Personal Finance

Crisil upbeat on South

OUR CHENNAI BUREAU | Updated on February 26, 2011

Mr G.R.K. Reddy (right), Chairman and Managing Director, Marg Ltd, with Mr Oscar Braganza, Executive Director. — Photo: Bijoy Ghosh   -  Business Line

The residential real estate market in South India is expected to register strong growth in 2011 due to the strong macro-economic environment, backed by improvement in the information technology (IT) sector, and continued economic growth in the region. Also, industry response to customer requirements, such as reduction in flat size, and moderation in price increases by developers are expected to have a positive impact.

Credit rating agency Crisil believes that developers in South India are well ahead of the rest of the country in key aspects such as governance standards and institutionalisation. Thrust on transparency, coupled with the customer support by developers, has helped consumer confidence.

The release quoting Mr Akash Deep Jyoti, Head – Crisil Ratings, says, “Crisil Real Estate Star Ratings (Crest Ratings) has found special favour among developers from South India. Leading developers have indicated that they intend to get a Crest Rating for all their projects.

Crisil introduced a city-specific 8-point scale - Crest- to gauge the quality of real estate projects in a city. The rating launched in 2010 helps buyers make informed purchase decisions in the sector, which needs greater transparency. Pwith More than half the 35 project rated by Crisil are from the southern States. Over half of the couple of dozen ratings in the pipeline are of projects in the South, the release said.

Customers in South India attach significant importance to transparency in practices followed by developers, especially in relation to documentation and construction quality.

Metropolis Tower in Amritsar

Metropolis Landholdings and Expertise India Infrastructure will invest Rs 30 crore in Metropolis Tower, a residential and commercial project in Amritsar.According to a press release from Metropolis Landholdings, the proposed modernisation of Amritsar by the State Government will open up investment opportunities. “Metropolis Tower will be a lucrative investment as the State government is planning to infuse Rs 3,150 crore to modernise the city and to open free trade zone ,'' said Mr Rajan Gill, Managing Director, Metropolis.

The project comprising 55 apartments and a mall will be ready in the 24 months. The apartments are of 1, 2 and 3 BHK units , at Rs 4,500 a sq ft and the commercial area will cost Rs 8,500/ sq ft. The company has sold 28 apartments. He said the company had acquired land for the project and full-fledged construction will begin in another 15 days. The company will soon come up with a 200-room five star hotel Radisson Amritsar and also has plans to launch the second phase of Metropolis Tower.

Marg's home retailing initiative

MARG ProperTies, the residential arm of MARG Ltd, launched “MARG ProperTies Shoppe,” a concept retail store showcasing real estate projects. The outlet in Chennai equipped with experiential zones, AV rooms, discussion rooms, touch screen kiosk and exclusive customer lounge will offer easy access to Marg's real estate project range. MARG ProperTies is also planning to launch more retail stores in Chennai in the near future. Mr G.R.K. Reddy, Chairman and Managing Director, Marg Ltd said, “MARG ProperTies Shoppe, first of its kind retail shop in the real estate category will be not just be a one stop solution for all customers but also serve them as a education and counselling centre by sharing updated industry knowledge for a more informed investment decision based on the land cost, city values and movement and asset appreciation. The release quoting Mr S. Ramakrishnan, CEO, MARG ProperTies, said, “Since we have homes for all the categories ranging from Affordable homes, Urban Smart homes, Integrated Townships and Ultra Luxury homes, the customers can pick and choose the home best suited to their requirements through a unique buying experience. This is first of the retail shops to be launched and we are planning to launch few more in the near future to get closer to the customer”

Published on February 26, 2011

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