INTRODUCTION
The Chennai real estate market is a dynamic and diverse landscape, offering a
blend of traditional charm and modern infrastructure. As one of India's major
metropolitan cities, Chennai boasts a vibrant real estate sector that caters to a
wide range of investors, from first-time home buyers to seasoned investors.
With a rich cultural heritage and a booming economy, Chennai attracts investors
seeking finest talent, convenient infrastructure and better transportation
facilities that are economical and safe to run their business operation 24x7.
With Real Estate Opportunities in residential, commercial, and industrial
expanding rapidly, Chennai’s strategic location along the Coast, coupled with
robust connectivity through road, rail, and air networks, enhances its appeal as a
prime real estate destination.
In recent years, the Chennai real estate market has witnessed steady growth,
driven by factors such as rapid urbanization, population expansion, and
increased investments in infrastructure projects. Moreover, Chennai's real estate
market offers a diverse range of properties catering to different budget segments
and lifestyle preferences. From luxury apartments with state-of-the-art
amenities to affordable housing schemes supported by government initiatives,
there's something for everyone in Chennai's real estate market.
Despite occasional fluctuations influenced by macroeconomic factors, Chennai's
real estate market remains resilient, offering stability and long-term growth
potential to investors. With its blend of historical charm, modern amenities, and
promising investment opportunities, Chennai stands out as a prominent player
in India's real estate landscape and has become a safe bet for International
Investors.
UPCOMING DEVELOPMENTS
*SATELITE TOWNSHIP
*PARANDUR AIRPORT
*METRO RAIL EXPANSION
*MOFUSSIL BUS TERMINALS
*CHENNAI SURAT ECONOMIC CORRIDOR
*MULTIMODAL LOGISTICS PARK
*TIDEL PARKS
*CINEMA CITY & SPORTS CITY
*SATELITE TOWNSHIP :
After the sudden boom of unplanned urbanisation around the Metropolis
without concern for water supply, sewage and waste management environment,
transportation and economic independence, the Chennai Metropolitan
Development Authority (CMDA) has announced development of six satellite
towns (new towns) around Chennai in Thiruvallur, Kancheepuram,
Thirumazhisai, Chengalpet, Minjur and Mahabalipuram.
Plans for new towns :
Among the new towns, Kancheepuram is planned as a heritage city and
Mahabalipuram would become a tourism city.
Thirumazhisai is expected to witness an exponential rise – an irresistible
opportunity for those planning to invest in real estate due to Proximity to New
Airport at Parundur, Chennai-Bangalore Express way and Industrial Corridors.
Thiruvallur
Chengalpet
Minjur
Mahabalipuram
t’s also a perfect choice for those looking to build and design their dream home.
In the post-pandemic world, the popularity of plotted developments has
witnessed a remarkable rise, owing to many factors – open space, the joy of
building your home the way you want, and good investment returns.
The development plans will propose roads, rail, bridges and flyovers apart from
water supply and sewerage network, storm water drains and others. Moreover,
the plan will establish land-use and land cover, and also propose steps to
preserve wetlands, flood-prone areas, and waterbodies in the satellite towns.
Recreational space, and space for institutions and industries will also be
covered.
*PARANDUR AIRPORT
The airport will have three terminals with a massive capacity — terminal
1 (3,45,758 sqm), terminal 2 (4,76,915 sqm) and terminal 3 (5,05,495
sqm). The cargo terminal and the truck docking area together will be
2,30,500 sq.m. and the Parandur airport will have two parallel runways
(4040X45 metres). Spread over 5,368.93 acres, a second airport at
Parandur has been proposed as the present airport at Meenambakkam is
getting saturated, and cargo volumes have been steadily dropping there.
The entire real estate profile of Chennai will change because the demand will
move toward the areas that are near the airport site. Airports result in massive
infrastructure undertakings that produce residential demands from all the
employed people and the multiple linked services that exist. Also, there will be
a huge demand for top-level housing in locations with good connectivity and
ready access to both the new and the old airports of Chennai.
introduction of a second airport in Chennai is likely to boost the city's real estate
development. The presence of a second airport will improve the image of the
city as a business destination, thus increasing the demand for commercial real
estate. Furthermore, greater commercial activity in the nearby areas will lead to
higher employment opportunities that will directly augment the scope of
housing development.
