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Property Price Trends in Chennai

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Property Price Trends in Chennai

Last updated: 4 weeks ago
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  • Re : Property Price Trends in Chennai

    Beyond the roof to a lifestyle

    Modern residential projects to the south of the city and along the coastline are offering a novel lifestyle to Chennai.

    As the city’s heartland bulges at the seams, residential development is moving to the periphery. The Eastern and South-Eastern fringes along the Old Mahabalipuram Road and the East Coast Road are preferred options.

    In tow are the new breed of brand-conscious developers who are offering not just a home, but an entire lifestyle. Residential spaces packed with swanky lifestyle options such as recreational facilities, abundant parking space, extensive landscaping and trendy architectural designs are becoming the typical contemporary “givens”.

    The Chennai realty market is driven by a healthy mix of IT / ITES, manufacturing and logistics. The investor participation is long-term in nature, thereby mitigating a speculative market scenario.

    North Chennai is dotted with industries, workshops and port related industries. The self-employed and the public sector employees drive business in the region.

    These micromarkets are marked by the presence of smaller residential projects. These projects are expected to sustain absorption levels.

    The Old Mahabalipuram Road (OMR) or Rajiv Gandhi Salai, spanning over 26 km, beginning at Madhya Kailash Temple junction on Sardar Patel road, is an IT / ITES corridor.

    The areas up to Sholinganallur on OMR, including Kottivakkam, Perungudi and Thoraipakkam, continue to show buyer interest due to their proximity to the city and the presence of operating commercial spaces.


    The setting up of TIDEL Park on OMR in 2000 changed the landscape of the stretch forever, paving the way for the development of the IT corridor, as we know it, today. This development, naturally, led to the creation of a premium residential housing market along the belt. OMR may have seemed like a distant suburb a few years ago, but now, it is very much, a part of the city. Up to Siruseri it is essentially an extension of the city, and should not be considered a suburb anymore.

    The Navalur, Egattur belt has the presence of projects in the premium segment.

    Infrastructure and lifestyle amenities with schools , hotels & health care and entertainment facilities cater to the social needs. This area is witnessing robust real estate activity by prominent builders. Projects are in the price band of Rs 3750 per sq. ft. and upwards depending on the location, specification and builder.

    Siruseri houses the largest IT Park in Asia, State Industries Promotion Corporation of Tamil Nadu (SIPCOT) IT Park. It is spread over 1000 acres and houses prominent IT companies like Tata Consultancy Services, Cognizant Technology Solutions, Polaris and Hexaware Technologies, to name a few. Fresh supply of residential projects is expected in the coming months.

    The belt between Padur and Kelambakkam is dotted with projects by prominent builders. But absorption could moderate over the next 7-8 months, due to supply in surrounding catchments, which are relatively closer to the city.

    The Velachery - Tambaram road continues to attract home buyers due to its connectivity to both OMR and GST (Grand Southern Trunk) roads.
    Rates along Medavakkkam and Pallikarnai are expected to firm up due to demand driven by location attractiveness.

    The trend is towards high-rise or gated colonies, 24-hour power back-up and recreational facilities. High-rise building allows you to unwind after a day’s work and enjoy the landscape view with clean and healthy environment.

    Today developers are bringing in the expertise of world renowned design consultants and architects such as SRSSA, Meinhardt (Singapore) for Civil, Structure & MEP; IBA (New York) for facade; Sitetectonix (Singapore) for Landscape; Windtech (Australia) for Wind tunnel engineering, and so on.

    Housing in Chennai is becoming more institutionalised with large business houses setting up distinct and separate vehicles for real estate.


    Real estate developers are also looking at image-building and brand recall. The whole act is increasingly getting more professional and organised.

    Comment


    • Re : Property Price Trends in Chennai

      I saw this article. My opinion is also similar about Shols, Navalur & Siruseri areas.

      After reading the article, I realized that "The author is the Managing Director of Archean Design & Development". His company has their first RE project in Navalur, OMR

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      • Re : Property Price Trends in Chennai

        Articles about real estate trends are written for time pass or compulsion to write something to justify salary or to promote a project.

        Comment


        • Re : Property Price Trends in Chennai

          @Economist,

          I appreciate your effort taken to post stuff on here.

