As the property market speeds up and buyers actively start looking for properties, the New Year seems to be a little more promising than the previous quarters. With buyers realising the impact of a stable central government, end-users are researching, if not buying, say trend watchers.
Where in Chennai should you invest for healthy returns? Depending on whether you are an investor looking for rental returns or a prospective end-user, Chennai has options for both.
Rental returns
Chromepet, Madipakkam, Thoraipakkam, Medavakkam and Thirivanmiyur have been top scorers for rental yields. With rents ranging from Rs 4,500-30,000 per month, these areas are popular among tenants. Prime reason being proximity to the business districts of Old Mahabalipuram Road (OMR). Malay Neerav of Rich Properties and Realty says, “For IT/ITeS professionals working in areas such as Sholinganallur and Velachery, Thorraipakkam is the choicest pick. Proximity to the Grand Southern Trunk (GST) Road via the Thorraipakkam-Pallavaram Radial Road is an added advantage.”
“Among other developments is the new link road that has received permission from the state government. It will connect Neelankarai on ECR to the radial road at Thorraipakkam. If this materialises, not only would the commute time be reduced but property values would also escalate. The upcoming metro, at a convenient distance, is also set to push up property values,” says Marthand Gopalan of City Realty.
Similarly, if you are an investor in Thirivanmiyur, most employees looking for a house close to their workspace at TIDEL IT Park would be your tenants. Sundar Aravamudhan, consultant at Detail and Design says, “There is a cosmopolitan culture in this area. A lot of North Indians prefer this because there is a Hindi speaking population, unlike in the far off places where you find only the local crowd. Over time, they even plan on investing here.”
In the absence of a rationally priced market, Medavakkam is preferred as compared to Velachery, OMR, Pallavaram and Tambaram which are costlier, say industry insiders. The social and physical fabric is conducive with commercial, healthcare facilities and local transport.
K Natarajan, broker at Rajan Homes says, “Buyers and tenants are equally enthusiastic about the Monorail. Some do not wish to compromise on the amenities and therefore, Siruseri, Padur and Navalur are equally attractive.”
For capital appreciation
For an end-user, capital gains are a consideration. As per trends, you may bank on areas such as Velachery, Adyar, Anna Nagar, Perungudi, Chromepet, Madambakkam, Kelambakkam, Madipakkam and Iyyapanthangal. Average capital values in the area are within Rs 5,500 per sq ft with the exception of Adyar and Anna Nagar where prices are in the range of Rs 8,000-15,000 per sq ft.
Interestingly, the premium areas priced at Rs 1 crore and above entered the list of the top preferred localities for sale and rent. Reasons include re-development of certain colonies and increasing supply.
Krishna Gokul, broker, Iyengar Realty and Consultants says, “With aspirations on the rise, buyers are upgrading their lifestyle. Those who cannot afford to buy properties here are taking them up on rent.”
Industry watchers also say that a sizeable proportion of the buying and renting crowd are disposing their properties in Coimbatore, Madurai, Tirupur etc and re-investing in South Chennai. Although this number is not too big as of now, it is an interesting market trend.
Much of the momentum in the Chennai real estate market is because of the way the job centres, educational institutions and upcoming infrastructure are situated. If you are looking for good deals, research well and invest wise!
Source: Times Property, Chennai/MagicBricks.com Bureau