*METRO RAIL EXPANSION
Chennai Metro Phase 2 Project Insights
The phase 2 expansion of the Chennai metro project encompasses three
corridors: corridor 3 expanding from Madhavaram to SIPCOT; corridor 4
expanding from Light House to Poonamalle; and corridor 5 expanding from
Madhavaram to Sholinganallur. The approximate distance covered by the Phase
II metro would be 118 km. Each corridor of the Phase II project will cover
various areas of the city via different routes.
The development of Chennai metro connectivity will have various advantages.
Some of the key highlights are:
· Eliminating Traffic Congestion– The metro rails will alleviate the traffic
congestion on the roads, which will significantly reduce travel time.
· Better Accessibility– With the new metro lines, the accessibility to various
residential and commercial areas in Chennai has been enhanced.
· Seamless Connectivity– It promotes smooth commuting to various parts of
the city without any hassle. This allows people to travel conveniently and
swiftly across the city.
· Sustainable Transportation– The metro rail promotes eco-friendly
transportation as it will encourage people to shift from private transport to
public transportation due to its easy accessibility.
· Real Estate Growth & Economic Development– The improved accessibility
and connectivity will have a huge positive impact on real estate growth in the
nearby localities. It will attract numerous investors, which will pave the way for
economic development.
Metro-Related Real Estate Boom In Top Localities
The expansion of the Chennai Metro Rail played a vital role in enhancing the
real estate sector in Chennai. There is a surmountable rise in properties and
lands along the upcoming metro corridors of Chennai. Some of the top localities
in Chennai have benefited from real estate due to the upcoming metro, and their
property value increase in the past decade is listed,
· OMR – 33.6% increase
· Poonamallee– 19.9% increase
· Thoraipakkam– 19.6% increase
· Madhavaram– 36.2% increase
· Siruseri– 30.6% increase
· Pallikaranai– 32.4% increase
· Porur– 19.8% increase
*MOFUSSIL BUS TERMINALS
MADHAVARAM
KILAMBAKKAM
KUTHAMBAKKAM
*MADHAVARAM
The convergence of a mofussil bus stand and a metro rail station in
Madhavaram is reshaping its real estate landscape. This dual infrastructure
development has sparked a surge in property demand, with investors and
homebuyers eyeing the area for its enhanced connectivity and accessibility. The
mofussil bus stand serves as a crucial transportation hub, connecting
Madhavaram to rural areas and neighboring towns, while the metro rail station
provides swift access to Chennai's central business districts. This combination
has not only attracted commercial activity but also spurred residential
development, leading to an uptick in property prices and investment
opportunities. As a result, Madhavaram and its surroundings are witnessing
rapid urbanization and infrastructural growth, positioning it as a burgeoning real
estate hotspot in the region. This holistic approach to infrastructure
development is not only improving the quality of life for residents but also
bolstering investor confidence in the area's long-term prospects. Additionally,
the expansion of public transportation options is reducing dependency on
private vehicles, alleviating traffic congestion, and promoting sustainable urban
living. Overall, the integration of the mofussil bus stand and metro rail system is
driving robust real estate market growth in Madhavaram and laying the
foundation for its continued socio-economic advancement.
*KILAMBAKKAM
The areas in close proximity, namely Vandalur, Tambaram, Guduvanchery,
and Maraimalai Nagar, will greatly benefit from the services provided
by CMBT (Chennai Mofussil Bus Terminus). These areas will experience
significant advantages due to the accessibility and convenience offered by the
CMBT services. The southern suburbs of Chennai, including Tambaram,
Perumbakkam, Sholinganallur, Injambakkam, Thoraipakkam, Velachery,
Guduvanchery, Pallikaranai, and Adayar, have experienced significant
growth in the residential market. This can be attributed to the rise in commercial
activity in these areas, making them highly sought-after residential destinations.
This enhanced connectivity will prove highly advantageous for swift
transportation within Chennai City, as well as facilitating seamless travel
between various parts of Tamil Nadu and other cities. The establishment of a
mofussil bus stand in Kilambakkam and its surrounding areas is likely to
stimulate real estate market growth due to enhanced connectivity, increased
commercial activity, rising demand for residential properties, infrastructure
development, and potential investment opportunities.
