CHENNAI: Around 6,000 shops which are housed in 152 complexes that are spread across the prime locations of Greater Chennai Corporation are placed on a real estate goldmine, but it has failed to maximize the revenue these shops could gain. After revising rent, the corporation expects to earn the total amount of Rs 21 crore a year, but is yet to reach its small goal.
Complexes of the Chennai Corporation don't attract money but prove for business
Sources say, that the corporation hasn’t been showing much interest in the development of these commercial spaces to attract more money. It charges a flat carpet rate for these shops which harms its revenues. Lacking in cleanliness, the ill-maintained complexes don’t contain lifts, water and toilets.
The complex on Arcot Road in Kodambakkam was opened in 1971. Nearly five decades later, little has been done to improve it, said traders who pay as little as Rs 2,300 to Rs 3,400 as monthly rent for a 300 sq ft space. The complex, which has 111 shops on two floors besides a ground floor, has the potential to be developed into a much attractive and a better revenue-generator for the civic body, said realty consultants.
“Businesses will pay any amount for visibility at a good location. If the corporation spends a little money and spruces up the complexes it will earn more than the market rate,” said Jayant Hemdev of Hemdev International Realty Service.
“There are several models which many other government agencies are adopting to monetize their properties. The corporation can follow those and develop its properties. There is a huge shortage of organized retail space in Chennai. The corporation needs to push aggressively and develop its commercial complexes,” said Ajit Chordia, president, CREDAI, Tamil Nadu.