Chennai’s real-estate market, which was relatively slow over the last year (on the back of high interest rates and unattractive prices) is now seeing renewed momentum from buyers on the back of two key trends
- Reduction in interest rates/ prices:
Recent reduction in interest rates to 9.90 per cent and a gradual rationalization of home prices has led to a renewed interest in the home buying segment. If RBI announces further reduction in interest rates, the momentum is likely to continue. However, no further price correction is expected as prices across segments seem to have bottomed out
- Rapid infrastructure development:
Acceleration in infrastructure development in key localities in Chennai is also helping the property market.
Following are the six key property belts to watch out for that are likely to witness the benefit of renewed interest among property buyers:
1. Chennai Metro Rail corridor – Anna Nagar to Ekaduthangal:
First phase of the Chennai Metro Rail Network from Koyambedu to Alandur is operational this is stimulating buyer interest along the 10-km stretch in the residential areas of Anna Nagar (West), Koyambedu, Vadapalani, Ashok Nagar and Ekaduthangal.
2. East Coast Road between Akkarai-Mamallapuram:
State government plans to complete the four-lane section on the East Coast Road (ECR) between Akkarai and Mamallapuram by March 2016. The reduced travel time along this stretch will attract buyers looking for beach homes, villas and high rise apartments along the scenic coast
3. Old Mahabalipuram Road between Perungudi to Siruseri:
Social infrastructure along the IT Corridor on the OMR is expanding rapidly – one shopping mall is already operational and two more are under construction. Increase in the availability of cinemas, hotels, restaurants, educational institutions, and hospitals along the stretch from Perungudi to Siruseri is stepping up interest among investors
4. Madhya Kailash to Sholinganallur belt:
The 12-km stretch from Madhya Kailash to Sholinganallur is gradually being developed as an extension to South Chennai, offering housing of various configurations with attractive amenities and options ranging from townships to lifestyle apartments and villas at attractive prices compared to Adyar and Thiruvanmiyur.
5. Thoraipakkam to Pallavaram:
Properties along the 200-foot radial road from Thoraipakkam to Pallavaram are also becoming attractive because of their proximity to OMR and GST Road.
6. Central Chennai – Premium projects:
An interesting trend in the recent past is the arrival of premium and luxury apartment projects in central areas of Chennai such as Nungambakkam, Egmore, Alwarpet, T. Nagar, Kotturpuram and Adyar. Buyer interest in this segment is also increasing rapidly.
This is an excerpt from the original article titled “Trends in Residential realty” written by Sanjay Chugh- Head, Residential Services (Chennai), JLL India. The original article appeared in The Hindu – Property Plus supplement on 8th May 2015