Housing Demand In North And South Chennai

Like the rest of India, the realty market in Chennai is facing a dry spell in terms of appreciation of value. However, there are several localities which have seen a noticeable increase in the capital value of property. For example, Korattur in North West Chennai has reportedly seen a rise of twenty percent in capital value of property in the last one year. The per square feet rate of apartments in this area has gone up by almost INR 1000, from INR 4,900 in the time frame of January to March 2013 to INR 5900 in January to March 2014.

There are several apartments and areas which have undergone an appreciation in the capital value. There are several reasons to such a phenomenon, of which the top ones have been discussed here.

Redevelopment

The area of Korattur is going through a phase of redevelopment. The Tamil Nadu Housing Board has allotted plots in this area for building independent houses. However, these very plots are not being sold to property developers who are building multiple storey apartments on these plots.

In Chennai, Korattur has the maximum redevelopment which is why newer dwelling units are available here. However, the supply and demand gap is very prevalent here which has led to a price rise, according to Director of Sarathi Engineer, DhayaNidhi.

The buyers of property in this area consists mainly of IT employees whose base is Ambattur. Aside from them, local entrepreneurs and businessmen also prefer to invest in Korattur because of its closeness to Tiny Sector which is a premier industrial area in Chennai.

Affordability

People who can’t afford to buy property in Anna Nagar feel Korattur is a model alternative for buying apartments for living. As property in Anna Nagar costs sky high, Korattur has reasonable properties in which investments can be made.

According to available data, 2BHK in Anna Nagar of 1000sq ft. size will cost between INR 85 lakhs and INR 1 crore while Korattur has 2BHK apartments of size 800 sq. ft. within INR 52 lakhs. In the same way, a 3BHK apartment in Anna Nagar will be priced at more than INR 1 crore. However, in Korattur, the same flat can be bought within Rs 70 and Rs 75 lakhs.

Saturation point has been reached in Anna Nagar. No new development program is taking place in the region which is why property demand is getting dissipated to the nearest location of Korattur which has veritable amenities and infrastructure, according to a local broker Lalith Jain, active in this area. Not only does Korattur offer good connectivity to the rest of the areas of Chennai but it is also much affordable. Korattur has its own train station which makes going towards Chennai Central much easy. The area shall also be connected to the Metro Rail Network via Anna Nagar Metro Station that is just 4kms from Korattur. A lake and natural dense green cover add beauty and serenity to the area of Korattur.

Experts at the market believe that even though Northern Chennai has developed to become an industrial hub, the corrections in infrastructure planned in the future shall boost the realty market in the area.

Even though slow in terms of actual transaction, realty market in Chennai is very active in terms of the supply side. According to a recent report published, there are more than 100 projects lined up in South Chennai of which 77 percent shall be providing multi storeyed apartments while the remaining are independent houses and single floor units. The localities where the largest numbers of projects are coming up include Tambaram, Kelambakkam, ECR, OMR, Thiruvanmiyur and Pallikamai.

A local broker working here has commented that demand and supply in Southern Chennai has kept pace with one another. As the infrastructure is expanding and there is higher pace of growth coupled with availability of land, the southern half of Chennai surpasses all other areas in terms of new construction and preference. Developers like Alameen International, Urban Tree Infrastructures, Rajkhan Builders, True Value Homes and Sanjay Developers are active in this area. Most of the building projects offer 2BHK and 3BHK flats which start at Rs 15 lakhs and can go up to Rs 12 crores even.

Tambaram has 2BHK apartments whose price starts from Rs 15 lakhs while Kelambakkam and OMR have the same sized flat in 2BHK style costing Rs 20 lakhs Pallikaranai on the other hand offers smaller apartments at Rs 28 lakhs as starting price. Of them all, ECR is most costly as it offers apartments near the beach. There is a lot of planned development going around in the area which attracts old money for building villas here. The starting cost of property in the area is around Rs 80 lakhs although plots of land are available over here than cost between Rs 5 and Rs 10 lakhs.

The projects being developed in South Chennai have all sorts of facilities like swimming pool, club house, big lawns and gymnasiums. Most of these projects offer possession to buyers towards the end of the year 2015. Some of these projects might also be delivered in the upcoming 6 months in Tambaram and Pallikaranai.

According to owner of AK Real Estate, Khader Khan, South Chennai has the highest demand from buyers employed in the IT sector located in the area. Proximity to the IT hub and affordability adds to the plus points of the area. Moreover, the localities have flats to suit different budgets that arouse the interest of different buyers to invest in this area.

What works actually in the favour of South Chennai are infrastructure and connectivity. It boasts wide connectivity via a network of railway tracks and roads. The Chennai Suburban Railway’s south line network links most of the localities with Chennai Central.  Moreover, those people moving outside the city towards Puducherry could drive through the ECR or East Coast Road which is a 2 lane highway and located at a distance of 1km from Thiruvanmiyur. Prominent colleges and schools and industries in the area, South Chennai has begun witnessing increased demands of housing units.