*KUTHAMBAKKAM
The introduction of a mofussil bus stand in Kuthambakkam and its
surroundings is poised to spur real estate market growth due to enhanced
accessibility, increased commercial activity, rising demand for residential
properties, infrastructure upgrades, and attractive investment opportunities in
the area and its nearby surroundings.The satellite town, falling under the
CMDA (Chennai Metropolitan Development Authority) area, is unmatched in
terms of connectivity. Plans are afoot for a 25-acre integrated bus terminal at
Kuthambakkam village near Thirumazhisai. This facility will ease congestion
and enhance intra-city connectivity. Secondly, the National Highway Authority
of India has announced a Six-Way Elevated Expressway, which passes through
Thirumazhisai, Poonamallee (the nearest town), and Sriperumbudur. This will
connect to the Chennai – Bengaluru National Highway, thus facilitating
smoother intercity and interstate travel. Chennai’s upcoming second airport,
which will be built at Pannur, is a mere 45-minute drive from Thirumazhisai.
Finally, once the Metro rail extension from Poonamallee to Thirumazhisai is
completed, travel within the city will become synonymous with convenience,
comfort and quickness.
*CHENNAI SURAT ECONOMIC CORRIDOR
The Surat Chennai Expressway is going to be a 1,271 Km long project. The
project is being developed as part of the Bharatmala Project 2.0. The
expressway will pass through 21 villages and some major cities, such as
Ahmednagar, Nashik, Solapur, Tirupati, Kadappa, Kalaburgi, and Kurnool. The
deadline for the completion of the expressway is around December 2025. The
Chennai Surat expressway will be a six-lane expressway with a maximum speed
limit of 120 km/h.
It will be a mix of greenfield and brownfield sections. The entire expressway is
divided into two major partially access-controlled highways. The first section
will be from Surat to Solapur, and the second section will be from Solapur to
Chennai. The land acquisition and bidding process are ongoing in certain parts
of the planned expressway.
Any expressway that is built creates several opportunities, not just in terms of
connectivity but also in terms of development along the expressway. It impacts
the development of multiple types of real estate around it. Better connectivity
will result in better business opportunities and trade, thus the development of an
industrial belt along the expressway.
The industrial development further creates opportunities for commercial real
estate development, for example, the growth of retail shops or rest points with
restaurants, eateries and other stores.
Together these two developments will bring in a floating population to the area.
The increase in the areas population will further lead to residential housing
development.
In addition, the areas through which the expressway will pass through will also
see an appreciation in land prices. This price increase can further act as a source
of income and development for people.
Currently, the government has allotted several contracts for various land
packages. Due to this, the construction has also begun in several parts of some
southern states, such as Tamil Nadu and Maharashtra.
*MULTIMODAL LOGISTICS PARK
The logistics park at Chennai is strategically located at 52 km from Chennai
Port, 87 km from Kattupalli Port and 80 km from Ennore Port and will be a
“focal point of logistics in the southern region”.
The MMLP, which is coming up on 184.27 acres of land at Mappedu village in
Thiruvallur district, is close to the automobile and electronics manufacturing
clusters on the Sriperumbudur-Oragadam industrial belt. Besides, it is in close
proximity to the Chennai Peripheral Ring Road (CPPR). It is estimated to cater
to 7.17 million metric tonne (MMT) cargo in a horizon period of 45 years.
These MMLPs will be built strategically to harness lesser-explored and more
cost-efficient modes of goods transportation, such as inland waterways,
railways, pipelines, etc., apart from the roadways that currently propagate over
three-fourths of freight movement of the country. For instance, freight carriage
rates for railways are much lesser than for roads. But lack of direct connectivity
to manufacturing units and warehouses, delays, poor visibility over goods
movement, etc., incline businesses to leverage road transportation
*TIDEL PARKS
Chennai Metropolitan Development Authority (CMDA) has issued enter upon
permission for three sites — Malayambakkam, Mannivakkam and Vandalur —
following the request of Tidel Park Limited.
The sites were allotted after conducting a land valuation for the entire ORR
stretch. While 5.33 acres on the Malayambakkam stretch, valued at Rs 3 crore
per acre, has been allocated for the first IT park, the second one will come up on
5.04-acre area of Mannivakkam where the land value has been fixed at Rs 5
crore per acre. The third IT park is planned at 0.5 acre-area in Vandalur where
the land value is Rs 8.05 crore per acre.
Currently, the government is targeting to woo Global Capability Centres
(GCCs) to set up a base in the state as they could generate high-end jobs for the
youth. According to a report of Knight Frank, a global real estate consultant
company which has done the land valuation along the 50-metre stretch, there
are around 160 GCCs in Tamil Nadu, constituting about 10% of the national
count.
Certainly, here's a more detailed breakdown of why Chennai is an excellent
choice for real estate investment:
1. Economic Strength and Growth Potential :
- Chennai is one of India's major metropolitan cities and a key economic hub
in the country. It boasts a diverse economy, with thriving sectors such as
manufacturing, IT and IT-enabled services, automotive, healthcare, and finance.
