I dont feel Sriperumpadur is wise Investment Option

I am not sure if I am opening a Pandora box by writing this article. But I was evaluating this one area for quite some time and felt what is so great of Sriperumpadur, which is requiring us to shell out around 40 Lakhs for a decent 2-bedroom apartment. Lets go through some basic facts.

Current Price



No major line up of real estate activity except HIRCO and Prince at present. There are few others but still small in number. Vast stretch of land availability and very less infrastructure in place. No major schools except for some international residential school. I doubt if hospitals are good enough. I know there is few,but are they worth our money?.

It will take more than 6 to 8 years to gain momentum. People have to accept to fact that staying there is better than traveling. That would take time. All developments there are done in phases and these phases can be stopped any time owing slump, real estate slow down etc etc.

Price is not attractive. At 3000 per sq ft (Hirco) the rate is pegged at almost city rates. Why would I invest in HIRCO or Prince when I can get a decent flat for the same investment in city? I am just doing a comparison of Palikarnai rates and Hirco.

Palikarnai is currently quoting at 3500 and for a small difference you get the advantage of investing in city, good rental potential, location advantage appreciation. Rental incomes in city is always stable when compared to Sriperumpadur which is out skirts and mostly will be preferred by folks who are new to Chennai.

I am also very skeptical about North Indians throwing lavish rental to live there. I once had a rental advt for my house in Avadi and there were around 25 people, mostly software folks from north who contacted me for rent. They were really searching for low cost options and were not aware that Avadi is 40 km from tidel park. I am not generalizing but definitely not a one off case.

You can go for HIRCO or Prince incase you like their construction or desire to live in complex built by them. IMHO too big is too expensive to own, to maintain.Please do consider flats in city and go for Hirco or Prince only when you think there is considerable advantage.

Being in IT, it is always better to stay some where near the work place. With IT parks spread wide over city from Ambattur, Porur, IT Corridor, MRC Nagar, Guindy it also makes sense to make an investment in city. Incase you move to a new job then there is lot of probability your second investment flat would come handy for you to move in. People are jumping jobs and if i bought a flat in IT corridor and work for 5 years in a IT company at Siruseri and take a new job at Guindy, I would find difficult to move into rented apartments and thats where an second investment within city would help. Just my ways of seeing things.

If you think Hirco price would appreciate, then same would be for the apartments in city.I have lived in mumbai, thane right near Hiranandani Thane’s project and visited Powai and IIT mumbai several times and know well about them. To me its a gamble.


  1. SV

    I couldnt agree more about the exorbitant prices for these apts. But, I certainly feel that sriperumbudur has a lot of potential and I am looking to invest some money here (in the form of plots), ofcourse after careful analysis of govt acquisitions.

  2. Agreed. I think developers are greedy with the price. Yes it has the potential. But i would invest in safer place rather take a gamble.

  3. ramesh

    Would ask you to take my comments in right perspective . We few friends had invested in Gurgaon in 2003 on Sohan Road Gurgaon .This part of the area was like a jungle & full of villagers .The only building coming up there was Malibu Towne @RS 1100/sq ft. Everybody had the same opinion as given in the above article. Today the prevailing rates are Rs 3800/sq ft & a rent of 2 bedroom in this area is Rs 12000 /month.
    Similarly we invested in Velachary way back in 2004 @ Rs 1400/sq ft ,today you know that area’s prices better than me . Similar things of this area were also told by many people that this is too far from centre of city ,who would live there .
    If majority of people so wise then there would not be opportunities for smarter investors.Everybody can not be visionary & even visionaries can go wrong.

    Another example is Powai, at that time we could not invest as we were unfamiliar of Mumbai. But a flat sold @ Rs 3000/sq ft by Hiranandani is today worth Rs 23000/sq ft.

    The other thing people should look into buder reputation & stake. This guy is investing close to Rs 1600 crores inthis project . And for him stakes are much higher as this is his first project outside Mumbai ,for a pan India presence;which he’s planning;success at Chennai is going to be critical.

    A 500-700 acre township is not going to be small and guy is promising all the facilities like schools, hospitals etc. And there is every reason to believe the guy looking at his track record in Powai & Thane.
    Would request few of you to visit these projects & hope that would be helpful for you understand the vision of this builder.Today cost of buliding per sqft is close to Rs 1600-1800 sq ft & the qulity of construc=tion which this guy makes should be close to Rs 2000/ sq ft.
    The other beauty is that this guy buybacks the property of you’re willing to sell at his public rates in Mumbai,hence does not let the speculators play with prices.

    Also the rent & cost of living, we’re not talking about people joining new, the kind of lifestyle this guy offers is for middle management & senior executives. And the rent & price are no issues for these kind of people.

    So guys it’s one’s choice, either one goes with the future or choses to opt for me-too,crowd of builders.
    With me-too crowd your price may double but with the people who’re trying to change the trend & are thinking beyond today, your gains can be much higher.
    Yes this is a gamble.But who earns money playing safe games!

  4. SV

    Ramesh, I think you are getting defensive about your choice. When rates at Palace Garden increase so will the neighourbood rates like Singaperumal Kovil, Pennalur, Oragadam, Triuvallur, etc. I disagree that this the only choice for investors to consider.

  5. Pras


    Most of the visitors to the blogs are IT folks with working interests along IT corridor. To them (includes yours truly) HIRCO does not make sense. I agree.

    Chennai itself is developing along GST road. There are lots of SEZ projects coming up along the road. For all these Mahendra City is the base point. Govt policy is also clearly pointing south. There are lots of people who would be willing to pay to be in.

    HIRCO project itself is split into two areas. One for business establishments (250 acres) and another for residential (250 acres). It makes economic sense. Lure businesses to set shop there including IT (who knows) and then have their employees live in the residential part. Mahendra City itself houses some IT biggie companies. Please remember that.

    All said, i am not for house as investment (or rent potential). I am for house to be home. If want to invest, 50 L and above sunk into one house is a dumbass choice. Instead spread your risks to land, stocks, MFs what not which i do not know.

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