Current Sq Ft rates at chennai

Originally Posted by MeenLoch

Shanthi,
You are getting company here . Thanks to you, it hit 100. Looks like it's moving fast to 200. And google search gives this thread as first result. ..Popular ladies of IL ..

Welcome Beena and Beena64. I am enjoying reading your posts in this thread. Keep it up.

IT/ITES is witnessing a downward trend. Wondering how will they maintain their competitiveness. Lot of money flow in dependent and other sectors though.

Vidya,

Thank you. Yes i think this will reach 200 soon...yes i am aware that google gives this thread as a first result....and it increases the responsibility more...

Yes IT/ITES sector is witnessing south bound trend..i figure the companies which have a spread out into far east and middle east along with exposures into india and us can still come out of it better than the ones that have exposure only in the us.

Again Obama has been sending feelers of stopping outsourcing...so that could again be a problem..

But with the fed rate cut, I feel the inflow into india will be more...and it could be in investments...with the market volatile, it could be into gold and RE..but gold has reached a all time high....

Dear Shanvi,
Thank you for your reply. Nice to know that we are not arguing!
One important correction in your observation..I am NOT asking any body to follow politicians or their intentions. When I say behaviour of the Government I am only meaning the actual infrastructure related work which the government bodies are allowing to be carried out in the locations under discussion.
For example do you know the parallel bridge for the existing Guindy fly over? This bridge has been under construction for the past 7 years if my memory serves me right. Now the size and scope of this bridge does not need 7 years surely for construction?
Suppose we compare the location where this bridge is and another location like the location of Kathipara Grade separator, which is near by .Don’t you think that a buyer who chooses a home in a location served by Kathipara Grade separator is better off, in terms of appreciation of his property? This is what I meant. See… I have not referred to any political developments at all.
One another thing.. I have not said developers influence locations! In fact I meant the exact opposite!!
Let me reproduce a line from my previous post:
``I was trying to tell that we should look at the way the infrastructure is developing…the behaviour of the Government in development, rather than media hype or developer hype…’’
Hope you see my point? To put the whole thing in sequence;
• Government announces a major infrastructure development.
• Media publicises it. Forums discuss it.
• Investors, developers end users and traders flock to the location and make big investments
• Government announces another infrastructure development in another location.
• It does not promote the first infrastructure development, but the second one.
• But people still are enamoured by the first development because developers and others in their self interest are talking about the first location only.
My suggestion is that we observe the speed of development and Government thrust for both locations and follow the one which is developing faster.( Please note that by Government thrust I mean the activities surrounding the development site, news coverage, the kind of activities which other related departments of the government carry out, like completion of land acquisition, survey, appointment of top officials etc…and not political posing). It follows that some times it is better if we wait a little and then decide the trend flow.
And yes we can discuss locations one by one... do you think we need separate threads?

Beena

beena

Understood what you want to convey. but the usual trend is people are driven by the trend..that is set by certain people....

Yes the guindy flyover is going on and on...I still dont believe the butterfly is going to be over by dec 2008 as said..i am just hoping...

It always happens..only a certain sides gets all the benefit of the development.

]When I say behaviour of the Government I am only meaning the actual infrastructure related work which the government bodies are allowing to be carried out in the locations under discussion.
For example do you know the parallel bridge for the existing Guindy fly over? This bridge has been under construction for the past 7 years if my memory serves me right. Now the size and scope of this bridge does not need 7 years surely for construction?
Suppose we compare the location where this bridge is and another location like the location of Kathipara Grade separator, which is near by .Don’t you think that a buyer who chooses a home in a location served by Kathipara Grade separator is better off, in terms of appreciation of his property? This is what I meant. See… I have not referred to any political developments at all

Though you don't mean the political development or involvement the whole development trend and the infrastructure development everything is done based on the political trend only.and government bureaucracy and lethargy....that is one thing that leaves a bad taste in your mouth.

I have seen it happening in places everywhere..

For example, if you are aware of the Thillai Ganga Nagar Subway that links nanganallur into gst beside hotel meena was started almost 10 years back...and only now the govt..and the parties concerned came to a agreement..

the medavakkam high road widening by the highways is going on for the past 4 years..with too many hiccups of stayorders taken by all private parties..

