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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
currently faces are – lack of adequate public
transport facility, proper drinking water and
poor sewage network. The Madhavaram Lake
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.
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 stand
alone houses giving way to low-rise
apartment complexes.


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