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Property Price Trends in Chennai

Last updated: May 20 2021
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  • Re : Property Price Trends in Chennai

    A lot of interesting view points put here. But one clarification I wish to raise here is - one must be very careful in calling places as suburbs. For example, we tend to Call Sriperumbudur and places around as Suburbs. They are not strictly suburbs. They should rather be called by another term, Exurbs.

    Which again raises another point - Merely because a place is in CBD it does not make the RE property super worthy and just because a RE property is not in CBD, the property does not become untouchable.

    A classic example I wish to quote is that of a house in Canal Bank Road, Kotturpuram, just adjacent to Buckingam Canal and some big Slum Resettlement flats. That place is less than a Kilometer away from TamilNadu's most sought after Residential address - boat club, but that alone does not make the place a great RE location to stay or invest. Likewise there are some RE properties very near to the much celebrated Gemeni Flyover - in Thousand Lights Area, in Royapettah, which may command multi crore rupee price, but still are not really worth their value. The actual place and surroundings matter much more than CBD, OBD and others IMHO.

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    • Re : Property Price Trends in Chennai

      IT Highway is not CBD by any stretch due to its big distance from City Center. But does that make IT highway a avoid for investing? No. Reason is - across world, including India, the concept of CBD being the prime employment center for city population , is slowly going away. It is still true in places like New York, where half of population would be employed in Manhattan. In Chennai, where more than half of white collar employment in service sector is through IT, the CBD is not where jobs are existing. It is the IT corridor and the surroundings that are big employment centers. So the end result is despite all the negatives, IT Corridor zone will slowly see more and more social infrastructure that makes it more livable than some of the inner city areas in CBD. Of course, this is not going to happen day after tomorrow, but say by 2025-30, IT Corridor will be as good as the best areas in CBD Chennai. And people would even call the place as New CBD.

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      • Re : Property Price Trends in Chennai

        Originally posted by maverick007 View Post

        Over a longer period of time, the valuation multiple of CBD to burbs is shrinking and will continue to shrink going forward. So, CBD will have more increase may be true in a short term say 1-5 years. Over a 15-20 year period, burbs will trounce CBD by a good multiple (not margin).

        Compare Vandalur/Uthandi/Porur/Maduravoyal prices of 90s with CBD and compute the same ratio now. I left OMR as a special case and we should also leave Poes Garden/Boat Club for comparison as they are special situation cases as well.


        Maverick
        Well said..

        In 1950s, TNagar RE used to be priced at fraction of RE in George Town/Mannady. Today, TNagar is costlier than much of George Town.

        I can add more examples - Vepery used to be much costlier than AnnaNagar even in 1970s, today there is no difference or rather Anna Nagar has become pricier. Or how Nanganallur, which was priced at fraction of West Mambalam is today half the price !! And there are umpteen examples.

        The fact is as a City develops, and grows in population, the price of land in immediate suburbs converge with the land prices in city. And in due course of time the two places become indistinguishable. And at times, the so called CBD suffers inner city decay and becomes less attractive place to invest and prices may fall relative to the newly developing areas.

        And to caution, it is not that this trend will perpetrate for ever. All big cities stop growing in population at some stage and RE expansion also halts at that moment.

        Inner City decay can happen to Gemini Flyover- Anna salai regions but I hope that Metro project and consequent increase in FSI by govt in those areas will see redevelopment. Without Redevelopment, Mount Road in 2025 btw Anna Flyover and Assembly building will start becoming the new George Town.

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        • Re : Property Price Trends in Chennai

          Originally posted by ramki830 View Post
          I hope that Metro project and consequent increase in FSI by govt in those areas will see redevelopment. Without Redevelopment, Mount Road in 2025 btw Anna Flyover and Assembly building will start becoming the new George Town.
          Well FSI increase will make that happen.

          Our FSI is already very high, comapred to Mumbai and NCR.
          Govt should actually demolish more illegal buildings.

          Govt needs to do Zoning and FSI increase together.

          Since we do not have Zoning, FSI increase is suicidal.
          We will become another Bangalore.

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          • Re : Property Price Trends in Chennai

            K11, I somehow feel Zoning is not a good Idea in a country like India. Zoning will only increase the misery of those who live in City a local and self sufficient life, and who get their lives without personal transportation. Let us not forget that in India and in Chennai, we will still have majority of population as non car owners for very very long time and zoning is of no help to them. But this is an argument for another place, another day.

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            • Re : Property Price Trends in Chennai

              Originally posted by k11 View Post
              Sir, I thought you said you travelled several countries.

              Not sure what you are trying to accomplish asking me these questions.

              CBD - Central Business District.

