The Hindu : Tamil Nadu / Chennai News : Perungudi holds mirror up to reality realty check

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Thursday, Sep 25, 2008
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Tamil Nadu

Tamil Nadu - Chennai

Perungudi holds mirror up to reality realty check

Aloysius Xavier Lopez

Photo: M. Karunakaran

IN GROWTH MODE: Perungudi still has scope for infrastructural development. — .

CHENNAI: Infrastructure development projects have fuelled real estate growth in and around the city. Perungudi is a mirror that reflects realities of rapid development of the city and the constraints ingrained.

M.K.Sundaram, Chairman of the Builders’ Association of India (South Centre), says: “The area has witnessed tremendous growth in the past five years. Land prices are lower than at Adyar. The IT corridor and Tidel Park boost real estate development here.”

Perungudi is a natural extension of Adyar. The region is one of the closest to the city in terms of operational possibility. The improvement in airport connectivity will further improve residential construction in the vicinity, observe builders.

Prakash Chella, President (Tamil Nadu), Confederation of Real Estate Developers’ Associations of India, says: “Toll way is not adequate to handle the increasing traffic. There is still scope for improvement of infrastructure,” he adds.

Many builders agree that this may serve as a catalyst for real estate development, particularly of residential construction projects. The construction of houses for rental accommodation has become a lucrative business in Perungudi. “The rentals had been increasing for the past few years with exponential increase during the last year. The rent for a 750-sqft residential building exceeds Rs. 7000,” says M. Dhananjayan, a broker.

However, the recent stagnation in the sector with rising inflation and high interest rate has hit the business of providing rental accommodation. Some residential buildings built for rental accommodation are unoccupied after the tenants vacated recently. “A residential building that fetched Rs. 7,000 as rent has been unoccupied for six months as tenants are reluctant to pay more than Rs.5,000 now. ,” says M. Rajendran a broker.

The maintenance charges for residential building are also relatively high.“Water is being supplied by private Lorries. This increases the maintenance cost,” says M. Idhrees a resident.

As the area is devoid of a full-fledged drainage network, there is difficulty in sewage disposal. The builders are forced to install individual sewage treatment plants. “This is one of the factors that lead to escalation of the input costs of the construction projects in the region. The proposed sewage treatment plant of CMDA may help,” says Mr. Chella. “The roads in the interior of Perungudi are good. Construction of adequate subways and road-over-bridges is needed,” he says.

Flooding is another problem, say residents

Builders say industrial estates, which have now become defunct, may make land available for development. To cope with more real estate growth, water supply and drainage have to improve, they say. Residents say the improvement of internal roads and social infrastructure is the need of the hour.

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