The same way in poonamalle also...

I agree with you on your points on govt projects, media hype, and govt. speed..

I am still not convinced about the speed of development...I feel are we going down the bangalore way....

Dear Vidya,
Your question is a difficult one. I hope you are not asking about how global IT Companies are looking at recession?

I have put forth some of my ( incomplete) understandings of how Indian IT Companies possibly will attempt to maintain their competitiveness in times of downturn. In this post I am only looking at Software development companies not KPOs and BPOs.
There is no denying the fact that there is a recession or a downturn or tough times around the corner in the US which will have an impact on the software business.
In fact, the challenges of the recession may actually benefit the smarter companies who are prepared to view it as an opportunity and not as a problem.
We may look at the down trend with respect to three kinds of IT & ITES Companies:
Software Development Companies:
Spiraling costs, shortage of qualified professionals, Improvement in Quality, and reduction or delay in IT spending by Fortune 500 companies in the US should obviously be their concerns. These reasons also will bring down their competitiveness if not attended to.
Spiraling Costs:
Because of the downtrend, cost cutting could happen across the board. They may start reducing their head count of non productive employees. Salary hikes could be pared and will be far more performance oriented. They may look at streamlining operations across locations- releasing expensive real estate wherever possible.
Big companies like TCS, Infosys, Wipro, Cognizant and Satyam have been migrating work and building capacities outside of India for quite some time now. Other markets like Singapore and Malaysia which demand lesser corporate taxes (it is 18% in Singapore compared to 33% in India) will start attracting more soft ware companies from India.
For example, Malaysia has special tax free zones with more attractive benefits and surely some companies would want to take advantage of such benefits.
Shortage of Qualified professionals:
All software development companies seem to face this problem. They need more and more qualified professional now more than ever because they will be attempting to move up the value chain of services and products offered. The companies do not seem to have a choice here. Unless they move up the chain, they will not survive. Companies like Infosys and TCS are already moving up. The truth is that most of our software companies are providing high quality but low end work.
So qualified professionals will be offered better salaries and perks, despite the down trend. At the same time low end workers and non productive workers will get weeded out.
Also the software industry may actively collaborate with Educational Institutions, both technical and management as the way forward, as research could well be the key to future competitiveness.
More and more companies are realising that looking at a client`s business holistically is what is going to lead to better output. So possibly we could see more and more Management graduates getting wooed rather than Engineers..At present the industry is full of technically qualified people.
Improvement in Quality
It may be astounding but there are a number of quality problems in the industry. When the markets were good all this was fine. The moment we have a downtrend then these quality problems will start bugging. Clients will become more demanding.
Look at what a TCS white paper says:`
``For a number of reasons,
Business-critical software and services projects-whether done in-house or outsourced-fail far too often. They take too long. They cost too much. They are riddled with defects and dont accomplish the business goals for which they were designed.
An August 2007 study by Dynamic Markets Limited of 800 IT managers across eight countries found:
· 62 percent of organizations experienced IT projects that failed to meet their schedules
• 49 percent suffered budget overruns
• 47 percent had higher-than-expected maintenance costs, and
• 41 percent failed to deliver the expected business value and ROI.
So more and more attempts will be made to
· understand a customers business,
· the nature of that customers business challenges,
· the customers technology infrastructure,
· identify and implement global best practices
· deliver the desired business outcome on time,
· do it within budget or with a lesser budget and
· produce project results with acceptable quality.
Here again the role of Management graduates than technical people, will be more critical.
Maintaining Quality Advantages:
Companies like Infosys have built up good strength in Customised Software development. This is also because 30 to 40% revenues come from 15 to 20 clients. All attempts will be made to holding on to their turfs here.
Re-engineering is another area which our companies have been concentrating on. This is nothing but continuously upgrading the original soft ware solution to meet changes in the customer`s business or technology or the market place.
Our companies are also known for their after sales support- In software language they call it Maintenance.
To maintain competitiveness, we can expect the Industry to hold on to these strengths and at the same time improve on the quality bottle necks discussed earlier.
Thrust on Innovation:
For a long time, our software companies have been doing little apart from writing code and working at the lower end of the value chain. So the business has not seen much innovation in terms of product development over the years.
With the down trend on, our large IT Companies
Which have reached critical mass,
Which have built up cash reserves,
Which have become experts in certain domains by repeatedly serving clients again and again in the same domains,
Will start looking at Product development also along with services development. While the global market for software products is $180 billion, India`s share is only $360 million, just 0.2%.With our penchant for economical production and with a global recession, what better timing is possible for our IT Companies than now, to look at product development?
Industry experts say that
``Niche applications and new platforms are the best places to look for new software products and service opportunities
At present, our companies are providing solutions requested by the client. To increase their competitiveness, they may graduate to the next level of analyzing the problem-domain itself, and come up with novel solutions and products that will solve the clients problems in a cost-effective manner.
In other words, if a home maker wants a software solution to integrate the various gadgets in the kitchen, the software developer will also look at how the kitchen could be better designed or how the gadgets could be better positioned so that the solution she offers will be best suited to improve the client`s business.
Focused R&D
Normally in any down trend two business functions get short changed. Marketing and Research& Development budgets get slashed.
But I think this time round we will see more thrust in R&D.
Experts say, ``We can expect the think tanks of larger IT Companies to brain storm afresh, establish their overall strategic directions during the down trend ( to maintain competitiveness) and make attempts to bring engineering, science and management education, research and venture funding together.

