REALTY SNAPSHOTS CHENNAI RESIDENTIAL: TOP MICRO MARKETS FY’16

REALTY SNAPSHOTSPage 01

Key InsightsSouth and South-West micro-markets have been the top performers in the city on the basis of absorption and launches, accounting for nearly 63% of the total sales and 52% of the total launches in the city during FY’16

Perumbakkam, Guindy, Tambaram and Karapakkam have emerged as the top performing localities due to consistently high absorption and low inventory overhang

West micro market has been the top performer in terms of annual price appreciation followed by Central and South-West micro markets

Madambakkam, in the South-West micro market, is poised for higher growth in short to medium term with relatively afford-able average price of around Rs. 4,000 per sq.ft., low inventory overhang of 20 months and a high livability score of 90

Pallavaram-Tambaram belt, in South-West Chennai, continues to gain prominence in terms of residential demand, due to its proximity to both Old Mahabalipuram Road (OMR) and Grand Southern Trunk Road (GST)

Alandur and Guindy have emerged as the most promising locations with low inventory overhang levels of 10 months and 6 months respectively; Proximity to IT/ITeS hubs, improved connectivity and upcoming commercial developments have been key factors for the same

Eight out of the top 15 localities in Chennai belong to the South Chennai micro-market, owing to their proximity to the major IT/ITeS hubs situated along OMR and GST; The employees working in and around the employment hubs situated in the vicinity of OMR and GST have been the major contributors to the residential demand in the region

Chennai Metro is likely to have a positive impact on the performance of localities in OMR, which includes Perumbakkam, Sholinganallur, Navallur and Karapakkam

REALTY SNAPSHOTSPage 02

Major Manufacturing Hubs

Prominent manufacturing sectors

include Auto & Auto-ancillary, Electronics

Hardware, Leather & Textile

Chennai has a major chunk of India’s

automobile manufacturing industry, with

an annual installed capacity to produce

12.8 lakh cars and 3.5 lakh commercial

vehicles. The city accounts for ~60% of

India’s automotive exports

Key players include Ford, Hyundai,

Daimler, Renault-Nissan, BMW and

Mitsubishi

Also, comprises over 350 large auto

component manufacturers accounting

for ~35% of India’s auto component

production

Hitech SEZ in Sriperumbudur Industrial

Park, spread over 571 acres, is host to a

number of electronics hardware manu-

facturing firms. Major players include

Samsung, Foxconn, TESSOLVE,

Flextronics, Motorola, SPEL Semicon-

ductors, Dell Computers, Jabil, Salcomp

Leather and Textile industry has its base

in the Footwear SEZ in Sriperumbudur

Population (million) 8.6

Male (million) 4.36

Female (million) 4.29

Sex Ratio (per ‘000) 985

Average Literacy (%) 90.2

Chennai Fact File

Popularly known as the ‘Gateway to South India’, Chennai is one of the major economic centers of India

Chennai Metropolitan Region is spread over an area spanning 1,189 sq.km.

4th largest metropolitan city in India by population as per census of 2011

Economy is mainly driven by indus-tries such as IT/ITeS, BFSI, Manufac-turing, Healthcare, Logistics & Warehousing

6th largest city by GDP, Chennai contributed $66 billion to India’s GDP for the year ended 2011

BigInfra Push

Chennai Metro – Phase 1 of Chennai metro comprising a length of 45 km, costing Rs.14,600 crore, is expected to be complete by the year 2016A 10.1 km Alandur - Koyambedu stretch has initially been opened for public on Jun’15

Peripheral Ring Road – A 162 km long road connecting Mammallapur-am with Ennore to be developed at a cost of Rs.11,000 crore offering coast to coast connectivity The proposed road would connect Ennore Port in the north and Poonjeri junction near Mamallapur-am in the south

Chennai-Bangalore IndustrialCorridor – An upcoming megainfrastructure project, costingRs.12,000 crore, is being developed to enhance the industrial production

Expansion of ECR – A 554 km long East Coast Road from Chennai to Kanyakumari would be made four lane at an outlay of Rs.10,000 crore

Mono Rail - Proposed during the 2001-06 regime of the AIADMK, the project still seems to be in the initial stage

Chennai features among the top exporters of software products and services

Major contributors to IT/ITeS exports - Infosys, TCS, Cognizant, Wipro, HCL, Polaris, Sutherland, Accenture and Oracle

Major IT landmarks – DLF IT Park,Ascendas International Tech Park,Siruseri IT Park, Mahindra World Cityand Tidel Park

4th largest employer in the IT/ITeS sector of India

IT/ITeS Industry - Driving Growth

Demographic Indicators (Census 2011)

Page 03

REALTY SNAPSHOTS

Micro Markets Rankings

AbsorptionSales during FY’16.

