Ozone building strategy around large gated communities
“The Land Acquisition Bill has made acquiring land nearly impossible for private companies.”S. Vasudevan, CMD, Ozone Group
Dec 03, 2013
Source : The Hindu


CHENNAI: Large gated communities are the future of residential real estate, says S. Vasudevan, CMD of Bangalore based-developer, Ozone Group.

The nine-year-old company has delivered around 4 million sq ft of residential and commercial space. Ozone has townships under construction in Chennai and Bangalore and an upcoming island project in Goa. Excerpts from an interview:

How is demand for your projects shaping, with everyone talking about poor buyer sentiment for property purchases?

We have not faced any demand issues in our Chennai and Bangalore developments.

I think slow absorption in some projects was driven primarily due to high prices. If the price is right and the product offers the desired features, it will sell well.

'For instance our city-centric development in Chennai, Metrozone, was launched in 2009 at a price of Rs 5,000 per sq ft.

We have been increasing prices based on milestones achieved. Out of the 1,800 units planned, we have sold 1,400 and sales have been steady month-on-month.

The sale price is now at Rs 10,000 per sq ft.

Which segments of residential real estate appear most promising?

The future is certainly in large gated townships, in the place of standalone developments. Everyone desires amenities such as a club house and gym.

Also, there is greater awareness and emphasis on outdoor activities such as walking and cycling. Those living in independent houses feel their kids have no access to safe open spaces.

All of these are possible only in large-scale developments. There is already a shift in this direction.

Given your focus on large township development, how would the new Land Acquisition bill affect you?

The Bill will certainly slow down large developments. If we are able to find private deals, where a single owner has sizeable land parcels, there is no issue as the government is not involved.

But it is not easy to find large chunks of land as there are usually government revenue lands / grant lands holdings in between private lands.

The Bill has made acquiring land nearly impossible for private companies. Public-private partnerships, where the government supplies land and we do the development, may be one way to go.

What is your take on RBI’s ban on 80:20 schemes?

I think the RBI made a hasty move. Their rationale was to reduce the risk to buyers when builders get the money upfront, but do not use the funds for the project development.

A proper escrow mechanism could have been created to see that these funds were properly utilised.

However, only builders with a good track record were offered this scheme by banks, so the risks were quite low.

The adverse impact of the ban will most likely be felt by those who sell to investors. We sell primarily to end-users and do not encourage pre-launch, sales etc.

The ban’s impact on us is very minuscule; out of the 1,400 units sold in Chennai, only five buyers opted for the scheme.

What are your expansion plans?

We plan to develop 6 million sq ft over the next 2-5 years with our existing land banks in Chennai, Bangalore and Goa (in an island along the Mandovi river).

We plan to stick to these cities and do not plan to expand outside.

I think real estate is a very local business and there are many regional variations in user expectations and approval process. We have to understand the pulse of these markets. And as these markets have a lot of depth, it should keep us busy for the next several years.

Latest Realty News

Realty connects with retail
Dec 02, 2013
CHENNAI: Indonesia, China and India are set to experience the highest rates of B2C e-commerce sales growth by 2017. A new report from Jones Lang LaSalle, ‘E-commerce boom triggers transformation in retail logistics – Driving a global wave of demand for new logistics facilities’ highlights the crucial role that the logistics property sector will play in the Asia Pacific region and how it must adapt to changing consumer demand. Global online sales currently account for four per cent of total retai
Book on land records rates TN second in quality of service
Dec 02, 2013
CHENNAI: Administrative reforms in state government departments like revenue, registration and town and country planning have a long way to go in the country, which is often riddled with red tapism and malpractices like registration of fake documents, entering of wrong owners’ names in revenue records and proliferation of unauthorised buildings.
‘Cities need pavements’
Dec 02, 2013
CHENNAI: Pavements are cities’ most important infrastructure but the biggest problem in Chennai and other cities in Tamil Nadu is the lack of pavements, according to Enrique Penalosa, former mayor of Bogota, and expert in urban policy.
IT, inclusion in city limits work well for real estate in Valasaravakkam
Nov 27, 2013
CHENNAI: A 1,000-sq ft apartment which was available in Valasaravakkam for around Rs 43 lakh in 2011 today commands approximately Rs 62 lakh. Valasaravakkam, a suburb in South Chennai, has recorded a rise of nearly 43 per cent in capital values of residential properties in the past two years, as per Magicbricks.com research. Let’s take a look at the factors which make this locality click.
Chennai: Mission Decongest
Nov 27, 2013
CHENNAI: A few weeks back, Ashish Raghuram was held up for hours on the stretch from Vadapalani to Koyambedu, as he was trying to catch a bus from the private bus stand to his hometown in Kerala. While he reached the bus stand late by half an hour, he still managed to catch the bus, as it was more than two hours late from the scheduled time of departure. Come festive season and thousands get stranded in traffic around Koyambedu. But even on a normal day, the traffic during the evening hours gets
Apartment life in Chennai
Nov 26, 2013
CHENNAI: A hassle free apartment or a flat or a house is fast getting extinct from the city.Last Sunday, I drove 50 km from the city with my daughter to the nearest village to show her a live chicken. Days are not too far for you to show your grandchildren how a hassle free Independent house looks like. Because a hassle free apartment, flat or a house has become a species which is fast getting extinct from the city.
Traffic police, Tafe raise voice against honking
Nov 23, 2013
CHENNAI: The Chennai Traffic Police and a Tafe, a leading tractor and farm equipment manufacturer, will together launch a campaign against noise pollution on the city’s roads.
Watch out when you buy property
Nov 23, 2013
CHENNAI: Buying a home is a long-cherished dream for many. But often it ends up being a nightmare due to unscrupulous sellers, lax checking by authorities and questionable property records. In order to protect themselves from financial loss, legal battles and stress, buyers must arm themselves with basic legal and procedural knowledge.
Puravankara announces 2nd luxury project
Nov 22, 2013
CHENNAI: Real estate developer Puravankara Projects LtdBSE -1.51 % today announced its second luxury project 'Purva Amaiti' at Singanallur in Coimbatore.
Ascendas to invest Rs 3,000 cr in Indian cities
Nov 20, 2013
CHENNAI: Singapore-based commercial space developer Ascendas Pte Ltd has launched the Ascendas India Growth Programme, targeting an asset size of over Rs 3,000 crore (S$600 million) to invest in commercial space in major Indian cities, according to a press release from the company.

Latest Realty News Of State

Realty Talk's