The Rail Land Development Authority (RLDA) has invited online tenders for leasing out a land parcel at Victoria Crescent, off the arterial Anna Salai, for high-end residential development. The process of developing close to 10 other land parcels of the Railways in Chennai is already underway.
According to RLDA, the site abutting the Cooum river is ideal for residential development. “The Victoria Crescent site is strategically located, surrounded by an eclectic mix of residential, commercial, retail, institutional and entertainment activities. The site enjoys seamless connectivity with metro station, Chennai airport, and Chennai Central Railway station. Adjoining the Cooum river, the site is perfect for a high end residential development,” said Ved Parkash Dudeja, chairman, Rail Land Development Authority.
The site comes under the jurisdiction of Chennai Metropolitan Development Authority (CMDA) and the existing land use of the Victoria Crescent site is primarily residential. The land parcel is approximately 4,300 sq.m in size. The site will be leased out for 99 years for residential development with a reserve price of ₹41 crore for FSI of 1.5. The eligible developer for leasing out the site will be selected through a transparent process . The online pre-bid meeting is on September 9 and last date to apply is September 15.
Mixed response
There has been a mixed response from the real estate consultants. Some feel that not many would prefer purchasing a house on leased land, because after the term is over the property will have to be returned to the Railways. However others feel that considering the locality and long lease period, a good response can be expected.
“Home buyers in general prefer buying a home constructed on free hold land. However, since the tenure of the lease of this land is 99 years, it is bound to find a favorable response from developers of residential properties considering its locational advantages,” said Sanjay Chugh, city head, Anarock Property Consultants Pvt. Ltd.
Meanwhile, sources from the RLDA said the process to develop close to 10 land parcels belonging to Railways in different parts of Chennai including Ayanavaram, Tambaram, Walltax Road and Egmore is already on. The RLDA has also taken up railway colony development in Madurai, Egmore, Erode, Mangalore, Kannur, Nagercoil and Trichy. “Many of them were constructed in 1931,”said a source.
