After American International Group (AIG) and RMZ Corporation bought 11-acre land for Rs 298.10 crore, now it’s a turn of Shyam Kothari, brother-in-law of Mukesh Ambani, who bought IDBI’s 2.5 acres Boat Club property in Chennai for Rs 175 crore.

The deal, which took the commercial property prices in Chennai to new summit, had international property consultant, Janes Lang Lasalle, as the advisor to both the deals.

In a short span, real estate in Chennai has seen a rapid rise in the land rates due to high demand which is outstripping supply. The HTL-AIG deal had pushed the land prices in Chennai to a record Rs 27.1 crore per acre from the Rs 15-18 crore per acre .HTL has another 50 acres on the arterial Mount Road, which is now expected to be auctioned soon.

It’s Guindy, traditionally an industrial centre, which is reaping the rich profits from the real estate boom that has engulfed India.

A multitude of major IT firms have set up their establishments there and have created huge commercial space. While another major IT project, the Olympia Tech Park, covering a million sq ft of commercial space, is coming up there.

Since 2005, when India had eased rules on inward investment in its construction industry, the country has been flooded with foreign fund in Indian property market.Meanwhile, overseas funds of Warburg Pincus, Citi, Morgan Stanley, JPMorgan and Merrill Lynch have collected over $3,000 million to make investments in Indian real estate.