These 5 Residential Localities In Chennai Give You Plenty Of Bang For Your Buck
Chennai today is one of the most important economic centres of India. With its upbeat approach to attract global investment, the city is giving stiff competition to other metropolises like Bangalore and Hyderabad, mainly in the information technology (IT) & IT-enabled sectors, healthcare and automotive sectors.
Especially on the back of infrastructural developments like Metrorail and Outer Ring Road (ORR) , Chennai has been transforming itself into a real estate hotspot, too. Some of the infrastructural developments proposed for the near future include the monorail system, Peripheral Ring Road (PRR) and Chennai-Bangalore Industrial Corridor (CBIC) .
Chennai's residential real estate market has largely been driven by the end user. A well-established infrastructure and upcoming and proposed infrastructure developments are giving a push to some of the prominent localities in Chennai. A detailed analysis of these localities reveals that they, with their consistently high absorption, improved livability score and a healthy level of inventory overhang, have emerged as the most sought-after real estate destinations in Chennai.
PropTiger DataLabs recently analysed the real estate market trends from the localities in Chennai and ranked them on the basis of launches, sales, livability score and inventory overhang.
Here are the top five localities in Chennai on the basis the analysis:
Perumbakkam has emerged as one of the most preferred localities for home buyers, thanks to its affordable prices, a good livability score, and proximity to OMR and prominent IT/ITeS hubs of Velachery and Sholinganallur. The locality has a livability score of 80 and the average weighted absorption price here as of March 2016 was Rs 3,836 per sq ft. Based on the trends in the 12 months to June 2016, Perumbakkam topped among Chennai localities, with a total score of 74.2.
Outlook: Upcoming road projects, along with Phase-II of the Metro, are likely to further boost the residential real estate market here.
Ranked the second-best-performing locality in the city, with a score of 70.2, Guindy is one of the most sought-after localities in Central Chennai. It boasts the lowest inventory overhang and an attractive livability index. Strategically located close to reputed schools, hospitals, and retail hubs, Guindy enjoys excellent connectivity to other parts of the city as well. The locality enjoys a livability score of 87 and the average weighted absorption price here as of March 2016 was Rs 8,349 per sq ft.
Outlook: The presence of various hubs of small- to medium-scale industries dealing in steel, industrial equipment, etc, will continue to boost housing demand from employees working in these economic centres.
A well-established locality with established social and physical infrastructure, Tambaram has turned into a hotspot for luxury housing. It is one of the most preferred destinations for investment among Non-Resident Indians (NRIs) and High Networth Individuals (HNIs) . With an attractive mix of commercial and residential properties along with good connectivity, the locality is also a preferred locality for buyers looking for luxury residential options with exceptional amenities on the outskirts of Chennai. According to the DataLabs analysis, this locality stands third, with a total score of 61.7. Tambaram has a livability score of 84 and the average weighted absorption price here as of March 2016 was Rs 4,238 per sq ft.
Outlook: The proposed monorail project is expected to enhance Tambaram's connectivity with Vandalur, making it even more attractive for residential property buyers.
Fourth-best-performing locality in the city with a total score of 60.9, Karapakkam is situated along the OMR stretch. It is one of the most popular destinations in South Chennai. Driven largely by the presence of IT/ITeS hubs, the locality is also home to prominent educational institutes and entertainment hubs. It has a livability score of 79 and the average weighted absorption price here was Rs 5,272 as of March 2016.
Outlook: The upcoming Metro project is likely to further improve the livability score of the locality in the medium to long term.
One of the most promising localities in South Chennai, Alandur has a strong social and physical infrastructure. Phase-I of the Chennai Metro rail from Koyambedu to Alandur, already operational for a year, has attracted home buyers along the stretch. The locality currently has a handsome livability score of 91 and the average weighted absorption price here as of March 2016 was Rs 7,453 per sq ft. Alandur stood fifth in the ranking with a total score of 59.6.
Outlook: Its proximity to IT hubs along the Grand Southern Trunk (GST) Road and Chennai International Airport and the upcoming Alandur-Airport Metro line are likely to provide Alandur's residential landscape a fillip in the near to medium term.
The author is Business Head (Consulting and Data Insights) , PropTiger.com and Makaan.com