Investing In Pallikaranai? Take Note Of These

With over 125 projects in here, Pallikarnai in South Chennai has been attracting prospective homebuyers and real estate investors. Data with PropTiger.com suggest that property in this locality is available at an average price of Rs 5,059 per square foot (psf). However, depending on the quality of construction, exact location, age of the building, brand of the developer and such other factors, prices could fluctuate. So, if you are looking at a property in Pallikarnai today, know what makes it truly worthwhile:

Property availability

With over 125 ready-to-move projects in this locality, you can buy a 1BHK unit for Rs 31 lakh on an average. A 2BHK unit would cost you Rs 50.58 lakh while 3BHK and 4BHK units on an average range between Rs 70 lakh to Rs 1.36 crore. If you are looking at plotted developments, reserve a budget of Rs 6-10 lakh.

What makes Pallikarnai strike a chord among buyers?

It helps that Pallikarnai is close to the IT nerve on the Old Mahabalipuram Road (OMR).  This corridor houses more than 75,000 IT/ITes and allied workforce as also the college-going crowd. Availability of rental property at reasonable prices makes it easier for working professionals to opt for a house here. Take, for example, the TCS office which is in Siruseri Park and very close to housing projects, too.

Upcoming connectivity

Pallikaranai is undergoing infrastructural development because many minor bridges are being developed. According to the CMDA master plan, development of an outer ring road 200 feet, Medavakkam to Karapakkam (OMR) via Jalladianpet and Pallikaranai has been proposed. The locality will soon be getting Chennai monorail services with a station on the Velachery-Vandalur route. Chennai International Airport is the nearest airport from Pallikaranai and is at a distance of 13.5 kilometres.

While the price points may be attractive, here's what Pallikarnai is dealing with:

• Some parts of Pallikaranai is part of an eco-sensitive zone and hence mindless construction has led to Pallikarnai running the risk of unbalanced structures which may not be able to stand the test of time. Other areas in a similar situation include parts of Perungudi, Muttukadu, Tambaram, Vandalur, Nungambakkam and Chetpet.

• According to the National Green Tribunal's verdict in 2015, township projects with an area of over 50 hectares will not be granted environmental clearance beside other industries such as mining, quarrying, sand mining, thermal power plants projects with an area size of over 20,000 sq mt.

• Ongoing road construction in Velachery and Madipakkam has upset commuters between the narrow stretch of Medavakkam and Pallikarnai due to logjams. Hence, residents in Pallikarnai asked for road-widening. However, with due diligence to the processes that have to be put in place, such as land acquisitions, road widening in Pallikarnai would take another three years.

• Meanwhile, the Pallikarnai landfill may be potential harm for residents in and around the area especially after the news surfaced that garbage mounds in Thoraipakkam-Pallavaram radial road have been abutting the compound wall of the landfill in Pallikarnai.

What to keep in mind: While average capital value in Pallikarnai stood at Rs 4,000-4,300 psf in November 2013, prices climbed despite the inaction to Rs 5,059 psf in the beginning of 2017. This growth is impressive. However, do note that while affordable homes may be in, you should buy a property that is State Real Estate Regulatory Authority approved. Compliant projects would lessen the risk of your money being spent on unsafe structures. Do not invest in prohibited areas.

With inputs from Harini Subramanian