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Property Price Trends in Chennai

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

    Bangalore has been having Townships and gated communities on a grand scale since ages, in Chennai it has only started. People have not even started to move in to most of these projects, these projects will be ready only early 2013. The dynamics will change once people start settling down in the new homes they booked in 2007 or 08.

    We have to wait until 2015 atleast before comparing our suburbs with Bangalore suburbs.

    BTW, I'm assuming you have excluded ECR in our discussion, coz it is THE poshest area in Chennai.

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    • Re : Property Price Trends in Chennai

      ECR does not have apts so I took it out.

      ECR beyond Neelankarai is barren. Not many high end bunglows.
      Even if there are it is probably less than a hundred high end homes overall.

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      • Re : Property Price Trends in Chennai

        High rise apartments beyond Neelankarai are on their way:

        :: Shanti Builders ::

        They were pioneers in constructing lifestyle apartments in Chennai and Villas in ECR, they are now going to set the ball rolling once again.


        ECR beyond Neelankarai may appear barren, but appearences are deceptive, check out Google earth or Wikimapia, you'll find huge palatial bungalows with private pools dotting seashore all the way till Kovalam. There will be gated villa community by reputed builders on the buckingham side all the way till Thiruvidanthai.
        Last edited September 13 2012, 08:06 AM.

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        • Re : Property Price Trends in Chennai

          Bunglows beyond Neelankarai are not many. As I said before it could be 100 or so houses. Most are farm houses/resots/second home for rich. Even if there are 500 it would not tilt the scales so much. Also this is only one enclave.

          Upper end apts are hard to move in OMR/GST/Oragdam/Sripermbadur/West suburbs. Price rise in city in the last three years is a big revelation of where the demand is. There is no well defined region.

          Gentrification is also happening in many parts of city, lower end folks are getting pushed out to suburbs to make way for high end housing. Govt is also doing its part in moving slums to suburbs. It is easy to for NRIs and Investors to say the next great place is some XYZ suburb. But ground reality is much different.

          Of course, builders also say so much when they try to sell suburban apts. They will hype up and say Oradagam junction is the new gemini. All of these you cannot fake it to high end apt buyers. High end apt buyers are driven by location, exclusivity then anything else. Prices is not a factor to them nor value. They are not buying it for investment but more for end use.

          All Indian cities are on its way to become the next HK/Shanghai/Singapore. Big gap between CBD and suburbs will continue to widen, primarily driven by lack of basic infrastructure and social infrastructure.

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          • Re : Property Price Trends in Chennai

            Well said. It is funny that people stay in abroad gets hyped by news media. Now a days properties in ECR are advertised as Boat Club II. Even in Boat club I you have mosquitoes issues! then imagine about II.

            Beware of snail pace work of infrastructure development outside of CBD. Just having posh apt is not good enough to live in suburbs, one should be mind about having near by good hospitals, schools and more important safety!

            Originally posted by k11 View Post
            Bunglows beyond Neelankarai are not many. As I said before it could be 100 or so houses. Most are farm houses/resots/second home for rich. Even if there are 500 it would not tilt the scales so much. Also this is only one enclave.

            Upper end apts are hard to move in OMR/GST/Oragdam/Sripermbadur/West suburbs. Price rise in city in the last three years is a big revelation of where the demand is. There is no well defined region.

            Gentrification is also happening in many parts of city, lower end folks are getting pushed out to suburbs to make way for high end housing. Govt is also doing its part in moving slums to suburbs. It is easy to for NRIs and Investors to say the next great place is some XYZ suburb. But ground reality is much different.

            Of course, builders also say so much when they try to sell suburban apts. They will hype up and say Oradagam junction is the new gemini. All of these you cannot fake it to high end apt buyers. High end apt buyers are driven by location, exclusivity then anything else. Prices is not a factor to them nor value. They are not buying it for investment but more for end use.

            All Indian cities are on its way to become the next HK/Shanghai/Singapore. Big gap between CBD and suburbs will continue to widen, primarily driven by lack of basic infrastructure and social infrastructure.

            Comment


            • Re : Property Price Trends in Chennai

              Originally posted by sunr2i View Post
              Well said. It is funny that people stay in abroad gets hyped by news media. Now a days properties in ECR are advertised as Boat Club II. Even in Boat club I you have mosquitoes issues! then imagine about II.