              Everything outside CBD is not a suburb.


              sub·urb


              1. a district lying immediately outside a city or town, especially a smaller residential community.
              2. the suburbs, the area composed of such districts.
              3. an outlying part.

              Suburb | Define Suburb at Dictionary.com
              Wiki defenision of Suburb.

              A suburb is a residential area, either existing as part of a city (as in Australia and New Zealand, and generally in the United Kingdom) or as a separate residential community within commuting distance of a city (as in the United States and Canada).

              In Ireland and the United Kingdom, suburb merely refers to a residential area outside the city centre, regardless of administrative boundaries

              I thought you had lot of relatioship with UK.

              As per the definition of dictionary:

              Boat club is not CBD,Technically It is part of Chennai City, Just like Mugaliwalkam,Semmancheri,Pulal,Madhavaram,Porur, Nolumbur, Nerkundram,Puzidhivakkam etc etc.

              My point is Then dont call the above places (Semmancheri, porur,Maduravoyil,Kathivakkam, Puzidhivakkam etc) as suburbs.

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              • Re : Property Price Trends in Chennai

                Originally posted by Economist View Post
                Wiki defenision of Suburb.

                A suburb is a residential area, either existing as part of a city (as in Australia and New Zealand, and generally in the United Kingdom) or as a separate residential community within commuting distance of a city (as in the United States and Canada).

                In Ireland and the United Kingdom, suburb merely refers to a residential area outside the city centre, regardless of administrative boundaries

                I thought you had lot of relatioship with UK.

                As per the definition of dictionary:

                Boat club is not CBD,Technically It is part of Chennai City, Just like Mugaliwalkam,Semmancheri,Pulal,Madhavaram,Porur, Nolumbur, Nerkundram,Puzidhivakkam etc etc.

                My point is Then dont call the above places (Semmancheri, porur,Maduravoyil,Kathivakkam, Puzidhivakkam etc) as suburbs.
                Boss, how can you say Boat club as suburb.

                And that too equate Boat club to Porur, Maduravoyal.

                I feel our Geographical discussion is becoming stuipider by minute.
                Most forum readers are going to laugh at us.

                I can walk to Boat Club from Gemini. It is freaking three Km.

                I can run 3Km in 15mins.

                Where is Semmencheri. It will take an hour to even go there in non-peak hours in a fast car.
                Last edited October 26 2012, 09:38 AM. Reason: Spelling

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                • Re : Property Price Trends in Chennai

                  Originally posted by Economist View Post
                  I thought you had lot of relatioship with UK.
                  I have never lived in UK. My company used to have an operation there, they sold it however, now they have a very small division. I had brief stints abroad. I am a bit familiar with US and China.

                  I am pretty much a local guy with a small time job, thats about it.

                  Of course, I have some interest in RE, have some small places in some southern cities.

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                  • Re : Property Price Trends in Chennai

                    Originally posted by k11 View Post
                    Boss, how can you say Boat club as suburb.

                    And that too equate Boat club to Porur, Maduravoyal.

                    I feel our Geographical discussion is becoming stuipider by minute.
                    Most forum readers are going to laugh at us.

                    I can walk to Boat Club from Gemini. It is freaking three Km.

                    I can run 3Km in 15mins.

                    Where is Semmencheri. It will take an hour to even go there in non-peak hours in a fast car.
                    Boss it is discussion about technical terms.
                    The usage of Terms such as CBD & Suburbs.

                    Elephant is a mammal so is a Sheep.

                    Ferrari is a motor vehicle so is HM Ambassador.

                    It is like saying don't buy a mammal buy a sheep.


                    I am trying to clarify the words that is being loosely used by many in the forum when they refer to CBD & Suburbs.

                    Standard Classification is important when terms are being used for healthy argument so that everyone is at the same page.

                    Nothing personal, just trying to look at chennai city on a global classification in relation to planning terms.
                    Last edited October 26 2012, 10:21 AM.

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                    • Re : Property Price Trends in Chennai

                      Zeeenn!!

                      Zeeenn!
                      I am an IIT ian myself!!
                      If you want to take back your word just apologise and take back your statement.Why are you giving 'stupid' clarifications? How can a slumdweller compare with a Rs 4 cr villa man! He will bother only about his daily bread!
                      Rgds

                      Originally posted by ZeeEnn View Post
                      Sorry no intention of hurting your feelings. All I want to insist is that
                      a. There are too many slums in and around Mylapore eventhough the locals try to behave as if it is the end of the world. Almost every alternate street is a slum.
                      b. The alternate street to the slum in Mylapore is a bungalowed street.
                      c. I used slumdog to refer to folks who live in the slum. If that is incorrect as an adjective I withdraw it and you can substitute accordingly.
                      Cheers.

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