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Property Price Trends in Chennai

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

    Originally posted by vettipayyan View Post
    Uff.. Its getting tired to read all this talk about suburbs from an investment perspective alone. Investment is not important for most of the people signing up into this Forum. But its going that way , and hence the discussions here look more focused towards that.

    Lets first look at the immediate necessity which is end-use - first home. I concur with @Clairvoyant, that End -Use means convenience and comfort. As simple as that.

    Its the failure of Govt and Town planning which has left the suburbs the way it is. Why complain about the people who want to stay close to CBD? I still find Sewage dept, BSNL, TANGEDCO(TNEB) heeding to complaints in CBD faster than they do in the suburbs. Its these depts negligence which needs to be criticized rather than questioning Chennaites thinking!

    Right now many are confusing the heavy price rises in Suburbs with growth. But they both are independent!
    Now you are pushing me to ask this question.

    What is the CBD & Suburbs you are referring to?

    Could you please eloborate on the CBD & Suburbs of Chennai in the context you are reffering to?

    Please excuse my ignorance

    As per CMDA & Hindu.

    Central business district bursting at its seams


    City Bureau



    The locality is constantly battling issues such as congestion, poor sanitation and inadequate power supply

    CHENNAI: The cultural past of the city continues to catalyse growth and development of various localities. George Town is one such locality with the potential to sustain its character as the central business district of the city. All the same, the locality is constantly battling issues such as congestion, poor sanitation and inadequate power supply, according to traders.

    In 2008, the CMDA gave permission for constructing only one multi-storeyed building in George Town, the Central Business District (CBD).

    This year, the planning body has not given permission for any multi-storeyed building in the CBD, according to Susan Mathew, its vice-chairperson.
    A section of urban planners is of the view that widening the roads in the locality, increasing the Floor Space Index (FSI) in the CBD and strict enforcement of rules would help.
    Around 60 per cent of the buildings in the CBD are dilapidated structures and there is a need to create more incentives for construction without deviation, say urban planners. They say that the vertical growth in the CBD should be promoted with wider roads, better public transport and higher FSI.
    Buzzing with activity


    Enthusiastic crowds thronging the narrow streets in George Town point to the commercial significance of the area. Strong commercial elements rooted in the area transcend the diversity of people, residents, businessmen, officials and customers.

    The proximity to port, railway and road transport facilities has helped the area sustain its momentum, according to urban planners.
    According to an official of the Chennai Port Trust, George Town located near the port has a geographical advantage as the port handles 75 per cent of the export from the state by sea and 80 per cent of the import. Export and import agencies in the area fuel growth of wholesale and retail trades, he says. It was this advantage of a sea port in the vicinity that was utilised by the early settlers.

    Godown Street, Bunder Street, Kasi Chetty Street, Devaraja Mudali Street, Perumal Mudali Street and Narayana Mudali Street in the area have gained prominence and unique identity over the years.
    Nainiappa Naicken Street with many shops selling surgical instruments and chemicals, Rasappa Chetty Street selling cement and building materials, Raghunaickulu Street selling stainless steel products, Govindappa Naicken Street selling electrical products, dry fruits, nuts and provisions are other prominent streets. Mint Street continues to sustain its charm as the best shopping destination, say traders. However, the area is not problem-free. G. Alavandar, a steel merchant, says an increase in the number of traders, shoppers and visitors has been contributing to poor sanitation. Fatehraj, a resident, says the drainage system is inadequate to handle the increase in the number of buildings. The infrastructure for power supply was not enough for all the houses, he adds. S. Manikandan, a dealer and exporter of hair products, says the wholesale and retail trading of the goods is bringing lakhs of people to the area. “But the facilities for parking are not adequate. Vehicles do not obey traffic rules in the area,” he adds.
    Last edited November 22 2012, 04:04 PM.

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    • Re : Property Price Trends in Chennai

      Correct me, George town must be the place near Parrys. It would have been Chennai's CBD around circa 1940 or 1950 AD .

      Then around 1990s and early part of 21st century, Mount Road and surrounding regions are considered CBD of Chennai.

      But in 2025 we don't need any CBD, actually this concept of central business district (CBD) must be eliminated, it should disappear. For a city of 1 crore population with so many diverse industries , there simply cannot be a single region called CBD.

      Instead like Economist member already wrote, there should be multiple commercial nodes. There should be at least 4-5 commercial nodes in greater Chennai metro region in all 4-5 directions. Each commercial node will be like CBD only for the surrounding few areas.
      Last edited November 22 2012, 07:07 PM.

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      • Re : Property Price Trends in Chennai

        The article above is for commercials hubs. I go often to Richie st where I can find any electronics spare parts but I cant live there. For most of the folks, the CBD meant residential hub for the areas with in 3 to 4 km radius from gemini flyover. Other areas 10 to 15KM radius are citi limits.

        Overall the price trend for residential is very steady in CBD and I am surprised to see the resilience. Areas such as KK Nagar, Ashok nagar, vadapalani, west mambalam are quoted minimum 10k/sq.ft for new apartments. All the small projects in and around alwarpet , RA Puram, nungambakkam are not only bought out and also the price is very steady. 3BHK (1300 to 1400 sq.ft) apt cost around 2crs in CBD and it is common knowledge among masses. Also in suburbs such as East Tambaram the price starts 1cr per ground. If it is close to train station more the price. In Thiruvanmiyur near by kalasektra rd the price starts from 3 cr/ground. In Gandhi Nagar adyar ground rate starts from 5cr.

        The asking price is sometime outrageous from the sellers and find very difficult to justify. we have supply constraint and find difficult to get skilled labors. Word of caution on unknown builders and quality of the construction. I have heard from my building supervisor about the poor quality of constructions in areas like navalur by unskilled labors using synthetic materials. So one has to be prudent on both price and quality of construction.

