When Manish S relocated to East Coast Road (ECR) a few years ago, little did he expect the area’s realty market to skyrocket. Known as Chennai’s entertainment and leisure corridor, he has seen ECR evolve into one of the most sought-after residential locales in the city today. So what are the factors that have lead to its development? The list is endless, says A. Shankar, National Director, Strategic Consulting, JLL. “ECR is today a prime residential destination because of its scenic location along a coastline dotted with restaurants, beach resorts, and farm houses. Since the road leads to Mamallapuram and Puducherry, many tourist attractions have come up as well. Its close proximity to OMR, which runs parallel, makes it a recreation spot for people who work and living along the IT corridor,” he says.
Outlining the realty market in the area, Shankar points out to an increase in the number of high-end villa and apartments that cater to the demand for sea-view projects. “The current rate of developed land ranges from Rs. 2,000 to Rs. 8,000 per sq. ft depending on its distance from Thiruvanmiyur and its location. Villas are targeted at businessmen, and NRIs dominate the market. Over 25 projects with more than 20 villas per development have come up, with some projects having up to 180 villas. However, with affordable luxury catching up in ECR as well, it is expected that investments from middle income groups will increase,” he says. The cost of locations before the toll gate is higher because of their close proximity to the city. Areas up to Uthandi have also been brought within Corporation limit, thus driving up prices, points out Chandan Jain, Joint MD, Vijay Shanthi Builders.
Trends indicate that ECR, once a prominent weekend home destination, is now seeing an influx in the number of people who want to relocate from the city to villas and spacious 2-3 BHKs. Gated communities, individual houses, row houses, villas, and duplex homes are all coming up, with prices starting from Rs. 2 crore upwards, depending on location, land and amenities. Development extends right up to Mamallapuram and connectivity is improving. “There has been a steady influx into localities such as Neelangarai, Injambakkam, Sholinganallur and Akkarai,” says Chandan.
Even residents who settle for 2 BHKs want it to be more spacious, with various amenities, and close to the beach. People who work along OMR at locations such as Sholinganallur, Navalur, Siruseri, prefer to stay on ECR (before Mayajaal) since it’s a more scenic area. Says Shankar, “Even though the area is witnessing lower absorption rates after the toll plaza due to the overall residential market slowdown, it’s expected to stabilise in the next six-nine months.”
Arun Kumar, Founder & MD, Casa Grande, says high-rise apartments are seen only in limited pockets along the stretch. “ECR is associated with large villas and independent homes; not for its apartments.”
The only catch is that, as a city-based real estate consultancy points out, beach houses and farm houses located within the CRZ zones are not approved by local authorities. So these could be in trouble when the gavel comes down. The other hurdle is social infrastructure. Narrow roads and few commercial developments are factors that need to be looked at. “ECR lacks hospitals, schools and other public and semi-public facilities. It also lacks public transportation facilities and organised retail malls, especially after the toll plaza. Infrastructure facilities such as water, drainage, are crucial if you want more investors coming here,” says Shankar.
ECR INVESTMENT GUIDE
Average capital rates before Mayajaal (near toll gate)
Villas: INR 8,160/sq.ft
Apartments: INR 5,300/sq.ft
Average capital rates after Mayajaal
Villas: INR 7,821/sq.ft
Apartments: INR 6,250/sq.ft
Rental Rates
Location | Approx Rent (INR / sft / month) |
Palavakkam | 100 |
Neelangarai | 50-60 |
Akkarai | 60 |
Injambakkam | 60 |
Kanathur | 40 |
Source: Strategic Consulting, JLL
