The property market of south Chennai
has been performing considerably well in the recent past with integrated
townships and reasonable rental values striking a chord with the end users.
Read the following post to know more about the realty souk of south Chennai.
Introduction

Though compared to other cities, the rental market of Chennai
has not been performing that well. However, in the short run, an upward
movement within the residential realty market is expected to witness an upward
movement. Over time, this is also expected to boost the demand for rental houses in Chennai, thus increasing the prices of residential property in
Chennai.
South Chennai Property Market
South Chennai is one of the most posh areas of the city. The
region is home to industries such as automobile, electronic manufacturing and
of course the Information Technology (IT). Other industries include the south
Indian film industry. These have been the key drivers of the real estate market
of Chennai - whether commercial or residential.
The residential real estate market of South Chennai has
witnessed tremendous growth in the recent past with huge investments from the
NRIs. This has led to the construction of new-age residential properties like
duplexes and penthouses. Recently, the concepts of serviced apartments have
become quite popular in the region.
Similarly, the commercial real estate market in south Chennai
has also gained importance owing to the flourishing IT/ITeS sector. Business
Parks, IT Parks and plush office buildings define the landscape of the region.
Major localities include Old Mahabalipuram Road, Perungudi, Thalambur,
Kelambakkam and Grand Southern Trunk Road. Areas like East Coast Road,
Velachery-Tambram have scored extremely well in within the residential realty
segment.
Key Features of the
South Chennai Property Market
The Old Mahabalipuram Road (OMR) has stretch has witnessed a
huge upsurge in the real estate market in the last twelve months. There has
been multiple project launches along the 26 kilometres stretch that has
recorded great absorption level at the same time. However, real estate prices
relative to the location continues to remain a key determinant in the success
of a product.

Localities of Sholinganallur and Perumbakkam are two major
micro-markets of the residential real property of south Chennai. These
localities are not only expected to witness a spree of residential products
that would be launched in the coming months.
Strategically located Velachery-Tambaram road has been a hub
of real estate activities in the recent past. Its appropriate location, clubbed
with outstanding connectivity to suburban localities, has helped in retaining
the real property prices of the micro markets. The region has recorded an
appreciation of at least 10% during the last 12 months.
Integrated township projects are being launched in the
locality of Semmancherry that has already recorded ample advance booking. Siruseri
on the other hand, houses the biggest IT Park in Asia. It is also witnessing
the development of some mid-segment projects. Some new launches are expected to
come up in the near future.
The following table highlights the residential property rates
of South Chennai
Location
|
Average Capital Values
(INR/sft.)
|
Rentals for 2BHK (INR/month)
|
Chromepet
|
4500
-5500
|
14000-16000
|
Tambaram
|
4200
-5000
|
8000-10000
|
Madipakkam
|
4000
- 4750
|
12000
-14000
|
Semmancherry
|
3750
-5000
|
10000-14000
|
Urampakkam
|
3200-
3750
|
8000-
10000
|
Source: ICICI Property Services Group