls are in the Central parts of the city. Spencer Plaza on the Mount Road, Central Chennai, is the biggest mall with an area of around 1 million sq. ft. constructed in three phases. Details of all the malls have been tabulated as below: Organised Retail Development Sr. No. Mall Name Site Location Zone Total Area in million sq. ft. (Approx.) Status (as on July 2009) 1 Abirami Mega Mall Purasaiwalkam North 0.15 Operational 2 Ampa Center one Poonamalee High Road Central 0.30 Completed but not operational 3 Chettinad Plaza OMR South 0.30 Completed but not operational 4 City Centre RK Salai, Mylapore Central 0.35 Operational 5 Express Avenue Off Mount Road Central 0.80 Under construction 6 Indi Mall Nanicakam Manipkan Road Central 0.10 Operational 7 Ispahani Centre Nungambakkam High Road Central 0.05 Operational 8 Riverside Mall OMR South 0.75 Under construction 9 Spencer Plaza Mount Road Central 1.00 Operational

12 12 Supply of Residential Units coming up by e 2012 Chennai would see a supply of approximately million sq. ft. of residential space by the year 2012 with nearly two-third of the units concentrated in South Chennai. Also within South Chennai, the 2 BHK and 3 BHK are the most popular segments as they account for over 90% of the overall supply. Average Size Apartment of a flat No. of Total Area Zone Size (in sq. ft.) Units (Million sq. ft.) North 1 BHK BHK BHK Total South 1 BHK BHK BHK BHK BHK Total West 1 BHK BHK BHK Total Central 2 BHK BHK BHK Total Total Supply ready by e 2012 in Chennai

13 13 Distribution of residential supply (no. of residential units) in the pipeline across Chennai Distribution of Residential Supply 23% 2% 11% 64% North South West Central

14 14 North Chennai Major Locations Ayanavaram, Kilpauk, Korathur, Madhavaram, Perambur, Tondiarpet, Villivakkam. At Tondiarpet in North Chennai is located the fishing harbour. The harbour makes up a popular attraction in the north. The region is inhabited by a local population, most of which are employed in the popular industries located here. The eastern boundary of the northern localities is limited by the famous Buckingham Canal. The presence of the second major port here makes it an important trade centre. The northern locality also houses some of the reputed companies like Parryware, Indian Bank and also the Chennai Port Trust, etc. Commercial supply of approximately 3 million sq. ft. is expected by end of 2010 which translates to over twenty seven thousand new employment opportunities. Prince Foundations, Vijayshanthi, EMAAR MGF are some of the prominent developers in this region. EMAAR MGF has its ongoing project 'Esplanade' at Tondiarpet, which plans to house over 450 units. Residential ket in North Chennai Saleable Area (sq. ft.) Average Apartment Size of 2 BHK (in sq. ft.) 1039 Average Apartment Size of 3 BHK (in sq. ft.) 1433 Total supply (in mn. sq. ft.) by Total supply (in no. of units) by

15 15 Distribution of Apartment Type in North Chennai Distribution of Apartment Type: North Chennai 3% 44% 53% 1 BHK 2 BHK 3 BHK Some of the Residential Projects in North Chennai Project Esplanade 4.8 million EMAAR MGF 256 Aug 2010 Phase 1 onwards Prince Prince 1.75 million Village Foundations onwards The Ozone Group 9.5 million Metrozone onwards 1600 Dec 2011 TVH Lumbini True Value 8.2 million Square Home onwards Sunny Vale Developer Capital Values (Rs.) for 2BHK as in Sep 2009 No. of Units Date of Completion 435 Ready Chaitanya 4.5 million onwards

16 16 Residential Property Rates in prime residential markets of North Chennai Location Average Capital Values (Rs./sq. ft.) Rentals for 2 BHK (Rs. / month) Property Price Movement Index (ch e 2009) Outlook Purusuwakkam S Annanagar S Aynavaram S Ambattur SW *Rates mentioned are based on Built-up area & are subject to amenities, upkeep & may vary from apartment to apartment within the same building. Outlook Key: R - Rising F - Falling S - Stagnant SW - Stagnant but likely to weaken SS - Stagnant but likely to strengthen North Chennai Sept Dec Sept Dec Annanagar Kilpauk Perumbur Ambattur Tondiarpet Avadi Source: ICICI Mortgage Valuation Group (Assuming 100 as a base reference no. for ch -2005)

