Work is currently going on for Phase II. To incentivise developers, “The CMDA (Chennai Metro Development Authority) issued a waiver of 50 per cent on premium FSI, if the property is within 500 meters from the metro line,” says Srinivas Anikipatti, senior director, Tamil Nadu and Kerala, Knight Frank India.
The prospect of improved connectivity has provided a fillip to the commercial market as well, “There has been an increase in the demand for retail and office spaces around metro stations. The commercial and retail rental prices along the 100 feet road saw about 50 to 70 per cent increase and a few properties even touched the 100 per cent mark,” adds A Shankar, head – strategic consulting and valuation advisory, JLL.
“Chennai witnessed stable sales performance, despite the pandemic. South and West micro-markets especially got more attention. This could be attributed to the upcoming metro corridors in Phase II and III,” says Umakanth Y, director, advisory services, Colliers India.
While commute and connectivity are not concerns now during the lockdown, developers and experts are of the opinion that we would soon get back to our pre-pandemic habits. “In the next six to 12 months, once we attain herd immunity, there would be resumption of activities. Therefore, in all likelihood, prices are expected to appreciate,” opines A Shankar.
These metro lines are thus focused at further enhancing connectivity in the city, “The second and third phases of metro are being strategically developed keeping in mind areas that are not currently connected via suburban trains, like between Old Mahabalipuram Road (OMR) and East Coast Road (ECR). The metro will also result in a reduction of commuting time to the OMR from Siruseri and Kelumbakkam,” adds Anikipatti.
This is thus expected to open up housing developments in these areas and attract buyer confidence.
Price appreciation expected
“Typically, impact on real estate owing to a major infrastructure project is witnessed across three key stages:
- At the time of project announcement;
- At the time of construction commencement;
- Post operation commencement.
It is expected that corridors along Phase I of the metro will further witness about 10 to 15 per cent property price appreciation and will also provide a push to the residential rental market,” says Umakanth.