North Chennai residential market has potential for growth

 

C Shivakumar

Chennai:

North Chennai residential market has the potential for growth with improvement in connectivity and better infrastructure facilities, according to real estate experts.

A report by property portal indiaproperty.com feels that with improvement in connectivity and better infrastructure facilities in the future, one can expect an increase in demand for residential properties in North Chennai.

“The area would see steady growth in the future with stand alone houses giving way to low-rise apartment complexes,” the study predicted.

M Raghunathan, state secretary Builders Association of India, Tamil Nadu feels that North Chennai is an upcoming market. “With the prices going up in south Chennai due to demand from IT sector, it is now not affordable for an ordinary man to buy a property there. This could result in people focusing on North Chennai to live closer to the city,” he says.

Currently, the residential market in North Chennai constitutes of a small percentage of 15 per cent of the total under construction stock in Chennai.

Raghunathan says that lot of development projects are coming up in Madhavaram, Parambur, Ayanavaram and Kodingayur as the city’s connectivity is set to improve.

Interestingly, indiaproperty.com report states that the area sees maximum demand from traditional set of buyers who have lived in the area.

“The demand here comes from the public sector employees, railway workers and port employee who have worked and lived in the area throughout their lives. Having high percentage of middle class population under Rs 50 Lakh, it is the most proffered budget for residential properties,” he says.

Lack of job opportunities, poor access due to presence of railway track, water logging, inadequate fresh water supply, improper sewage lines are few of the reasons for restricted growth in the past.

“With improvement in connectivity and better infrastructure facilities in the future one can expect an increase in demand for residential properties in North Chennai. The area would see steady growth in the future with stand alone houses giving way to low-rise apartment complexes,” predicts the report.

Citing Perambur, the report said that being a low-lying area with poor access, the developers were not interested in Perambur earlier. But things have taken a different turn recently. Capital values in the area have appreciated by over 20 to 30 per cent in the past two years. “One of the common trends in the area is individual houses are getting converted into apartments having 20 – 25 units. Also some of the old mills have given way to huge vacant land parcels, giving way to big residential developments in the area, the report states.

 

Residential Property Rates in Major Residential Markets of North Chennai
MICRO MARKET        CAPITAL VALUE (INR psft)
Kolathur                        4000 – 5200
Tondiarpet                    4000 – 5500
Korattur                         5000 – 6500
Madhavaram                 3800 – 4500
Perambur                      5200 – 6500
Puzhal                          2500 – 4000

Source: indiaproperty.com