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Corridor of growthCorridor Description and Rating

C H R O M E P E T - TA M B A R A M

Areas Included: Chromepet, Tambaram, Velachery, Pallavaram, Medavakkam, Madipakkam, Pallikaranai, Nanganallur, Nanmangalam and Selaiyur

Fig 1: Map of the corridor

Corridor of growth (COG)02

Properties available in the corridor

The corridor offers a wide range of properties in all price segments from affordable to luxury. Over 40% properties

fall in the category of Rs 40-60 lakh followed by around 37% in the affordable segment

of Rs 20-40 lakh and the rest above Rs 60 lakh. Fig 4 shows that about 71% properties are 2BHK units and 22% are 3BHK units. The supply is mostly targeting the middle class and upper middle class families who are typically

looking to live close to Central Chennai at prices that are affordable. It is also observed that almost 60% of the property available in the corridor is the ready-to-move-in category. Only about 3% of the entire supply in the

About the Corridor

Chromepet-Tambaram is a preferred residential locality situated south of Chennai in and around the GST Road. A

very well connected and developed corridor with good social infrastructure which has made it the most sought-after residential corridor even though there are not many office spaces here. With the growth of key localities such as Velachery as the most sought after retail destination, the area has evinced interest from investors and end users from Central Chennai as property prices are much more affordable here.

This is the most well connected corridor in Chennai as it is very close to Central Chennai. The Chennai Byepass Road at Perungalathur connects it to highways leading from Chennai to Bengaluru (NH-4), Chennai to Tirupati (NH-71) and Chennai to Kolkatta (NH-5). The Outer Ring Road (ORR) connects the GST to NH-205, NH-4, NH-5 and to Minjur. It also connects to the OMR and ECR through the 200-feet Pallavaram-Thuraipakkam Ring Road. The road is proposed to reach ECR at Neelankarai

once the new bridge is constructed over the Buckingham Canal.

The Chennai Beach-Tambaram Suburban Line passes through this corridor. The trains run at a frequency of one in every 10 minutes while from Tambaram to Chengalpet the trains run at a frequency of 30 minutes interval.

Most of the outstation inland trains running towards South Tamil Nadu and Kerala also pass through this station.

The domestic and international terminals of the Chennai International Airport at Meenambakkam are in this corridor and about 4-km from Chromepet.

The corridor is equally well connected with MTC and TNSTC buses, making this well connected through all modes of transport.

Velachery in this corridor is the most sought-after retail hub of South Chennai with most of apparel and jewellery shops having their branches here.

The corridor is mostly preferred by end users Most of the people looking to buy property in Central Chennai find this corridor affordable as prices are low and also because it is a well-developed corridor with good water supply compared to other corridors. The supply of property is predominantly in the range of Rs 40-80 lakh with almost 52% in this category. The corridor has a good supply of 2BHK units with almost 71% supply.

The corridor has more low lying areas wherein a part of the corridor is along the valley zone of the Palar River. Large parts of the corridor are beside the Pallikarnai Marshland, which is a large area of wet wasteland and the Cherambakkam fresh water lake. This causes flooding and water logging during the monsoon season and has prompted some residents to move to higher areas such as the GST Corridor. This was evident during the floods of 2015, when the Tambaram-Chromepet area was cut off from the rest of Chennai for almost three days.

Overall Connectivity Social Infrastructure Security/Water

Fig 2: Distribution of properties by price Fig 3: Distribution of properties by delivery status Fig 4: Distribution of properties by bedroom configuration


Rental demand is also fairly constant in most localities of the corridor but is slightly higher at Pallikarnai as there are

mostly independent homes which slightly reduce the supply. It is seen that there is

healthy demand in all localities that are close to GST and the Pallavarm-Thuraipakkam Link Road. Rental yield shows the amount of rent that can be generated from a property in a year in terms of sale price. Rental yield in most

localities in the sector is fairly constant at 3%. Pallavaram has a slightly high rental yield as there is good demand for property after the Pallavaram-Thuraipakkam Link Road was opened up.

locality is priced above Rs 1.20 crore which shows that there is not much demand for ultra-luxury projects.