17 17 Comparison of actual (A) and real & logical (R&L) price movement The real & logical (R&L) price is considered to move in line with the consumer price index. Below chart brings out a comparison between quarterly property price movements and changes in consumer price index for North Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation figures for each zone. North Chennai Sept Dec Sept Dec North (A) North (R&L) As the above graph indicates, the property prices in North Chennai have been increasing more than proportionately as compared to the consumer price index, and till recently, the trend seems to continue.

18 18 South Chennai Major Locations Adambakkam, Chromepet, Madipakkam, Medavakkam, Nanmangalam, Padur - Kelambakkam - Karapakkam - Sholinganallur - Semmencherry on Old Mahabalipuram (OMR), Selaiyur, Tambaram, Urapakkam, Velachery. ` South Chennai features many popular attractions including some of the famous pilgrim sites in the city. The region also houses certain historical landmarks, which often forms tourists' hotspots. At Meenambakkam is grounded the Chennai Airport. The airport features both national and international terminals. Southern Railways provide railway services and a vast network of roads hooks up the place. Some of the important tourist spots located in the southern suburbs are Elliot's Beach, Guindy Park, Theosophical Society, Sivan Park, Periyar Science and Technology Centre, Kapaleeswarar Temple, Karaneeswarar Temple, Soundareswarar Temple, undeeswarar Temple, Santhome Basilica, etc. The region hosts a number of residential places and commercial centres. Grand Southern Trunk Road or GST road offers one of the best transportation infrastructure in Chennai in terms of connectivity as it is well connected by road, rail and air; which is the core factor for the emergence of this new corridor. The GST stretch has witnessed good industrial and commercial development and has emerged as the SEZ corridor of Chennai and includes the Mahindra World City, a public private initiative, which houses IT giants like Infosys, Wipro and leading auto companies like BMW, Renault. The Shriram Group is setting up around 5 million sq. ft. of IT park - The Gateway within a SEZ on the GST road near Tambaram. OMR is also termed as the IT corridor of Chennai. IT majors like Infosys, Wipro, TCS, Cognizant, 3i Infotech, HCL, Polaris have their offices located here. Commercial supply of approximately 16 million sq. ft. is expected by end of 2010 which translates close to 0.15 million new employment opportunities. Key developers like Purvankara, HIRCO, DLF, India Bulls, L&T, Mantri, etc have a presence in this region.

19 19 Residential ket in South Chennai Average Apartment Size of 1 BHK 617 Saleable Area (Sq. ft.) Average Apartment Size of 2 BHK 1017 Average Apartment Size of 3 BHK 1117 Total Supply (in mn. sq. ft.) by Total Supply (in no. of units) by Distribution of Apartment Type in South Chennai Distribution of Apartment Type: South Chennai 1% 2% 5% 38% 54% 1 BHK 2 BHK 3 BHK 4 BHK 5 BHK

