Revised Guideline value and rising square ft values

Last week i checked with LandMarvel one of the popular builders in Chennai, regarding per square ft values in AshokNagar and in and around Vadapalani.I was surprised when LandMarvel project in 100 ft road, AshokNagar was priced at Rs.7000 per sq ft. Well AshokNagar is one my favorite areas not only because of my investment there, but it is one of the most sought after residential areas in Chennai.

 

Early 2002, the rates where around 1500 here and Velachery was quoting Rs 1000 per sq ft. Now it’s a different scenario.I never expected rates to increase three fold in the span of 4 years. I hope many would have seen the revised guideline values in Chennai. OMR Jumped from Rs 250 to Rs 2500. Velachery 100 ft (Bye pass road) from Rs 1217 to Rs 2300. Ashok Nagar around Rs 2100 to Rs 3800. T Nagar from 11200 to 12000.Well if the guideline value has increased so much not expect what builder would be doing to the prices. Land Prices have increased on an average 300% in these highly demand residential areas.

I was reading an article in rediff, which was talking about High property prices in prime areas in Mumbai. Rates per square in Mumbai in certain area is as much as 30000 per sq ft. I was wondering if Chennai too would become a costlier place to live down the line. I am sure prices of the prime residential areas Like Besant Nagar, Adyar, Ashok Nagar, Anna Nagar would touch Rs 10000 per sq ft by 2011. Just 4 years from now. Upcoming areas including Porur, Tambaram should reach Rs 6000 by 2011. And Velachery, OMR, Palikarnai, Mogappair should reach Rs 7000- Rs 8000 by 2011. Ambattur, Korattur with all the IT parks would touch Rs 5500 by 2011.

Chennai would have witnessed mass improvements by 2011. Major flyovers including Kathipara and Padi would have completed. OMR IT corridor going by the present speed would be completed only by 2010. DLF would be fully operational, which would help Porur, Ramapuram, Manapakkam to appreciate.

Residential Rentals have almost doubled in all parts of Chennai. Currently running rate for rentals is OMR, Velachery, AshokNagar is around Rs 10 per square ft. I checked the recent classifieds and there were no advts which was quoting rental for around Rs 7000. Almost all the rental advts were quoting 5 figure rentals.

Chennai real estate story is real, large in size and will pay in the long run. So be wise in choosing the property and never try to time the market. The prices have come down a bit now and builders are willing to negotiate. I am sure it worth investing in Chennai now rather than repenting later.

If you like this article, please comment.

 

 
 

8 Comments

  1. Nice information Uday. What I hear from people though is that the salaries are still much lower when compared to Bangalore or Mumbai. However, I believe that the cost of living has either equaled or even surpassed Bangalore’s. From few enquiries, Bangalore real estate seems to be more reasonable than Chennai’s. I hope that the prices become more realistic based on the average income of a person living in Chennai. Any real estate investment within the city limits have become out of reach from common people.

  2. Hey Uday, based on your analysis, I would also like to know how much would it cost to buy 1/2 ground of land in the residential areas of Chennai like R.A.Puram, Alwarpet, Royapettah etc. I’ve not been to Ashok Nagar much. How would you rate the standard of living when compared to say Adyar or R.A.Puram?

  3. uday

    Bhadri, your views are absolutly correct. regarding Land prices in areas where you said, even 1 ground is now a days in crores. So half ground should be around 60-75 Lakhs but your wont get so easily.

  4. vimal

    guidline value for korattur

  5. kamala

    Hello everybody!
    In Anna nagar for some areas the previous guideline value was 2050 and now that is increased to 11000.What is happening we dont understand?

  6. parveen

    is there a website where i can read about the guideline values-how it is calculated compared to the market value

  7. S.SEKAR

    Hi friends,
    presently, valasaravakkam becomes a suitable area for living , having easy access to go around. This is my suggestion.

    S.SEKAR

Leave a Reply