Go North For Affordable Homes In Chennai
Chennai's (Tamil Nadu state capital) booming real estate market is a story that is told over and over. It is noteworthy that property prices in south Chennai areas such as Adyar, Tambaram and Velachery have shot up much higher than those in Gurgaon (part of national capital region) or Central (Maharashtra) , thus making properties here unaffordable.No wonder that properties in these areas accordingly belong to the luxury category, leaving fewer options for middle-class home buyers in Chennai.
Looking northThe mighty south in Chennai has thus left a lot of scope for north Chennai to emerge as a hotspot for affordable developments, with 2BHKs and basic amenities. Many areas in the north of the city have been ignored for these were former labour colonies. Now, with developers acquiring large areas of land and new developments, the face north Chennai is fast changing. Top developers took the first step by coming up with gated communities in areas such as Ponneri smart city. Many others are following this trend now.
Pros and consThere are advantages and disadvantages of north Chennai areas. Perambur, for example, is over populated but its social infrastructure is good, it being an old set up. Tondaripet is among the newer areas but yet to pick up on hospitals, schools and other amenities. The pace of development of civic amenities will determine the growth of the areas.
Future brightThere will be more project launches in north Chennai, with 1BHK and 2BHK apartments in the next one year. The square feet area of these apartments are also smaller than those in Theagaraya Nagar and other posh areas, where a 2BHK has around 1,600 sq ft of area on an average. Although some areas in north Chennai are affordable, prices are soon inch up as consumer interest increases.Here are a few drivers of north Chennai that can be seen in this financial year.Demand drivers: Two very important infrastructural projects --- Metro Rail Phase-II and Outer Ring Road ----- are all set to complete. This would improve the connectivity in north Chennai. Areas like Kolathur are already connected to commercial areas like Anna Nagar and others through MRTS (Mass Rapid Transit System) . Tondaripet is also closer to the central part of the city, making it easy to commute to and from this area. The demand for these areas is expected to go up in the future, along with prices. Affordable prices: The prices now range between Rs 3,000 and Rs 5,000 per sq ft across areas such as Tondaripet, Kolathur and Perambur. Up at the livability index, Perambur happens to be the costliest area in north Chennai. As demand increases and the projects near completion, property prices that are already inching up would see further rise, like it did in other areas of Chennai. In the next one year, as more developers jump in, prices will rise further. However, north Chennai would still be more affordable than south of the city. New developments: Several developers have simultaneously launched many projects in Perambur, Kolathur and Tondaripet areas. Many of them are in the process of getting clearances for new projects. It is predicted that the developments will result in excess inventory in these areas, giving ample supply for those looking for mid-end homes in Chennai.
(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)