The corridor offers properties in all price segments wherein property is more affordable in Selaiyur and the neighbouring locations but Velachery, Medavakkam and others are priced high. There is a wide variety of sizes available

ranging from affordable to luxury apartments with sizes of more than 1600 sq ft for 2 and 3BHK segments. There are many plot projects by developers with world-class amenities in the price range of Rs 1.2 – 5.5 crore. Mid to large size plots closer to OMR on the east and towards Perungalathur and West Tambaram on the west are more preferred by investors.

Sales Price Covered Area ( Lacs) (Sq.ft)

1 BHK 18-136 500-1493

2 BHK 21-200 520-1922

3 BHK 25-400 620-4000

4BHK and Above 65-650 1400-4600

Best sectors to invest in a home Based on rental demand in sectors

Table 1: Sizes and prices of flats available for various room configurations

Based on home buying demand in sectors

Fig 5: Top localities by consumer for renting a house

Fig 6: Top 10 localities by consumer for buying a house

Best bedroom configurations to buy Preferred buying and renting options

Buying Renting Total (BHKs) Total (BHKs)

1 BHK 8% 12%

2 BHK 60% 63%

3 BHK 31% 1%

4 and Above 1% 23%

Table 2: Demand distribution for buying and renting

In the case of demand for home buying, Medadvakkam has the highest share. This is mainly due to its connectivity and

proximity to Velachery, which is a well-

established residential area with good social infrastructure. As property prices are high in Velachery, people prefer to buy in Medavakkam where the average prices are in

the range of Rs 4,500 per sq ft as compared to Rs 8,000 per sq ft and above at Velachery. Chromepet which is the center of the corridor has the next highest demand.

It is observed from the given tables that either for rent or buy, the number of 2BHK apartments are highest with around 60%

of the total demand in buying and 63% of the total demand in rentals concentrated for the 2BHK format. The second most preferred is the 3BHK category in the corridor. This means that the localities in and around Nanmangalam

have more of 2BHK properties and consumers are also showing immense interests in the 2BHK category. The areas such as Medavakkam and Velcahery have independent homes and builder floor apartments with 2 and 3BHK units. There is less distribution of demand for 1 BHK and 4 BHK units in the corridor.

Price changes and future prospects Historic Price movement

6 monthly change Yearly change

-1% 0%

Table 3: Historical Price changes

Chromepet-Tambaram corridor has seen that property prices have remained stagnant over the last one year. Also

due to the impending elections in Tamil Nadu in the month of May 2016, there had been low interest levels among investors as well. Although average prices went up slightly during the January month close to the festive season of Sankranthi and breached the Rs.5000 per sqft mark, it has been only a marginal increase which is less than 1%. Residents of the corridor had a difficult time during the flooding of December 2015 and this has also affected end user interest in the locality. It has been seen that the demand was highest at areas closer to the GST road. Lower lying areas such as Tambaram, Chromepet and Velachery have seen a marked reduction in property prices and consumer demand.

Fig 7: Historical Price changes of corridor


Corridor Average Price Rs/sqft

Price movement for top localities by Consumer Preference

Prices have not appreciated in this corridor over the last one year. Most of the localities have seen a reduction in the average prices due to subdued demand. Also

since the corridor has mostly builder floor apartments, the developers are ready to offer discounts to offload inventories at the earliest. All the localities in the corridor have seen that average prices have reduced and areas such as Chromepet and Tambaram have seen that prices have gone down by 3-5%. Only Pallikarnai has registered a marginal increase but this does not affect the overall pricing in the corridor.

Fig 8: Price changes in top localities by consumer demand

Master Plan

As per the Comprehensive Development Plan released by CMDA for Land Use for the year

2026, the corridor has a good mix of residential and institutional land. Tambaram also has a large land area earmarked as non-urban area near Tirusailam. This area will present good opportunity if there is a decision to make it urbanisable and add more land to the residential realty sector. Vangalvasal, Madambakkam and Pallikarnai areas have a portion of land earmarked for reserved forest that will provide some green cover to this corridor.