20 20 Some of the Residential Projects in South Chennai Building Developer Capital Values for 2BHK as in Sep 2009 Units available Project completion Metro Polis Akshaya Homes 3.6 million onwards Belvedere Akshaya Homes 3.3 million onwards 260 Dec-2011 Garden City DLF 3.2 million onwards 3493 Jul-2011 Etopia I Doshi Housing 3.9 million onwards 155 Oct-2009 Doshi Nakshtra - I Doshi Housing 3.3 million onwards 125 Dec-2010 Eden Park L&T 4.8 million onwards* 650 Dec-2010 Ouranya Bay True Value Homes 3 million onwards 1044 Sep-2011 Upscale Hiranandani 8.5 million onwards 1080 Aug-2010 Palace Garden HIRCO 4.7 million onwards Greens India Bulls 2.7 million onwards 1134 Jul-2011 Swan Lake Purvankara Builders 3.2 million onwards 609 Sep-2010 Synergy Mantri Builders 2.32 million onwards Bollineni Hillside BSCPL 3.08 million onwards Cosmo City Provident Housing 1.69 million onwards 2174 Jul-2011 Unihomes Unitech 1.3 million onwards 1040 Sep-2011 Merryland Navin's 4.33 million onwards 70 Oct-2009 Serenity Sabari reality 1.1 million onwards 936 Apr-2011 Lotus Pond Vijayshanthi 1.1 million onwards 400 Jan-2012 Adena Akshya 1.7 million onwards 199 Oct-2011 Gold City Dugar MME 1.01 million onwards 400 Sep-2011 * Capital Values mentioned for a 3 BHK

21 21 Residential Property Rates in prime residential markets of South Chennai Location Average Capital Values (Rs./sq. ft.) Rentals for 2 BHK (Rs. / month) Outlook Velachery S Sholinganallur SW Pallikarnai SS Madipakkam S Padur F Kelambakkam F Tambaram SW *Rates mentioned are based on Built-up area & are subject to amenities, upkeep & may vary from apartment to apartment within the same building. Outlook Key: R - Rising F - Falling S - Stagnant SW - Stagnant but likely to weaken SS - Stagnant but likely to strengthen Property Price Movement Index (ch 2005 e 2009) South Chennai Sept Dec Sept Dec 2009 Source: ICICI Mortgage Valuation Group (Assuming 100 as a base reference no. for ch 2005) 2009 Velachari Pallikarnai OMR Tambaram Medavakkam

22 22 Comparison of actual (A) and real & logical (R&L) price movement The real & logical (R&L) price is considered to move in line with the consumer price index. Below chart brings out a comparison between quarterly property price movements and changes in consumer price index for South Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation figures for each zone. South Chennai Sept Dec Sept Dec South (A) South (R&L) Over the years, there has been a widening disparity with respect to the pace at which property prices have increased in South Chennai as compared to the consumer price index. This gap has reduced to a certain extent in the last few quarters, due to softening of property prices.

23 23 West Chennai Major Locations Ambattur, Aminjikarai, Annanagar, Avadi, Saligramam, Sriperumbudur, Vadapalani. KK Nagar, Manapakkam, Mogappair, Nolambur, Porur, The western areas are less congested compared to other regions. The localities provide some of the best apartments and residential quarters in the city. West Chennai features a number of planned townships. Localities like Anna Nagar consist of regular planned blocks of residential places. The Ambattur region, which forms an extension of the city, comprises one of the leading industrial estates in the city and at large. The region is amply provided with hotels, hospitals, schools, banks and other commercial enterprises. The Vadapalani Temple, grounded at Vadapalani region, is a popular place of worship in West Chennai. Commercial supply of approximately 11.4 million sq. ft. is expected by end of 2010 which translates to over 1 lac new employment opportunities. ETA Star Property Developers has their on-going project "Jasmine Court" with over 200 units in Kattupakkam while Jain Housing are developing Nakshatra" which has over 550 units in Nolambur. Residential ket in West Chennai Saleable Area (sq. ft.) Average Apartment Size of 2 BHK 1047 Average Apartment Size of 3 BHK 1369 Total Supply (in mn. sq. ft.) by Total Supply (in no. of units) by

24 24 Distribution of Apartment Type in West Chennai Distribution of Apartment Type: West Chennai 28% 6% 66% 1 BHK 2 BHK 3 BHK Some of the Residential Projects in West Chennai Project Alliance Bouganvilla Alliance 6.5 million onwards 300 Dec 2010 Prince Residenzia 1.87 million onwards 294 Dec 2010 Foundations Minerva VGN 3.81 million onwards 572 Dec 2010 Infinity Vijayshanthi 1.6 million onwards 588 Dec 2011 Subha Mangala Navins 4.2 million onwards 62 Completed Developer Capital Values (Rs.) for 2BHK as in Sep 2009 No. of Units Date of Completion

