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

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