Although the real estate of Chennai offers a variety of residential homes, the city is experiences maximum real estate activity in mid-range segment. In the quarter ending March 2013, Chennai recorded the highest demand for real estate in the range of Rs. 20 Lac to Rs. 40 Lac. A similar pattern was observed in the previous quarter ending December 2012. The requirement for real estate units priced from Rs. 40 Lac to Rs. 60 Lac rose to 23% in the March-ending quarter. The following article discusses about demand for mid-range residential properties in the city and the areas offering it.
Residential Areas of North Chennai
Northern areas of Chennai have been experiencing higher demand for real estate. The residential price index or residex by the National Housing Bank (NHB) reveals that residential localities like Ayanavaram, Purasawalkam and Kolathur have witnessed the maximum appreciation in real estate prices over the last six years.
The property rates in these neighborhoods have recorded a 650% increase during this period. In Ayanavaram, the prices of apartments have appreciated from Rs. 1,500 per square foot to over Rs. 9,000 per square foot, Chennai’s overall residential index rose merely 214% during the period. Similarly, there has been a growing demand for residential apartments in Kolathur and Purasawalkam. Let us take a closer look at Kolathur real estate.
Property Scenario of Kolathur
Kolathur is a fast-developing district in Northern Chennai. It is close to the residential colonies of Vajjiravel Nagar, Vinayagapuram, Perambur, Villivakkam, Jawahar Nagar, Puzhal, Thiru-vi-ka Nagar, Periyar Nagar and Sakthivel Nagar. It is located near the Grand National Trunk Road and is linked with the Chennai-Hyderabad Highway. Due to this, and the Inner Ring Road, Kolathur is considered one of the most well-connected areas of Chennai.
Home buyers usually prefer to invest in a 1 BHK flat in Kolathur. Such investors seek to buy budget homes that are offered by local builders like Masago Constructions, IKS Builders, and Shyam Foundations. Most of the buyers are residents looking places to live, rather than for investment purpose.
People prefer to go in for independent builder floors in comparison to high-rise apartments. The area is close to another upcoming area called Anna Nagar. It is among the fastest growing areas in Chennai because of its developed infrastructure and amenities. Kolathpur is largely benefitting from its strategic location as buyers who can’t afford to buy homes in localities like Anna Nagar and Mogappair are settling here for lower prices.
The present capital values of flats in Kolathur would be Rs 3,600 to Rs 4,200 per square foot. There are many conveniences and amenities, such as department stores, schools, market, hospitals and theatre.
Again, there is a major demand in the range of Rs. 25 Lac to Rs. 35 Lac. The area mainly caters to middle income and lower middle income segments. The current rates for units in multi-storey buildings fall between Rs. 3800 to Rs. 4950 per square foot, whereas the rental values ranges from Rs. 20 to Rs. 49 per square foot a month.
Such high residential demand for affordable housing is mainly driven by the professionals migrating to the city to work in the IT parks and organizations in the vicinity. There are good job opportunities created by India Land IT Park, Tata Consultancy, Ambit IT Park, and HCL. There is also scope for industrial work in Ambattur Industrial estate. The rising number of professionals coming to live in this area has led to a swell in demand for 1 and 2 BHK homes in Kolathpur. Till now, the maximum demand for residential real estate in this locality has been for smaller sized houses.
Being a prolific writer, Devika Arora is dedicated to studying the current property trends and compiling facts for the benefit of potential investors. Her articles and other write-ups analyze the realm of Indian real estate and its prospects. The above piece of work discusses about real estate in Chennai North