The Hindu : Tamil Nadu / Chennai News : Enquiries for affordable independent houses up

Online edition of India's National Newspaper
Saturday, May 23, 2009
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu - Chennai

Enquiries for affordable independent houses up

Aloysius Xavier Lopez

CHENNAI: With enquiries from prospective buyers of affordable independent houses on the rise in recent weeks, several builders are keen on tapping the potential of this segment of the market.

Managing Director of Flash Builders M.R.Raviraj said he would launch a low-cost project of independent houses in Poonamallee soon. “It will be priced around 20 lakh each,” he said. He had completed independent houses in Pallikaranai a few months ago. “As my project was exempt from income tax under Section 80IB, I was able make profits,” he said. However the projects under the scheme were required to get approval before 2007 and the housing units had to be completed by 2010, he said.

Builders such as Mr.Raviraj are waiting for the 2009-10 budget for possible incentives for reviving the realty market so that they are able to make their projects affordable. The reason behind builders planning for marketing of independent houses is the change in the perception of buyers. “Buyers perceive relatively high risk in opting for apartments of big residential projects. Some customers are concerned about the viability of the big residential projects in this market condition,” said M.R.Nazeer, Secretary of Chennai Real Estate Agents Association.

The financial problems faced by a few big players of the industry in marketing apartments are a cause of concern for customers, say real estate agents. Although customers know that buying apartments in big projects has advantages including affordability, better facilities, safety and security, the present condition has forced some of those customers to think of independent houses, says M.K.Sundaram, Managing Director of Chozha Foundations.

The percentage of enquiries on independent houses has increased from less than 30 to around 50, said S.K.Damodar, Deputy Manager-Marketing, Ramky Wavoo Developers. Medavakkam, Iyyappanthangal, Kelambakkam, Madipakkam, Pallikaranai, Selaiyur, Neelangarai, Avadi, Ambattur and Tambaram are some of the localities where builders have been marketing independent houses. They have also been marketing independent houses in areas with road width less than 30 feet as the price of land is lesser, said Mr.Sundaram.

“The decision of customers on buying apartments or independent houses depends normally on the psychology and financial capability of people. Now external factors such as market condition have started to have more influence,” said Mr.Nazeer.

The uncertainty in the housing market has made customers worry about the possible delay in possession of the apartment because of market forces.

Customers believe possession of independent houses would be easier because of the lesser impact of market forces, said Mr.Damodar. The price of independent houses ranges from Rs.40 lakh to several crore rupees, he said.

Many builders had been able to market independent houses effectively but the safety and security aspect has been a matter of concern, said Abdur Ravoof, President of Chennai Real Estate Agents Association.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu