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AN OVERVIEW
Chennai residential micro markets have been
stable with moderate price appreciation
of 8 – 10% in the past one year.
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.

Old Mahabalipuram Road (OMR)
Old Mahabalipuram Road (OMR) popularly known as the IT Corridor of Chennai was conceptualized by Tamil Nadu
Government in 1999 – 2000. Owing to delays due to land acquisition and change in government, the first phase of
OMR became operational only in 2008. TIDEL Park at Tharamani was the first IT establishment here and it placed
Chennai into the IT map of India, henceforth changing character and lifestyle of Chennai as a city.
Beginning at Madhya Kailash in Adyar the road stretches
till Mahabalipuram. Some of the major localities on OMR
are Perungudi, Thoraipakkam, Karapakkam, Sholinganallur,
Navalur, Egattur, Padur, Siruseri, Kelambakkam,
Thiruporur.

OMR
Phase 1
OMR
Phase 2

Madhya
20.1
Kailash - Km
Siruseri
Siruseri - 26.8
Poonjeri
Km

Operational
since 2008
Under
Construction

OMR Phase 1






Currently there are two tolls on OMR; first one is at Perungudi and second at Navalur
The positioning of tolls also governs the locality preference of buyers
The demand and capital values for residential and commercial properties are high from Madhya Kailash to
Perungudi (before the first toll)
Same way employees at companies in Siruseri prefer staying in projects where they don’t have to pay toll
for every day commuting







Analysing the buyer preference for
various localities on OMR indicates
that the distance from Chennai
city is not the only deciding factor
when it comes to buying a
property
Sholinganallur tops the list with
over 30% buyers wanting to buy a
property there, followed by
Thoriapakkam, Kelambakkam and
Navalur
Budget,
growth
potential,
proximity to employment centres,
access,
presence
of social
infrastructure play a critical role

Locality Ranking for Major Localities on OMR

0%

5%

10%

15%

25%

30%

35%

Thiruporur

Egattur

Padur

Perungudi

Navalur

Kelambakkam

Thoraipakkam

Sholinganallur









OMR Phase 2

20%



Asia’s biggest SIPCOT has been
developed at Siruseri on OMR for IT
companies
Many IT/ITES companies like TCS,
Cognizant, iGate have set up their
base
here
generating
huge
employment
opportunities
and
thereby a need for residences and
related
social
and
physical
infrastructure in the area
Unlike Chennai which is known to be
an end user driven market, OMR has
equally attracted both end users and
investors
Considered to be one of the
prospering property destinations,
now there are low rise and villa
properties
available
beyond
Kelambakkam as well
But the area will take over 5-7 years
to get developed

Demand and Property Rates along OMR Are Also Governed By
Placement of the Toll Gates. Currently There is One at Perungudi
and Second One at Navalur





The residential property rates on OMR and
its neighbouring micro markets have
escalated by close to 15 times since 2000
Comparing the actual market rates to the
rates buyers are ready to pay – Padur and
Kelambakkam are closest to buyers
expectations followed by Sholinganallur,
indicating better future returns

Kelambakkam,
Sholinganallur and Padur,
are investment
destinations on OMR

Locality

Property Rate

Property Rate

2010

2013

PERUNGUDI

4500 - 5000

6500 -7500

THORAIPAKKAM

3800 - 4500

5500 - 6800

SHOLIGANALLUR 3000 - 3500

3800 - 5200

NAVALLUR

2800 - 3500

4500 - 7000

EGATTUR

2500 - 2800

3800 - 4200

PADUR

3000 - 3500

3300 - 5000

SIRUSERI

2500 - 2800

3500 - 3800

KELAMBAKKAM

2500 - 2800

3200 - 4000

THIRUPORUR

NA

3000 - 4000

Budget Preference of Buyers (per Sqft unit rate)
80%
70%
60%
50%
40%
30%
20%
10%
0%
Perungudi Thoraipakkam Sholinganallur Navalur
<3000
3000-4000
4000-5000

Padur
>5000

Kelambakkam Thiruporur

Some of the Problem areas:







