Monthly Real Estate Monitor to October 2012 , Chennai

JLL India - Monthly Real Estate Monitor - 

October 2012 Chennai City

OFFICE..!

Tamil Nadu capital Chennai observed healthy absorption during the month of September, 2012.  The key transactions over the month were TCS leasing space at Marg Square in Karapakkam, GE & Saint Gobain leasing space at TVH Agnitio IT Park at Kandanchavadi, and FLSmidth leasing space at Alpha City in Navalur, all of them located on the OMR.

Vacancy declined marginally in September. Sabari's Sunny Side and Block A6 of Shriram—The Gateway became operational during September. Pre  toll areas of OMR, Guindy and Mount Ponamallee Road continued  to remain the preferred destinations for occupiers.

RETAIL..!

Retail take-up in malls in Chennai city continued  to remain dormant; however, with a considerable volume of mall space in the advance stages of construction, pre-leasing in the upcoming malls happened at brisk pace.

On the other side, retailers in the high streets of Chennai have started preparing  to cater  to the increased demand during the upcoming festive season. Rents in the malls continued  to remain stable, whilst rental growth in high streets were restricted  to select precincts.

RESIDENTIAL..!

Demand for residential units improved, and the city witnessed healthy new launches during the month. Some of the prominent launches were Hill View Avenue by Navin housing in Thirumudivakkam near Chrompet, Upscale by Sidharth Housing in Porur & Altius by Malles Construction in Perumbakkam.

In addition  to this, Villa Green launched its 60 acre  township project in Kelambakkam, whilst VGN launched Hazel in Paruthippatu near Avadi. Property prices rose marginally during the month.

 INFRASTRUCTURE ONGOING..!

 Tamil Nadu government allowed CMRL  (Chennai Metro Rail Limited) to develop any structures in its upcoming 32 stations along the 3 corridors without having to get prior approval from the (CMDA) Chennai Metropolitan Development Authority).

Meanwhile, the second phase of tunnelling from Old Washermanpet to Chennai Central Station in St. Thomas mount to Washermanpet route commenced during early-October, 2012.

Office	Rents	Capital Value
Key Precincts	Rs. per sq ft per month	Rs. per sq ft
Mount Road	60 to 90	9,000 to15,000
RK Salai	70 to100	10,000 to15,000
Pre  toll OMR	35 to 55	5,000 to 6,500
Post  toll OMR	25 to 35	3,500 to 5,000
Guindy	40 to 55	6,000 to 8,500
Ambattur	25 to 35	3,250 to 4,500
Retail	Rents	Capital Value
Key Precincts	Rs. per sq ft per month	Rs.per sq ft
T. Nagar	120 to180	12,000 to15,000
Nungambakkam	130 to150	13,000 to16,000
Velachery	80 to100	10,000 to12,000
Pre  toll OMR	50 to70	8,000 to11,000
Anna Nagar	110 to140	11,000 to13,000
LB Road (Adyar)	110 to130	10,500 to12,500
Residential	Rents	Capital Value
Key Precincts	Rs. per month for a 1,000 sq ft 2BHK Flat	Rs. per sq ft
Adyar	20,000 to 30,000	9,500 to16,500
Medavakkam	7,000 to14,000	3,600 to 4,800
Tambaram	6,000 to15,000	3,500 to 4,500
Anna Nagar	15,000 to 25,000	9,000 to 14,000
Porur	5,000 to 10,000	3,600 to 4,800
Sholinganallur	9,000 to12,000	4,000 to 5,500

About Jones Lang LaSalle..!

Jones Lang LaSalle is a financial and professional services firm specializing in real estate. The company offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate.

With 2011 global revenue of $ 360 crore, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The company is an industry leader in property and corporate facility management services, with a portfolio of approximately 210 crore square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47 billion of assets under management. Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 22,200 employees operating in 81 offices in 15 countries across the region.

The company was named the Best Property Consultancy in Asia Pacific at ‘The Asia Pacific Property Awards 2011 in association with Bloomberg Television’. For further information, please visit our website, www.ap.joneslanglasalle.com

About Jones Lang LaSalle India..!

 Jones Lang LaSalle is India’s premier and largest professional services firm specializing in real estate. With an extensive geographic footprint across eleven cities (Ahmedabad, Delhi, Mumbai, Bangalore, Pune, Chennai, Hyderabad, Kolkata, Kochi, Chandigarh and Coimbatore) and a staff strength of above 5,400, the firm provides investors, developers, local corporates and multinational companies with a comprehensive range of services including research, analytics, consultancy, transactions, project and development services, integrated facility management, property and asset management, sustainability, Industrial, capital markets, residential, hotels, health care, senior living, education and retail advisory.

For more information, please visit  www.joneslanglasalle.co.in

For more information about research

Mr.  Ashutosh Limaye  Head, Research and REIS ashutosh.limaye@ap.jll.com +91 98211 07054

Mr. Trivita Roy Assistant Vice President, Research Email: trivita.roy@ap.jll.com +91 40 4040 9100

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