Even though the sale velocity for mid-income and luxury housing in Chennai is differing, the city’s affordable housing sector has been witnessing steady demand on the outskirts. Chennaites are traditionally savers and investors in land and houses. This means that the market will always be more stable because there are genuine buyers and fewer speculators compared with other cities. By this logic all investments will grow slowly over a long period. Currently the Chennai property market is gaining momentum, since the unsold inventory has dropped in the city compared to all other metro cities, which will boost its residential real estate sector.
Purchasers on their part are not in a hurry in investing in a house. When it comes to choosing a home, be it affordable or luxury category, one should look at few important aspects that includes the location, price appreciation, by taking into consideration factors such as existing and proposed infrastructure, proximity to employment hubs, existing social infrastructure, etc. The following areas offer options for affordable housing seekers and simultaneously offer good returns on investment over mid-to-long term:
In the past few months, Avadi has recorded huge appreciation in the residential property segment. This can be attributed to the availability of well-developed infrastructure, proximity to the IT hub in Ambattur and industries in Poonamallee, and excellent connectivity via road and rail. The demand in this locality is mainly driven by industrial employees, IT employees, and self-employed buyers. Proximity to the operational outer ring road will enhance the connectivity and bring in investments in coming years.
Current price range: Rs. 2,800 – Rs. 3,300 per sq.ft.
This location caters to IT employees. Due to the availability of huge land parcels at relatively low prices, the location witnesses large-scale projects. It is well connected to nearby cities by rail and road with quality healthcare facilities, and educational institutions. Infrastructure proposals such as the establishment of a new bus terminus, rail connectivity from Avadi to Guduvancheri, will strengthen the real estate market.
Current price range: Rs. 2,800 –Rs. 3,500 per sq.ft.
Kundrathur is in proximity to Chennai International Airport, hospitals, schools and colleges, retail establishments. The completion of ORR and new industries such as Royal Enfield, Yamaha, will increase the demand of housing in the region. Locations in and around Kundrathur such as Thirumudivakkam, Thandalam, and Nandambakkam also have notable supply of affordable housing projects. It is one of the suburbs of Chennai witnessing a good capital and rental appreciation.
Current price range:
Rs. 3,100 – Rs. 3,800 per sq.ft.
The locality has a good supply of quality plotted developments dotted along the stretch of Vandalur-Oragadam Road. The location enjoys excellent road and rail connectivity to the city. Its close proximity to Shriram Gateway and Oragadam Industrial Hub makes it a preferred destination for employees from these developments. Surrounding neighbourhoods such as Manimangalam, Padapai, Mannivakkam, and Varadharajapuram are also witnessing a descent supply of affordable housing projects.
Current price range: Rs. 3,100 per – Rs. 3,700 per sq.ft.
This area is currently taking after one of the well known commercial cum residential areas in Chennai and land prices in Thirumazhisai are currently at a very affordable level. Getting a property in this area now is a wise option rather than regretting not having invested it one few years down the lane. Although other amenities are still developing, this area promises to showcase a potential for investment.
Current price range: Rs. 2,250 per – Rs. 4,000 per sq.ft.
Perumbakkam is a fast developing suburb located close to Chennai municipal corporation area and just a few kilometres from the IT corridor, OMR. This location is well connected to city and other major growth corridors such as GST Road, ECR. Proximity to major transportation nodes such as Airport, Tambaram Railway Station and other IT Parks along OMR are the major growth drivers of this location. The presence of social infrastructures such as schools, hospitals and recreation facilities is making it one of the major residential hubs and investment destinations of Chennai.
Current price range: Rs. 3,000 per – Rs. 4,800 per sq.ft.
Being in proximity to GST Road and OMR, Thiruporur enjoys excellent connectivity to Chennai City and other parts of Tamil Nadu. Thiruporur has gained prominence in recent times because of various development proposals from both public and private sector players. Ascendas One Hub, an industrial township on 1500 acres, with an employment potential of 40,000 jobs at Payanur and SIPCOT IT Park in Siruseri are the major economic drivers of this region.
Current price range: Rs. 3,000 per – Rs. 3,300 per sq.ft.
Pudupakkam region gains its advantage owing to the proximity to OMR and is strategically located near Siruseri. Presence of IT giants like Infosys, TCS, Wipro, Accenture and Cognizant has added to the employment potential of this region. The location is also supported by strong physical infrastructure such as schools and hospitals. Various shopping destinations and other basic establishments existing in this area offer a convenient life style to its inhabitants.
Current price range: Rs. 3,500 per – Rs. 4,000 per sq.ft.
Kelambakkam is fast developing as an ideal residential destination on the southern periphery of the city. Many renowned developers have either completed or are coming up with many prestigious residential projects in the area. Due to the proximity of the area to many IT parks and IT companies, there is bound to be considerable demand for residential units in future. Moreover, the fall in prices for residential property in the recent past could also attract many prospective clients, particularly from the IT sector. This presents a lucrative opportunity for developers to embark on residential projects to cater to the increasing demand for residences here.
Current price range: Rs. 3,390 per – Rs. 4,000 per sq.ft.
Vanagaram strategically located next to Maduravoyil is located at the starting of Chennai-Bangalore highway. Porur is very close to this place hence the property prices. Some of few educational institutions near the location are Chennai Public School and MGR College. It has always been a smart and affluent residential suburb, but more recently Vanagaram has become a busy commercial and educational center as well. Demand for Residential ranging anywhere between 35L – 45L are most preferred. Mogapair residential pricing is higher than Vanagaram & Noombal, which gives higher desirability for these markets in the current scenario.
Current price range in and around this area: Rs. 3,000 – Rs. 6,000 per sq.ft.
These are few of many more locations of Chennai that are expected to grow in the coming years. If you are looking for an investment, now would be the best time. Affordable housing will continue to remain the backbone that supports the real estate market and eventually demand for residential properties in chennai will continue to grow.