As of today, the capital values are appreciating but most of the localities on OMR lack liveability
Beyond lack of social infrastructure, the area lacks basic amenities like sewage lines, municipal water,
security, water logging, service roads, foot paths
Connectivity is another big issue faced by residents and office goers along with everyday traffic
congestion
Small villages still exist along Phase 1 of the road creating bottle necks
There are projects announced by the government but unless work happens these micro markets will
not become preferred destinations by end users
Localities close to the Perungudi Sewage Treatment Plant frequently face issue of sewage over flow
leading to foul smell and blocked roads

Recent Infrastructure Projects announced to improve connectivity:
Elevated corridor on OMR connecting Chennai city to

Feasibility Stage

Mamallapuram
Three new bridges connecting ECR and OMR at Neelankarai,

Design and Approval Stage

Palavakkam and Kottivakkam
Flyover connecting Old Mahabalipuram Road and East Coast Road

Design and Approval Stage

(Tidel Park Junction – Lattice Bridge Road – ECR)

Outlook




There are speculations in the market that there is a possibility of OMR suffering from oversupply
situation in the future
In our view going forward growth in Chennai would not solely be determined by the IT/ITES sector, but
also the transport corridors of inprogress projects
Infrastructure development would play vital role in making localities on OMR liveable

East Coast Road (ECR)
East Coast Road is the scenic two lane road connecting Chennai to Thoothukudi in Tamil Nadu. It runs along the Bay
of Bengal and is a popular weekend getaway destination for Chennaiites. Being developed as an entertainment
corridor it houses many famous resorts, theme parks, water parks and theatres. There are plans to extend it till the
Southern tip of Indian Subcontinent at Kanyakumari.


















Neelangarai, Palavakkam are the
hottest destinations on ECR belt and
are seeing high demand from buyers
The belt is highly prone to accidents
Congestion on adjacent OMR belt has
shifted IT traffic on OMR during office
hours
On infrastructure front most of the
roads are narrow and there is no
proper drainage and sewage disposal
system in place
The new bridges connecting ECR and
OMR at Neelankarai, Palavakkam and
Kottivakkam
will
improve
the
connectivity between OMR and ECR

Locality

Property Rate 2013 (psft)

ADYAR
THIRUVANMIYUR
VALMIKI NAGAR
PALAVAKKAM
INJAMBAKKAM
UTHANDI
MUTTUKADU
OMR-ECR LINK ROAD

14000 - 16000
10000 - 12000
8000 - 9500
6000 - 8000
4800 - 7000
5000 - 7000
5800 - 8000
7000 - 9000

Buyers prefer staying on ECR belt as its close to the city and
yet away from the hussle bussle of the city
Congestion on adjacent OMR belt has shifted IT traffic on
OMR during office hours
ECR is also preferred by senior IT professionals working on
OMR belt
Land, posh beach houses, farm houses and villa
communities are popular residential types on ECR
In past five years property rates have escalated by more
than double here
Buying land is not an easy task here as most the land is
owned by locals from the small fishermen villages present
on ECR
Beyond Uthandi and Muttukadu the area is sparsely
populated
Budget Preference of Buyers (per Sqft unit rate)

80%
70%
60%
50%
40%
30%
20%
10%
0%
Thiruvanmiyur
<3000

Kotivakkam
3000-4000

Palavakkam
4000-5000

Neelangarai
>5000

Uthandi

Pallavaram – Chrompet - Tambaram
Grand Southern Trunk Road (GST Road) is one of the busiest National Highways connecting Chennai to Trichy.
Starting from Kathipara Junction at Guindy the highway connects the Chennai International Airport and many
upcoming residential and commercial localities like Pallavaram, Chrompet, and Tambaram. These localities are close
to the city and are well connected via both road and Chennai Rail.
The commercial establishments on GST Road didn’t pick pace due to governments focus on establishing OMR as the
IT Hub. For the same reason the localities along GST Road didn’t see similar price appreciation and demand as
residential properties on OMR belt did. But in past two years post their inclusion under city limits, these areas have
seen heightened interest from both developers and buyers side owing to affordability, proximity to the airport along
with good connectivity with the city and OMR.

Locality Ranking - Pallavaram, Chrompet,
Tambaram

Some Facts
Road Connectivity

GST Road, Pallavaram –
Thuraipakkam Road, Tambaram
Road, Chennai Bypass Road

Public Transport

Chennai Suburban Rail Network
via Beach – Tambaram –
Chengalpattu line, Monorail
(proposed)
Airport : 10 Kms
OMR : 15 Kms
Mahindra World City : 25 Kms
Shriram Gateway : 3 Kms

Distance from
Tambaram

0%

20%
Pallavaram

40%
Chrompet

Tambaram

60%









Major Residential Projects in Pallavaram, Chrompet,
Tambaram:

Tambaram is one of the fastest growing
Chennai suburb
Residential demand in Tambaram will
increase further once work begins for the
proposed Monorail
High vacancy rate in existing commercial
office spaces at Shriram Gateway and
other establishments
The road and rail network for the localities
already exists
Chennai Airport will be the closest metro
station for the upcoming Metro Rail

PROJECT
Pallavaram
Aspire
Vibrants
Chrompet
Wood Berry
Serene
Tambaram
Florencia
Adithi
White Pearl



Budget Preference of Buyers (per Sqft unit rate)
50%
45%



40%
35%



30%
25%



20%
15%
10%
5%
0%
Chrompet
<3000

Pallavaram
3000-4000
4000-5000

Tambaram
>5000



DEVELOPER

PROPERTY PRIICE (INR
psft)

Royal Splendour
Developers
Sankar Builders

4600

Green Peace
Aashirwad

6850
3800

Color Homes
Gayatri Realties
AKB Homes

3600
3200
4900

5000

Over 55% of buyers wanting to buy property in
Tambaram are ready to pay over INR 3000
psft
This is in conjunction with the current market
rate in the area
INR 3000 – 4000 psft is the most preferred
budget for the three localities
Pallavaram being only 4 and 7 Kms from the
airport and Kathipara Junction respectively
has capital values ranging between INR 4500 –
5500 psft
The running rate in Velachery which is at a
similar distance from the airport is above INR
6500 psft, indicating future growth potential

Unit Size Preference of Buyers
45%





Maximum demand is for decent sized 2
– 3 BHKs
Pallavaram, Chrompet and Tambaram
have good growth potential
With improvement in social and physical
infrastructure these localities will
become more habitable and one can
expect over 20% price appreciation

40%
35%
30%
25%
20%
15%
10%
5%
0%
Chrompet
< 900 sqft
1500 - 1800 sqft

Pallavaram
900 - 1200 sqft
> 1800 sqft

Tambaram
1200 - 1500 sqft

Vandalur – Guduvanchery – Chengalpettu
GST Road or NH-45 is a long 400 Km highway connecting Chennai to Trichy. It can be divided into sections as per the
scale of development, real estate activity and proximity to Chennai city. Many upcoming residential and commercial
slocalities like Vandalur, Urapakkam, Maraimalai Nagar, Guduvanchery, Singaperumal Koil, and Chengalpattu lie on
the second stretch of GST Road.
These localities started getting developed post establishment of 1500 acre Mahindra World City at Chengalpattu and
Ford’s manufacturing plant at Maraimalai Nagar. Estancia IT SEZ also lies on this belt of GST Road. Good Road
Connectivity, existing Suburban Train Network and proximity to the airport are some of the factors that have lead to
home buyers preferring these localities.

