Chennai Real Estate Market Overview by Knight Frank..!


Chennai, the capital of Tamil Nadu, is the 4th most populous city in India & serves as a gateway to Southern India through its strategically located port.

Chennai’s urban agglomeration, also known as the Chennai Metropolitan Region (CMR), is spread above 1,189 square km. and consists of parts of Thiruvallur and Kancheepuram districts apart from Chennai city.

As per Census 2011, the total population of CMR was 87 lac.
The development of the CMR is entrusted to the nodal planning agency
Chennai Metropolitan Development Authority (CMDA) which prepares the
master plan for the region.

CMDA in September 2008 prepared the Second Master Plan for Chennai Metropolitan Area, 2026 outlining the detailed development plan along with land use, transportation, housing and other important aspects of the CMR.


CHENNAI METROPOLITAN REGION POPULATION

Population in Lac


Year         Population              Average
                                                     Annual Growth
1991          54.2 lac                          2%

2001          65 lac                            1.9%

2011          87 lac                            2.9%

Source: Census 2011, Knight Frank Research

Chennai is divided into four broad zones: North, Central, South and West.

It may be noted that being a coastal city, Chennai does not have an eastern market and faces the Bay of Bengal.

North Chennai is primarily an industrial area dotted with various locomotive workshops and port related activities.

The two major ports namely Chennai Port and Ennore Port are located in this region. Non-availability of vacant land, narrow arterial roads and lack of employment opportunities have restricted the real estate growth of this region as compared to other parts of the city.

Destinations such as Tondiarpet, Madhavaram and Perambur are the primary
residential locations with large underconstruction projects in these areas. Residential demand is driven by the business community, traders and public sector employees here.

Central Chennai is the commercial heart of the city with many corporate offices located in the Central Business District (CBD) areas of Anna Salai, Nungambakkam, Egmore, Nandanam and others.

 Excellent connectivity with various parts of the city, good physical and social infrastructure and presence of organized retail have ensured
the highest property prices in this part of the city. Locations such as Boat Club Road, Poes Garden, Nungambakkam, T Nagar, Mylapore and Raja Annamalai Puram are some of the prominent residential areas.

Majority of the residential development in the central locations comprises bungalows &  independent residential units while some pockets like Alwarpet, Kilpauk and Anna Nagar are witnessing growth in high-rise construction as
well.

The western Chennai has some of the most upcoming locations. The saturation of land banks in Central Chennai has seen westward movement
of residential development. Electronic hardware corridor in Sriperumbudur and Auto and Auto Ancillary manufacturing units in Oragadam have resulted increased demand for afforatable residential units in this region.

Multi National companies such as Nokia, Dell, Samsung, Saint-Gobain, Renault-
Nissan and Hyundai have set up their units here. However, lack of social infrastructure, absence of organized retail and distance from the city centre have restricted growth of the residential market in this zone.

South Chennai, along the Old Mahabalipuram Road (OMR - Rajiv Ghanthi Road ) and Grand Southern Trunk (GST) road is rapidly developing as a self-sustaining hub with the presence of a large number of IT SEZs, IT Parks and manufacturing units.

Nodes such as Perungudi, Sholinganallur and Siruseri on the OMR along with Tambaram and Mahindra World City on GST road have created enormous employment opportunities in this region.

This has inherently led to the development of the residential market in South Chennai. Additionally, the focus of the state government in providing excellent road connectivity along these nodes has further helped in the development of
this region.


Report by Knight Frank

Knight Frank - Chennai
No.3, Gitex Building, IIIrd Floor,
Khader Nawaz Khan Road, Chennai 600 006.
Phone: + 91 44 4296 9000
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