Review of Chennai residential market in Q3CY13

Chennai, September 24, 2013: There is a shift in buyer focus from the usual OMR, ECR to the WEST and NORTH of Chennai. Porur, Medavakkam, Perambur, Madhavaram, Pallikarnai, Kolathur are a few such developing markets. Owing to the success of Velachery in the past few years, its neighbouring markets namely Medavakkam and Pallikarnai are also seeing high real estate demand. The localities along GST Road namely Pallavaram, Chrompet, Tambaram lie in close proximity to the city, airport and still have lower pricing. Localities beyond Vandalur till Chengalpettu are ideal for land investments. The proposed monorail will further improve the connectivity of GST Road with the other parts of the city. There is hesitation seen amongst buyers due to slow pace of infrastructure development in developing areas especially the OMR belt. Infrastructure development would play a vital role in making localities in OMR and other suburban areas liveable. Poor access, lack of proper water and drainage system top the list of grievances among Chennai suburb residents. Focus on improvement of public modes of transport has been one of the major highlights in Chennai. This is evident from the expansion of the existing highways, work on Chennai Metro and the Outer Ring Road. With in progress infrastructure projects taking shape, the demand and capital values are expected to rise across all sectors. Going forward, growth in Chennai would not solely be determined by the IT/ITES sector, but also by the transport corridors of the above mentioned infrastructure projects. Chennai market is looking forward to the MRTS and BRTS projects to give the city a new face in 2014-15. – –The Economic Times