Locality Ranking - Vandalur, Guduvanchery,
Chengalpattu

Some Facts
Road Connectivity

Public Transport

Distance from
Vandalur

GST Road, Vandalur –
Kelambakkam Road, SH-57
(Oragadam Road), Chengalpattu
– Thiruporur Road, Kanchipuram
– Chengalpattu Road, Chennai
Bypass Road
Chennai Suburban Rail Network
via Beach – Tambaram –
Chengalpattu line, Monorail
(proposed)
Airport : 15 Kms
OMR : 20 Kms
Mahindra World City : 20 Kms
Shriram Gateway : 1.5 Kms

0%

20%
Chengalpattu

40%
Vandalur

60%

80%

Guduvanchery



Mahindra World City is one the major
landmarks and has a dedicated station
The road and rail network for the localities
already exists
The South West Suburban Rail from
Chennai Beach to Chengalpattu connects
all the major locations to the city
The under construction 6 lane Outer Ring
Road from Vandalur – Nazarathpet –
Nemilichery will connect GST Road to NH4
and NH 205
The proposed Monorail will connect
Vandalur to Velachery
Chennai Airport will be the closest metro
station for the upcoming Metro Rail









Major Residential Projects in Vandalur, Guduvanchery,
Chengalpattu:



Budget Preference of Buyers (per Sqft unit rate)
90%



80%
70%
60%
50%



40%
30%



20%
10%



0%
Vandalur
<3000

Guduvanchery
3000-4000

4000-5000

Chengalpattu
>5000

Being outskirt localities the most preferred
budget for property purchase is under INR
3000 psft
Also the price preference is directly
proportional to the distance of the locality
from the city
Chengalpattu is one of the hot and growing
locations for land investments
Apartment prices are also affordable in
Vandalur and Guduvanchery
Residential demand will increase in this belt
especially Vandalur once the Outer Ring Road
becomes operational and work begins for the
proposed Monorail

Unit Size Preference of Buyers






The Maximum demand is for a decent
sized 2BHK with over 25% buyers
looking for a 900 – 1200 sqft property
As the expanse of the city increases
these areas will grow
Good investment option with long term
perspective in mind
Land is a better investment option here
compared to apartments

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Vandalur
< 900 sqft
1500 - 1800 sqft

Guduvanchery
900 - 1200 sqft
> 1800 sqft

Chengalpattu
1200 - 1500 sqft

Medavakkam – Pallikarnai - Velachery
Velachery has seen massive real estate development and increase in capital values during past few years. Owing to
popularity of Velachery, its neighbouring destinations - Medavakkam and Pallikarnai are also fast developing as
residential suburb.
Proximity to the city and the Chennai airport, easy accessibility to major employment hubs – OMR, GST Road and
improvement in social infrastructure are the key factors which have resulted in an increase in preference for these
localities. Also the proposed monorail from Vandalur to Velachery will enhance the connectivity of these micro
markets.

Micro Market

Road Connectivity

Public Transport

Velachery

Velachery Main Road,
Tharamani Road

Chennai
Suburban Rail
Network

Medavakkam

Tambaram Road,
Medavakkam Mambakkam Main
Road, Medavakkam Sholinganallur Road

Absence of Rail
Network

Pallikarnai

Pallavaram –
Thuraipakkam Road,
Velachery Main Road

Absence of Rail
Network

Locality Ranking - Medavakkam, Pallikarnai &
Velachery:

0%

10%

20%

Pallikaranai

30%
Medavakkam

40%

50%

Velachery







Major Residential Projects in Medavakkam, Pallikarnai &
Velachery:

With increasing property rates in the
city localities close to the city are
becoming popular
Due to limited availability and high
pricing of residential projects in
Velachery nearby localities
Medavakkam and Pallikarnai have
also seen an outburst in real estate
demand
Demand also increased after
announcement of Monorail from
Vandalur to Velachery via
Medavakkam and Pallikarnai

PROJECT
Medavakkam
Pace Aagam
Ruby Elite
Fortune Manor
Pallikarnai
Akash Ganga
Windermere
Velachery
Arcadiaa
The Quadrants

DEVELOPER

PROPERTY PRIICE (INR
psft)

Pace Builders
Ruby Builers
Sumangali
Homes

5500
5800
4600

Rajkham Builders
Puravankara

4200
4500

Malles
Construcions
Color Homes

6600
6900

Budget Preference of Buyers (per Sqft unit rate)
60%



50%
40%



30%



20%
10%
0%
Medavakkam
<3000

Pallikaranai
3000-4000

4000-5000

Velachery

Over 50% of buyers wanting to buy
property in Velachery are ready to pay
over INR 5000 psft
INR 3000 – 4000 psft is the most
preferred budget for Medavakkam
and Pallikarnai
But buyers are slowly accepting the
increase in pricing in the area with
close to 25% ready to pay over INR
4000 psft, which is close to the actual
market rate in the area

