The Hindu Business Line : Chennai landlords cashing in on expat demand

While the growing expatriate population in the city has pushed up the demand for fully furnished apartments, landlords have been quick to cash in on this growing demand.

Mr S. Nandakumar, an IT professional with interests in product development, has invested Rs 20 lakh in furnishing his 2,300 sq ft apartment in Besant Nagar, an upmarket residential locality in South Chennai.

The furnishing includes an LCD TV, home theatre system, wireless broadband connection, 750-litre refrigerator, washing machine, even art works.

He told Business Line that the cost of the apartment, which will be ready in 10 days, is Rs 5,800 per sq ft (inclusive of registration) and the rent that he is looking at is Rs 1 lakh a month.

Catering to foreigners

Ms Kalpana Murthy, Vice-President (Real Estate), Global Adjustments, a real estate firm that caters to foreigners, said that remuneration packages offered by most of the companies often include a fully furnished house.

She said that apartments come with furniture, furnishing, crockery and cutlery.

The tenant walks in with just personal baggage as they would in a hotel.

The real estate company enters into a lease agreement with the landlord and another one with the tenant; in most cases it would be a company lease.

Furniture rentals are on the increase, as landlords and service providers are furnishing residences according to the needs and demands of the tenants.

Ms Murthy said that the right kind of furniture makes all the difference when it comes to selecting an apartment. Most foreigners go in contemporary and sleek furniture, which is easy to manage.

The duration of the lease would be for anything from one month to 11 months, with 3-6 months being the most sought after.

The rent could vary from Rs 40,000 for a three-bedroom apartment to Rs 2.5 lakh-3 lakh for a beachside bungalow.

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