The last couple of years or so have been rough on the real estate market in Chennai. Driven by fears of a slowdown, people put their home buying plans on hold. Given that the city has a primarily end-user driven market, unattractive property prices and home loan interest rates were significant concerns.
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The tide, however, does seem to have turned for Chennai. Interest rates on home loans were reduced in 2015 and with growing infrastructure enhancing connectivity, the future of Chennai’s real estate market is certainly looking up.
At RoofandFloor, we felt there’s no better way to celebrate the return to form of the real estate market than letting you in on some of the insights we have collected about the real estate market in Chennai. This RoofandFloorexclusive will give you the basic information you need about investing in the most talked-about upcoming localities in Chennai.
Medavakkam
In 2012, Knight Frank India, the country’s leading real estate consultants, released a report that indicated that Medavakkam would see close to 90% appreciation by 2017. Upsides of the area include wide interior roads, good connectivity to Old Mahabalipuram Road, Velachery, Pallavaram and Tambaram. It is in close proximity to multiple residential areas, IT parks, schools, entertainment facilities as well as commercial establishments.
According to RoofandFloor’s research, approximate property prices in Medavakkam are:
House Type Average Price (Rs)
Apartment/Flat 47,07,691
Row House 130,45,229
Villa 94,11,368
Apartments seem to be the preferred housing choice of buyers in Medavakkam. The RoofandFloorteam reveals that the factors that drive demand for homes in this area include
• Affordability
• Higher RoI
• Proximity to ECR and OMR
• Easy access to IT hubs
• Adequate amenities
Madipakkam
Madipakkam is fast becoming a favourite with prospective home buyers. One of the growing suburbs of the city, Madipakkamis in close proximity to Velachery. The area has adequate amenities for families who wish to reside there. In terms of value, Madipakkam has seen an increase in rates from Rs 3,100 per square feet in 2010 to nearly Rs 5,000 per square feet in 2015.
As per our research, the average property rates in Madipakkam are as follows:
House Type Average Price (Rs)
Apartment/Flat 47,29,943
Villa 71,14,475
Apartments are the preferred type of construction for home buyers in Madipakkam. The locality is increasing in popularity for many reasons such as:
• Proximity to railway & bus stations
• Affordability
• Surrounded by all major amenities
• Easy access to major IT companies
• Good RoI
Tambaram
A suburb that is believed to be older than Chennai, Tambaram today is a buzzing hub of activity and commerce. Infrastructural developments in the recent past have vastly enhanced the connectivity of Tambaram to the heart of the city, both by rail and road. In the last four years, Tambaram as seen a rise in average price per sq. ft. from Rs 3,700 to Rs 4,500.
RoofandFloorresearch reveals average prices for homes in Tambaram are as follows:
House Type Average Price (Rs)
Apartment/Flat 38,83,905
Villa 45,71,105
Popular choice of home buyers in Tambaram is apartments.
The reasons behind the growth in popularity of the area are:
• Affordability
• Good connectivity by road and rail
• Better RoI
• Proximity to the airport
• Surrounded by amenities
Porur
Believed to have existed since the Pallava period, Porur is a rapidly developing suburb located 18km south-west of Chennai city limits. Upcoming IT SEZs (a total of three) are expected to make Porur a major IT hub after OMR. The average price per sq. ft. in apartments in Porur have seen an increase from Rs 3,100 in 2010 to Rs 5,400 in 2015.
The approximate prices of property in Porur as per RAF research indicates the following:
House Type Average Price (Rs)
Apartment/Flat 62,38,449
Villa 96,56,795
Apartments are the preferred type of property as in other areas.
Porur has been growing rapidly owing to the following factors:
• Affordability
• Better RoI
• Proximity to IT hubs
• Adequate amenities
• Proximity to MIOT hospital and Ramachandra Medical College
Ambattur
In the northern part of Chennai, Ambattur is the locality that perspective home buyers have been watching closely. The fact that it is close to residential areas such as Anna Nagar and Mogappair, makes Ambattur an attractive option. Average price per sq. ft. for apartments in the area has risen from Rs 2,800 to Rs 5,100 in the last five years.
Average price of an apartment in Ambattur is around Rs38,15,290.
Ambattur has been rising as a preference for home seekers because of
• Affordability
• Good RoI
• Proximity to industrial hubs
• Adequate amenities
Online version of the article available at: https://goo.gl/j0CiHe
This article was published in Property Plus.