25 25 Residential Property Rates in prime residential markets of West Chennai Location Average Capital Values (Rs./sq. ft.) Rentals for 2 BHK (Rs. / month) *Rates mentioned are based on Built-up area & are subject to amenities, upkeep & may vary from apartment to apartment within the same building. Outlook Key: R - Rising F - Falling S - Stagnant SW - Stagnant but likely to weaken SS - Stagnant but likely to strengthen Property Price Movement Index (ch 2005-e 2009) Outlook Aiyyapanthangal S Valsaravakkam S Mogappair SS Porur SW Saligramam S West Chennai Sept Dec Sept Dec Aiyyapanthangal Mogappair Ramapuram Vadapalani Nolambur Vanagaram Sriperumbudur Porur Saligramam Source: ICICI Mortgage Valuation Group (Assuming 100 as a base reference no. for ch 2005)

26 26 Comparison of actual (A) and real & logical (R&L) price movement The real & logical (R&L) price is considered to move in line with the consumer price index. Below chart brings out a comparison between quarterly property price movements and changes in consumer price index for West Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation figures for each zone. West Chennai Sept Dec Sept Dec West (A) West (R&L) In West Chennai too, there exists a wide disparity between the property prices and the consumer price index, as is seen from the above chart.

27 27 Central Chennai Major Locations Adyar, Alwarpet, Egmore, Kodambakkam, Mahalingapuram, Mandaveli, Nungambakkam, Parrys, T Nagar. Central Chennai is a major commercial hub in the city. The region as such is replete with business enterprises, and includes presence of corporates like CRISIL, Indian Oil etc. This region also houses a number of tourist attractions in the form of monuments and buildings established by the East India Company. The central region of Chennai city comprises suburbs like George Town, Egmore, Triplicane, Nungambakkam and Royapetah. The localities feature some of the best hospitals, educational institutes, foreign banks and shopping arcades. Also present are some popular tourist attractions like Fort St. George Complex, Government Museum, Parthasarathy Temple, Aamir Mahal, Big Mosque, etc Commercial supply of approximately 0.94 million sq. ft. is expected by end of 2010 which translates to over eight thousand five hundred new employment opportunities. True Value Homes and Chaitanya are amongst the prominent developers in this zone. True Value Homes is developing an over 400 units project in Purasawakkam while Chaitanya is associated with "Sunny Vale" in Ayanavaram. Residential ket in Central Chennai Saleable Area (sq. ft.) Average Apartment Size of 2 BHK 1094 Average Apartment Size of 3 BHK 1652 Average Apartment Size of 4 BHK 2000 Total Supply (in mn. Sq.ft.) by Total Supply (in no. of units) by

28 28 Distribution of Apartment Type in Central Chennai Distribution of Apartment Type: Central Chennai 2% 34% 64% 2 BHK 3 BHK 4 BHK Some of the Residential Projects in Central Chennai Project Vrudhi KGYES 12.7 million onwards 27 Oct-2010 Rani Meyammai Chettinad 18.0 million Towers Housing onwards Dayton Heights Navins 11.7 million onwards* 88 Dec-2009 Doshi Housing LLANSTEPHAN 18.0 million onwards 29 Ready * capital value mentioned for a 3 BHK Developer Capital Values (Rs.) for 2BHK as in Sep 2009 No. of Units Date of Completion 250 Ready

29 29 Residential Property Rates in prime residential markets of Central Chennai Location Average Capital Rentals for 2 BHK Values (Rs. / sq. ft.) (Rs. / month) Outlook Adyar S T. Nagar S MRC Nagar S Mandaveli S Egmore S Alwarpet S R. A. Puram S Nungambakkam S *Rates mentioned are based on Built-up area & are subject to amenities, upkeep & may vary from apartment to apartment within the same building. Outlook Key: R - Rising F - Falling S - Stagnant SW - Stagnant but likely to weaken SS - Stagnant but likely to strengthen Property Price Movement Index (ch e 2009) 400 Central Chennai Sept Dec Sept Dec Adyar Saidapet MRC Nagar Mahalingapuram Kodambakkam Mandaveli Egmore Alwarpet R.A.Puram Nungambakkam T Nagar Source: ICICI Mortgage Valuation Group (Assuming 100 as a base reference no. for ch 2005)