LaunchesNew launches during FY’16.

Livability Score Weighted average evaluation of the social infrastructure in a given region, comprising educational institutions, health care and retail outlets.

Inventory OverhangNo. of months required for the unsold units to be completely sold off at the current rate of absorption.

Micro marketIt is defined as zonal division of a city, arrived as an aggregate of localities within a defined geographical boundary or on the basis of similar real estate characteristics.

% Price ChangeMar, 2016 over Mar, 2015

Note: Period of analysis Apr’15 - Mar’16

Overall micro market ranking is based on the weighted average of four parameters for each micro market: Absorption, Launches, Inventory Overhang and Livability Score in accordance with

their positive/negative correlation with the overall health of the micro market.

Micro Markets Ranked on Absorption

South South West Central

1 2 3 4 5

1 2 3 4 5

1 2 3 4 5

NorthWest

West Central South West SouthNorth

Central West North South WestSouth

Micro Markets Ranked on % Price Change

Micro Markets Ranked on Livability Score

Rank

R Micro Markets ranked on Absorption, Launches, Inventory Overhang and Livability Score

Inventory Overhang (Months) | Wt. Avg. Absorption Price (Rs./sq.ft.) – Mar’16 | % Contribution in Unit Sales (FY’16)

South 36 | 5,137 | 36%

1South West32 | 3,877 | 27%

3

West36 | 4,655 | 16%

4 Central23 | 12,691 | 16%

2

North43 | 5,017 | 5%

5

Page 04

Top - 15 Localities

REALTY SNAPSHOTS

Overall locality ranking is based on the weighted average of four parameters for each locality: Absorption, Launches, Inventory Overhang and Livability Score in accordance with their

positive/negative correlation with the overall health of the locality.

Note: Period of analysis Apr’15 - Mar’16

Rank

Locality RInventory Overhang (Months) | Wt. Avg. Absorption Price (Rs./sq.ft.) – Mar’16 | Livability Score

Navallur48 | 4,196 | 727

Sholinganallur42 | 5,005 | 788

Karapakkam22 | 5,272 | 794

Pallikaranai35 | 5,408 | 8811

Perungudi40 | 7,289 | 879

Guindy6 | 8,349 | 872

KK Nagar17 | 10,133 | 9412

Anna Nagar50 | 11,177 | 9210

Alandur10 | 7,453 | 915

Kolapakkam27 | 4,333 | 8315

Chromepet38 | 4,915 | 8914

Tambaram30 | 4,238 | 843

Velachery28 | 7,659 | 9113

Madambakkam20 | 4,066 | 906

Perumbakkam25 | 3,836 | 801

Page 05 REALTY SNAPSHOTS

Alandur, Injambakkam, Kalpakkam, Karapakkam, Kelambakkam, Kovilambakkam, Madipakkam, Mahabalipuram, Medavakkam, Moolacheri, Muttukadu, Navallur, Neelankarai, Padur, Palavakkam, Pallikaranai, Perumbakkam, Perungudi, Sholinganallur, Thalambur, Kodur, Thirukkazhukundram, Thiruporur, Thiruvanmiyur, Thiruvidandhai, Thoraipakkam, Uthandi, Velachery

Acharapakkam, Chengalpattu, Chromepet, Gowrivakkam, Guduvancheri, Kanchipuram, PerungalathurMadambakkam, Madurantakam, Maraimalai Nagar, Nallambakkam, Nanganallur, Oragadam, PammalPadappai, Pallavaram, Kundrathur, Singaperumal Koil, Tambaram, Thandalam, Urapakkam, Vandalur

South

South West

Central

West

North

Micro Market Localities

Abiramapuram, Adyar, Alwarpet, Aminjikarai, Anna Nagar, Arumbakkam, Ashok Nagar, Besant Nagar, Choolaimedu, Egmore, Gopalapuram, Guindy, K K Nagar, Kilpaukkam, Kodambakkam, Korattur, Kotturpuram, Koyambedu, Mandavelipakkam, Mogappair, Mylapore, Nandanam, Nungambakkam, Padi, Purasaiwakkam, Raja Annamalai Puram, Royapettah, Saidapet, Teynampet, Thiyagaraya Nagar, Vadapalani, Virugambakkam, West Mambalam

Arakkonam, Avadi, Iyappanthangal, Kolapakkam, Manapakkam, Mevalurkuppam, Mugalivakkam, Nandambakkam, Poonamallee, Porur, Ramapuram, Sriperumbudur, Thiruverkadu, Tiruvallur, Valasaravakkam

Ambattur, Ayanavaram, Kolathur, Madhavaram, Manali, Perambur, Ponneri, Puzhal, Royapuram, Tiruvottiyur, Tondiarpet, Villivakkam, Vyasarpadi

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