          Can you just post the links to article instead.
          I feel it takes up a lot of space.

          You can however post important points or your comments.

          I do not know if forum members need to know 'where is OMR' in your article.

          And also some articles do not have a lot of info, they have a page of non-essential stuff but just a line of useful info. I agree with Love4Land on this.
          Last edited October 30 2012, 12:54 AM.

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          • Re : Property Price Trends in Chennai

            Even posts are pasted here for earning commission by some agents. Buyers Beware . Not all owners buy flats based on what i or we write here in that sense.

            Buyer who invests 2-3 crores do not give importance for the posts posted by member who invested 50-60 lacs that too in hidden location. All piece n parcel of land or projects in OMR are not equal n comparable spec to spec

            Comment


            • Re : Property Price Trends in Chennai

              Don't insult people with budget limitations, I know someone very intelligent, capable of making huge fortune but chose a low pay teaching profession in IIT after returning from US. Just because they earn lower or can afford less, doesn't mean they are any less wiser than people with 2-3 crore budget.

              Any good human will give importance to all kinds of suggestions, then choose to ignore or consider based on their merit. Only arrogant people will not even let others to make suggestions.

              Comment


              • Re : Property Price Trends in Chennai

                Ok, Back to the old topic, raised often here - Why is RE Price high in Chennai , compared to many other cities (like BLR, HYD,PUN) despite lacking the good social infrastructure (malls, planned layouts, parking etc)?

                People forget that RE price is not just about quality , not just about demand and supply. In India, RE is also an avenue for investing /parking/hoarding unaccounted income.

                Mumbai CBD RE prices are one of highest in Asia, if not world. Everyone agrees on that right? Now tell this - is Mumbai the best city in Asia? In terms of social and physical infrastructure, Mumbai is one of the relatively worst city in Asia and even in India, Mumbai is rated inferior to delhi. Of course one can never deny Mumbai's unlimited opportunities for anyone willing to work hard (on any field, on any scale) and it is the financial capital. But still does it alone justify the high Mumbai RE prices?

                Same applies elsewhere too. It is only a question of relative comparision. Yes, Chennai, despite its relatively poor infrastructure has costlier RE compared to other cities like BLR or HYD. And the reason is that relatively more Coloured money is circulating here. One need not be a CBI Officer or a Anna Hazare supporter to understand this fact. And yes, Chennai RE, As I know was not so relatively expensive, compared to BLR or HYD say 10 years back. And yes, 10 years back, we did not have such huge Coloured money and so much corruption. It is also not helping that TN Politician names are more mentioned behind many scams. Do feel free to disagree with me - but what makes me argue this way is that prices in smaller towns in TamilNadu also seem to have become too expensive , relative to their social infrastructure.

                Comment


                • Re : Property Price Trends in Chennai

                  Corruption is main issue in having RE price so high. Last 10 yrs it is becoming normal that most of the voters are getting anywhere from 3k to 10k in cash on election day depends on strength of various parties. Also there is a trend setter in TN for mass bribing the voters by giving away freebies. Bribing a person is criminal however bribing the entire mass is called socialism. How major parties are en mass such a hugh money days before the elections? RE and pseudo commercial establishments are keys to hide, retrieve and distribute the wealth.

                  Also inflation is major factor for stubborn price increase. If history is any guide India never been successful in containing the inflation since independence.

                  People become having less and less faith in govt institutions for various reasons that let citizens to do more asset purchase rather than keeping the cash or other investment.

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                  • Re : Property Price Trends in Chennai

                    If we get single party with clear majority we may see improvement. Coalition govt is more pain than solution. There is a dearth of leadership at various levels whether it is private or public offices. May be educational system should be reformed at the ground level to root out all these issues. Now we are talking about at least 2 generations away!

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                    • Re : Property Price Trends in Chennai

                      Just received email about new project at Sholinganallur junction. Don't know how these people get our emails IDs! Project name is "Renuka Sangamam". The location is Sholinganallur junction per google map snapshot provided. Seems to be a huge township with mix of apartments and villas.

                      Apartment price - 4200 psf
                      Villa price - 1.77 to 1.99 crores all inclusive

                      Villa is on 2700 - 3400 sq ft plot with built up area of 2900 sq ft.

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