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Property Price Trends in Chennai

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

    Pallavaram/Thiruneermalai area is an exception in GST. It was a brick and mortor industrial hub, and now a hunting ground for developers - Ponds, TTK-Maps, and several more to follow. So that's the only location where RE bigwigs can hope to find large parcels of land, and then convert them to residential zones - a repeat of the Velachery story. If English Electric, now Areva, falls that will be one big scoop for GST. Right next to Defense zone, the airport, and bang on GST, it's least congested and can form one huge posh area overnight. Some small industries in Mount-poonamallee route may follow the same course, but many have already converted to new age businesses.

    I agree with @K11 that the effect of metro on Chennai realty is still obscure. Chennai metro cannot be compared to Delhi, or Singapore, where most sectors were developed around the metro, just like most areas of GST were developed around the electric trains. But metro is a penetration into already developed areas. Some areas that are presently posh may even turn kachra!

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    • Re : Property Price Trends in Chennai

      K 11,
      Velacherry prices have already touched 10k with the new apartment comming at Phenix mall.I was quoted 7500 for the same about 8 months back.Many resale,people started to quote around 10 k in velacherry.Having said,Expect central part like Ra puram,Alwarpet areas to touch 35 k in 3 years time.Boat club already in 35k league now with Green earth property at BC has closed the sale for their apartments.

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      • Re : Property Price Trends in Chennai

        Originally posted by chandru_13 View Post
        K 11,
        Velacherry prices have already touched 10k with the new apartment comming at Phenix mall.I was quoted 7500 for the same about 8 months back.Many resale,people started to quote around 10 k in velacherry.Having said,Expect central part like Ra puram,Alwarpet areas to touch 35 k in 3 years time.Boat club already in 35k league now with Green earth property at BC has closed the sale for their apartments.

        Yes, you are right Chandru, I heard the Phoenix Mall is at 9K now. there are other complexes with 8-9K (Grand Residency).

        I am not saying no project in Velachery will not go to 10K.
        But for the entire Velachery to go to 10K will take more time. The interior areas are not well developed. Resales of 5-6K are still available. There are still some new small builder projects at 6-7K in some streets.

        I agree with BC at 35K, even Poes Garden is at 30K for small buildings. It is the market rate nowadays.

        I also think parts of Nungmabakkam, Alwarpet, Gopalapuram, RA Puram(Bishop Garden) might have the potential to hit 35K.
        Last edited August 19 2012, 08:19 PM.

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        • Re : Property Price Trends in Chennai

          Originally posted by ramki830 View Post
          k11,



          Reg Velachery, I think you are underestimating its potential. Velachery was 500 Rs psqft in 1995, when city (alwarpet) was 1200 Rs psqft. Now it has gone to nearly 8K + .. Velachery is having McDonalds and so many restaurants and getting more than one mall,something Adyar lacks. So prices will converge faster but I agree that not all places in Velachery will do well (interior regions will continue to be priced less).

          And w.r.t Airport as i said we really dont know what will happen to this airport in next 15 years. In anycase dont see places near airport becoming richly priced due to other reasons i said (water etc). And lastly on metro, adoption is an issue, but dont think noise is so much a factor. Even now I find people residing in busiest streets of TNagar and refusing to sell/move out, taking adv of very high prices , even as they curse everyone who make noise (from the hawkers to the parking vehicles to the big retailers). Unlike in west, zoning laws wont be brought and it wont work , given that most of our population is not car owning/driving.

          Even if you take 1995 prices, Alwarpet also would have given same returns. 1200 to now 20K. Both are close to 16 times the price.

          By the way, all the parts of T Nagar are not busy. There are some very good streets too.

          When I was in the market, I seriously considered streets off of GN Chetty Rd. Streets like N Crescent rd & surrounding streets are very quiet and posh. I found these streets much better than RA Puram (Which I think is over valued because of Bishop Garden and Boat Club nearby).

          Panangal Park and Ranganathan St have tarnished the residential image of T Nagar.

          It is time for some re-branding, the areas near Venkatnayana Rd (not posh but upper middle class area), areas I mentioned, etc should get cut off and get new area names.

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          • Re : Property Price Trends in Chennai

            I agree with K11 abt T Nagar. Ranganathan st give an illusion of T Nagar being conjested but areas like Coats Rd are still unaffected even during peak hours and very posh!

            I agree more with chandru_13 that post Phoenix Mall, Velachery will be the hunting ground for most of the young population. We might find people stretching thier purses wide open! When people are not thinking twice to taken high interest loans for 30 K Phones (talking abt lower and mid salaried) , I guess for something as valuable as a flat, loan taking will soar.
            Altho Velachery is still leaking during rains and is infested with mosquitoes, canals and worser managed traffic than T Nagar!

            I also feel current Southern Metro line (from Velachery to Beach) which was supposed to turn the places up side down, I dont think it has added much to these areas! Others can correct me if wrong since this view is just from some ppl I know in that area!

