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.
