Monthly Real Estate Monitor Chennai - March 2013

By JLL India

Residential Market..!

Innovative offers from developers in Chennai continued to attract home buyers during February. FAIRPRO 2013 organised by the Confederation of Real Estate Developers' Association of India (CREDAI) received encouraging response with buyers booking around 250 units during the three-day property fair.


Residential Rents       Capital Value   
Key Precincts     INR per month for a 1,000 sq ft two-BHK apartment INR per sq ft   

Adyar                       20,000–30,000 10,000–17,000   
Medavakkam       7,000–14,000 3,600–5,000   
Tambaram              6,000–12,000 3,500–4,500   
Anna Nagar              15,000–25,000 9,000–14,000   
Porur                      5,000–10,000 3,600–5,800   
Sholinganallur       9,000–12,000 4,250–5,250  

Some of the prominent launches during the month were NRD Towers by Asvini Foundation near Poonamalle, Esta by Arihant at Mogappair and Panchsheel, as well as the maiden residential project by Kochar Homes at Ambattur. Rents and capital values remained stable during the month.


Office Market..!

Chennai recorded moderate leasing activity in February, 2013 with majority of the deals happening in its Special Economic Zones (SEZs).


Office         Rents       Capital Value   
Key Precincts   INR per sq ft per month INR per sq ft
 
Mount Road      60–90   9,000–15,000   
RK Salai           70–100    10,000–15,000   
Pre-toll OMR   35–62   5,000–6,500   
Post-toll OMR   25–35   3,500–5,000   
Guindy                   40–55     6,000–9,000   
Ambattur          25–35   3,250–4,500  

The major transactions over the month included Maveric Systems leasing space in DLF IT SEZ at Mount Poonamallee Road; ADP taking space in an IT park in Guindy; and Mindtree, LatentView Analytics and Datacert renting space in Ramanujan IT SEZ at Taramani OMR. Occupancy levels continued to improve in the city on the absence of new completions. Rents and capital values remained stable during the February month.

Retail Market...!

With the right mix of international, national and local brands, Phoenix Market City continued to sustain robust foot falls during February. With the existence of home-grown brands like as RMKV, Poppat Jamals, Malabar Gold and Nathella attracting its loyal customers, the mall is experiencing synergetic effects, with international and domestic brands complementing each other.


Retail Rents  (High Streets) Capital Value    
Key Precincts       INR per sq ft per month INR per sq ft   

T. Nagar                 120–180 12,000–15,000   
Nungambakkam        130–150 13,000–16,000   
Velachery                80–120 10,000–12,000   
Pre-toll OMR         50–70 8,000–11,000   
Anna Nagar                110–140 11,000–13,000   
LB Road (Adyar)       110–130 10,500–13,500  

 

Neighbouring one of the dense residential locations with high Socio Economic Classes (SEC) A and B population, the retailers will expect to see good conversion rates in this mall. Going forward, Phoenix Market City is expected to see more such local brands expanding their operations in the upcoming malls.


INFRASTRUCTURE ONGOING..!

Announced during the last budget, the introduction of 100 mini buses that will run as feeder services and also complement the regular services is expected to get implemented soon. With no progress on the Chennai monorail plans, mini buses will provide a temporary transport solution to the city.

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