For example some cutting edge products were developed in the wireless domain and some of its services have already been implemented by cellular service providers.
Changing Perceptions
We can also expect to see some change in the branding efforts of our Companies. To be recognized as companies capable of producing global software Products (not services alone) they may position themselves in a different manner. Also more attempts will be made to address the issues of CEOs of client companies rather than their EDP Heads or COOs or CIOs.
Effect on The Real Estate Scenario
Broadly, the Soft ware companies will try to consolidate and stream line their offices. Expensive real estate rentals will be pruned. Some of the top end companies will shift offices to other global locations. Since most markets are going to have increased supply of commercial office space, office rentals could come down.
They will try to enter the SEZs rather than stand alone software parks.
More number of Middle and high end soft ware professionals will be recruited. So luxury dwelling units will continue to be in demand.
We can expect to see more expats coming in as soft ware professionals because of the shortage of qualified people in India. So service apartments could see some increase in business.
Let us hope, wish and pray that our IT services players become Global delivery organizations and compete on equal terms with the big six of Accenture, ACS, CSC, IBM, HP and EDS.
Sorry for a loooong post! Please excuse any misconceptions or mistakes you come across here.

Beena

Beena & Shanthi,

Congradulations on your amazing articles. Please keep posting.

Vidu,

You are welcome.

Hi,

I would like to know abt this Jain's INSELI project in Padur.
I emailed them and got these details.
Wanted to know
1) How good is Jain constructions??
2) how this area is?
3) what the current rate in this are is?
4) how far is this place from the city?
5) are there any good schools in this area??

any other informaiton related to this would be really apperciated.

JAINS INSELI PARK

Site Address : Padur, Chennai


Area and Building Details

Ground Area : 11 acres (approx)
No. of Blocks : 7
No. of Floors : 18 Floors (Phase 1: 12 Floors & Phase 2: Balance 6 Floors
No. of Flats : 588 (To Be Increased)
Size of flats available : Two Bedrooms: 1176 to 1497 Sq Ft.
: Three Bedrooms: 1494 to 1755 Sq Ft.
Rate per Sft.
Premium : 3945 / Sq Ft.
Luxury : 3845 / Sq Ft.
Deluxe : 3745 / Sq Ft.

INCLUSIVE: Reg., Stamp Duty, CMDA, TNEB, CMWSSB

Cheques in favor of : JAIN HOUSING

Parking (First come first serve)
Covered Car Parking : 1, 25,000/-
Open Reserved Car Parking : 60, 000/-
Combined Covered Parking : 2, 00,000/-
Combined Covered Parking Small : 1, 60,000/-
Covered Parking Tight & Small : 1, 00,000/-

Project Schedule
Start : 15’th March ‘07
Completion : Dec 2009

Corpus Fund : Rs 50,000/-to be paid during hand over
Maintenance fee : Rs 2 / SqFt. / Month for 3 Years - Paid during hand
Over

