A Quick Overview of the South Chennai Property Market

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 

The Chennai real estate market is typically end user driven. Among the three segments, the residential realty market still has the maximum number of bidders. If we invest sometime in analysing the dynamics of the real estate market of Chennai, we will find out that every corner of the city has recorded some variations in growth in the dynamics of the micro markets. 

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.

Neighbourhoods of Karapakkam, Perungudi and Thuraipakkam have recorded sales figures that are moderate mainly due to the existing levels of prices and a dearth of infrastructure. Ample small-scale residential realty projects have dotted this region falling within the price band of INR 5000-6000 per square feet. In the coming months, the locality is expected to observe the infusion of fresh supply.

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

Small Properties in Thane, Mumbai (Guest Post - Rashmi Karan)

The Increased property rates in Mumbai have forced the buyers to move towards the suburban localities of the city, one of which include Thane East and West. Thane is among those suburban localities around Mumbai that offers good options for the buyers belonging to the middle-income group. This area serves as the perfect investment destination for the mid income buyers.

The Infrastructure

Spread over an area of 147 square kilometres and ensures excellent connectivity with Mumbai through various linking roads, which are the State Highway 42 and the Eastern & Western Expressways. Thane has very good rail connectivity through the local rail lines between Thane-Vashi and Thane-Panvel. It is also well connected to other neighbouring suburbs through the suburban rail network of Central Railway.

The Localities

Localities like Dombivali, State Highway 42, also known as Ghodbunder Road, Badlapur, and Kalyan West alone account for around 40% of the total supply of 1 BHK units in Thane. These areas have also witnessed tremendous infrastructural developments along with modernization with the construction of several shopping malls, and other commercial establishments. Such developments have greatly improved the growth prospects of the localities.

The most popular types of housing units in both Thane East and West are the 1 BHK flats. The buyers look forward to invest in the 1 BHK flats as compared to a 2 BHK or a 3 BHK flat. Undoubtedly, Mumbai is the winner when it comes to demand for small sized flats and homes. However, due to spiraling property rates in Mumbai, people have started to shift to the suburban locations to find less costly accommodation, and this has certainly given a boost to the realty segment of Thane.

The main reason why people look out for smaller flats is that they think it is better to invest in flats rather paying a hefty sum as rentals. These days, the rentals of a 1 BHK flat and the EMI on a home loan are equivalent. In fact, in certain localities, the rentals are much higher than these EMIs, suggest the market experts.

Reasons for growth of Thane as Realty Hub

Some of the remarkable reasons for the growth of Thane as real estate destination are excellent connectivity with Mumbai and other suburbs, infrastructural developments, and lesser capital values. Thane has built up its buyer’s base for small sized homes. Flats having a total built up area of 500-650 sq. ft. are available in the price range of Rs. 3,000-4,500 per sq. ft. If you wish to buy a 500 sq. ft. property in Thane West or East, you will have to pay somewhere around Rs. 15 lakh. On an average, the price range of 1 BHK flats in these localities is somewhere between Rs. 15-32 lakh, which is pretty affordable.

A number of builders who were earlier targeting Mumbai for development of new projects have now headed towards Thane and have rode the wave of success. Some of the builders and developers like Indoasian Buildcon Pvt. Ltd., Lodha Group, Siddhi Real Estate Developers, Kabra Builders, Puranik Builders, Swami Developers, Skylark Constructions Pvt. Ltd., to name a few, are offering 1 BHK flats in Thane West and East. In addition, the interested buyers can also look forward to invest in the 1 BHK flats in Dombivali East and Kalyan West also.

If the market experts are to be believed, Thane has been able to attract the buyers owing to availability of properties at affordable rates, and such growth is expected to continue in future. Those who have a detailed knowledge of the market, expect that there will certainly be a hike in the prices of properties in Thane. Some new realty developments are also planned.

Rental Property Scenario in Hyderabad

Dear Readers,

We are pleased to share our first Guest Post by Mr. Kunal Chhibber. Our guest has shared his views about the esteemed rental-investment options in Hyderabad. Please note that we did share our views on Hyderabad Real Estate some time back which was also featured on Mission Telangana. We thank our guest writer for his article.

Rental Property Scenario in Hyderabad

Hyderabad has attracted various research, manufacturing and financial companies. This city has become the fifth largest contributor to the country’s overall gross domestic product. Large numbers of people are planning to get settled in this city and if you are also one of those working professionals or students who are looking forward to know more about the houses for rent or for sale in this city, then this article will guide you the best way.

As we all know the cost of living in Hyderabad is quite economical than other metro cities in India. People coming from different cities to work for big giants prefer rentals in Hyderabad property, more than purchasing it. Huge numbers of people are job seekers who come and search for temporary accommodation in Hyderabad to start or make their career.

Property Market In Hyderabad

Real Estate market is a good investing option in today's time where you can invest your money. Be it the residential or the commercial property, the prices are always increasing in cities like Hyderabad, Delhi, Mumbai, Pune, etc. There are plenteous residential or commercial properties which are ready to move. In case you looking to invest in a commercial or residential land then it will definitely fetch you a lot of money. Also, making investment in such properties, which are rented easily, is always a good deal.

2-3 BHK houses for rent in Hyderabad ranges from 10 to 25 thousand per month whereas the penthouses or villas may cost you in lakhs per month. If you are an investor then buying a property is a good idea as this way that you can lease it out for some good source of monthly income.

Apart from this, there are end numbers of upcoming residential and commercial projects which seems to be quite profitable investment. Many investors are buying these properties for the purpose of rent whereas few of them purchase to sell after earning a good amount of growth or appreciation. The booming real estate industry assures lucrative returns.

With the onset of a developing realty industry, the property developers are enhancing their outreach in Hyderabad. You will find a good range of options for accommodation in the city. Starting from 1 BHK to large independent bungalows, all are available on rent. Some of the most popular locations in the city include Banjara Hills, S.R. Nagar, Kondapur and Hi-Tech City. These areas have a range of property offerings suiting your requirements. You can also get furnished, semi-furnished or unfurnished houses, suiting your necessity. It will be extremely helpful if you do a thorough research on all the possible resources to find a good accommodation. In case you are very new in Hyderabad, there could be numerous details to guide you on the web. Also, contacting real estate agent and brokers can get you the best deal.

Therefore, if your an immigrant and are not sure of how long you will be living in this city, going for a rental accommodation is the best choice. With property developers rapidly constructing residential complexes in the city of Hyderabad, you will always have a varied range of options suiting your requirements and budget.

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