>5000

Unit Size Preference of Buyers
45%
40%






Velachery is transforming into uppermid residential destination with over
60% buyers looking for spacious
homes
These localities are highly preferred
by IT professionals
With better connectivity via Monorail
the capital values in Medavakkam and
Pallikarnai will appreciate by over 20
– 30%

35%
30%
25%
20%
15%
10%
5%
0%
Medavakkam
< 900 sqft
1500 - 1800 sqft

Pallikaranai
900 - 1200 sqft
> 1800 sqft

Velachery
1200 - 1500 sqft

Employment
North Chennai is primarily an industrial area
and is governed by business and trader
community,
locomotive
workshops,
government offices and port related activities.
Chennai Port and Ennore Port are located in
this region. Contrary to South Chennai which
currently boasts of over 75% of Chennai’s
office space stock, North Chennai houses
none. Restricted employment opportunities
have resulted in sluggish real estate growth in
this region.

Connectivity
Currently Chennai has 4 suburban rail
networks. The North Line connects the
Northern parts of Chennai namely Tondiarpet,
Ennore, Gummidipoondi with Central
Chennai. The West line from Chennai Central
to Tiruvallur is the oldest rail network in
Chennai around which the city thrived and
development started. It also divides the
Northern part of the city from Central and
Western areas.

The Chennai Bypass Road is in close proximity
to the western end of North Chennai and
thereby gives better connectivity to the micro
markets – Korattur, Madhavaram.

Connectivity continues to
remain one of the biggest
concerns for north
Chennai residents with
thousands of commuters
struggling every day
Infrastructure
North Chennai is known to be the neglected
area by the government authorities.
Connectivity, flooding due to lack of storm
water drain network, contaminated drinking
water and improper sanitation system are
some of the major grievances of the residents.
Outer Ring Road

One of the major arterial roads the Chennai –
Kolkata Highway (NH5) starts at the Basin
Bridge and connects Chennai port with North
Chennai. Besides this road connectivity in
North Chennai still remains a question with
thousands of commuters struggling every day.
The long due underpass in Villivakkam was
inaugurated in June 2012 and has improved
the traffic conditions to an extent.
The Perambur flyover and Perambur
Locoworks road over bridge are two of the
major projects to be implemented in North
Chennai in recent years. They are expected to
ease traffic congestion in the area.

The second phase of the Outer Ring Road
(Nemilichery – Nallur – Minjur) will connect
NH 205 to the NH 5 in North Chennai via a six
lane highway. Currently the first phase of the
Outer Ring Road connecting Vandalur to
Nemilichery is under construction.
Chennai-Ennore
Project

Port

Road

Connectivity

Expected to be completed in June 2013, the
project is a SPV (Special purpose vehicle)
comprising of National Highways Authority of
India, Chennai Port Trust, Government of
Tamil Nadu and Ennore Port Ltd., as partners.
The project was conceived in 1998 at an
estimated cost of Rs.150 crores. Work started

only in January 2011 with a revised estimate
of Rs.600 crores. The project is considered
vital for the future development of Chennai
Port, as it is planned to upgrade the city
roads, connecting the Port to the hinterland
and thereby improve the efficiency of cargo
evacuation.

Chennai Residential Market Zone Wise
Distribution of Stock

16%

1%

15%

Chennai Metro Rail
Even though the under construction Chennai
Metro doesn’t directly connect North Chennai
but the nearest station at Anna Nagar will
help improve the connectivity of North
Chennai localities with the airport,
Vadapalani, St. Thomas Mount and other
South Chennai micro markets.