Payment Schedule

1. On Booking : 10%
2. Within 30 days of booking : 30%
3. On completion of Foundation : 10%
4. On completion of 1‘st floor roof : 10%
5. On completion of 4 ’th floor roof : 10%
6. On completion of 8 ‘th floor roof : 10%
7. On completion of 12^th or
Which ever is final floor roof : 10%
8. On completion of flooring : 5%
9. During Handing over : 5%

Service Tax Extra As Applicable

Note: PRICE MENTIONED ABOVE SHOULD BE CONFIRMED AT THE TIME OF BOOKING

* * SERVICE TAX EXTRA AS APPLICABLE * *

Thanks in advance,
Sri

Dear Vidya,

Our discussion on recessionary effects on the IT and ITES Industry is not complete without looking at BPOs.


BPOs

The Business Process Outsourcing industry (also called as Information Technology Enabled Services or ITES) actually is the Services Outsourcing Industry in India. This Industry looks after the out sourced business operations of large American and European Companies mostly multinational.
The sector continued to see lot of activity in 2007, especially in the first half. Major multinational players and Indian organizations stepped up their operations by taking on new offices and continued to hire aggressively.
Not only the Exports BPO market but the local Indian BPO market also grew rapidly. Because of a lot of mergers and acquisitions inside the Industry there was greater consolidation. The BPO Market today can be called a mature market. The Indian BPO industry is growing and is one of the most important investment markets in India.
According to some observers, despite the recession in US the BPO Industry in India has become an essential service and so will continue to boom. The sector has the potential of reaching US $1.6 billion by 2008 and US $50 billion by 2012. This sector is expected to add 2.5% to India’s GDP growth and provide employment to about 20 lakh people.
Others say that the Industry today is facing a number of challenges and so will slow down.
Rising rupee, shrinking labour absorption, rising expenditure, recession induced postponement of business in US and other markets, growing competition from other global BPO destinations will add up and lead to deceleration in the industry, according to Nay Sayers.

Vidya, your question is, how will the industry maintain its competitiveness in the downtrend.

First of all, the domestic BPO market continues to grow, fuelled by relentless demand from telecommunications, BFSI (Banking, Financial Services & Insurance) segments and large corporates from a diversified clutch of Industries. Market Reports say that the domestic BPO Market grew by as much as 50% in the last five years. As more and more mid cap companies look to increase their productivity, by stream lining processes, we can expect more domestic growth to come the BPO way.
Studies reveal that even in this downturn period US will be the biggest market for Indian BPO services. To sustain growth in this geographical area, the BPO sector has to face some challenges successfully. In fact how well they face the challenges will determine their competitiveness in the coming years.
Spectre of Rising Rupee
The biggest challenge is the appreciation of rupee against dollar. All the billings for BPO are done in dollar terms but all expenses are done in rupee.
The India rupee has risen more than 11 percent in value against the U.S. dollar in 2007.Continuous flow of FII and FDI Investments had forced RBI to periodically intervene to keep the rupee rate from going up, by buying dollars from the open market. Companies with BPO Operations, both big and small have been taking a number of steps to maintain their competitiveness during this currency fluctuation.( For Infosys alone in the third quarter of 2007, profitability dipped by 2.8% because of the currency fluctuation. Loss for Infosys in that quarter alone because of exchange differences was 58 crores. And Infosys is one of the better hedged companies. Imagine the plight of smaller companies!)
For example Wipro is contemplating six-day work-weeks, (to increase existing productivity and delay new recruitments,) and EDS and Mphasis are considering billing their clients in rupees. (Not all US Clients will agree for rupee billing which will put pressure on profit margins for smaller IT Companies.)
This year, with a lot of FIIs pulling out from a declining stock market the exchange pressure has eased a bit. By the end of 2008 financial analysts expect the dollar to trade between 41 and 42 per rupee.
But if something happens and the currency gap widens next year, (if dollar exchange rate becomes Rs 38 for example) Indian BPO Companies and multinationals with a big presence in India will
• insist on benchmarking their outsourcing prices to the salaries they pay locally,
• start reducing their operations in India and promote new offshore locations like China and Latin America,
• continue consolidation by way of mergers and acquisitions,
• Increase work pressure on their existing employees
• Innovate the way call center operations are done
• Innovate their entire operations to ward off competition from BPOs in countries not
affected by exchange fluctuations
• delay hiring of new staff,
• And start incorporating currency hedges into contracts.

