Suburbs on OMR may see renewed activity

Flats in Medavakkam

The property market in areas like Pallikaranai, Medavakkam, Perumbakkam that are well-connected to IT/ ITeS office hubs on Old Mahabalipuram Road (OMR) are expected to see a rise in activity in the coming months.

Chennai: Knight Frank India’s India Real Estate (Residential and Office) report for January-June 2016 says that with improving social infrastructure, the aforementioned areas as well those located on the Pallavaram-Thoraipakkam stretch are set for increased investments.

According to the released recently report, the effects of a steadily improving office market, thanks to improving fundamentals in the IT/ITeS and manufacturing sectors, are bound to rub off on the residential market as well.

Kanchana Krishnan, Director (Chennai), Knight Frank India said that locations such as Pallavaram-Thoraipakkam, Perumbakkam, Pallavaram, Pallikaranai, are in the vicinity of over half the office spaces in Chennai. These areas have competitively priced residential projects as well. The dominance of these zones in terms of the potential for office space development and the gradual growth of transport and social infrastructure will also continue over the next five years.
“These factors should prove to be strong drivers for price growth in any residential market. According to Knight Frank’s 2012 investment destination report, we recommended Pallikaranai and Medavakkam as investment destinations. Prices there have grown at a healthy rate compared to the Chennai residential market which has stagnated since then,” Krishnan said.
While prices in Chennai had grown by 12 per cent since 2012, Krishnan said that Pallikaranai and Medavakkam had grown by 19 per cent and 28 per cent respectively during the same period. Pointing out that significant new commercial/ office spaces would come into these micro markets by 2018, the director said they expect office demand to be robust.
“The rub off effect will definitely push residential demand but having said that, the existing unsold inventory will keep the prices under pressure and over the next two years, we expect price appreciation to be between 9-10 per cent,” she added. Commenting on this forecast, T Chitty Babu, chairman and CEO of Akshaya (P) Ltd said that home buyers saw value in the OMR realty proposition, it had everything required for a civil life.
“New suburbs like Perungudi, Sholinganallur, Thoraipakkam, Padur, Kelambakkam followed by Pallikaranai, Pallavaram, Medavakkam stretch, have attracted a fair share of residential settlements, in addition to large corporates creating an all-new Chennai on this corridor. Builders in these regions took advantage of the opportunity, which led to their rapid growth.”
(Source- dtnext)

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