Small players, small projects to the fore

Despite the real estate sector facing a slowdown, there are some pockets in the sector, which are finding customers if the offerings fit their requirements. Even as big realtors are stuck with large projects, launched amidst euphoria in late 2007 and early 2008, there are some small players who are quietly going ahead with their projects and successfully finding buyers too.

Engineers Estates is one such Chennai-based small property developer, which started off with plot development and is now offering niche products in small lots in suburban areas that are not too far from city limits. The company has launched West Wood Residency at Pallikaranai, a southern suburb closer to the happening locality of Velachery. The project would offer a mix of independent villas and apartments that are reasonably priced.

Being a small-scale project, that is in terms of total built-up space and number of residential units, it has six villas with sizes ranging between 1,100 sq ft and 1,500 sq ft. All villas have three bedrooms, with ground and first floor, and are priced in the range of Rs 55 lakh-Rs 62 lakh.

The project would also offer residential apartments. The company would be developing 16 residential units in four blocks during phase I. The apartments are a mix of 2BHK and 3BHK, ranging between 864 sq ft and 1,450 sq ft and carry a price tag of Rs 27 lakh and Rs 32 lakh.

“We have been able to accumulate a decent land bank of 5-10 acres for immediate development at a place that is closer to Pallikaranai Junction and Velachery and less than a km away from the main road. This prompted us to offer a mix of villas and apartments,” says M Balasubramanian, director, Engineers Estates.

He, in fact, sees the present slowdown as a boon to small players in property development. “Recession has brought in a sense of reasonableness in the market and has also driven out the speculator investors,” he says.

The company plans to offer affordable but quality residential apartments in the range of Rs 17.5 lakh and Rs 23 lakh in the subsequent phases. “These would be 2BHK residential units with parking areas and would cater to quality but budget conscious home buyers,” says Balasubramanian.

About 12 apartment units would be constructed during phase II and another 30 units would be constructed during phase III. “Since all three phases would come up over 1.4 acres, we will offer a choice of products in the subsequent phases depending on market conditions,” he said.

Courtesy: Finance Chronicle dated 08/01/2009