- The city's economy is supported by a skilled workforce, strong industrial
base, and a conducive business environment, making it attractive for both
domestic and international investors.
- Chennai's GDP growth has been consistently robust, reflecting its resilience
and potential for sustained economic expansion, which bodes well for real estate
investment.
2. Infrastructure Development :
- Chennai is undergoing significant infrastructure development, with projects
aimed at enhancing connectivity, transportation networks, and urban amenities.
- The expansion of roadways, including expressways and peripheral ring
roads, improves accessibility within the city and to neighboring regions,
facilitating smoother movement of goods and people.
- The Chennai Metro Rail project is expanding its network, providing efficient
and sustainable public transportation options that reduce congestion and travel
time for commuters.
- The development of satellite townships, such as those planned in
Thiruvallur, Kancheepuram, and other areas, offers opportunities for planned
urbanization and infrastructure development, catering to the growing
population's needs.
3. Upcoming Infrastructure Projects:
- The Parandur airport project addresses the growing demand for air travel and
cargo handling, which is crucial for economic growth and connectivity.
- The Chennai Surat Economic Corridor, a major expressway project, creates
opportunities for industrial development and trade along its route, stimulating
real estate demand in adjacent areas.
- Multimodal logistics parks enhance the city's logistics capabilities, attracting
businesses and investment in warehousing, distribution, and related services.
4. Diverse Real Estate Opportunities :
- Chennai's real estate market offers a wide range of options across residential,
commercial, and industrial segments, catering to different investor preferences
and budgets.
- From luxury residential developments in upscale neighborhoods to
affordable housing projects supported by government schemes, there's a diverse
range of properties available for investment.
- Commercial real estate opportunities abound, with office spaces, retail
outlets, and industrial parks catering to the city's growing business needs and
expanding sectors.
5. Stability and Resilience:
- Despite occasional fluctuations influenced by macroeconomic factors,
Chennai's real estate market has shown resilience and stability over the years,
offering long-term growth potential to investors.
- The city's diversified economy, coupled with ongoing infrastructure
development and urbanization trends, mitigates risks associated with real estate
investment, making it a relatively safe bet for investors.
In summary, Chennai's economic strength, infrastructure development,
upcoming projects, diverse real estate opportunities, and stability make it an
attractive destination for real estate investment. Whether for residential,
commercial, or industrial purposes, investors can find ample opportunities to
capitalize on the city's growth trajectory and unlock value in the real estate
market.
CONCLUSION :
In a detailed conclusion, it's evident that Chennai stands out as a lucrative hub
for real estate investment due to a multitude of factors.
Firstly, the city's dynamic blend of tradition and modernity creates a unique
appeal, attracting investors looking for a diverse range of opportunities. From
historic neighborhoods to emerging tech parks, Chennai offers something for
every investor profile.
Secondly, the ongoing and upcoming infrastructure projects underscore
Chennai's commitment to growth and development. Projects such as satellite
townships, airport expansions, metro rail extensions, and expressways not only
enhance connectivity but also stimulate economic activity, driving demand for
real estate across various sectors.
Thirdly, Chennai's resilience in the face of macroeconomic fluctuations instills
confidence in investors. Despite occasional market shifts, the city's diversified
economy and steady urbanization trends provide a stable foundation for long-
term investment growth.
Moreover, the city's strategic location along the coast, coupled with its robust
transportation networks, makes it an attractive destination for businesses and
residents alike. This strategic advantage further fuels demand for real estate
across residential, commercial, and industrial segments.
Additionally, Chennai's proactive approach to urban planning, including
measures to preserve wetlands and enhance green spaces, reflects a commitment
to sustainable development. Such initiatives not only contribute to the city's
livability but also add value to real estate investments.
Furthermore, Chennai's status as a major metropolitan city with a rich cultural
heritage ensures its enduring appeal among investors and residents. This blend
of heritage and modernity creates a unique atmosphere that attracts people from
diverse backgrounds, further driving real estate demand.
In conclusion, Chennai's real estate market presents a compelling opportunity
for investors seeking long-term growth and stability. With its vibrant economy,
strategic location, and commitment to infrastructure development, Chennai is
well-positioned to continue its trajectory as a prime destination for real estate
investment in India. By capitalizing on the city's growth prospects and
embracing its unique characteristics, investors can unlock significant value and
contribute to Chennai's continued evolution as a dynamic urban center.
