South Chennai - Sholinganallur & Tiruporur Will Be Next Real Estate Investment Destination


The Chennai residential market appears resilient to global economic threats & has witnessed healthy sales as the ticket size of buyers has increased. Some 14,900 new units were launched with a vacancy recorded at 31%, according to a new Knight Frank report.

Pricing, Demand and Supply..!

After the economic recession, Tamil Nadu capital Chennai’s residential property market witnessed steady growth in terms of pricing, demand and supply, according to a Knight Frank report titled ‘Residential Traction’.

About 82,000 residential units are under various stages of construction in the Chennai market.Out of the total residential units, 2011-12 witnessed the launch of nearly 14,900 units which are scheduled to be completed in the next  2 to 3 years.

Highlights of Knight Frank report,,!

* About 74% of the total number of residential units launched in 2011- 12 (FY12) fell within the Rs. 50 lakh ticket size category. The preferred size for 3 B H K flats in Chennai has increased from an average of about 1,250 square feet during the recession to an average size of 1,450 square feet in the revival phase.

* The preference for 2 B H Ks has also increased from an average of about 900 square feet to nearly 1,150 square feet.

* Chennai market is end - user driven & therefore has been stable. Demand has been more evident in the mid - end category, primarily towards the peripheral locations of the city where a majority of the affordable projects are located.

* The presence of the IT corridor along the OMR (Old Mahabalipuram Road) and the concessions given by the government in promoting the industry have indirectly led to the growth of the residential market in South Chennai. This region will account for a major part of the upcoming supply in the Chennai city in the coming years.

* The influx of IT companies has led to an increase in demand for quality residential space. The growth potential of the region has seen many prominent developers from other cities keen to invest in its residential market.

* Another important stretch which has come up on the residential real estate map in Chennai is the GST Road, with a number of prominent projects being located there as well.

* The central part of Chennai has the highest property prices, the highest being Boat Club Road and Poes Garden.

* In the North, the belt has been a little less developed than others and is dominated by small scale industries like textiles & chemicals.

* While in the West, the setting up of an electronic hardware corridor at Sriperumbudur has increased prices in the vicinity; in the South, the corridor between Sholinganallur & Tiruporur will be the next investment destination for residential property in the city..

Chennai -  Knight Frank
3, Gitex Building, IIIrd Floor, Khader Nawaz Khan Road,
Chennai 600 006. T +91 44 4296 9000

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