Present US Presidential Elections and Outsourcing

All the Presidential Candidates are using the platform of US Economic recovery. Apparent loss of jobs for Americans because of Offshore Outsourcing has again become a topic of growing national debates.
During the 2004 U.S. presidential election, off-shoring was a major topic of debate. Outside of the political arena, leading industry providers and their customers avoided announcing big outsourcing Agreements. This was to avoid negative publicity.
But this time it is far less sensationalized than in 2004. It is true that American jobs have been lost to outsourcing because of globalization but it is also true that more US jobs are being created in the same process. The unemployment rate is under 5% and for college grads it is only 1.8%. Nonetheless, some presidential hopefuls are finding themselves pointing again towards off- shoring as the demise of the American job market.
Also Indian Corporates along with FICCI and the Commerce Ministry of India are doing their best to make Americans understand that India has helped create jobs for Americans in the US.
A Media report says ``A full-page advertisement in the Chicago Tribune on March 09, by industry body FICCI and the Commerce Ministry, gives an elaborate account of how the legendary Tata Group, along with several others like Ranbaxy, Mahindra USA, Bharat Forge, ITC Kitchens of India and HCL America have created thousands of jobs in America by investing in different sectors of the US economy.
The Tata Group that operates 16 companies in the US, from luxury hotels and beverage business to manufacturing, telecom and IT consulting, employs over 5,000 Americans. Likewise, Ranbaxy is creating jobs and stimulating the economy in North Carolina, New Jersey and Florida, FICCI said.
The counter-campaign by the Indian industry to the election slogan of ‘job-shipping´ also talks about how several American firms, which went down under and were even facing bankruptcy, have been revived by groups like Bharat Forge.
The Pune-based group had acquired in 2005 bankrupt Federal Forge, Inc in Lansing, Michigan, and opened its plant without downsizing. ...’’
Still BPO Industry leaders and offshore customers will be careful about letting out their business moves. Large companies will avoid making big announcements about any offshore arrangements or employee reductions during 2008.Some of the large BPO contracts which expire in 2008 could be pushed out into 2009. (This will build pressure for the BPO Companies!)

Mergers and Acquisitions

Because of the US led global recession, we could see more marriages between Western and Indian Companies. We could also expect to see Indian BPO players continuously setting up of delivery service centers in the U.S., Europe and Latin America.
Indian companies are sitting on cash raised through External Commercial borrowings ( ECB) and Foreign convertible commercial borrowings( FCB). So some ten US Acquisitions have taken place in January and February 2008, most of it in the IT and ITES Industry.
But going forward,
Because of the cost of credit going up,
Because US lenders are not quite ready to take up global lending (their pre occupation with the subprime mess continues),
Because the stock markets are down (they are likely to be subdued till the end of 200,
Indian BPOs may find it difficult to conclude mid and large sized acquisitions. Even the larger BPOs will be careful in acquiring Western BPO Companies with more than $1 billion in revenues because of the impending Elections both in the US and India as well as currency fluctuations.
However US based cash rich BPO Companies may acquire second rung companies and expand their off-sourcing operations outside the US. They may open offices in India, among other places, to remain competitive.
BPO-Client Partnership
Apart from cutting costs and increasing efficiencies client companies in US who do the actual outsourcing, will want access to the talent pool inside the Indian BPOs. They may want to tap the expertise Indian BPOs have in various industry verticals. They may also want to understand the superior processes adopted by the Indian BPOs. So we may expect some large client companies teaming up with Indian BPOs. This could prove to be a win-win situation for the BPOs also because they will be assured of a steady stream of business.

Emergence of New Geographies

Just look at this extra polation. A multinational BPO Company based in the US and which has a base in Bangalore estimates that by 2013, the cost of operation for the Company in the US and in Bangalore could be the same!
This is because of rising wages, rental values, real estate capital values, cost of hiring and retaining talent, transportation and other infrastructure bottle necks and other causes. Clients who have been frustrated by Indian problems could end up going to IT Companies in other countries.
Alternative locations Latin America, Central and Eastern Europe, China, and to a lesser degree, the Middle East and Africa been quietly investing in the necessary infrastructure (roads, airports, telecommunications, education, etc.) to attract IT and business process services.
One problem these countries have is the problem of scale. Other than China the only country which has the potential of scale is India. So India will continue to be a favored IT Destination.

