A significant rise in land prices and escalating cost of construction have seen apartments in most city suburbs appreciate by over 1,000 per sq ft in the past two years. A look at six comparable residential localities on the outskirts reveal that the prices have gone up by up to 75% in some of the areas. Apartments in Medavakkam , considered among 13 most happening residential hubs as per a report released by realty consultant Knight Frank , has seen a growth of 1,200 to 1,400 per sq ft in the last two years , depending on the location of the project . Suresh Krishn of Isha Homes , who has a significant presence in Medavakkam , said his project has appreciated from 2,800 per sq ft to 4,200 per sq ft in less than two years.
R Kumar of Navin’s , another city builder who has operations in Medavakkam ,said the price of apartments in his project has gone up from 2,900 to 4,100 per sq ft. Both the builders have sold out their stock, they claimed. The real estate market in Medavakkam might grow even faster in the next few years , said Kumar , citing the presence of social infrastructure like schools, shopping facilities and above all , its proximity to Velachery , Old Mahabalipuram Road ,Pallavaram and Tambaram , which are costlier locations.
However, it is Manapakkam, which has witnessed the maximum appreciation in the last 24 months, said Kumar. One of his projects in Manapakkam was selling at 3,600 per sq ft two years ago, but now it goes for 6,300 per sq ft, he said. T Vathsala Menon, who owns an apartment in Maduravoyal , said , “We booked the apartment at 2,800 per sq ft in 2008 . By 2010, prices went up to 4,000 per sq ft and today it is 5,500 per sq ft”. She said the same builder is likely to launch another project next door at a higher price.
Places like Thiruneermalai and Madhavaram also are emerging residential hubs. While the price has gone up from 2,500 per sq ft to 3,900 per sq ft in Thiruneermalai in two years , it has gone up from 3,300 to 3,900 per sq ft at Madhavaram . Similarly , Semmancherry has witnessed a growth of 1,100 per sq ft – from 3,400 to 4,500 – during the said period. “A city’s tendency is to grow either in concentric circles or along traffic corridors,” noted Kumar. Even North Chennai, once considered a backwater region, is growing now, thanks to the Metro Rail project and good road connectivity.
Cost of construction has goneup by 30 % to40% in the last couple of years. “Earlier, builders used to be worried about mounting cost of construction material only at the time of budget. Now, the prices are rising every month, if not on a weekly basis,” said Kumar.
Source: The Times of India, Chennai