North Chennai's Real Estate Boom
North Chennai is experiencing a surge in real estate activity, with over 50 residential projects currently under development. This growth is largely attributed to ongoing infrastructure improvements and the expansion of Chennai Metro, attracting buyers with affordable land prices compared to other city areas.
Affordable Housing Options
Land prices in North Chennai are significantly lower than in other parts of the city, making it an attractive option for developers and buyers alike. This area encompasses locations such as Madhavaram, Tiruvottiyur, Perambur, Kolathur, Purasawalkam, Tondiarpet, Ennore, Manali, Royapuram, Sowcarpet, and Moolakadai. The availability of affordable land has fueled the development of numerous residential projects, catering to a wide range of budgets.
E-commerce Drives Demand
The burgeoning e-commerce sector is a key driver of real estate demand in North Chennai. Areas like the Madhavaram-Red Hills belt, extending to Periyapalayam and the Orakkadu cluster, are witnessing high absorption rates. Red Hills and Periyapalayam Road, strategically located for warehousing and logistics, are emerging as prime locations for Grade A developments, attracting real estate developers to capitalize on the growing demand. This information comes directly from the Confederation of Real Estate Developers Associations of India (CREDAI) Chennai.
Factors Fueling Future Growth
Several factors are projected to contribute to North Chennai's continued real estate growth. The Chennai Metrorail expansion, new infrastructure development, and the relative affordability of land are key drivers. S. Sivagurunathan, president of CREDAI Chennai, highlights the area's strategic location, industrial connections, and connectivity, envisioning it as a sustainable and inclusive urban landscape. “Its strategic location, industrial ties, and connectivity make it a thriving hub, shaping the region into a sustainable and inclusive cityscape.”
New Players in the Market
Jerry Kingsley, Head of Value & Risk Advisory India and Strategic Consulting, notes an influx of new developers entering the North Chennai real estate market with mid-sized projects. Established developers are also increasingly venturing into this previously overlooked area, constructing high-rise residential towers. “Many new developers have entered the north Chennai market with mid-sized projects. We are also seeing a trend of well-known developers creating high-rise residential towers in these parts of Chennai that they had previously avoided.”
Pricing in North Chennai
Residential apartment prices in North Chennai vary depending on size, location, and project specifics, ranging from approximately Rs 5,000 to Rs 15,000 per square foot, according to Mr. Kingsley.“The size, location, and type of each project vary. Residential apartment prices in these areas are estimated to be between Rs 5,000 and Rs 15,000 per square foot.”
Shifting Demographics and Rising Demand
Ranjeeth Rathod, managing director of DRA Homes, observes a shift in the area's demographics, from a predominantly trader population to an increasing presence of IT and logistics companies. This transformation is further fueling housing demand, with apartment living gaining popularity in areas like Tiruvottiyur. “There are a lot of new logistics companies out there, and all of these are driving up housing demand. Apartment culture has taken hold in places like Tiruvottiyur.”
Transforming Perceptions
Historically, North Chennai's image suffered despite its rich cultural heritage. However, infrastructure projects like the Minjur Satellite township and the “Vada Chennai Valarchi Thittam” are bolstering buyer confidence, redefining the area's perception.
Addressing Community Needs
While the area experiences growth, CREDAI officials acknowledge the need for more parks, playgrounds, and public spaces to enhance community well-being. While the State government's “Vada Chennai Valarchi Thittam” initiative represents a positive step, a comprehensive, long-term plan involving local community collaboration is essential to address the complex challenges faced by North Chennai residents.