Delay in Hiring

One immediate step to retain competitiveness could be that the Indian BPOs will delay their hiring. According to a news report in the Economic Times, hiring of new people is down by 40 to 50% compared to the same period in 2007.Most of the small and medium companies are not hiring people in the junior and middle management levels as much as they used to do. However, they are hiring at senior levels, with a strict eye on quality.
Also people who were sitting on the benches in the larger companies are being utilized more and more. This trend also has delayed hiring. People who are sitting idle on benches for more than six months are opting to move to smaller companies sometimes with salary cuts.

Movement towards Tier- 2 and Tier- 3 Cities

India is rapidly growing in many fields and industries. So young people who come out of universities and colleges have lot more options than just the IT and ITES. To illustrate, in case of top drawer- talent, the kind we find in the IIMs, students are opting for consultancy firms more and more. Only 6% of IIM Bangalore students have opted for IT.
Graduate students from Tier -1 cities are increasingly unwilling to work night shifts. But the youth in Tier-2 and Tier-3 cities are very eager to get into IT and ITES Companies. So to maintain competitiveness, BPO Companies and their client companies are moving towards smaller cities and towns.

Innovations

Even though the BPO Companies enter into elaborate contracts with the Clients sometimes the changing market conditions bring in many changes when the outsourcing is actually done. Those BPOs which understand this phenomenon and make their contracts flexible will get more clients.
Many more BPOs, as a part of improving quality will move on to higher value works…. like improving processes for clients and rationalizing their portfolios. Many BPO companies have already moved up the value chain. Others will follow suit.
Clients are demanding improvement in Call Center operation. Clients have become dissatisfied with the sweatshop mentality which prevails in existing call centers.BPO Companies have started innovating more "client-centric" solutions, such as unique scripts and aligning BPO Employees to connect with the corporate cultures adapted by the Clients.

Growth in usage of Remote Infrastructure Management (RIM) Systems

Due to the economic downturn in the US, many client companies are expected to ask only for Infrastructure Outsourcing options. It is simply the management of the software applications which the client needs and his physical information technology (IT) systems. This may sometimes mean and include transfer of IT employees of the client and IT assets to the BPO.This type of Outsourcing are economical. With the US recession staring at us these types may continue for some time. However experts say,"We also foresee long-term price decline in the (large enterprise) infrastructure outsourcing market due to an influx of new suppliers and increased competition."
Remote infrastructure management (managing servers, databases, networks and security, and applications from offsite) had gained rapid popularity in 2007.Here, apart from the software applications, the BPOs take charge of the physical assets of the client like servers, and databases etc and manage the whole thing from remote off shore locations.
While this type of outsourcing is expensive comparatively, because of the convenience, more number of clients are expected to adopt this kind of outsourcing in the near future.
Virtual Competitive Based Development Model
A third, very interesting kind of innovation is gaining popularity. This is called Virtual Competitive Based Development Model. (Quite a mouthful isn`t it?)
• Here companies use a Manufacturing approach to software development.
• Software components are the building blocks here.
• When a software application is developed for a client, the basic structure is retained as a software component for future use.
• Similarly, a number of software components, for various kinds of applications are systematically identified and categorized.
• When a new client comes in with a software requirement, the basic component needed for this client`s requirement is identified.
• Then the customizable portion of the software is developed by competitive bidding. Who bids for it? Innovative software developers across the world! (Much like how a free ware is developed, only difference the developers who bid for it and do the development get compensations.)
• Once the software is fully developed, then rigorous testing is done by another group of developers across the whole world, once again through competitive bidding. The focus here remains on the product and not on individuals or processes
• .Then the product, which would be far better than what comes through normal development methods, is given to the client.
At the client`s end it goes through a further round of real time testing. Till it gets perfect for the application it was meant to serve. Can you see how competitiveness will improve with innovations?