Stock and Absorption
The residential supply in North Chennai is
subdued and constitutes of only 15% of the
total under construction stock in Chennai.
Lack of job opportunities and thereby limited
demand and lack of vacant land parcels closer
to the city are some of the reasons for it. The
demand here comes from the industrial, port
and public sector employees who have
worked and lived in the area throughout their
lives.
North Chennai being older Chennai has
traditional set of buyers. Unlike South and
West Chennai most of the investors in North
Chennai are residents of North Chennai itself.
The area would see steady growth in the
future with stand alone houses giving way to
low-rise apartment complexes.
With improvement in connectivity and better
infrastructure facilities in the future one can
expect an increase in demand for residential
properties in north Chennai.

68%

CENTRAL

NORTH

SOUTH

WEST

(Source : IndiaProperty.com)

Capital Value
Residential Property Rates in
Residential Markets of North Chennai
MICRO MARKET

Major

Kolathur

CAPITAL VALUE (INR
psft)
4000 – 5200

Tondiarpet

4000 – 5500

Korattur

5000 – 6500

Madhavaram

3800 – 4500

Perambur

5200 – 6500

Puzhal

2500 – 4000

Puzhal (Land)

1500 – 1800

Having traditional set of
buyers, North Chennai sees
demand from its existing
set of residents – mainly
industrial, port and public
sector employees

Budget Preference of Buyers in North
Chennai

Unit Size Preference of Buyers in North
Chennai

45%

40%

40%

30%

35%

20%

30%
25%

10%

20%
15%

0%

10%
5%

< 700 sqft
1200 - 1500 sqft

0%

(Source : IndiaProperty.com)

< 30 L

30 - 50 L

50 - 75 L

75 - 100 L

700 - 1000 sqft
> 1500 sqft

1000 - 1200 sqft

> 100 L

(Source : IndiaProperty.com)

North Chennai has high percentage of middle
class population with over 70% buyers looking
for properties under INR 50 Lacs budget with
over 55% of the buyers having a preference
for unit size ranging between 700 – 1200 sqft.
Major population in North comprises of public
sector employees, railway workers and port
employees who desire to settle down close to
the areas where they have spent major part of
their lives working.

Micro Markets
Perambur, Tondiarpet, Kolathur are the major
residential localities of the region. With
number of under construction projects,
Madhavaram is growing as an in-demand
residential micro.

Locality Preference of Buyers in North Chennai
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Kolathur

Korattur

(Source : IndiaProperty.com)

Madhavaram

Perambur

Puzhal

Thiruvotriyur

Tondiarpet

Villivakkam

Perambur
Perambur is one of the early settlements of
Chennai around which the city grew. It was
primarily dominated by the railway employees
working for Perambur Locoworks and Carriage
works. It is considered as a good locality to
live in North Chennai.
Primarily a residential area, it is densely
populated with pockets of commercial
developments. The Spectrum mall is the only
organised retail present in the area. The area
has always been in demand amongst locals.
It’s in proximity to the Chennai Central station
and Egmore Station (about 5 kms from both).
Capital values in the area have appreciated by
over 20 – 30% in the past 2 years. Being a low
lying area with poor access, until recently the
developers were not interested in Perambur.
But over the years the infrastructure has
drastically improved in the area and after
opening of the Perambur flyover the
connectivity issue also got resolved.
One of the common trends in the area is
individual houses getting converted into
apartments having 20 – 25 units. Also some of
the old mills have given way to huge vacant
land parcels, giving way to big residential
developments in the area. The area holds
good potential as it’s close to the city with
infrastructure in place along with decent
property pricing.
Kolathur
Kolathur is one of the popular residential
localities in North Chennai and is now part of
the State Assembly Constituency. It is well
connected to the city as it’s adjacent to the
Grand Trunk Road connecting Kolathur to
Anna Nagar. The Chennai Bypass Road is also
in close proximity to Kolathur, giving the
locality easy access to the Western and

Southern Chennai suburbs. Closest Suburban
Rail stations to Kolathur are Villivakkam and
Perambur Locoworks.
The completion work of Perambur flyover and
Perambur Locoworks road over bridge highly
improved the access to the locality.
It is a low lying area and is therefore floodprone. In recent times the storm water drain
network in the area has improved. But
electricity, contaminated water and sewage
overflow remain few of the major issues in
the area.

