Chennai

Time to boom?

The home segment has steady absorption. Suburbs continue to witness the launch of new residential projects at an accelerated pace -- Photo: M. Karunakaran  

The first quarter of the new financial year has begun and stakeholders in the housing sector are looking for better days ahead.

Property seekers want prices to stabilise, and developers have been waiting longer for prices of construction material to drop. The salaried class and lower-income groups want the government to give greater thrust to affordable housing.

There have already been positive signs for the year, and realtors have been calling 2015 the ‘year of recovery’.

Multi-crore property transactions of prime property have been completed and consultants and builder are busy scouting for new land for developing both residential and office space, sources in the construction industry say.

When it comes to the office space market in Chennai, supply is limited and narrowing while the demand is high. On an average, the demand is for about four million sq. ft. every year. The vacancy level, which was around 25 per cent, is now 16 per cent.

Interestingly, this 16 per cent is in ‘wrong locations’ where companies want their property to come up. “There are some vacancies on Rajiv Gandhi Salai (Old Mahabalipuram Road) in Sholiganallur and also beyond Navalur. But not many seem to be opting for those spaces. On Rajiv Gandhi Salai, on the pre-toll stretch, there is only a marginal amount of space available,” says a real estate consultant.

Residential projects

“Commercial space is at its peak. There is no space in grade A or B locations,” says T. Chitty Babu, chairman and chief executive officer of Akshaya Homes.

On the residential front, Chitty Babu says the home segment has steady absorption. Suburbs — be it Padi (Uni5, S and S Foundations), Medavakkam–Perumbakkam (Wow and Superb, respectively), Tambaram or Pallavaram (Winchester) — continue to witness the launch of new residential projects in an accelerated pace.

Some of the key indicators revealed in the monthly study by Jones Lang LaSalle are on predictable lines, with Adyar region topping rental values, which are on the rise in suburban pockets.

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INFOBOX:

REALTY TRENDS

Here are some key indicators of trends in real estate development in the past month

OFFICE SPACE

Key areas                             Rental Value (In Rs. per sq. ft. per month)

ANNA SALAI                                                60 to 85 

R.K. SALAI                                                   65 to 85

  

PRE-TOLL OMR                                          40 to 70

POST-TOLL OMR                                        25 to 35

GUINDY                                                        45 to 65

Major office space transactions: Arunatech, OMR; Pintron, Mount-Poonamallee Road

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RETAIL SPACE

Key areas                             Rental Value (In Rs. per sq. ft. per month)

T. NAGAR                                                     120 to 180

NUNGAMBAKKAM                                      130 to 150

VELACHERY                                                 80 to 120

PRE-TOLL OMR                                           80 to 100

ANNA NAGAR                                             120 to 150

L.B. ROAD, ADYAR                                      100 to 140

Major retail space transactions: Menchis Frozen Yoghurt, Khader Nawaz Khan Road; Focus Art Gallery, T.T.K. Road; Aasife and Brothers Biriyani Centre, Anna Salai

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RESIDENTIAL SPACE

Key areas                             Rental Value (per month)

ADYAR                                                      20,000 to 30,000

ANNA NAGAR                                           15,000 to 25,000

SHOLINGANALLUR                                    9,000 to 12,000

TAMBARAM                                                6,000 to 12,000

MEDAVAKKAM                                           7,000 to 14,000

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Source: Jones Lang LaSalle


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Printable version | Sep 24, 2021 2:19:30 PM | https://www.thehindu.com/news/cities/chennai/chennai-realty-boom/article7082008.ece

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