Small and Medium Companies of the U.S of A

BPO rates may come down. This will attract a lot of small and medium companies to take to outsourcing in a big way. Their reason would of course be the recession in the US. Private Investors moving in these company circles will aggressively catalyze this outsourcing. We can also expect our BPOs to target these smaller companies in their marketing. We can also expect smaller BPOs to be nimble footed and very customized, in their offerings to these midsized US Companies. So a new segment of business may open up for BPOs.
Environmental Impact
Clients who outsource this year to BPOs are going to expect ``Green performances’’. This will mean BPOs in India will have to create greener data centers, environmentally friendly buildings and campuses, and adopt eco-friendly processes and policies.
Are our Real Estate Developers listening?
Smart BPOs will use this for market differentiation.

OK-How will it impact our Real Estate Market?

Low and Middle end Outsourcing companies will move to smaller cities and towns. They will take up space in the IT Parks there. They will contribute to growth in medium and low real estate segments in those places. I do not expect growth in luxury segments in these markets because of this kind of BPO Relocation.
High end Outsourcing Companies will concentrate in the Metros. They will take up space in the SEZs, because of tax gains. They will hire top quality professionals at higher salaries (recession or no recession: downtrend or no down trend).Retaining such talent will be a top priority.
SEZs closest to the city centre will benefit compared to far flung SEZs.
Real Estate Developers will concentrate more on Green Buildings because most IT and ITES Companies will demand it.
Vidya, these are my observations based on information already available in various media. Please excuse me for any factual errors or wrong understandings.

Beena

Originally Posted by shanvy

beena

Understood what you want to convey. but the usual trend is people are driven by the trend..that is set by certain people....

Yes the guindy flyover is going on and on...I still dont believe the butterfly is going to be over by dec 2008 as said..i am just hoping...

It always happens..only a certain sides gets all the benefit of the development.

Though you don't mean the political development or involvement the whole development trend and the infrastructure development everything is done based on the political trend only.and government bureaucracy and lethargy....that is one thing that leaves a bad taste in your mouth.

I have seen it happening in places everywhere..

For example, if you are aware of the Thillai Ganga Nagar Subway that links nanganallur into gst beside hotel meena was started almost 10 years back...and only now the govt..and the parties concerned came to a agreement..

the medavakkam high road widening by the highways is going on for the past 4 years..with too many hiccups of stayorders taken by all private parties..

The same way in poonamalle also...

I agree with you on your points on govt projects, media hype, and govt. speed..

I am still not convinced about the speed of development...I feel are we going down the bangalore way....

Dear Shanvy,

I perfectly agree with your views on speed of development.But we should also look at the various developments which have been initiated across the city. In other words slow development is better than no development at all....

Also there is a marked difference between the infrastructure developments of Bangalore and Chennai.Chennai has always been blessed with stable governments which for all their warts and moles did take developments forward...I am referring to both governments of course, this and the previous regime.

Also paradoxically our own CMDA and DTCP seem to have played a role in preventing over developments.Every developer worth his salt is crying hoarse over the delays caused by these government agencies.But in many places just by insisting on a lot of adherence to rules these organisations have played a role in delaying unseemly over developments.
Let me give an example..The FSI prescribed for a 60 feet road is 2.5. But have all 60 feet roads been given that kind of FSI? No!
Not all lay out approvals are given away easily. Even the big developers from other states are finding the going tough when it comes to dealing with our state agencies.
I am not for a moment saying that these organisations are perfect epitomes of great social sense. They have a lot of faults many of which do cause frustrations to the developer community and result in costly cost over runs.
But when we look at trends we also have to look at the effect these organisations cause should n`t we?
In contrast BMRDA is a lot more accommodative. At least they have been in the past.

We as small investors and observers of the housing market are more concerned about the developmeents or lack of developments is it not? Rather than the politics behind it? That is why I keep repeating we need not look into the politics of it at all...but just follow the developments on the ground.
Discussing further it would be interesting to see the effects of Metro Rail on Chennai....

Beena

Dear All,

We four of collegues planning to buy 1 gnd land and build a flat , in that process we found 1 ground land in vettuvankanni (beach side,600m from beach) after neelankarai , for 65L , we may negotiate upto 60 L ,

Do you feel it is good price ? how is that area , water ? how will be the appriciation

Pls advice me

Regs
Suganthi