Fig 9: Land use of various localities in the corridor


The rise of Tambaram realestate market

Though Tambaram started developing late in comparison to Chrompet, its infrastructure has improved in the last few years and is now at par with its neighbour. The area has many places of interests such as super markets, banks and schools along with IT companies. It is situated about 27 km from the centre of the city. It is home to one of the busiest railway terminals of the Chennai Suburban Railway Network. It is very popular among IT professionals, Non Residential Indians (NRI) and High Net worth Individuals (HNIs). The locality is attracting home buyers due to its connectivity factor.

n Source: Magicbricks Bureau

Adyar, Velachery are top investment hotspots

The overall real estate market of Chennai has remained sluggish for quite some time now, making it difficult for investors to earn profit in the city. Situated amidst Besant Nagar and IIT Chennai, Adyar is one of the developed localities of South Chennai. The area has been hit by the redevelopment drive happening in the central localities of Chennai. Adyar is the starting point of Rajiv Gandhi IT Expressway and falls close to the Tidel Park where several big and small IT companies have set base. Another South Chennai’s locality, Velachery also witnessed rise in property prices and considered as a hot investment destination.


Pallavaram: An ideal realty hub

When people look out for property in Chennai, the stretch along Rajiv Gandhi Salai on Old Mahabalipu ram Road (OMR) has become much sought after by the new generation buyers. However, in recent years, investors have begun focusing on the developments in Pallavaram

and its arterial lifeline the Pallavaram-Thoraipakkam 200-feet radial road. The link road connects the IT corridor to GST road and hence immediately connects the two prime areas of Chennai. There are already several swanky residential complexes springing up in this area and home buyers are also preferring to stay here.

n Source: The Times of India

What makes Tambaram a popular area in Chennai?

The biggest turnaround for Tambaram has been due to the continuous development of its civic infrastructure. The Tambaram Municipal Corporation has several new initiatives that are not only making the locality better. Despite being one of the oldest localities in Chennai, Tambaram is one of the top ten preferred locations to buy a home in Chennai for close to a year now. This demand has led to a consistent appreciation in property prices. The area has good solid waste management programme and the residential development is picking up in this locality.


Why first time buyers can prefer Nanmangalam

The locality provides all amenities required for a congenial livelihood such as schools, colleges, hospitals, shopping complexes, petrol pump and MTC bus connectivity. It is in proximity to IT corridor and Velachery situated within 7-9 km, which is an added advantage. Tambaram and Chrompet are the neighbouring areas of Nanmangalam situated at the distance of 9 km. The area has easy accessibility to Old Mahabalipuram Road and Grand Southern Trunk Road. The housing options available in the area include apartments, builder floor apartments, residential houses and plots.


IN NEWS


Infrastructure Updatesl The corridor is now connected through the

Chennai Metro which ends at Alandur. Work is in progress to connect the current metro line from Koyambedu to the airport. Once completed it will increase connectivity to the corridor

l The government has proposed to construct three elevated roads to decongest long distance travels. The proposed elevated roads are:

During our site visit it was observed that the corridor is currently having good demand as it has the best social infrastructure. There is some concern that not much is being done by the government regarding the drainage and storm water management even after the flooding of 2015.

This was one of the worst affected areas during the floods and Tambaram was cut

off for almost three days. Although there is some work happening with the de-silting of the drains, canals and river beds in some areas much has to be done to allay the fears among the residents that the 2015 floods will not be repeated again.

The area still sees a strong demand from the retail sector which has seen a steady inflow of new outlets in and around the Velachery region.

MOST POPULAR PROJECT in Chrompet - Tambaramhttp://magicbricks.com/investment-hotspots/chennai/chromepet-tambaram/

KEY DEVELOPERS in Chrompet - Tambaramhttp://magicbricks.com/investment-hotspots/chennai/chromepet-tambaram/

PROJECT SUMMARY BY POSSESSION STATUS in Chrompet - Tambaramhttp://magicbricks.com/investment-hotspots/chennai/chromepet-tambaram/

PROJECT SUMMARY BY BUDGET in Chrompet - Tambaramhttp://magicbricks.com/investment-hotspots/chennai/chromepet-tambaram/

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D I S C L A I M E R

Every effort has been made to make this report as complete and accurate as possible. MagicBricks accepts no responsibility for inaccuracies in the information/data contained in this report. It shall have neither liability nor responsibility to any person or entity with respect to any loss or

damage caused, or alleged to have been caused, directly or indirectly, by the information contained in this report. The information/data in this report is subject to change from time to time due to market condition.

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