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.

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

OMR Phase 1

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

Madhya Kailash - Siruseri

20.1 Km

Operational since 2008

OMR Phase 2

Siruseri - Poonjeri

26.8 Km

Under Construction

Locality Ranking for Major Localities on OMR

0% 5% 10% 15% 20% 25% 30% 35%

Thiruporur Egattur Padur Perungudi

Navalur Kelambakkam Thoraipakkam Sholinganallur

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

OMR Phase 2

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

Budget Preference of Buyers (per Sqft unit rate)

0%

10%

20%

30%

40%

50%

60%

70%

80%

Perungudi ThoraipakkamSholinganallur Navalur Padur Kelambakkam Thiruporur

<3000 3000-4000 4000-5000 >5000

Locality Property Rate

2010

Property Rate

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

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

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

Mamallapuram

Feasibility Stage

Three new bridges connecting ECR and OMR at Neelankarai,

Palavakkam and Kottivakkam

Design and Approval Stage

Flyover connecting Old Mahabalipuram Road and East Coast Road

(Tidel Park Junction – Lattice Bridge Road – ECR)

Design and Approval Stage

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

Budget Preference of Buyers (per Sqft unit rate)

0%

10%

20%

30%

40%

50%

60%

70%

80%

Thiruvanmiyur Kotivakkam Palavakkam Neelangarai Uthandi<3000 3000-4000 4000-5000 >5000

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.

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

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 14000 - 16000 THIRUVANMIYUR 10000 - 12000 VALMIKI NAGAR 8000 - 9500 PALAVAKKAM 6000 - 8000 INJAMBAKKAM 4800 - 7000 UTHANDI 5000 - 7000 MUTTUKADU 5800 - 8000 OMR-ECR LINK ROAD 7000 - 9000

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)

Distance from Tambaram

Airport : 10 Kms OMR : 15 Kms Mahindra World City : 25 Kms Shriram Gateway : 3 Kms

Locality Ranking - Pallavaram, Chrompet, Tambaram

0% 20% 40% 60%

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.

Major Residential Projects in Pallavaram, Chrompet, Tambaram:

PROJECT DEVELOPER PROPERTY PRIICE (INR

psft)

Pallavaram

Aspire Royal Splendour Developers

4600

Vibrants Sankar Builders 5000

Chrompet

Wood Berry Green Peace 6850

Serene Aashirwad 3800

Tambaram

Florencia Color Homes 3600

Adithi Gayatri Realties 3200

White Pearl AKB Homes 4900

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

Budget Preference of Buyers (per Sqft unit rate)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Chrompet Pallavaram Tambaram

<3000 3000-4000 4000-5000 >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

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Chrompet Pallavaram Tambaram< 900 sqft 900 - 1200 sqft 1200 - 1500 sqft1500 - 1800 sqft > 1800 sqft

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

Vandalur – Guduvanchery – Chengalpettu

s

Some Facts

Road Connectivity GST Road, Vandalur – Kelambakkam Road, SH-57 (Oragadam Road), Chengalpattu – Thiruporur Road, Kanchipuram – Chengalpattu Road, Chennai Bypass Road

Public Transport Chennai Suburban Rail Network via Beach – Tambaram – Chengalpattu line, Monorail (proposed)

Distance from Vandalur

Airport : 15 Kms OMR : 20 Kms Mahindra World City : 20 Kms Shriram Gateway : 1.5 Kms

Locality Ranking - Vandalur, Guduvanchery, Chengalpattu

0% 20% 40% 60% 80%

Chengalpattu Vandalur Guduvanchery

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

localities 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.