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        • Re : Property Price Trends in Chennai

          Today, anyone who wishes to buy a decent apartment (with parking etc), even if second hand, needs minimum of 1 crore if he/she wants to buy in the CBD. All this is sounding as good for CBD bulls. I will not berate CBD and yes, CBD is great. But the very high prices, particularly the near doubling of RE prices in last 24 months in CBD itself is going to be a catalyst for massive migration of high earning tenants in CBD to owned property in suburbs.

          High RE prices influence other things. A 15 year old apartment in CBD earlier used to be priced at 20-30 Lakhs, now is priced at 70-80 lakhs. so invariably the owner is influenced to increase rentals. Slowly everything gets pricier - from service providers who own property in CBD to brokers and middlemen who happen to live in CBD and demand a piece of action..

          And all this triggers migration to suburbs. It is a slow process, more so in Singara Chennai where infrastructure is pathetic, but the end result after 10 years is same. Close suburbs in and around Chennai CBD will converge with CBD in all aspects. Vepery and Annanagar are at same price today and so are Egmore and Adyar, same will repeat. It is just a question of time...

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          • Re : Property Price Trends in Chennai

            Originally posted by Economist View Post
            Now you are pushing me to ask this question.
            What is the CBD & Suburbs you are referring to?
            Your article is about commercials hubs as sunr2i had pointed out and I was talking about residential areas!

            Actually if u read my posts I had been keen on using term "city" earlier instead of CBD. But then started using CBD just out of convenience to refer to the main city, and not in true sense!

            So many have been using it in the same sense, why this sudden question !!

            Yes problems exist in city, I never said City is heaven and Suburb is hell, but what I was quoting is frank comments. Here I see many getting carried away about surburbs, sometimes to the extent of comparing our suburbs-to-city travel, with travel from suburbs - NY ! Lets stay on the ground and be practical.

            I still stand to my point, that the attention of Govt, given to the issues in T Nagar, Adyar etc for proper residential areas, is better when compared to those in suburbs. I dont bluff and this is from the experience of listening to various rants I heard my acquaintances in suburbs where they say it takes ages for them to get complaints answered.

            Lets accept that suburbs are becoming increasingly expensive and the gap between social infra and pricing is increasing every day! If we want to coax ourselves thinking this is false, Good luck!
            Last edited November 23 2012, 12:07 AM.

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            • Re : Property Price Trends in Chennai

              Also lets be clear here.. I am for the suburbs.. If it is given real attention as the main areas in city get. Then it will be the place to live, but unfortunately I am not confident of this "eventually it has to develop" stuff.

              I am not here to say please stay in city and not in surburbs. buying in City is close to impossible for middle class and its pretty obvious (10 mins on Sulekha would even educate a newbie) . But I dont want to say Suburbs are growing at a super pace. First part of OMR has been here for almost 10 years, Medavakkam, Tambaram, Pallavaram have been popular old settlements, but there has been a lot of negligence by the Govt!

              Another point is, most of the members here look at places from investment point of view and from rental returns, hence not really worried about state of a place. There is not much end-use perspectives, which makes all the point about suburbs a little dreamy!

              If many dont have 1 Cr to buy in City, then neither do many have 20-30 Lakhs lying around to "invest" in Suburbs, & neither are the suburbs so cheap! simple
              Last edited November 23 2012, 12:23 AM. Reason: added some points.

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              • Re : Property Price Trends in Chennai

                An article about future potential of Medavakkam

                Medavakkam in south Chennai is expected to outscore all other residential hubs in the state in terms of real estate appreciation in the next five years, according to a report released by realty consultant Knight Frank.

                It is among the 13 most happening places across the country that would appreciate more than 90% in the next five years, the report said.

                For full article refer this link: Medavakkam among 13 growing realty markets - The Times of India

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                • Re : Property Price Trends in Chennai

                  Originally posted by braveman View Post
                  Medavakkam in south Chennai is expected to outscore all other residential hubs in the state in terms of real estate appreciation in the next five years, according to a report released by realty consultant Knight Frank.

                  It is among the 13 most happening places across the country that would appreciate more than 90% in the next five years, the report said.

                  For full article refer this link: Medavakkam among 13 growing realty markets - The Times of India
                  Madambakkam has certainly done very well in the past 5 years.

                  I was quoted 25 Lakhs for 1 ground at BHEL Nagar in 2006 i would Imagine they are over 75L these days.


                  It has more potential particularly it the new OMR link road proceeds.
                  Last edited November 23 2012, 06:59 AM.

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                  • Re : Property Price Trends in Chennai

                    Smart investor will not fall into the trap of city vs suburb. Most of the city is very expensive, so is the suburb. There are pockets of good investment in both city and suburbs. smart thing to do is to identify these with an open mind - suburb or city doesnt matter.

                    End users will not give same importance to appreciation potential - budget for home purchase, distance to office, social circle, school for kids, surrounding infrastructure etc are more important for them. There is no place in Chennai which will give all these things. So end users keep making compromises - different people on different things.

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                    • Re : Property Price Trends in Chennai

                      Originally posted by Economist View Post
                      Madambakkam has certainly done very well in the past 5 years.

                      I was quoted 25 Lakhs for 1 ground at BHEL Nagar in 2006 i would Imagine they are over 75L these days.


                      It has more potential particularly it the new OMR link road proceeds.
                      I guess you are referring to Medavakkam (BHEL Nagar) and not Madambakkam right?
                      BTW just wanted to know if you are right about the year. BHEL Nagar medavakkam went at Rs 5 lakh per ground in 2003.. If we saw 25L per ground in 2006, that is terribly great returns even in that period ...

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