Monthly real estate monitor – May 2012: Chennai by JLL India

A monthly snapshot of what is happening in the real estate market of India's seven major cities.

 

^  Bangalore

^  Chennai

^  Hyderabad

^  Delhi

^  Kolkata

^  Mumbai

^  Pune

Chennai

Residential Market

Residential sales dropped during the peak summer  season, referred to as Agni Nakshatram in the Indian  calendar, a period that is considered in Chennai to

be inauspicious for the buying of assets.

However, given the city’s demand potential, the residential sector is poised for

a rebound in the coming weeks. ASV’s Alexandriea, Lancor’s  Lumina and Artha Property’s Artha Meadows were some notable  launches during the month.

Rents increased, due to the strong demand for housing and the improved office leasing, which, in turn, are increasing employment opportunities in and immigration into Chennai.                

Residential	Rents	Capital Value
Key Precincts	INR per month for a 1,000 sq ft 2BHK apartment	INR per sq ft
Adyar	16,000 – 25,000	9,500 – 16,500
Medavakkam	7,000-14,000	3,600 – 4,800
Tambaram	6,000-15,000	3,500 – 4,500
Anna Nagar	15,000 – 25,000	9,000 – 14,000
Porur	5,000-10,000	3,600 – 4,300
Sholinganallur	9,000-12,000	4,000 – 5,000

Office  Market

Office leasing gained traction, with strong demand  from IT / ITES players during the month. OMR continued to be the preferred location for IT / ITES players, while Mount Poonamallee Road emerged the second preferred destination for these tenants. Amazon,  Citibank, Beroe and Bank of New York were some of the key

occupiers who leased space during the month.

Office	Rents	Capital Value
Key Precincts	Rs. per sq ft per month	Rs.per sq ft
Mount Road	60-90	9,000-15,000
RK Salai	70-100	10,000-15,000
Pre-toll OMR	35-55	5,000-6,500
Post-toll OMR	25-35	3,500-5,000
Guindy	40-55	6,000-8,500
Ambattur	25-35	3,250-4,500

Retail Market

The Chennai mall market continued to remain dormant during the month, while high streets witnessed mixed activity. Prominent eat-out outlets such as Café Coffee Day, Sri Krishna Sweets, Grand Sweets & Thalapakkatti expanded their networks in the city. Naidu Hall, a family store, expanded its presence to Arcot Road.

On the other hand, Ezone and LG Electronics closed their showrooms in OMR and Kilpauk respectively over the month. Rents in malls remained stable while rents in prime high streets increased.

Retail	Rents	Capital Value
Key Precincts	Rs. per sq ft per month	Rs.per sq ft
T.Nagar	120 - 180	12,000 -15,000
Nungambakkam	130 - 150	13,000-16,000
Velachery	80 - 100	10,000-12,000
Pre-toll OMR	50 - 70	8,000-11,000
Anna Nagar	110 - 140	11,000-13,000
LB Road (Adyar)	130 - 150	12,500-14,000

INFRASTRUCTURE ONGOING

The Tamilnadu state government announced an Rs. 500 crore metropolitan

development scheme for Chennai and its suburbs, Rs. 750 crore for other corporations and municipalities and Rs.200 crore for improving roads.

 Ascendas and a Japanese consortium will set up a 1,500  acre integrated industrial township at a cost of about Rs. 3,500 crore near Chennai.

 Source: JLL India

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