CHENNAI: Chennai residential micro-markets have been stable with moderate price appreciation of 8–10 per cent in the last one year, according to a recent research report titled ‘Solid Grounds for Smart Property Decisions’ brought out by Indiaproperty.com.
The report stated that there was a shift in buyer focus from the Old Mahabalipuram Road (OMR), East Coast Road (ECR) to Chennai. Porur, Medavakkam, Perambur, Madhavaram, Pallikarnai and Kolathur are few such developing markets in the western and northern parts of the city.
Owing to the success of Velachery in the last few years, its neighbouring markets namely Medavakkam and Pallikarnai are also seeing high real estate demand. The localities along the GST Road namely Pallavaram, Chrompet and Tambaram lie in close proximity to the city, airport and still have lower pricing. Localities beyond Vandalur till Chengalpettu are ideal for land investments, the report said. The proposed Mono Rail will further improve the connectivity of GST Road with other parts of the city.
“There is hesitation seen among the buyers due to the slow pace of infrastructure development in developing areas, especially the OMR belt. Infrastructure development would play a vital role in making localities in the OMR and other suburban areas livable. Poor access, lack of proper water and drainage systems top the list of grievances among Chennai suburb residents,” the report added.
According to the report, further focus on the improvement of public modes of transport has been one of the major highlights in Chennai and it was evident from the expansion of the existing highways, work on Chennai Metro Rail project and the outer ring road.
With these in-progress infrastructure projects taking shape, the demand and capital values are expected to rise across all the sectors.
Going forward, growth in Chennai would not solely be determined by the IT/ITES sector, but also by the transport corridors of the above mentioned infrastructure projects. Chennai market is looking forward to the MRTS and BRTS projects to give the city a new face in 2014-15.
On the Outlook it was stated that there are speculations in the market that there is a possibility of OMR suffering from oversupply situation in the future, but the report said going forward growth in Chennai would not solely be determined by the IT/ITES sector, butalso the transport corridors of in progress projects and infrastructure development would play vital role in making localities on OMR liveable.
On the East Coast Road (ECR), the report said as the Road extends along the Bay of Bengal and is a popular weekend getaway destination for Chennaiites, byers prefer staying on ECR belt as its close to the city and yet away from the hussle bussle of the city. In the last five years property rates have escalated by more than double here and bBuying land is not an easy task here as most the land is owned by locals from the small fishermen villages present on ECR.