Chennai
With the IT sector growing across Old Mahabalipuram Road (OMR), real estate market of Perumbakkam, a suburb in south Chennai, is benefitting on account of its location. Being 2 km away from OMR, it is almost equidistant from all prime IT hubs such as Velacherry and Sholinganallur and the commercial Thoraipakkam. As per MagicBricks.com data, the locality has witnessed a whopping 21 per cent rise in property prices in the Oct-Dec, 2012 quarter.
Perumbakkam is well connected through OMR, Tamabaram-Velacharry Road and Medavakkam-Sholinganallur Road. Its strategic location has been a major reason for a steady demand and capital appreciation in this area. “Perumbakkam enjoys good connectivity with important roads and is close to the upcoming ELCOT SEZs. Therefore, one can expect a good increase in values in five years,” says R Murugesan, CEO, Shriram Properties.
“Apart from the location advantage, another factor adding to the price rise is the Government’s policy of premium FSI which came in 2010. The policy gave the builders a scope to make larger homes, due to which the prices have risen from Rs 2800 per sq ft in 2010 to Rs 5,000 per sq ft in 2012,” says A Jaiganesh of India Infoline Ltd.
The locality is primarily driven by end-users accounting to almost 60 per cent of the total buyers. Thus, in accordance to the demand, majorly 2 and 3 BHKs of sizes ranging from 900-1,500 sq ft are offered in Perumbakkam. The average prices of these range from Rs 3,800-5,000 per sq ft,” says Dhan Raj of Naidu Realty, a city based realtor.
Owing to this, the rental market too has witnessed an escalation of 8 per cent in the last 6 months. The rental values range between Rs 15-18 per sq ft.
Looking at the prospects of the locality, many new developers have entered the realty market including Indiabulls developers, Embassy Property Developments Ltd, Renuka Foundations, Chettinadd Housing and Rajarathanam Constructions.
Thus, with its outstanding connectivity, proximity to commercial locations and social infrastructure, Perumbakkam seems to be good for all buyers. While there is comfort for end-users, investors can hope for large appreciations in the coming years.
Shradha Goyal, MagicBricks.com Bureau