Major Residential Projects in Vandalur, Guduvanchery, Chengalpattu:

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

Budget Preference of Buyers (per Sqft unit rate)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Vandalur Guduvanchery Chengalpattu

<3000 3000-4000 4000-5000 >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

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Vandalur Guduvanchery Chengalpattu< 900 sqft 900 - 1200 sqft 1200 - 1500 sqft1500 - 1800 sqft > 1800 sqft

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

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% 30% 40% 50%

Pallikaranai Medavakkam Velachery

Major Residential Projects in Medavakkam, Pallikarnai &

Velachery: PROJECT DEVELOPER PROPERTY PRIICE (INR

psft)

Medavakkam

Pace Aagam Pace Builders 5500

Ruby Elite Ruby Builers 5800

Fortune Manor Sumangali Homes

4600

Pallikarnai

Akash Ganga Rajkham Builders 4200

Windermere Puravankara 4500

Velachery

Arcadiaa Malles Construcions

6600

The Quadrants Color Homes 6900

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

Budget Preference of Buyers (per Sqft unit rate)

0%

10%

20%

30%

40%

50%

60%

Medavakkam Pallikaranai Velachery

<3000 3000-4000 4000-5000 >5000

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

Unit Size Preference of Buyers

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Medavakkam Pallikaranai Velachery< 900 sqft 900 - 1200 sqft 1200 - 1500 sqft1500 - 1800 sqft > 1800 sqft

Velachery is transforming into upper-

mid 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%

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.

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 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.

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

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 Port Road Connectivity

Project

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

Connectivity continues to remain one of the biggest concerns for north Chennai residents with thousands of commuters struggling every day

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 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.

Chennai Residential Market Zone Wise

Distribution of Stock

Capital Value

Residential Property Rates in Major

Residential Markets of North Chennai

MICRO MARKET CAPITAL VALUE (INR psft)

Kolathur 4000 – 5200

Tondiarpet 4000 – 5500

Korattur 5000 – 6500

Madhavaram 3800 – 4500

Perambur 5200 – 6500

Puzhal 2500 – 4000

Puzhal (Land) 1500 – 1800

1%15%

68%

16%

(Source : IndiaProperty.com)

CENTRAL NORTH SOUTH WEST

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

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.

Unit Size Preference of Buyers in North

Chennai

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

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

(Source : IndiaProperty.com)

< 30 L 30 - 50 L 50 - 75 L 75 - 100 L > 100 L

0%

10%

20%

30%

40%

(Source : IndiaProperty.com)

< 700 sqft 700 - 1000 sqft 1000 - 1200 sqft

1200 - 1500 sqft > 1500 sqft

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

(Source : IndiaProperty.com)

Kolathur Korattur 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 flood-

prone. 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.

Quick Facts about Home Loans

What is a Home Loan?

A home loan is a loan taken for buying or constructing

a house or to refurbish an existing residential

property. Banks and registered housing finance

companies are the sources to procure a home loan.

The home loan is secured against the property for

which the loan is taken.

What is an EMI?

An EMI (Equated Monthly Installment) is the

repayment amount payable to the lending institution

every month. It consists of a portion of the interest as

well as the principal amount. The initial EMIs have

higher interest component than principal.

State the eligibility conditions for a home loan?

Following are the prerequisites to acquire a Home

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

of age at the commencement of the loan, c) Below 60

or retirement age when the loan matures, d) Either

self employed or salaried

What are - Daily Reducing, Monthly Reducing and

Yearly Reducing Home Loans?

The interest on home loans in India is calculated

either on monthly reducing or yearly reducing balance

or at times daily reducing basis is also adopted. It is

the time frame used to recalculate your principal

amount.

In the Annual Reducing system one continues to pay

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

one pays extra interest on certain portion of principal

amount which has already been paid. The EMI for the

monthly reducing system is effectively less than the

annual reducing system. In Daily Reducing system, the

principal, for which you pay interest, reduces from the

day you pay your EMI.

What are fixed and floating rate of interest?

Fixed Rate refers to the rate of interest that remains

unchanged for the entire duration of the loan. In a

Floating Rate the interest is market driven and

according to the market lending rate.

What are the other costs that usually accompany a

home loan?

Processing Charge and Pre-payment Penalties are the

usual extra costs that accompany a home loan. But at

times some financial institutions might also levy

documentation or consultant charges.

How do HFCs decide on the loan amount?

Most of the financial institutions give up to a maximum

of 80% of the cost of the house, depending on the

financial ability of the loan applicant. The amount, for

which the applicant is eligible, is determined by the

age, income, number of dependents, monthly outgoing

and repayment capacity.

What is the usual time required for loan

disbursement?

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

post satisfactory completion of documentation and all

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