An overall analysis of demand orientation for residential realty in Chennai
Chennai has a growing residential demand. The demand for residential development is growing steadily proportional to the increase of the working population. Most of the demand is for the affordable apartment type buildings. There is also considerable demand for villas, luxury apartments among the people who are ready to invest huge budgets. On a overall note the demand increases which calls in increase in the supply. But supplying for the demand has various constraints starting from financial instability, availability of land to manual work from labours. There are some localities in Chennai which are preferred for residential buildings. Some reasons for this could be large availability of land and cheaper land costs. These attributes could be related to localities like Thiruvanmiyur, Adyar, Velachery and many other suburbs in the south part of the city.
Thiruvanmiyur: The main advantage of this locality is it’s strategic location near ECR and OMR. A well developed micro market with well established social infrastructure and basic amenities for comfortable life and located close to the IT hub of the city. Rental rates are moderate. A 2 BHK can be rented for with Rs. 10,000 – 20,000 per month while a 3 BHK rental range lies around Rs. 25,000 – 70,000. The costlier 3 BHKs fall into luxury type apartments.
Velachery: Another micro market along the OMR road with well established social and physical infrastructure well suited for the IT professionals working in the IT companies located along the OMR. The rental prices are cheap compared to Thiruvanmiyur. A 2 BHK apartment can be rented for Rs. 10,000 – 15,0000 while a 3 BHk requires a bit more higher rent of Rs 15,000 – 20,000.
Adyar: This micro market is substantially has higher rental price than most of the localities in Chennai. A posh locality for the high rank IT officials who works in the OMR IT hub. The rents for 2 and 3 BHK can reach up to a lakh.
There are several other suburban micro markets like Kelambakkam. Kelambakkam provides cheaper housing and attracts huge demand. But the demand is mostly due to the location of the locality close to the working place and also how well connected the locality is to the core of the city.
