Chennai

Rising incomes from the IT, automobiles and electronics sector
which form the backbone of Chennai’s business, have been instrumental
in pushing up demand for residential spaces. Chennai’s residents
could be categorized into the very upwardly mobile and the fairly
traditionalist, but the gap is narrowing down thanks to the exposure
to a western culture brought by not just the MNC and IT companies,
but also the NRIs returning to India for better
opportunities.

With business brewing, the Prestige and Nitesh Estates groups
from Bangalore are moving into the city with residential and commercial
projects. Prestige plans to set up a value mall in the city at
an investment of Rs. 300 crore, Ozone Developers, again from Bangalore
have acquired 42 acres at Koyambedu for a 5.5 million sq. ft.
development plan for Rs. 250 to 300 crores.

IVR Prime Urban Developers has an ambitious plan for Chennai
which includes a Business Park, resort, deluxe hotel, a hospital,
colleges, housing complex and a golf course near Sriperumbudur,
all at a cost of Rs. 2000 crore.

The retail scene will witness a sea change in the next few years,
as 7-10 shopping malls will be constructed on N.M.Road, C-in-C
Road, OMR, Velacheri, N.H.Road and Anna Salai.

Rates of residential plots and apartments have escalated in Chennai
with prices in the city ranging from Rs.3, 000 – Rs.8, 000 per
sq.ft .Neighborhoods like the Boat Club command even higher prices.
Developers are encouraged by the demand for housing from the I.T.Sector.
A strong demand is expected to boost sales in 2007. Hotel projects
along the IT corridor are likely to be handed over by mid-2007.

For the city’s large expatriate population, serviced apartments
with value added services are under construction on Poonamallee
High Road by Star City. Ready for occupation by late 2007, these
apartments spell the coming of age of residential living in Chennai.
Global Adjustments, a re-location firm for expatriates is exploring
the proposal for a similar facility at Sriperumbudur along the
telecom corridor. Housed within the Nokia SEZ, the apartments
will be designed keeping in mind the needs of the target group.

Commercial properties in Chennai are also fast
catching up with Bangalore and other Tier I cities. Guindy Industrial
Estate is getting a facelift, with ramshackle factories giving
way to gleaming glass and concrete towers. The proximity to arterial
roads and the airport have made Guindy a promising destination.

Ambattur in the western part of the city is slated to be the next
commercial and IT hub for Chennai with Best and Compton announcing
its plans for an IT Park on its existing premises on 2 million
sq. ft. area. The Tidel Park on 1.28 million sq. ft accommodates
the IT industry with state-of-the-art facilities.

Appreciation
Chennai figures on India’s list of hottest cities for the Indian
real estate market The infrastructure constraints in Bangalore
are forcing the IT and ITES companies to look towards Chennai,
and a steady growth of 10% can be expected in 2007. An IT corridor
along the old Mahabalipuram Road stretching from Taramani and
Perungudi to Padur and Kelamakkam has seen land prices escalate
almost three times in less than 3 years, and a further increase
of 20-25% has been pegged for 2007.

The city limits are being pushed beyond Porur in West Chennai
and GST Road in South West Chennai where residential property
is being sold for Rs.1800 to Rs.2000 per sq. ft. Prices have appreciated
by 20 to 25 % in these suburbs, due to the IT development on the
Mount Poonamallee highway.
Along GST Road, prestigious projects like the Mahindra City, Arun
Excello Foundation and Shriram gateway parks prompted prices to
go up by 20% since 2006. The rate of residential property in these
locations is Rs. 1400 to Rs. 2200 per sq. ft.

The rentals for prime residential properties in Chennai for Poes
Garden, R.A.Puram, Alwar Pet and Harrington Road are expected
to climb in 2007.

NRI Real Estate Trends
As per A.T.Kearney’s Indian City Services Attractiveness index,
Chennai has emerged as the most attractive city for offshoring.
A glance at the MNC investment profile in Chennai shows the tremendous
potential the city has for real estate:

Photo: Fireworks Chennai Diwali skyline, Tamil Nadu India November 2010 by soumyajit pramanick, licensed under CC BY-SA 2.0, via Wikimedia Commons.