Apart from making commuting within the city easy, Chennai Metro Rail has been a boon to the real estate sector.
Those tracking the real estate market said that property prices have shot up across the metro corridors in Chennai ever since it began its journey.
While land prices have appreciated on an average of around 20% to 35% (depending on the location, existing infrastructure and access to basic amenities), property prices have increased by 30% to 40%. Locations across upcoming Metro lines have started seeing a surge in price already but not to the extent of the existing lines.
Citing examples, Jerry Kingsley — Head, Strategic Consulting and Value & Risk Advisory India, Jones Lang LaSalle, said: “In Anna Salai – one of the popular Metro corridors with developed infrastructure, the land prices have grown 4.5% year-on-year (Y-o-Y) since last 15 years. On Mount Poonamallee Road, the upcoming Metro corridor, the land prices have witnessed multitude rise in prices averaging 50% growth y-o-y since 2005 and have stabilised over the last few years.” He said: “Similarly in the pre-toll Rajiv Gandhi Salai, another upcoming Metro corridor, the prices have moved on an average y-o-y of 30% in the last 15 years and has stabilized.”
Sanjay Chugh, City Head and Director – Chennai, ANAROCK Group, said that among the prominent localities, Guindy has seen the maximum price appreciation of 35% in average property prices in the last decade – from ₹10,000 per sq. ft. in 2013 to nearly ₹13,500 per sq. ft. in 2023. At Vadapalani, average prices in 2013 was ₹7,900 a sq. ft and now it is ₹10,000 a sq. ft. Ten years ago, the value at Saidapet was ₹9,500 a sq. ft and now it is ₹11,900 a sq ft, an increase of 25%.
Srinivas Anikipatti, Senior Director – Tamil Nadu and Kerala, Knight Frank India, said as of 2021, some areas in Chennai that have capitalised more due to the Metro Rail system include Anna Nagar where the presence of Metro had enhanced connectivity and accessibility, leading to increased property values and real estate demand. T. Nagar and Nanganallur also saw good traction.
Real Estate consultants in certain pockets of Chennai said after the initial buzz, the prices had become stagnant. “Land and properties stand to gain in the initial years and after a point the value does not increase much,” a local consultant in T. Nagar said. With regard to property prices, consultants said that locations very close to Metro commanded a premium but the prices on interior roads had not seen any change.
According to details shared by Sivagurunathan, president, Credai, Chennai, prime locations like north Chennai and especially Madhavaram and its peripheral areas, Sholinganallur to Siruseri and beyond, Poonamalle to Mount Poonamalee and Porur have all witnessed a 20% to 40% increase.
“North Chennai, which was once seen as a poor man’s location, is now a hot bed of activity. Madhavaram is seeing the highest appreciation in terms of projects with 13 projects expected to be launched which was till now unheard of. Even two of our Credai members are launching multi-storied buildings that will boost the very image of North Chennai,” Mr. Sivagurunathan pointed out.
Real estate players said that developments were happening at a rapid space in the upcoming Metro corridors and property and land prices are going up. But Mr. Chugh pointed out that gone were the days when just an announcement of any major infra project such as a Metro spiked prices immediately.
“Completion of the projects remain the key. Only when projects see some real on-ground activity, will the real estate prices see an escalation. Therefore, before betting on things like property appreciation, it is wise to come up with educated predictions specific to the area and infrastructure project in question,” Mr. Chugh added.
