Is Chennai Real Estate Prices Falling ? Don’t Think So
I am in the market since 2001 and one thing that has been consistent with Chennai RE is the steady price appreciation. Numerous reasons can be attributed to Chennai’s stable real estate market. I did not see an area which went down in prices. Consider the below projects in key area.
- Gopalapuram – The Vertica by Land Mark Construction – Started with Rs 12500 psft and currently selling at Rs 16,500 psft ( i hear it is going to be further increased.
- Velachery – Ceebros and several other builders were seen selling projects at Rs 3500 in 2008. We saw TULIVE by GK Shetty builders and others projects launch in 2011 in the price range of Rs 6000 psft. I recently witnessed resale in Velachery crossing Rs 8000 to Rs 9000 psft. I am not taking The Crest in Phoenix Market City commanding Rs 10k and above figure.
- OMR – OMR Prices went above the roof once the toll road was announced. It was Rs 1600 – Rs 1800 in 2006, Rs 3700 – Rs 4000 in 2008 and Rs 5000 – Rs 6000 psft in 2012,13.
- KK Nagar , Ashok Nagar – Prices were around Rs 1500 in 2002 and Rs 6000 in 2011 and the prices are touching Rs 10000 to 11000 at several areas around KK Nagar, Ashok Nagar. Less availability of land and closeness to Metro is contributing to price rise.
- Mogappair – Prices were oscillating around Rs 3500 in 2009 and now retails at Rs 6000 in Nolumbur area. Land Mark projects like Gem Square, Gem Stone which are near DAV, CPS schools is already quoting Rs 7500 to Rs 9000 plus. Proximity to Anna nagar has aided the appreciation
- Anna Nagar – Projects are available at Rs 12000+ psqft as of now. It was Rs 10000 in 2011,12. Underground metro project and numerous commercial establishment is aiding the appreciation. Traditionally Anna Nagar is considered as a well planned area in Chennai but i beg to differ on this. If you ever get a chance, visit Chandigarh or Panchkula and you will know why it is still one of the best planned city in India.
- Adyar ,Tiruvamiyur – This area is on constant rise and currently selling around Rs 12000 – 15000 psft.
- Tambaram, GST Road – Numerous factors have jacked up the rates around this area. I still remember the rates were as low as Rs 1500 psft and currently premium offerings like SIS -Safaa / Akhaya’s project touch Rs 4000 mark. There can further appreciation if new bus terminus in vandalur is created.
Word Of Caution
While i had summarized Chennai’s RE appreciation in brief, one has to always thread with caution when it comes to RE. Always ensure you don’t over leverage your borrowing capability. The current financial scenario in India is not that great with Current Account Deficient (CAD) one of the greatest worries.
While we never experienced a US type property bust, It should not taken for granted that such situation will never happen to India