Medavakkam and South Chennai Are Preferred Locations for Residential Investment

Medavakkam is an area located towards the south west direction of Chennai at a distance of 20kms. The area has grown significantly in terms of infrastructure and capital values because of the area’s strategic geographical situation. Home buyers are quite fond of the area and there is much scope for development which has compelled developers to come up with projects for the area. 
 

Location of Medavakkam 

Localities which border Medavakkam are Velachery towards the north, OMR or Old Mahabalipuram Road towards the south and the Grand Southern Trunk Road or GST towards the south west. The proximity to such prominent locations has ensured that IT employees who choose houses in Medavakkam are not too far from their offices. Medavakkam is seeing a rise in house for rent in Chennai along with purchase because of its IT corridor. 

 Aside from the connectivity, the broad paved roads are an added benefit for house buyers. Social infrastructure is quite well developed here as it has many colleges, schools, hospitals and religious destinations as well. The Metropolitan Transport Corporation or MTC is the main public transport here and it connects the area to all landmarks around and in Medavakkam. One of the facts to note is that the Velachery- Tambaram Road and the Pallavaram-Thuraipakkam Road have made routes simpler around Medavakkam. Via this route, the international airport is located only 12kms from Medavakkam and the Chromepet Railway Station only 9kms. The monorail under construction is another prospect to which house hunters are looking forward. The physical and social infrastructure of Medavakkam has secured its position as a residential locality. The OMR was earlier the most sought after destination for the connectivity offered by it. However, the OMR is becoming saturated which means that Medavakkam has gained the top spot.

Price of Property

The capital values of Medavakkam have gone by up 20 percent within a span of 2 years. Currently, the per square feet rate is around Rs 4500 to Rs 5000 per square feet. Most of the units are 2BHK ones and available within the price bracket of Rs 30 lakhs to Rs 60 lakhs. Their size ranges between 850 sq. ft. and 1200 sq. ft. Most trends watchers opine that residential plots are coming up as investment options. Prices of such plots begin from Rs 7 lakhs and they can be priced at Rs 2 crores even. The price of the plot is dependent on the location and the fact whether it overlooks the main road or is front facing.

On the whole, properties in South Chennai have had appreciation within the range of 10 percent to 20 percent in the past 18 months. Property prices have increased significantly and the realty market may grow even quicker because of the presence of commercial properties and schools and proximity to areas such as OMR, Velachery, Tambaram and Pallavaram which are more expensive. Therefore, if you want a well-connected location which is quite affordable now and has good possibility of appreciation, you could buy property in Medavakkam.

One of the intriguing facts about Chennai’s real estate market is that property buyers are heading mostly towards South Chennai. Of the 10 most preferred locations in Chennai, 8 belong to the south. What could be the reason behind this phenomenon?

Organization of South Chennai 

Residential units, closeness to commercial spaces, traffic, healthcare and avenues for entertainment such as clubhouses and beaches are more organized in South Chennai. This is one of the reasons why early buyers and investors got attracted to South Chennai. The area continues to draw a lot of expats and NRIs also. Families prefer staying here because of closeness to schools and good social fabric. This has also led to a growth in interest among developers. North Chennai is progressing slowly towards infrastructure development such as construction of ring roads and smart city development. Kolathur and Ponneri are two of the preferred destinations in North Chennai. Despite ongoing projects, development in Chennai is quite slow. Compared to that, newer projects are being constructed in Chennai which offer appreciation prospects in the long run.

Why is Northern Chennai lagging behind?

In terms of development, North Chennai took off much later than the south. This is one of the reasons why social infrastructure in North Chennai is not well developed. Low occupancy led to slower development. North Chennai was mostly an industrial area that had lots of plans and warehouses. Aside from areas such as Ayanavarm, Perambur and Kolathur, most of the other localities have failed to attract interest of developers. The property market in this area is moving slowly and hence even if the cost of land is less, investors are hesitant about putting out in the local market.

Certain areas such as Ponneri are coming up as residential locations but only in the long term would it be beneficial. Currently, issues of land acquisition have to be taken care of. The government also needs to focus on better infrastructure and transport of North Chennai. Those residents of OMR who have house for rent in Chennai prefer the East Coast Road for buying properties. Even though the OMR is located close to work sites, the ECR provides better infrastructure.

Residents of OMR have to deal with water crisis as no groundwater is there and the municipal corporation cannot provide it. Residents have to buy water for everyday use. This is one of the reasons why the ECR is better for residents and they are willing to sacrifice connectivity for convenience. 

Despite having excellent connectivity, traffic in North Chennai is a problem. Roads require a facelift as 30 ft. roads are treated as highways which makes commuting tough. Also, heavy vehicles on roads cause difficulty in driving.

In terms of property prices, North Chennai is both an advantage and a disadvantage. Admittedly the price of property is low but buyers would have to compromise on the infrastructure available. Most market watchers however believe that all is not lost in North Chennai. With proper infrastructure and environment monitoring, North Chennai too could turn out to be investor friendly. When South Chennai gets saturated, North Chennai shall mature, which has been the case in many metro areas which have expanded.