30 30 Comparison of actual (A) and real & logical (R&L) price movement The real & logical (R&L) price is considered to move in line with the consumer price index. Below chart brings out a comparison between quarterly property price movements and changes in consumer price index for Central Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation figures for each zone. Central Chennai Sept Dec Sept Dec Central (A) Central (R&L) The property prices in Central Chennai have constantly increased at a pace higher than that of the consumer price index as reflected in the above chart.

31 31 Chennai Residential Real Estate Absorption Index Chennai Residential Real Estate: Absorption Index Apr-08 May Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb Apr-09 The residential transactions in Chennai declined during second and third quarter of -09 due to the overall slowdown effect, however the last quarter (Jan 09-09) has seen a spurt in the transactions, assisting the absorption index to attain levels as were at the start of the year.

32 32 Location Attractiveness Index We have short-listed below six prime locations in Chennai and critically examined them on various parameters like infrastructure, residential costs in the region, future employment prospects, etc. as detailed in the matrix below. OMR besides Mogappair appears to be scoring above other locations due to the reasonable residential costs coupled with proximity to commercial development and future infrastructure prospects. Infrastructure (connectivity, roads, proximity to markets, schools) Velachery GST Porur ( Mount- Poonamallee) Mogappair- Ambattur belt OMR Sriperumbudur Residential Cost Proximity to/presence of organised retail Proximity to Commercial Development Future Infrastructure Development Future Employment Generation Good / Low Cost Above Average Average / Medium Cost Below Average Bad / High Cost

33 33 About Research & Consultancy ICICI Property Services is a division of ICICI Home Finance Company Limited, a 100% subsidiary of ICICI Bank. ICICI PSG provides real estate solutions to home seekers, corporate investors, space occupiers and developers /landlords. ICICI Property Services addresses the entire bandwidth of a real estate deal from concept to conclusion. Research & Consultancy (R&C), a specialised group within ICICI PSG, offers both real estate advisory and consumer demographic analysis backed by both primary & secondary research. The following chart explains in brief the various services offered by R&C. Feasibility Studies Asset Advisory Strategic Advisory ket Research Location Analysis ket Analysis Size, Pricing, Phasing and Positioning (Space Programming & Demarcation for Optimum Utilisation of space) Financial Analysis Optimum Land Use Analysis Site Analysis & SWOT Catchment Analysis Trade & Tenant Mix Land Valuation Entry Strategy Pricing Strategy City and Region Prioritisation and Expansion Strategy Supply Estimation Demand Projections Expected Absorption Trends Demographic Analysis Consumer Trends Consumer Behaviour Analysis

34 34 DISCLAIMER This document is being communicated to you solely for the purposes of providing our views on current market trends. This document is being communicated to you on a confidential basis and does not carry any right of publication or disclosure to any third party. By accepting delivery of this document each recipient undertakes not to reproduce or distribute this presentation in whole or in part, nor to disclose any of its contents (except to its professional advisers) without the prior written consent of ICICI HFC Ltd., who the recipient agrees has the benefit of this undertaking. The recipient and its professional advisers will keep permanently confidential information contained herein and not already in the public domain. This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. The use of any information set out in this document is entirely at the recipient's own risk. The information set out in this document has been prepared by ICICI HFC Ltd. based upon projections which have been determined in good faith by ICICI HFC Ltd. There can be no assurance that such projections will prove to be accurate. ICICI HFC Ltd. does not accept any responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on anything set out in this document. The information in this document reflects prevailing conditions and our views as of this date, all of which are subject to change. In preparing this document we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise reviewed by us. Past performance cannot be a guide to future performance. No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. For further enquiries please mail us at: propertyservices@icicihfc.com or for more on our research reports & periodicals, please log on to

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