            But again once the proposed metro lines extensions from velachery to Thomas mount fills the little missing link that our existing line had in terms of connecting to the GST line, things might change a little! Also the new ones running via Saidapet and those through 100 ft JN Road will be the real game changers as they are running closer to the residential areas and might increase interest because swapping 2-3 metro trains is still far better than waiting & catching 1 long route bus!

            Personally I would love to just go to work by jumping on and off metro lines and just having to walk few mtrs from & to the Metro but alas OMR offices can never get this benefit!

            IN terms of price increase I feel Puzhuthivakkam, Adambakkam and other metro line areas will see steady increase in price (already in 5-6K range) . Because our "honest" builders who are used to selling flats at unrealistic prices for being just 8 KM near Velachery MRTS, have now got any oppty. to sell flats in "walking distance" to MRTS :-)
            Last edited August 20 2012, 12:35 AM.

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            • Re : Property Price Trends in Chennai

              By the way, I do not mean buying near a Metro is bad.

              I am saying that buying Luxury Apt just becasue it is near a Metro is not a good idea. I cannot think a person buying a 4-5Cr Apt will be relying on a Metro so it does not add a lot of value to him.

              For Lower Middle class/ Middle Class Apts, (especially 1-bhks,2-bhks under 60L ticket size) it is nessesary to have good transportation.

              Again our Bus transportation will improve, and will remain a key factor. This is more important than a metro or monorail as we do not know how popular they will be. Buses are tried and tested, they are lifeline of Chennai.

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              • Re : Property Price Trends in Chennai

                Originally posted by k11 View Post
                Again our Bus transportation will improve, and will remain a key factor. This is more important than a metro or monorail as we do not know how popular they will be. Buses are tried and tested, they are lifeline of Chennai.
                Very true! But I would like to add that Buses are still hit as they connect the interiors and only it can do so due to viability! Also it depends on the pricing of new Metro routes, if they are too pricy then I guess it will remain empty as the lower salaried ppl who constitute the most of consumers!

                If a new Metro ticket is 3 times the bus ticket (however valid the reason might be) many may still prefer Buses. In general we Chennai-tes are very conservative in terms of taking a big step even it might serve us better! Just my opinion!
                Again correct me if I am wrong about the pricing

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                • Re : Property Price Trends in Chennai

                  Originally posted by k11 View Post
                  By the way, I do not mean buying near a Metro is bad.

                  I am saying that buying Luxury Apt just becasue it is near a Metro is not a good idea. I cannot think a person buying a 4-5Cr Apt will be relying on a Metro so it does not add a lot of value to him.

                  For Lower Middle class/ Middle Class Apts, (especially 1-bhks,2-bhks under 60L ticket size) it is nessesary to have good transportation.

                  Again our Bus transportation will improve, and will remain a key factor. This is more important than a metro or monorail as we do not know how popular they will be. Buses are tried and tested, they are lifeline of Chennai.
                  I have been silent reader like many and appreciate efforts from K11, VP, LVL and others. It's inofrmative and good to connect with happening in Chennai.

                  K11- On metro- I feel it has potential to change landscape, if pedestrian infrastructure is taken care. I can definitely tell way things in Europe it has huge impact esp. when roads get clogged with vehicles. I won't be surprised in distant future we will have congestion charges for vehicles to enter CBD.

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                  • Re : Property Price Trends in Chennai

                    Thanks, Clairvoyant. Looking forward to more posts from you.

                    Regarding Metro, here is my view.

                    If the State Govt inhibits the metro projects and it remains only in its existing form only two lines. We are not going to see a massive adoption.
                    It could become another white elephant like MTRS.

                    The only way metro will become popular is if they connect all the parts of the city, including smaller lines to connect internal parts of the city, like Gemini to Mylapore, or from Lighthouse to Alwarpet, etc. Change MTRS to metro, connect the lines and have one system.

                    MTRS suffered because of the same issues, limited range, covered very few parts, no exchanges, poor bus connectivity. Taking RE decisions based on Metro is not a good idea. The same thing is happening in Bangalore where people are buying Metro properties for crazy amounts.

                    Instead of a proper transportation solution, our govt is dillydallying on Metro/Monorail and wasting precious time. It will take 6-7 years for a metro line to complete. I support ADMK but this transport confusion is nuts. If they do not take any action now, it will be 2020 and we will still be debating on what out transport system look like.

                    I would rather see Govt spending money on a super highway, another alternative to Mount road. We cannot rely on Mt road forever. A tolled 6 lane road that will connect Washermanpet to Velachery where the traffic could split into GST and OMR. Chennai is not a super big city like NCR/Mumbai, metro is not a big concern we need better roads. Govt need to start doing land acquisition for wider roads and expressways.

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                    • Re : Property Price Trends in Chennai

                      Thanks Clairvoyant. Just doing my bit to share info, altho i have a long way to gain the amount of knowledge k11 and L4L possess :-) . Kindly keep sharing your thoughts too as it will help me learn more about our great city Chennai !

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