Luxury has a new address

Poes Garden, Boat Club Road and Nungambakkam that ruled the city’s luxury housing segment now have stiff competition from one of the city’s oldest residential neighbourhoods — Adyar. In the last year alone, a range of super-luxury projects have been launched here, targeted at high net worth individuals (HNIs). A number of factors have contributed to this — Adyar is well connected to Anna Salai, R.K. Salai and Nungambakkam, and is in close proximity to OMR and ECR. This micro-market is also located close to a number of cultural and research organisations such as the Kalakshetra Academy, Theosophical Society, Central Leather Research Institute, Adyar Cancer Institute and IIT Madras, which add to its image of accessibility, not to mention its equidistance from both the railway station and airport.

“In the last two years, Adyar has seen a steady increase in the number of new launches in the high-end segment. Yearly capital value appreciation is nearly 11-13 per cent in the segment, which is the highest in Chennai,” says Naveen Nandwani, executive director, Cushman & Wakefield.

Residents of sub-localities such as Indira Nagar, Gandhi Nagar, Kasturba Nagar and Shastri Nagar typically fall under the upper-mid income and higher income groups, with several HNIs, government officials and white-collar professionals among them. “However, given the scarcity of land, luxury projects can come up through redevelopment of old bungalows, with fewer units in restricted sizes, and will therefore be concentrated in localities such as Adyar,” says Nandwani. Manju Yagnik, vice-chairperson of the Mumbai-based Nahar group, which recently launched a project on L.B. Road, says the city’s aggressively growing luxury segment convinced the group to venture into Chennai. She says, “As per real estate reports, Adyar last year recorded the highest growth in the city, to the tune of 23 per cent, and is still growing.”

But experts say the term ‘luxury’ is overused and has become a mere marketing gimmick. So what truly defines a super luxury project and how different is it from a high-end one? It’s all about location and amenities, says Yagnik. “Today, a home is more than just the four walls — it’s a style statement. Luxury properties are incomplete without high-end amenities and we are witnessing a growing demand for them.”

Innovative designs that offer large spaces with concierge services, infinity pools, landscaped terrace gardens, cabanas, and spas are found only in luxury projects. “Branded residences and theme-based projects are also some of the ways developers differentiate a luxury project from a high-end one. The units are mostly built in limited numbers to maintain their individual appeal, unlike high-end units built in larger numbers with similar designs,” adds Nandwani.

Nirmala Rajan, executive director, Chaitanya Builders, says prevailing land prices correspond to the type of projects coming up in an area. “Land prices contribute to 80 per cent of the price of a luxury project. Amenities make all the difference. Facilities such as a health club, high-end kitchens, and extra car parking are important.” Speaking of their luxury project Mandarina at Kotturpuram, L. Raja Rajan of Appaswamy Real Estates says, “Such projects are greatly dependent on factors such as size, customised spaces, hi-tech facilities, security and green cover. Developers also factor in the availability of infrastructure, connectivity and buyer profile.”

L. Premelaa, general manager, Altis Properties, says that while working on their project, Sri Lakshmi Vilas in Kotturpuram, they realised that Adyar was a premium destination for luxury projects due to its resident profile. “The elite are very choosy about the location and the proximity of basic requirements. In Adyar, a majority of residents found the locality self-contained. Hence, the luxury segment here was a great market to tap into.”

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Printable version | Apr 19, 2021 12:53:07 AM |

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