Like any location
accessibility plays a critical
role in North Chennai in
defining the residential
demand for a micro market
Ayanavaram
Ayanavaram is one of the rare localities in
North Chennai where the railway crossing is
not a hurdle. Overall connectivity to the area
is good. Close to the prime localities like
Kilpauk and Pursaiwakkam, the micro market
has high growth potential. The trend of
individual houses getting converted into
apartments is visible here. But except the
main Konnur High Road, all the internal roads
are narrow with small plot sizes. This is one of
the restricting factors hindering the
residential development in the area making
the property prices comparable to Perambur
which is location wise further ahead.
Villivakkam
Villivakkam is located next to the prime area
Anna Nagar. Railway track crossing at
Villivakkam is the biggest hurdle, limiting the
residential demand and capital values in the

area. The Villivakkam underpass has improved
traffic conditions in the area. Being a low lying
area, the locality is prone to frequent water
logging.
The Konnur High Road and Jawaharlal Nehru
Road are the major arterial road in the area
connecting Villivakkam to Ambattur, Padi,
Anna Nagar, Koyambedu. The plotted houses
here are giving way to small apartment
complexes.
With poor infrastructure the area has not
witnessed the growth which it should have
because of its location. With government
initiatives and improvement in physical
infrastructure the area has potential to see
high demand for residential properties.
Madhavaram
Madhavaram

located

along

the

Great

Northern Trunk Road (also known as NH 5 or
Chennai – Kolkatta Highway) and the Chennai
Bypass road is known for the Aavin milk dairy
and mango groves. The locality has good
future prospects as the government owns
major chunk of the land here and the area is
likely to remain green with minimal scope for
unorganised real estate development.
Because of its location, easy access to Chennai
city, port and railways - CMDA developed a
truck terminal here in 1992. The area often
faces heavy traffic due to the trucks parked on
the road.
Some of the other issues that the locality

faces consequences of poor drainage and has
been highly polluted over the years.

Compared to South and
West part of Chennai,
properties in North
Chennai are reasonably
priced and improvement in
connectivity and
infrastructure would lead
to steady growth in the
area
Puzhal
Puzhal is located towards the end of the
Chennai Bypass Road along the Great
Northern Trunk Road. This gives it easy access
to other parts of Chennai city and an
advantage over rest of the developing
localities in North Chennai. Currently the area
lacks real estate activity but it is one of the
localities in North Chennai to look for in the
future. Access and affordability are two
factors that will drive growth in the area.
Located on the banks of Puzhal Lake or the
Redhills Lake, the area is known for the Puzhal
central prison which was setup in 2006. The
Puzhal Lake is one of the major sources of
fresh water supply in Chennai and prone to
contamination from improper waste and
sewage disposal from the prison resulting in
both air and water pollution.

currently faces are – lack of adequate public
transport facility, proper drinking water and
poor sewage network. The Madhavaram Lake

The proposed monorail connecting Vandalur
to Puzhal via Avadi has now been dropped
owing to financial feasibility.

Outlook
Residential market in North Chennai
constitutes of a small percentage of 15% of
the total under construction stock in Chennai.
The area sees maximum demand from
traditional set of buyers who have lived in the
area. The demand here comes from the public
sector employees, railway workers and port
employee who have worked and lived in the
area throughout their lives. Having high
percentage of middle class population under
INR 50 Lacs is the most proffered budget for
residential properties.

Lack of job opportunities, poor access due to
presence of railway track, water logging,
inadequate fresh water supply, improper
sewage lines are few of the reasons for
restricted growth in the past.
With improvement in connectivity and better
infrastructure facilities in the future one can
expect an increase in demand for residential
properties in North Chennai. The area would
see steady growth in the future with standalone houses giving way to low-rise
apartment complexes.

Quick Facts about Home Loans
What is a Home Loan?

amount which has already been paid. The EMI for the

A home loan is a loan taken for buying or constructing

monthly reducing system is effectively less than the

a house or to refurbish an existing residential

annual reducing system. In Daily Reducing system, the

property. Banks and registered housing finance

principal, for which you pay interest, reduces from the

companies are the sources to procure a home loan.

day you pay your EMI.

