Chennai
Any area witnessing price appreciation has one key growth driver pushing the rates in the region. Sholinganallur, a suburban residential hub of south east Chennai, has seen commercial development in the past. The already existing commercial segment catering to the strong workforce in the region is now driving housing demand in the vicinity.
In the last three months, the locality has witnessed approximately 12 per cent increase in average property values. It offers a mix of properties. However, multi-storey apartments are in maximum supply. The value of majority of apartment projects are between Rs 4,200 and Rs 5,000 per sq ft.
Previously the locality has seen development of large IT hubs and dedicated SEZs. As a result, strong residential demand has been witnessed from those looking to stay close to their workplace. Sholinganallur is now considered an IT hub having footprints of well-known IT companies such as TCS, Wipro, HCL, Infosys etc. With its well developed road infrastructure and its swift connectivity through ECR link road on the eastern side and Velachery Main Road on the western side, the area offers good social infrastructure to service its residents. The presence of schools, colleges, hospitals, super markets, restaurants and shopping malls adds value to the overall investment. On account of existing infrastructure realtors and developers expect property prices to witness an uptrend in the long-term.
“On the rental side, a 1,000 sq ft, 2BHK apartment fetches Rs 22,000 to Rs 25,000 per month. This kind of yield has attracted investors to buy properties in Shollinganallur,” said R Murugesan, CEO of Shriram Properties Ltd.
Maximum demand has been for 2 and 3 BHK configurations. Approximately 1 to 1.5 year back demand for 2 BHK apartments was relatively high in comparison to 3BHK says Sabarinath Sadasivam, Karvy Realty. He further added, in the past one year, there has been an increase in demand for 3BHK units with sizes ranging from 1200 to 1800 sq ft. Some developers are also building small, 450 sq ft apartments mainly for the economically weaker section (EWS) category as mandated by the Chennai Metropolitan Development Authority (CMDA).
Rishab Jain, MagicBricks.com Bureau
