Prime Localities In Chennai Garner More Interest, Rents As High As 1.5 Lakh
A few years back, business-oriented social networking major LinkedIn in its official blog said it curated data from over 300 million member profiles to study the 52 top cities across the world. The research unveiled some Indian cities such as Bengaluru and Chennai act as magnets for technological talent. Interestingly, at one point of time, more tech workers moved to Bengaluru than San Francisco Bay Area of the US.
No wonder people employed in the information technology (IT) & IT-enables sector are one of the biggest housing demand drivers in these cities. To meet the demand, real estate developers are trying hard to identify new and affordable spots in these cities.
However, when we speak of Chennai, we see that the established areas in the city see more takers than the newly emerging ones, although residential localities around SEZ's (special economic zones) have triggered a change in investment and settlement pattern.
When we talk of being established, South Chennai garners the highest attention. The region's age and popularity among the well-settled IT/ITes professionals as well as men reflects on the capital values. Some of the prime residential locations across South Chennai include Adyar, T Nagar, Nungambakkam. Although the developing belt of East Coast Road (ECR) and Old Mahabalipuram Road (OMR) definitely takes on maximum demand for affordable homes, when it comes to rental accommodations, well placed professionals prefer established areas.
Karun Chandran, broker, Lif Homes and Co, says, “Most potential tenants prefer comfortable 2BHK units in South Chennai because it has better access to schools, commercial zones, hangouts, hospitals etc. Even road repairs are attended to frequently unlike certain stretches along ECR and OMR.”
Depending upon the location, configuration, amenities and ease of access, rental values in prime areas of South Chennai are in the range of Rs 12,000-90,000 per month. Hence, South Chennai is aspirational in every sense.
Who are the settlers?
Those looking at a purchase in these localities may usually find redeveloped units on sale. Thanks to this, the amenities are far superior than previously. Since land prices are high, the overall cost of any property here will exceed Rs 90 lakh, and may even go up to Rs 6 crore. Some niche markets such as Shastri Nagar even boast properties worth Rs 10 crore and these are usually the best in class. When it becomes difficult to move them in the capital market, it is usually leased to corporate offices that use it as guest houses for a handsome rent. Expats, too, prefer such lavish homes and the rents could range from anywhere between Rs 1-3.5 lakh per month.
AV Murali, proprietor at Green Earth Properties Services and a member of Chennai Real Estate Agents Association, says, “Most residents have a purpose of putting up here. One, it marks their aspirational value and second, it makes sense to live closer to the city especially if they have businesses to tend to.”
T Nagar is a bustling area, thanks to the numerous textile, jewellery and provision shops. Businessmen and merchants from adjoining cities of Madurai and Coimbatore prefer leasing a house here to stay close to their businesses. Besides, a number of lifestyle conscious tenants do not mind putting in anywhere between Rs 30,000-60,000 per month in return for a comfortable address. Adyar, for example is a popular choice among professionals from OMR. Reputed schools and numerous colleges guarantee a steady flow of tenants in the form of working couples or college students who prefer sharing a flat to bring down the burden of rents.