Chennai is a nice city and I have always had a good experience here, says Vijay Choraria, Managing Director, Sharyans Resources . He has also launched a few residential projects in Chennai under the brand ‘Crest’, including a mini-township as part of a mixed-use development linked to Phoenix Market City, a million-square-feet mall in Velachery, which opened earlier this year. Earning buyers’ trust and delivering on promises is key to sustained growth irrespective of market conditions. Establishing a brand with such attributes is important, says the developer, who is planning a luxury residential project in the heart of the city. The market environment is tough but with an established brand and track record, quality projects in the city will manage, he says.

You are set to launch a premium luxury project in the heart of Chennai in Nungambakkam at a time when the market is slow. Is that a concern for you?

If you really go into the central part of the city there are not too many large players… though a few are on the verge of announcing projects. Nobody has offered something great to the city. We are coming in with the One Crest brand. If you see what we have to offer to people, it is really substantial. Costing will be good and will be matched with quality. We are not selling based on a paper plan or a brochure. Seeing is believing.

Look at the Velachery mixed-use project. We have been selling steadily… Phase 1 is sold out and Phase 2 sales have started. Project pricing will depend on the location and the market. We cannot be too far off the range... plus or minus 10 per cent.

At what stage is this project? It has been in the pipeline for some time.

The Nungambakkam project is in the final stage of clearance. The Government Order has been issued. The final clearances are expected soon.

How do you look at the market condition now?

It is a challenging market. Costs are on the increase and incomes are dropping. Developers too are facing a challenging environment with interest costs going up, inputs costlier, project clearances in most cities delayed and adding to the cost. Under the circumstance investors are holding on to surplus funds. Developers have to catch the first-time home buyers.

Under the circumstance, how do you offer value?

Sure, the Nungambakkam project will be more expensive but like I said it has to be in the general range of what is on offer in the neighbourhood. Companies have to offer quality and stay true to their products. Deliver more than promised. That’s how we have sold more than a 100 apartments in the Velachery project. Have you seen any advertisements? But we have been steadily selling. We have to sell to actual users, not to investors. The end users have to come in and make money. That is why we directly deal with buyers and do not allow bulk bookings.

Our partner in the Nungambakkam residential project is Kalpataru, an established brand in Mumbai. Companies offer an assurance that draws people as brands mean it is not a one-off relationship with the buyer but something that sustains in the long run.

The Crest brand has residential projects coming up in Egmore and Valmiki Nagar. Soon we will have substantial footage in Chennai.

How is the mall project coming along?

Phoenix Market City Mall has leased out over 85 per cent of its space. The mall is positioning itself on a distinct platform — as a cultural hub more than a shopping destination — to attract footfalls. Whether in its food court or a 25,000 sq. ft fitness centre, there are a lot of features that are first-in-Chennai. But the slow market situation is having an impact. The lease rates are modelled on revenue sharing and this is yet to kick in. This can take time, retailers need to do well.

Related Topics
comment COMMENT NOW