Property values appreciate in ECR in Chennai

Chennai

The property values of East Coast Road (ECR) have crossed the mark of Rs 11,000 per sq ft at prime locations near beach and are still appreciating making it a top residential locality of Chennai. Visible expansion of IT/ITeS sector acting as the catalyst in the real estate growth. Revival of demand for luxury villas, increase in property prices and launch of new projects, all this has returned and bucking the Chennai’s submarket.

“Chennai is noting a continuous demand for luxury housing from quite some time now, primarily towards the peripheral locations of the city where premium homes are available at affordable values,” says AP Leo, property consultant at Nucleus Properties. The capital values of premium apartments and luxury villas have noted a hike of 10-15 per cent in past six months. The number of enquiries also showed an upward trend, seeing a hike of up to 25 per cent during the same period. The appreciation in property values can be attributed to the fact that it is primarily end-user driven rather than investors, he added.

The stretch from Palavakkam to Mamallapuram is the key hub seeing exponential demand and supply in the residential sector. These locations house projects in the premium category catering to HNIs, NRI’s and have demand for individual bungalows/villas priced at more than Rs 2 crore.

According to Sree Kumar from Sree Group of Properties, “Rental sector is too flourishing and have noted a significant appreciation of more than 30 per cent in recent past.” The rental values of a fully furnished 4-5 BHK villas/independent houses varies from Rs 60,000-90,000 per month depending on its location and proximity to neighbourhood beach.

ECR strategic situation near to the IT corridor is the major USP of the area. Enhanced demand from expats and HNI’s visiting to city for professional reasons are the major contributor in the upward rental and capital sector. On an average, the capital values at ECR vary from Rs 2,000-6,000 per sq ft depending upon location and connectivity. Residential land is also the next most transacted category after luxury villas, sums up Kumar.

Improved connectivity level, transportation and other infrastructural activities have created spurt in the upcoming housing projects in the suburban areas such as ECR. Looking at the prevailing demand and supply ratio, it is expected that the submarket will continue to witness positive trend in values.

Nidhi Vashisth, MagicBricks.com Bureau

Source: http://content.magicbricks.com/property-values-appreciate-in-ecr-in-chennai

Chennai witnesses consistent demand for residential space

Chennai

Chennai has witnessed steady growth in its residential market in the past few years, barring the period of economic slowdown in the country. While the downturn brought the real estate market to a standstill, Chennai’s residential market has seen a rebound sooner than anticipated. With the economy springing back to action, the residential real estate market, too, has recovered strongly.

Demand has returned, prices have increased substantially and a number of new projects have been launched in the market, according to a survey by Knight Frank India.

The growth in Chennai’s residential market may be attributed to the fact that it is primarily end-user driven. Investor participation is long term in nature, thereby mitigating a speculative market scenario. Stability in the market since 2010 has instilled confidence in the end-users to proceed with their purchase decisions.

Demand was more evident in the mid-end category, primarily towards the peripheral locations of the city where majority of the affordable projects are located. Despite the subdued economic conditions, developers went ahead with their plans and several large scale projects were announced during 2011. This may be due to the fact that the Chennai market is primarily self-sustained and is not much affected by the upheavals in the global markets.

Supply and Development

Chennai is slated to witness the infusion of around 67,500 residential units in the forthcoming three years. Chennai’s south leads the market in terms of number of residential units under construction accounting for 68% of the total number of units coming up in the city, followed by the western region with 27%.

According to a United Nations study, Chennai has a deficit of around 60,000 housing units. About 6,000 of them are in the high income group segment, 12,000 in the middle income group and 18,000 in the low income group.

The economically weaker sections in Chennai need 24000 housing units. While around 67,500 residential units are in the pipeline, they will be catering to the housing needs of the high income and the mid income segments only. This has led to the demand for a change in the city’s development control rules to facilitate more residential growth.

With the quantum of supply lined up in the aforementioned categories, developers may be faced with pressure on pricing in the forthcoming quarters. However, prices are unlikely to decline drastically due to the rising cost of construction. While OMR has transformed to a preferred high-end residential destination micro-markets like Perambur and Tondiarpet towards the north and Sriperumbudur in the west are emerging as newer growth corridors with the launch of several residential projects.

Another micro market that is gaining prominence is the ECR stretch in the south which has a number of premium villa developments coming up in the next few years. However, a major issue that needs to be addressed is the lack of social infrastructure in the peripheral locations of the city which have seen majority of the projects being launched with affordable prices. Without social infrastructure, these projects shall not witness positive price movement and will have an adverse effect on their sales.

V Nagarajan, Property consultant

Source: http://content.magicbricks.com/chennai-witnesses-consistent-demand-for-residential-space

ECR Chennai to become wider

Chennai

More than 300 structures, mostly commercial buildings, between Thiruvanmiyur and Sholinganallur are likely to be demolished for the widening of East Coast Road (ECR).

The Chennai Metropolitan Development Projects (CMDP) wing of the state highways department has identified the buildings so that the work to widen the 11.8km stretch can begin.

Sources said detailed revised estimates were submitted to the government recently.The estimates include cost of land acquisition of Rs 350 crore and construction costs of Rs 50 crore.

A survey by the state highways department has identified 8.752 hectares on both sides of the stretch for the project. “The project will be discussed at the upcoming departmental budgetary meeting on April 20, and is expected to get clearance,” government sources said.

ECR is to be widened to six lanes between Thiruvanmiyur and Sholinganallur, a stretch maintained by the state highways.

ECR was built in 1998 by linking a series of village roads connecting 154 fishing villages along the coast. Every day, about 10,000 vehicles use the road as against 3,000 vehicles in 2001 when ECR was inaugurated. “The original estimate of the project when it was mooted in 2005 was Rs 10 crore. Any delay would result in the cost rising further,” a source said.

The government took a year to identify 30.5 metres of land required on either side of the road between Thiruvanmiyur and Sholinganallur. Land has been identified in Thiruvanmiyur, Kottivakkam, Neelankarai, Palavakkam, Injambakkam and Sholinganallur. The most land will be acquired in Injambakkam. “We have informed residents and shop owners about the project. So far no one has filed litigation,” sources said.

Source: The Times of India, Chennai