Chennai – Magicbricks found that areas such as Adyar, Nungambakkam and T Nagar are gaining popularity among end users and investors. These feature among the top preferred localities as recorded by PropIndex, a quarterly research initiative by Magicbricks.
These coveted addresses are nearing saturation, but with re-development making its way, there is considerable supply of new properties in these markets. However, the prices are in the range of Rs 1-16 crore, depending upon the size, property type and the exact location of the house.
If the budget doesn’t allow you to buy in these areas, then trend watchers hint that the rental market is also good. If you are an investor, you would be happy to note that a sizeable number of tenants do not mind spending Rs 30,000-50,000 per month as rent.
AV Murali, proprietor at Green Earth Properties Services and a part of the Chennai Real Estate Agents Association believes, “HNIs are investing in these areas, but this doesn’t deter the upper middle class tenants to live on rent here. Most residents choose to stay close to the city as it is aspirational for them to do so.”
While T Nagar is popular among traders and merchants, Adyar’s proximity to the Old Mahabalipuram Road (OMR) attracts prospective buyers to the area. A search on Magicbricks tells you that penthouses or spacious residential houses, give rental yields that go up to Rs 1 lakh per month in T Nagar. Gokul Prasadam of Vaishnav Properties says, “These merchants are from distant places and over time they choose to buy houses close to their work areas or take up rental accommodations. Such tenants pay higher to stay close to their business outlets, though most prefer buying.” Corporate leasing is also common here.
Consider Nungambakkam, where a 2BHK unit spread within 1300 sq ft costs between Rs 1-1.5 crore. However, rents are attractive considering that flats within 1300 sq ft can get as much as Rs 45,000 per month. Larger configurations (4BHK of 4000 sq ft) means you can earn close to Rs 3 lakh per month as rental returns. Prasadam says, “When the Mount Road metro becomes operational, values are expected to rise further and so will the popularity of the place.”
While some properties are up for corporate leasing for expats, rental housing demand is also rising because of demand from college students of prestigious colleges such as Loyola, Stella Maris, Women’s Christian College and MOP Vaishnav as well as from single professionals who do not mind sharing a flat.
The social fabric also governs why buyers zero in on these localities. Families opt for conveniences of having reputed schools in the vicinity, quick drive to their offices, parks and open areas for evening strolls and children’s play area, provision stores and commercial areas close to their home for a hassle free shopping.
If you too, are a resident in any of these premium areas, you would know that unlike in the upcoming areas, these are more pronounced in terms of facilities and hence the prices.
If you are planning on an investment and do not want to compromise on your lifestyle and also want to earn handsomely, any of the above areas can be considered for investment!
Source: Times Property, Chennai/MagicBricks.com Bureau