The Hindu Business Line : Demand for high-end residential in Chennai on the rise

New developments
Most developers have increased the launch price in the last six months.
They are putting up retail malls with food courts and multiplex cinemas

Chennai , Dec. 3

The demand for high-end residential in Chennai seems to be on the rise, as builders sell off premium apartments in a day. Last week, Vijay Shanthi sold 15 apartments worth Rs 4.25 crore in one day.

The cost of residential real estate in Chennai has more than doubled in the last two to three years, driven by IT and ITES, say real estate sources.

Mr Sanjay Chugh, Head Agency, Trammel Crow Meghraj (international property consultants), said there has been a four-fold increase in residential real estate on Boat Club Road, an upmarket locality in Chennai. The rates today are about Rs 13,000-15,000 per sq ft from Rs 3,000 to Rs 4,000 per sq ft two to three years ago, he said.

The other areas, which have seen a 100-150 per cent increase are Adyar and Kotturpuram, because of the proximity to the IT Corridor. The residential space on the Old Mahabalipuram Road (OMR) and Ambattur has witnessed more than 100 per cent appreciation, he said.

Ambattur, once a drab industrial estate, is in the process of transformation with a number of IT parks coming up there. New residential complexes and developers are quoting Rs 2,300 per sq ft for apartments ranging from 1,210 sq ft to 1,580 sq ft.

The rates for new apartments on the OMR and Velachery, would work out between Rs 2,500 and Rs 3,000 a sq ft on an average. Real estate sources said that Rs 30 lakh seems to be the average that a person is willing to pay for apartment.

Quick to cash in on the demand, most developers had increased the launch price by 20-25 per cent in the last six months, he said.

Developers are also putting up retail malls with food courts and multiplex cinemas to ensure that the people who buy into these upmarket residential real estate get their money's worth. For instance, Suryavardhan Estates, promoted by Tarapore & Co and the Sadrangani family, is planning to develop a 2.5-lakh sq ft retail space along with a premium residential complex on the OMR. Similarly, Marg Constructions is also developing a mall with multiplex cinemas on the OMR.

Gated communities are the new trend in the city.

Large land banks are being developed into townships with clubhouses, gardens, walking tracks and swimming pools, and often equipped with round-the-clock security and a CCTV connection for every apartment. These townships target the upwardly mobile, double income families who are willing to pay a premium for security and hygienic surroundings.

KG Emerald has advertised land for sale inside a gated community about 2 km from Mahabalipurm on the East Coast Road. The total area is about 50 acres, and is priced Rs 8 lakh per ground

Real estate prices across the city have stabilised in the last three months, though there was an increase of about 55 per cent across the city from July 2005 to July 2006, according to Mr Ramesh Nair, Director, Jones Lang LaSalle. In certain areas like Boat Club Road, land prices have stabilised over the last one year. Mr C Subba Reddy, Managing Director, Ceebros Property Development Pvt Ltd, pointed out that a year ago at the HSBC auction, the cost of land was about Rs 3.5 crore a ground and the TVS auction this year also netted the same amount.

However, two e-auctions in August, one in Boat Club Road and the other on the OMR, fell through as the upset price was too high.

More Stories on : Real Estate & Construction | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page