Chennai city housing prices zoom past Rs 1 crore

Chennai

If you are an apartment owner in a good location in city areas, then you can feel proud that you are a crorepati today at least in notional values. But if you are the one due to invest in housing for a specific city location, you will have to cough up not less than Rs 1 crore. Soaring land values, lack of clear title properties, fierce competition among developers and demand exceeding supply have all made buying an apartment a virtually impossible task for the common man.

Yet another factor is the archaic development control rules which have throttled the housing development for decades in key locations across the city. Restrictions on FSI have made housing a costly exercise for Chennaiites over the years without rhyme or reason. The worst affected sector is the middle class for whom the question of acquiring their dream home in city areas will be a Herculean task hereafter. The Tamil Nadu Housing Board apartment owners in key city locations are sitting pretty as the redevelopment exercise on their existing units would fetch a windfall besides cash incentives in the years ahead.

Just visualise the apartment prices for select ongoing projects across city locations and for a 1200 sqft apartment the price is over Rs 1.25 crore: Alwarpet (Rs17,500-Rs20,000), Anna Nagar (East) (Rs 12,000-Rs12,500), Besant Nagar (Rs 12,500-Rs 13,750), Adyar (Rs 13,500), Kalakshetra colony (Rs 15,000), Kilpauk (Rs 12,800-Rs15,000), MRC Nagar (Rs 10,500-Rs15,000), Kasturi Ranga Iyenger road (Rs 28,000), Nungambakkam (Rs 13,000 – Rs15,000), R.A. Puram (Rs 13,500), Sri Nagar Colony (Rs 14,000-Rs16,000), T Nagar (Rs 12,700-Rs15,000) and Valmiki Nagar (Rs 11,000-Rs12,000).

Even the resale apartments in key city locations are quoted at rigid prices due to which the transactions are taking much longer time nowadays, say realtors monitoring secondary market price movements in the city.

At the same time not all city properties can fetch fancy prices. There are road restrictions and access issues that have made even prime properties lying idle for several years as buyers do not evince keen interest at such prices. Even property developers are shying away from joint development in such areas due to lesser ratio for development. Some developers are keen to even accept 55:45 (developer) as the sale value compensates them with higher revenue and the lead time is short besides there is a ready market for such units.

For the younger generation this is a timely lesson to start investing in homes much earlier than later. They can pursue their costly higher education without any institutional commitment while pursuing their initial careers. They can mortgage, rent and raise resources from housing finance companies and banks to pursue their academic interest without the need to depend on their parents.

V Nagarajan, Property Consultant

Source: http://content.magicbricks.com/chennai-city-housing-prices-zoom-past-rs-1-crore

Chennai residential property prices rise three fold in four years

Chennai

Prices of residential properties in the city have been skyrocketing ever since National Housing Bank (NHB) started preparing residex — an index for tracking the prices of residential properties — in 2007, but for one quarter, when the prices declined. Residex shows that Chennai’s residential property prices have shot up by threefold in four years. Areas like Ashok Nagar, Anna Nagar and T Nagar have boosted the price increase.

“Chennai opened up its suburb markets in a big way after 2007, while other markets were much matured by that time. That’s one of the reasons for this steep increase. Chennai grew slowly and steadily from thereon. While Bangalore, Delhi and Mumbai prices shot up suddenly and fell rapidly during recession,” a senior real estate consultant in the city said.

Residential prices in 14 other cities that residex tracks have seen more than one declining quarter, and Chennai has seen the fastest increase in the fouryear period. The closest competitor to Chennai during the period was Faridabad, where the prices just about doubled.

The prices at Virugambakkam, Anna Nagar, Kilpauk, Purusawalkam, Kolathur and Nungambakkam have shot up by six times. While, prices at hot spots like Ashok Nagar, Thyagaraya Nagar and Saligramam jumped five times, during the five-year period.

On the flip side, the growth rate has been comparatively at a slow pace (twofold rise) at Tondiarpet, Nehru Nagar, Chetpet, Egmore and Marina. The demand for residential units in Chennai is likely to see a compounded annual growth rate of 11% until 2015, estimates say. Industry observers say the prices will head north at least for a quarter or too. But, after that it will stabilize and grow marginally.

For the January-March period, residential prices in the city grew 40% yearover-year, according to NHB Residex. This is the steepest increase among the 15 cities tracked by NHB. In the little over four-year period Chennai has seen a steady growth, and has proven to be a matured and safe market, say analysts.

“Within the city or suburbs the land parcels are slowly disappearing so the demand picture is clear and the prices are bound to shoot up. The OMR stretch has prices increasing steadily. Apart from Sri Perumbadur every area in the city will see an increase in prices. I feel the prices will rise at the current pace in the near-term and long-term in the city due to high demand,” said A Shankar, senior manager, Jones Lang LaSalle.

Source: The Times of India, Chennai

Property prices up by 30% in Chennai

From last several months residential property rates are going through the roof for several months, but according to the fresh reports at the end of the September was 30percent comparatively with the last year.

According to the NHB Residex, an RBI-supervised mechanism that tracks housing prices in approx 15 cities said that “Chennai central business district f\has witnessed of huge rise in prices due to the uptrend in housing demands.” Though in North Chennai there is fall in property prices in the following areas Tondiarpet, Perambur, Dr Radhakrishnan Nagar and Narayanappa Garden due to the slow progress in projects.

In spite of country is facing economic slowdown, rising interest rates and recession property rates in the region are going upward- Anna Nagar, Kilpauk, Nungambakkam, T Nagar and Adyar have been rising. In Nehru Nagar, Chepauk and Marina areas prices rise to 62% comparatively last June. As per the market experts, Chennai’s property will see the robust growth in the forthcoming quarters. However, property prices in the region have plunged to 9% in the 3rd Quarter comparatively to the quarter ended June.

Whereas several market watchers said that, the demand for residential units in Chennai is likely to see a compounded annual growth rate of 11% during 2011-2015.

Source: http://www.accommodationtimes.com/real-estate-news/property-prices-up-by-30-in-chennai/