5 Micro Markets That Defined Chennai's Real Estate In FY16
An annual report by PropTiger DataLabs (Realty Snapshots: Chennai) shows of the top five micro markets that performed well on all parameters in Chennai in the financial year 2015-16 (FY16), three are from south, Alandur (5), Karapakkam (4) and Perumbakam (1). A closer look shows eight of the top 15 localities in the report are from the same sub-market. In fact, together with southwestern localities, micro markets in the south accounted for 63 per cent of the overall absorption in Chennai and 52 per cent for new launches in FY16. Overall, micro markets of south also showed the best absorption rate, standing at 1 on a scale of 5.
The information technology (IT) hubs in the area are cited as the major reason for this remarkable growth.
However, their ratings in terms of livability score (4) and price appreciation (5) has a lot to catch up. This catch-up factor, however, is an indication of how southern micro markets of Chennai may be instrumental in reviving the property markets in the city in times to come.
When the first phase of the Chennai Metro covering 45 kilometres is complete by the end of this year, the southern localities will be better connected, making it more feasible for home buyers to invest here. It is to be noted that a 10-km Metro stretch between Alandur in south to Koyambedu in central Chennai has already been opened for public in June last year.
The Chennai Peripheral Road, on the other hand, would provide localities across the city better road connectivity and the south localities are no exception. The proposed project that will connect the Ennore Port in north with Mamallapur in south would be game changers and help south micro markets to score better in terms of both livability as well as price appreciation. So, for those looking to invest in affordable options that may turn into goldmines in future, south localities may be a perfect choice.
What are the other bright real estate spots in the Tamil Nadu capital?
- Guindy in the central micro market and Tambaram in southwest have registered a healthy growth owing to their low inventory overhang and high rate of absorption.
- Micro markets in west Chennai have been the best performers in terms of price appreciation, followed by central and southwest localities. On the other hand, on livability index, the west markets stood second after central localities and were followed by the micro markets in north.
- While the north micro market may need a lot of catching up — their rating is 5, 4 and 3 in absorption, annual price appreciation and livability score in that order. Central localities, on the other hand, are constituent with their top score of livability, second rating in terms of year-on-year (YoY) price appreciation and third place in terms of absorption.
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