Real estate Chennai - Putting Chennai on the global map

Is Chennai doing enough to attract global attention and investments? What does it take to do that?

These were some of the questions debated at a panel discussion on getting Chennai on the realty fast track, organised by the international property consultants Jones Lang LaSalle Meghraj (JLLM).

Mr Alastair Hughes, Chief Executive Officer – Asia Pacific, JLLM, asserts Chennai is not as well known in the international markets where Delhi, Mumbai and Bangalore are familiar names. The city is rated on a par with the emerging tier II destinations such as Hyderabad and Pune. The gap is in the absence of aggressive marketing and policy that position it well, he feels.

Look at what successful cities such as Dubai and Singapore do. They will have certain common attributes, says Mr Hughes. And these would be — a master plan, a long-term vision of where they want to be in a given time frame; Infrastructure to enable the growth that they envision, for example, both Dubai and Singapore have one of the best airports in the world; Attractive tax regime, access to talent, money, clarity in property titles and laws that facilitate entry of foreign investments, would be some other features. These would be backed by sustained promotional programmes that highlight to the international community what they can offer.

For foreign investors, Indian cities are far down on the list of priorities as a choice to invest in property, says Mr Hughes. The investors are more likely to choose Hong Kong, Singapore, Australia, Korea or even China, where the Government actively woos investors. Indian cities were never in this segment and something has to be done to put them there, he says.
Lifestyle issues

The issue plaguing Chennai need to be addressed at a basic level, feels Mr Ajit Chordia, Managing Director, Olympia Group. The concerns are quality of water, power and lifestyle that the city has to offer.

Another major differentiator between Chennai and a city such as Bangalore or Mumbai is the lifestyle. Chennai needs to do a lot more on the quality of lifestyle it has to offer. What has Chennai on offer to attract people to make it a home? There are no recreational facilities of international standards.

The couple of golf courses in the city date back to the pre-independence era. Bangalore, on the other hand, has a dozen golf courses, he points out. Quality residential space is another feature that is in short supply; International schools – there is a huge waiting list in the few that are available, he says.

Mr T. Chitty Babu, Managing Director, Akshaya Homes Pvt Ltd, feels conservatism is Chennai’s trait and strength. The city has an ancient heritage and culture, which it can build on. Its music festival is a high point on the annual calendar. More modern features, such as medical tourism, can also be promoted.

Mr K.K. Raman, Executive Vice-President, DLF Southern Homes, says apart from an organised promotional campaign, more effort is needed from individuals, he says. Chennai should build on relationships.

For example, DLF can claim credit from bringing IBM to Chennai, a location that was not under the consideration of the MNC. But when DLF set up its IT park in Chennai it was able to convince IBM, which had taken up space in DLF IT Park in the north to expand to Chennai. Creating the ambience and the perception is key. The growth of the city will have to be people-driven.
People, resources

Chennai’s strengths are its people and natural resources. It is not commonly known that the highest revenue for companies per unit wage is in Chennai, the huge pool of skilled human resource and educational infrastructure, work ethics which is among the best and the law and order situation, which is ideal. Look at Chennai’s beaches, he says. Anywhere else they would have been the focus of international attention, and the city administration would have leveraged the asset, Mr Raman says.

Mr K. Phanindra Reddy, Managing Director, Tamil Nadu Urban Infrastructure Financial Services Ltd, pointed out that the State may be growing at a sedate pace, but it was growing. Aggressive marketing or high pitched sales was never a style it has adopted. It has a strong social infrastructure, physical infrastructure is being put in place with large increases in power and water capacity expected to be in place in the near future.