Enquire now

Market Mirror



The Chennai real estate market


The Chennai real estate market is a dynamic and diverse landscape, offering a blend of traditional charm and modern infrastructure. As one of India's major metropolitan cities, Chennai boasts a vibrant real estate sector that caters to a wide range of investors, from first-time home buyers to seasoned investors.

With a rich cultural heritage and a booming economy, Chennai attracts investors seeking finest talent, convenient infrastructure and better transportation facilities that are economical and safe to run their business operation 24x7. With Real Estate Opportunities in residential, commercial, and industrial expanding rapidly, Chennai’s strategic location along the Coast, coupled with robust connectivity through road, rail, and air networks, enhances its appeal as a prime real estate destination.





In recent years, the Chennai real estate market has witnessed steady growth, driven by factors such as rapid urbanization, population expansion, and increased investments in infrastructure projects. Moreover, Chennai's real estate market offers a diverse range of properties catering to different budget segments and lifestyle preferences. From luxury apartments with state-of-the-art amenities to affordable housing schemes supported by government initiatives, there's something for everyone in Chennai's real estate market.

Despite occasional fluctuations influenced by macroeconomic factors, Chennai's real estate market remains resilient, offering stability and long-term growth potential to investors. With its blend of historical charm, modern amenities, and promising investment opportunities, Chennai stands out as a prominent player in India's real estate landscape and has become a safe bet for International Investors.



UPCOMING DEVELOPMENTS

SATELITE TOWNSHIP

Among the new towns, Kancheepuram is planned as a heritage city and Mahabalipuram would become a tourism city. Thirumazhisai is expected to witness an exponential rise – an irresistible opportunity for those planning to invest in real estate due to Proximity to New Airport at Parundur, Chennai-Bangalore Express way and Industrial Corridors.



Mahabalipuram

It’s also a perfect choice for those looking to build and design their dream home. In the post-pandemic world, the popularity of plotted developments has witnessed a remarkable rise, owing to many factors – open space, the joy of building your home the way you want, and good investment returns. The development plans will propose roads, rail, bridges and flyovers apart from water supply and sewerage network, storm water drains and others. Moreover, the plan will establish land-use and land cover, and also propose steps to preserve wetlands, flood-prone areas, and waterbodies in the satellite towns. Recreational space, and space for institutions and industries will also be covered.




PARANDUR AIRPORT



METRO RAIL EXPANSION

Chennai Metro Phase 2 Project Insights

The phase 2 expansion of the Chennai metro project encompasses three corridors: corridor 3 expanding from Madhavaram to SIPCOT; corridor 4 expanding from Light House to Poonamalle; and corridor 5 expanding from Madhavaram to Sholinganallur. The approximate distance covered by the Phase II metro would be 118 km. Each corridor of the Phase II project will cover various areas of the city via different routes.

The development of Chennai metro connectivity will have various advantages. Some of the key highlights are

1. Eliminating Traffic Congestion

The metro rails will alleviate the traffic congestion on the roads, which will significantly reduce travel time.

2. Better Accessibility

With the new metro lines, the accessibility to various residential and commercial areas in Chennai has been enhanced.

3. Seamless Connectivity

It promotes smooth commuting to various parts of the city without any hassle. This allows people to travel conveniently and swiftly across the city.

4. Sustainable Transportation

The metro rail promotes eco-friendly transportation as it will encourage people to shift from private transport to public transportation due to its easy accessibility

5. Real Estate Growth Economic Development

The improved accessibility and connectivity will have a huge positive impact on real estate growth in the nearby localities. It will attract numerous investors, which will pave the way for economic development.






Metro-Related Real Estate Boom In Top Localities

The expansion of the Chennai Metro Rail played a vital role in enhancing the real estate sector in Chennai. There is a surmountable rise in properties and lands along the upcoming metro corridors of Chennai. Some of the top localities in Chennai have benefited from real estate due to the upcoming metro, and their property value increase in the past decade is listed,



◈OMR – 33.6% increase

◈ Poonamallee– 19.9% increase

◈ Thoraipakkam– 19.6% increase

◈Madhavaram– 36.2% increase

◈Siruseri– 30.6% increase

◈Pallikaranai– 32.4% increase

◈ Porur– 19.8% increase

MOFUSSIL BUS TERMINALS

MADHAVARAM

The convergence of a mofussil bus stand and a metro rail station in Madhavaram is reshaping its real estate landscape. This dual infrastructure development has sparked a surge in property demand, with investors and homebuyers eyeing the area for its enhanced connectivity and accessibility. The mofussil bus stand serves as a crucial transportation hub, connecting Madhavaram to rural areas and neighboring towns, while the metro rail station provides swift access to Chennai's central business districts. This combination has not only attracted commercial activity but also spurred residential development, leading to an uptick in property prices and investment opportunities. As a result, Madhavaram and its surroundings are witnessing rapid urbanization and infrastructural growth, positioning it as a burgeoning real estate hotspot in the region. This holistic approach to infrastructure development is not only improving the quality of life for residents but also bolstering investor confidence in the area's long-term prospects. Additionally, the expansion of public transportation options is reducing dependency on private vehicles, alleviating traffic congestion, and promoting sustainable urban living. Overall, the integration of the mofussil bus stand and metro rail system is driving robust real estate market growth in Madhavaram and laying the foundation for its continued socio-economic advancement.

