Over 50 new residential projects are now under construction in the region; the availability of land at reasonable prices attracts purchasers. According to the president of CREDAI Chennai, the region is prepared for exponential growth in the next years, owing to factors such as Metrorail extension and the construction of new infrastructure projects.
North Chennai is experiencing a real estate boom, with over 50 new residential complexes in various phases of development.
According to real estate experts, this rise is due to a variety of factors, including the expansion of the Chennai Metro and ongoing infrastructural initiatives in the region.
Buyers are drawn here by the availability of inexpensive land. Notably, land costs in north Chennai are cheaper than in other sections of the city, making it an affordable alternative for real estate projects. Madhavaram, Tiruvottiyur, Perambur, Kolathur, Purasawalkam, Tondiarpet, Ennore, Manali, Royapuram, Sowcarpet, and Moolakadai are all in the north Chennai area.
According to the Confederation of Real Estate Developers Associations of India (CREDAI) Chennai, the presence of the e-commerce industry is boosting demand, with locations ranging from the Madhavaram-Red Hills belt to the Periyapalayam and Orakkadu cluster experiencing strong absorption rates. With the existence of major warehouse facilities, Periyapalayam Road and Red Hills are developing desirable corridors for Grade A buildings. All of these elements are enticing real estate developers.
“North Chennai is poised for exponential growth in the coming years, fueled by a confluence of factors such as the expansion of the Chennai Metrorail, the development of new infrastructure projects, and rising land affordability.” “Its strategic location, industrial ties, and connectivity make it a thriving hub, shaping the region into a sustainable and inclusive cityscape,” CREDAI Chennai president S. Sivagurunathan said.
“Many new developers have ventured into north Chennai with mid-sized projects,” stated Jerry Kingsley, Head of Strategic Consulting & Value & Risk Advisory India. We are also seeing a trend of prominent developers, who previously avoided [taking on projects] in this part of Chennai, now developing high-rise residential towers in these regions.”
Mr. Kingsley spoke on price in this region, saying, “Each project is different in terms of sizing, location, and type.” Residential units in these places are expected to cost between $5,000 and $15,000 per square foot.”
Ranjeeth Rathod, Managing Director of DRA Homes, who has three current projects in north Chennai, said the area was a trading hub. There are IT companies here. Many logistics businesses have also emerged, he added, “all of which are increasing demand for homes.” Tiruvottiyur, for example, has embraced flat culture.”
“North Chennai is the cultural and lifestyle epicentre of the city.” However, its image remained tainted until lately. Infrastructure improvements in the area, such as the creation of Minjur Satellite township, ‘Vada Chennai Valarchi Thittam,’ are surely helping to boost buyer trust, according to a real estate industry source.
However, there are some difficulties. According to industry operators and residents in the area interviewed by The Hindu, many localities in north Chennai have water shortages, particularly during the summer, and there is a need to upgrade water delivery infrastructure. “Inadequate drainage systems contribute to waterlogging and flooding during heavy rains, putting residents and infrastructure at risk.” Furthermore, a lack of parks, playgrounds, and public spaces limits recreational possibilities and negatively impacts community well-being,” according to a CREDAI official.
The announcement by the State government of the ‘Vada Chennai Valarchi Thittam’ with a large investment, according to CREDAI, is a welcome move. To address the various difficulties faced by inhabitants in north Chennai, a comprehensive and persistent approach including partnership with local groups was required.