              Beware of snail pace work of infrastructure development outside of CBD. Just having posh apt is not good enough to live in suburbs, one should be mind about having near by good hospitals, schools and more important safety!
              Boss, In all fairness, consider my predicament. I own 2 decent apts in Ashok Nagar and Virugambakkam. I am staying in Virugambakkam (where I have stayed for 10+ yrs) and rented out Ashok Nagar one. Both are pretty old > 20 yrs. Other house owners are opposing reconstruction of the apartements sighting awkward reasons -- Children in 10th , I am living on pension and can't afford even 20K to repaint the exterior.
              Also I work in ITES sector. My offices are in Shols and MCity. The travel kills me with sometimes 2-3 hrs one-way in case of traffic. There is no option available but to move into suburbs.
              I would like high-end houses available near these suburbs. I dont find good infrastructure even in CBD, the roads, water logging, electricity (load shedding) etc are not good in Virugambakkam as well .
              I ended up buying few plots near GST hoping for construction later on. My current experience in desperately trying for reconstruction of my old apts which has resulted futile has made me choose plot over flat or apts and independant house construction.
              Few issues I do foresee in living in suburbs is lack of renowned school. I am hoping the scenario would change in the time to come.
              I am chennaiite and like living in city, but for all practical reasons it does not make sense for me in the long run.

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              • Re : Property Price Trends in Chennai

                rebuilding

                Maybe if the FSI limit is not reached/exceeded already, an option is rebuilding whole apartment by giving it to a builder and then he can sell the extra units he builds so that exisiting owners dont pay much from their hand! For apts . 10yrs old buyers only see the rental value and purchase it for market value of land UDS.

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                • Re : Property Price Trends in Chennai

                  Originally posted by sh1729 View Post
                  Boss, In all fairness, consider my predicament. I own 2 decent apts in Ashok Nagar and Virugambakkam. I am staying in Virugambakkam (where I have stayed for 10+ yrs) and rented out Ashok Nagar one. Both are pretty old > 20 yrs. Other house owners are opposing reconstruction of the apartements sighting awkward reasons -- Children in 10th , I am living on pension and can't afford even 20K to repaint the exterior.
                  Also I work in ITES sector. My offices are in Shols and MCity. The travel kills me with sometimes 2-3 hrs one-way in case of traffic. There is no option available but to move into suburbs.
                  I would like high-end houses available near these suburbs. I dont find good infrastructure even in CBD, the roads, water logging, electricity (load shedding) etc are not good in Virugambakkam as well .
                  I ended up buying few plots near GST hoping for construction later on. My current experience in desperately trying for reconstruction of my old apts which has resulted futile has made me choose plot over flat or apts and independant house construction.
                  Few issues I do foresee in living in suburbs is lack of renowned school. I am hoping the scenario would change in the time to come.
                  I am chennaiite and like living in city, but for all practical reasons it does not make sense for me in the long run.

                  The fact is there is not much difference between suburbs and most for areas within Chennai. Only select pockets are good residential localities. However, due to longer period of development, city areas tend to have better schools, shops and hospitals. Even this is changing rapidly. Till a few years back, it was unthinkable to have schools like Vidya Mandir and PSBB starting branches in suburbs. People who moved to suburbs like Sholinganallur in 2006 were forced to enroll their kids in international schools like Gateway. They were paying much higher fee than what was charged by traditional good schools. Now Vidya Mandir is operating from Guduvancherry, Perungudi and Perumbakkam while PSBB has branches in Siruseri, Perumbakkam, Gerugambakkam and GST road. You have great hospitals like Global hospital (Vilasrao Deshmukh fame) and Chettinad health city in OMR. Similarly areas like Chromepet are no different from densely populated middle class localities like Triplicane or Saidapet. The lines are blurring.

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                  • Re : Property Price Trends in Chennai

                    Originally posted by ramanu View Post
                    Maybe if the FSI limit is not reached/exceeded already, an option is rebuilding whole apartment by giving it to a builder and then he can sell the extra units he builds so that exisiting owners dont pay much from their hand! For apts . 10yrs old buyers only see the rental value and purchase it for market value of land UDS.
                    My friend owns unit in Alacrity Velachery, it is a huge gated complex and Ramaniyam has recently given proposal for redevelopment (with swimming pool and clubhouse facilities). They'll provide additional 100 sq ft free of cost to existing owners and 2 lakh to compensate for rent during construction period. However the residents are not agreeing to proposal. Most of the residents are senior citizens and they are not interested in redevelopment. My friend is worried but still hoping common sense will prevail in the end.

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                    • Re : Property Price Trends in Chennai

                      Even I reckon UDS is bit overstated. It does serve purpose for end use (CBD) to some extent (patience is key), but there's big if- if you look at localities like Adyar, Alwarpet , Mylapore, Nungambakkam etc..most of the dwellers live for decades and appears more like retired homes.

                      They have goldmine in hand but their PPP is low, as they would have inherited or living there for generation (acquired when it was cheap). So you do come across issues like building consensus for re-development, maintenance quibbles etc..

                      I did look at an appartment (19 years old) in the heart of Nungambakkam in mid 2000s but had to walk out as I found better opportunity in plots. I don't have regret as return % is higher than flats.

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