The home loan is secured against the property for
which the loan is taken.

What are fixed and floating rate of interest?
Fixed Rate refers to the rate of interest that remains

What is an EMI?

unchanged for the entire duration of the loan. In a

An EMI (Equated Monthly Installment) is the

Floating Rate the interest is market driven and

repayment amount payable to the lending institution

according to the market lending rate.

every month. It consists of a portion of the interest as
well as the principal amount. The initial EMIs have

What are the other costs that usually accompany a

higher interest component than principal.

home loan?
Processing Charge and Pre-payment Penalties are the

State the eligibility conditions for a home loan?

usual extra costs that accompany a home loan. But at

Following are the prerequisites to acquire a Home

times some financial institutions might also levy

Loan: a) An Indian resident or NRI, b) Above 24 years

documentation or consultant charges.

of age at the commencement of the loan, c) Below 60
or retirement age when the loan matures, d) Either

How do HFCs decide on the loan amount?

self employed or salaried

Most of the financial institutions give up to a maximum
of 80% of the cost of the house, depending on the

What are - Daily Reducing, Monthly Reducing and

financial ability of the loan applicant. The amount, for

Yearly Reducing Home Loans?

which the applicant is eligible, is determined by the

The interest on home loans in India is calculated

age, income, number of dependents, monthly outgoing

either on monthly reducing or yearly reducing balance

and repayment capacity.

or at times daily reducing basis is also adopted. It is
the time frame used to recalculate your principal

What is the usual time required for loan

amount.

disbursement?

In the Annual Reducing system one continues to pay

On an average, loans are disbursed within 3-15 days

for the same principal amount for the whole year i.e.

post satisfactory completion of documentation and all

one pays extra interest on certain portion of principal

other relevant procedures.

Your Property Purchase Checklist
The task of buying a property is laborious. The
buyer must not base his property buying
decision on locality and budget alone. He must
consider other critical aspects such as the
appreciation value of the property, investment
benefits from that property, builder
reputation, home loan approvals and the legal
hassles involved, if any.
So here is a check list for you that will come in
handy to you while you buy your property.
YOUR CHECKLIST:
PARTIES INVOLVED IN THE PROPERTY
PURCHASE
1. Check if the property that you wish to
purchase is in the Name of the Seller or if
there is a Joint Venture Development
involved. The Name and Land Title must be
in the Name of the Seller
2. Get the identity and address proof of the
Seller
3. To avoid any future disputes from Children
of the Sellers (who are not minors), their
signatures must be obtained on the bond /
agreement
4. Any claim over the property by blood
relatives of the Seller, in the future, must
be handled by the seller and a clause
ensuring the same must be inserted in the
Sale deed
5. Through every stage of negotiation and
purchase, check to see if there are any
third party interests, suppression of
previous transactions, prior agreements or
litigations involved.

PREVIOUS DUES PAID & SETTLED:
1. Check if all dues like Land Revenue,
Municipal Tax, Water Tax, TNEB Charges,
etc have been paid before the purchase is
made
2. Also check if any loan has been obtained
on the property. If yes, then include a
clause in the Sale deed stating that the
seller is responsible for all the dues dated
before the purchase
3. In case of future disputes involving the
seller, add a clause in the deed holding him
responsible to clear and settle all such
Villangam / Viharam
IMPORTANT DOCUMENTS:
1. Ask for the Parental Document – the
Moola Pathram
2. The Sale deed must clearly show details of
the property – Door/Flat/Plot No., Land
Area, etc
3. Obtain the No Encumbrance Certificate
4. Obtain receipts of all payments made –
Patta, Chitta, Adangal extracts and the
receipts of Tax payments made –
Water/Property/Corporation/Municipality
/TNEB/Revenue etc. unto the date of
Purchase
5. Confirm the originality of Stamp papers.
Check to see if the date of purchase of the
Stamp paper matches the date of
documents
Now that you have a checklist, what are you
waiting for? Start your property search NOW
with Indiaproperty.com


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