Though the Chennai’s overall housing market shows a slowed downtrend, the demand for city properties is increasing day by day. With the opening up of housing sector and the influx of pan India developers, suburbs and peripheral areas in Chennai got a virtual boost for development. Yet Chennaiites are adhering to city lifestyle as they feel that the social infrastructure in suburbs would take years, if not decades for development. This is one reason for the continued surge in demand for city properties. Areas such as Adyar, Alwarpet, Anna Nagar East, Besant Nagar, Boat Club Road, Indira Nagar, Kilpauk, Mandaveli, Sri Nagar colony, T Nagar, Tiruvanmiyur and Valmiki Nagar in particular illustrate the soaring price appreciation trend.
Property consultants feel that for the price of a city property, one can own luxury villas in suburbs and peripheral areas. Today, a 1000 sq ft apartment in the city costs not less than Rs 1 crore and location specific homebuyers are keen to garner the options available in city areas. The rigid demand has even pushed the resale property values to a new high so much so that the difference between new unit and a resale unit is hovering between 20 and 30 per cent. A newly built apartment comprising 4000 sq ft in Shastri Nagar, Adyar, was sold for Rs 8.25 crore notching up a rate of Rs 20625 per sq ft, according to realtors.
The city’s East Coast Road, considered as the entertainment corridor, and provides multiple options for the nouveau riche in the city. Expatriate population is in need of beach houses in proximity to international schools and social infrastructure. Investors are keen to plunge into the market on seeing the rental values ranging from Rs 75,000- 2.5 lakh per month with corporate driving the demand. Villas by several developers are dotting the skyline of ECR today ranging in price from Rs 2-5 crore where leasing prospects are considered good.
Source: The Times of India, Chennai