KILAMBAKKAM

The areas in close proximity, namely Vandalur, Tambaram, Guduvanchery, and Maraimalai Nagar, will greatly benefit from the services provided by CMBT (Chennai Mofussil Bus Terminus). These areas will experience significant advantages due to the accessibility and convenience offered by the CMBT services. The southern suburbs of Chennai, including Tambaram, Perumbakkam, Sholinganallur, Injambakkam, Thoraipakkam, Velachery, Guduvanchery, Pallikaranai, and Adayar, have experienced significant growth in the residential market. This can be attributed to the rise in commercial activity in these areas, making them highly sought-after residential destinations. This enhanced connectivity will prove highly advantageous for swift transportation within Chennai City, as well as facilitating seamless travel between various parts of Tamil Nadu and other cities. The establishment of a mofussil bus stand in Kilambakkam and its surrounding areas is likely to stimulate real estate market growth due to enhanced connectivity, increased commercial activity, rising demand for residential properties, infrastructure development, and potential investment opportunities.

KUTHAMBAKKAM

The introduction of a mofussil bus stand in Kuthambakkam and its surroundings is poised to spur real estate market growth due to enhanced accessibility, increased commercial activity, rising demand for residential properties, infrastructure upgrades, and attractive investment opportunities in the area and its nearby surroundings.The satellite town, falling under the CMDA (Chennai Metropolitan Development Authority) area, is unmatched in terms of connectivity. Plans are afoot for a 25-acre integrated bus terminal at Kuthambakkam village near Thirumazhisai. This facility will ease congestion and enhance intra-city connectivity. Secondly, the National Highway Authority of India has announced a Six-Way Elevated Expressway, which passes through Thirumazhisai, Poonamallee (the nearest town), and Sriperumbudur. This will connect to the Chennai – Bengaluru National Highway, thus facilitating smoother intercity and interstate travel. Chennai’s upcoming second airport, which will be built at Pannur, is a mere 45-minute drive from Thirumazhisai. Finally, once the Metro rail extension from Poonamallee to Thirumazhisai is completed, travel within the city will become synonymous with convenience, comfort and quickness.









CHENNAI SURAT ECONOMIC CORRIDOR

The Surat Chennai Expressway is going to be a 1,271 Km long project. The project is being developed as part of the Bharatmala Project 2.0. The expressway will pass through 21 villages and some major cities, such as Ahmednagar, Nashik, Solapur, Tirupati, Kadappa, Kalaburgi, and Kurnool. The deadline for the completion of the expressway is around December 2025. The Chennai Surat expressway will be a six-lane expressway with a maximum speed limit of 120 km/h. It will be a mix of greenfield and brownfield sections. The entire expressway is divided into two major partially access-controlled highways. The first section will be from Surat to Solapur, and the second section will be from Solapur to Chennai. The land acquisition and bidding process are ongoing in certain parts of the planned expressway. Any expressway that is built creates several opportunities, not just in terms of connectivity but also in terms of development along the expressway. It impacts the development of multiple types of real estate around it. Better connectivity will result in better business opportunities and trade, thus the development of an industrial belt along the expressway. The industrial development further creates opportunities for commercial real estate development, for example, the growth of retail shops or rest points with restaurants, eateries and other stores.





MULTIMODAL LOGISTICS PARK

The logistics park at Chennai is strategically located at 52 km from Chennai Port, 87 km from Kattupalli Port and 80 km from Ennore Port and will be a “focal point of logistics in the southern region”. The MMLP, which is coming up on 184.27 acres of land at Mappedu village in Thiruvallur district, is close to the automobile and electronics manufacturing clusters on the Sriperumbudur-Oragadam industrial belt. Besides, it is in close proximity to the Chennai Peripheral Ring Road (CPPR). It is estimated to cater to 7.17 million metric tonne (MMT) cargo in a horizon period of 45 years. These MMLPs will be built strategically to harness lesser-explored and more cost-efficient modes of goods transportation, such as inland waterways, railways, pipelines, etc., apart from the roadways that currently propagate over three-fourths of freight movement of the country. For instance, freight carriage rates for railways are much lesser than for roads. But lack of direct connectivity to manufacturing units and warehouses, delays, poor visibility over goods movement, etc., incline businesses to leverage road transportation









TIDEL PARKS

Chennai Metropolitan Development Authority (CMDA) has issued enter upon permission for three sites — Malayambakkam, Mannivakkam and Vandalur — following the request of Tidel Park Limited. The sites were allotted after conducting a land valuation for the entire ORR stretch. While 5.33 acres on the Malayambakkam stretch, valued at Rs 3 crore per acre, has been allocated for the first IT park, the second one will come up on 5.04-acre area of Mannivakkam where the land value has been fixed at Rs 5 crore per acre. The third IT park is planned at 0.5 acre-area in Vandalur where the land value is Rs 8.05 crore per acre. Currently, the government is targeting to woo Global Capability Centres (GCCs) to set up a base in the state as they could generate high-end jobs for the youth. According to a report of Knight Frank, a global real estate consultant company which has done the land valuation along the 50-metre stretch, there are around 160 GCCs in Tamil Nadu, constituting about 10% of the national count.







