Chennai’s Ministry of Environment and Forests have amended coastal regulation zone guidelines. The approval has allowed the development of high-rise buildings within 500 meters of high tide area. If you are planning on making an investment and interested on homes with sea view then you will get a variety of options soon.
The amended regulation zones will impact other cities such as Vishakhapatnam, Surat, Mangaluru and Puducherry. However, Chennai will be the most impacted in terms of demand and supply in the long run.
“The amended coastal regulation guidelines along the coast may benefit in the long term from relaxed development control regulations and floor space ratio norms. Any immediate impact on supply may not be visible as these submarkets have sizeable inventories to meet current demand levels,” says Sanjay Dutt, executive managing director, South Asia, Cushman & Wakefield.
Localities that would get impacted because of the changes in the CRZ-II norms are Besant Nagar and stretches on the East Coast Road (ECR) such as Kanathur and beyond Muttukadu.
| What is Coastal Regulation Zone?The coastal land, up to 500m from the High Tide Line (HTL) and a stage of 100m along banks of creeks, estuaries, backwater and rivers subject to tidal fluctuations, is called the Coastal Regulation Zone(CRZ). |
As per Magicbricks data, currently these localities offer properties in various budget range. Besant Nagar offers apartments, independent houses and few plots in budget of Rs 90 lakh- Rs 3 crore. Similarly, East Coast Road stretch offers over 50 projects comprising of apartments, villas and plots in the range of Rs 4 lakh- Rs 22 crore.
“The notified changes in norms may propel developers to plan high-rises in these localities which have traditionally been known for low-rise developments such as independent bungalows, villas and low-rise apartment projects,” says Dutt.
Investment prospects for high rise apartments
Unlike common perception, buyers in Chennai are interested in apartments. The second-generation is warming up to living in such buildings. Evolving gentry, the increase in income level and the IT cosmopolitan population are some reasons behind the change housing demand. Increasing cost of lands and lack of security in independent housing options are also some reasons for the increasing preference of apartments.
| What is Coastal Regulation Zone-II?The areas that have already been developed up to or close to the shoreline lie within this zone. For this purpose, “developed area” is referred to as the area within municipal limits or in other legally designated urban areas which is already substantially built up and which has been provided with drainage and approach roads and other infrastructural facilities, such as water supply and sewerage mains. |
“Guindy, K.K. Nagar, Rajiv Gandhi Salai, Adyar to name a few are witnessing increase in demand for high-rise apartment projects by reputed builders which are closer to their work places and offer amenities and open spaces,” adds Dutt.
However, the infrastructure for high-rise buildings remain limited. Availability of 24×7 power supply, water and other facilities are the crucial parameters influencing demand for high rises.
Considering the changes in the landscape that the realty industry is anticipating, it would be interesting to watch whether Chennai will continue to show its inclination towards independent housing or embrace Mumbai’s love for high-rises.
Source: Times of India / Surbhi Gupta Magicbricks
Information source: Ministry of Environment & Forests