Certainly, here's a more detailed breakdown of why Chennai is an excellent choice for real estate investment

Economic Strength and Growth Potential

◑ Chennai is one of India's major metropolitan cities and a key economic hub in the country. It boasts a diverse economy, with thriving sectors such as manufacturing, IT and IT-enabled services, automotive, healthcare, and finance.

◑ The city's economy is supported by a skilled workforce, strong industrial base, and a conducive business environment, making it attractive for both domestic and international investors.

◑ Chennai's GDP growth has been consistently robust, reflecting its resilience and potential for sustained economic expansion, which bodes well for real estate investment.

Infrastructure Development

◑ Chennai is undergoing significant infrastructure development, with projects aimed at enhancing connectivity, transportation networks, and urban amenities.

◑ The expansion of roadways, including expressways and peripheral ring roads, improves accessibility within the city and to neighboring regions, facilitating smoother movement of goods and people.

◑ The Chennai Metro Rail project is expanding its network, providing efficient and sustainable public transportation options that reduce congestion and travel time for commuters.

Upcoming Infrastructure Projects

◑ The Parandur airport project addresses the growing demand for air travel and cargo handling, which is crucial for economic growth and connectivity.

◑ The Chennai Surat Economic Corridor, a major expressway project, creates opportunities for industrial development and trade along its route, stimulating real estate demand in adjacent areas.

◑ Multimodal logistics parks enhance the city's logistics capabilities, attracting businesses and investment in warehousing, distribution, and related services.

Diverse Real Estate Opportunities

◑ Chennai's real estate market offers a wide range of options across residential, commercial, and industrial segments, catering to different investor preferences and budgets.

◑ From luxury residential developments in upscale neighborhoods to affordable housing projects supported by government schemes, there's a diverse range of properties available for investment.

◑ Commercial real estate opportunities abound, with office spaces, retail outlets, and industrial parks catering to the city's growing business needs and expanding sectors.

Stability and Resilience

◑ Despite occasional fluctuations influenced by macroeconomic factors, Chennai's real estate market has shown resilience and stability over the years, offering long-term growth potential to investors.

◑ The city's diversified economy, coupled with ongoing infrastructure development and urbanization trends, mitigates risks associated with real estate investment, making it a relatively safe bet for investors.

In summary, Chennai's economic strength, infrastructure development, upcoming projects, diverse real estate opportunities, and stability make it an attractive destination for real estate investment. Whether for residential, commercial, or industrial purposes, investors can find ample opportunities to capitalize on the city's growth trajectory and unlock value in the real estate market.



Conclusion

In a detailed conclusion, it's evident that Chennai stands out as a lucrative hub for real estate investment due to a multitude of factors.

Firstly, the city's dynamic blend of tradition and modernity creates a unique appeal, attracting investors looking for a diverse range of opportunities. From historic neighborhoods to emerging tech parks, Chennai offers something for every investor profile.

Secondly, the ongoing and upcoming infrastructure projects underscore Chennai's commitment to growth and development. Projects such as satellite townships, airport expansions, metro rail extensions, and expressways not only enhance connectivity but also stimulate economic activity, driving demand for real estate across various sectors.

Thirdly, Chennai's resilience in the face of macroeconomic fluctuations instills confidence in investors. Despite occasional market shifts, the city's diversified economy and steady urbanization trends provide a stable foundation for long-term investment growth.

Moreover, the city's strategic location along the coast, coupled with its robust transportation networks, makes it an attractive destination for businesses and residents alike. This strategic advantage further fuels demand for real estate across residential, commercial, and industrial segments.

Additionally, Chennai's proactive approach to urban planning, including measures to preserve wetlands and enhance green spaces, reflects a commitment to sustainable development. Such initiatives not only contribute to the city's livability but also add value to real estate investments.

Furthermore, Chennai's status as a major metropolitan city with a rich cultural heritage ensures its enduring appeal among investors and residents. This blend of heritage and modernity creates a unique atmosphere that attracts people from diverse backgrounds, further driving real estate demand.

In conclusion, Chennai's real estate market presents a compelling opportunity for investors seeking long-term growth and stability. With its vibrant economy, strategic location, and commitment to infrastructure development, Chennai is well-positioned to continue its trajectory as a prime destination for real estate investment in India. By capitalizing on the city's growth prospects and embracing its unique characteristics, investors can unlock significant value and contribute to Chennai's continued evolution as a dynamic urban center.



vion-logo

No 6, Mahalingapuram Main Road
Nungambakkam
Chennai – 600034

Sources

Property Listings

Quick Links

Copyright © . All Rights Reserved. — Vion Realtors