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Page 1: Chennai Realty Cityscape - teja9.kuikr.comIndustry Overview Aerospace sector Chennai is proposed to have Chennai Aero Park which will be the largest integrated aerospace ecosystem

QuikrHomes |December- 2016

Chennai Realty Cityscape

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Executive Summary

Chennai, generally known as the Gateway to southern India, is well known for its temples, port centric business,engineering, manufacturing and IT/ITES sector.

Chennai is experiencing a high growth rate (as per the study conducted by National Housing Bank) post 2008-2012 global financial crisis. This cosmopolitan city ranks 6th in housing the country’s ultra-rich population. InChennai, residential housing prices rose over 11 per cent during the Q4- 2014 quarter, as compared to the samequarter a year earlier. While other major cities were struggling with the global financial crisis and took long timeto overcome the after effect, the Chennai residential market has witnessed speedy recovery.

Chennai floods in 2015 have left a grave impact on the real estate market, the market sentiments headed towardssouth with marginal increase in capital price and stagnation in new launch supply. The realty sector faced awhopping loss of Rs.30,000 crore approximately.

Improved social and physical infrastructure development and easy accessibility and connectivity via railroadnetwork is the backbone of the Chennai residential market and has significantly boosted real estate developmentin and around the region. Further development of Ponneri Smart city in North Chennai and development ofChennai -Bangalore Industrial Corridor (CBIC) will surely impact the residential market of Chennai and boostcommercial activity between Bangalore and Chennai. Additionally, CBIC will provide world class connectivity to aport (Chennai) in the Bay of Bengal.

The Chennai residential market has noted a decrease of new launch supply in 2016 compared to its previous year,an approximate 57 percent downfall has been witnessed. Post flood the market sentiments remained weak and amarginal number of launches in South and West Chennai have been witnessed. However, there was animprovement in housing sales observed during 2016.

South & West Chennai remained the cynosure of real estate development in the city. The commercial corridoralong with the Old Mahabalipuram Road and global manufacturing companies along Sriperumbudur hasimpacted the real estate scenario in the region with the rise in demand of more housing units. An approximate12,620 dwelling units has been infused in the residential micro markets of these zones in 2016. Which is 97percent of overall new launch supply in the year 2016.

The Old Mahabalipuram Road (OMR) stretch has witnessed some positive traction during 2016, a mix ofaffordable and mid segment projects by reputed builders have been launched in this belt. Kelambakkam,Sholinganallur and Maraimalai Nagar are some of the active micro markets of OMR road and have contributedsignificantly to dwelling supply.

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1. INTRODUCTION/CITY OVERVIEW

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Overview: Chennai City

Chennai, popularly known as Madras until 1996, is not just the capital of Tamil Nadu but also the fourth largestmetropolitan city in the country. Situated on the Coromandel Coast of the Bay of Bengal, this city is termed to be the‘Gateway of the South’. Having undergone a series of historical metamorphosis since 1th Century, Chennai has emerged asone of the cosmopolitan cities in India.

Chennai Metropolitan Area (CMA) has been constituted in the recent years, by the agglomeration of the metropolitan cityof Chennai and its suburbs making it one of the important center in terms of culture, trade, commerce and education andfourth-most populous urban agglomeration in India. With Chennai selected among the 20 Indian cities to be transformedinto a Smart City, under the Smart Cities Mission launched by the Government of India, there will be huge development inthe near future.

Economic Overview of the City

Chennai has a well-balanced and diversified economy between manufacturing and service sectors. Chennai’s economy iscurrently the fourth largest in India and is forecasted to grow to 100 million dollars (which is 2.5 times the current rate) bythe year 2025. It is one among the top 10 fastest growing cities in the world according to Forbes Magazine. The city rankedat 4th position and boasts of hosting vast number of Fortune 500 companies of India.

Industry Overview

Aerospace sectorChennai is proposed to have Chennai Aero Park which will be the largest integratedaerospace ecosystem in the whole world. Mahindra Aerospace has its largest R&D facilityof India in Chennai

Automotive sector

With a major chunk of India’s Automobile industry prevailing in and around Chennai, it isoften referred to as the ‘Detroit of South Asia’ attributing to the highest percentage (60%)of automotive export. The prominent automotive companies present here are BMW,Caterpillar, Hyundai, Nissan, Daimler, Apollo Tyres, Ashok Leyland, Royal Enfield andMahindra & Mahindra

Banking and Finance sector

Chennai plays a vital role in World banking and finance with many financial institutionshaving their headquarters here. World Bank, Asian Development Bank, Goldman Sachs,ABN AMRO, Citibank, Standard Chartered Bank and Deutsche Bank run their DevelopmentCentre operations from Chennai

Electronic/ Hardware Manufacturing sector

Chennai is a hub to Electronic and Hardware manufacturing plants with the major players-Dell, Samsung, Sony Ericsson, Siemens, Flextronics, Xerox, Cisco, Huawei, NokiaCorporation and Sanmina-SCI

IT sector

Chennai also gained popularity for being the second largest exporter of software,Information Technology (IT) and IT enabled Services (ITeS) particularly Business ProcessOutsourcing (BPO). According to AT Kearney's Indian City Services Attractiveness Index,Chennai is one of the most attractive cities for offshoring services.

Medical TourismChennai is also one of the largest healthcare provider in Asia with the presence of topmedical institutions such as Apollo Hospitals, Adyar Cancer Institute, Sri RamachandraMedical Centre, Sankara Nethralaya, MIOT Hospitals and Fortis Healthcare

Retail and Real Estate sector

Chennai is experiencing a high growth rate (as per astudy conducted by National HousingBank) post 2008-2012 global financial crisis. This cosmopolitan city ranks 6th in housingthe country’s ultra-rich population

Table 1.1: Economic Industry Overview

Chennai City Area: 426 Sq.km Chennai Metropolitan Area: 1189 Sq.km

Population: 4.6 million Population: 8.6 million

Quick Facts

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Price Index : Chennai vs Top Cities

Figure 1.1: Price Index - Top Cities

As per the National Housing Bank’s Residex index, Chennai city has witnessed an upsurge in residential property pricescompared to other major cities. National Housing Bank’s Residex index tracks the movement in prices of residentialproperties on a quarterly basis and cover 26 major cities in India.

In Chennai, residential housing prices rose over 11 per cent during the Q4- 2014 quarter, as compared to the same quartera year earlier. Being an end-user market, the Chennai residential market recovered on the fast pace during the globalfinancial crisis and recorded a significant upsurge in residential demand. However, post the flood Chennai’s residentialmarket has witnessed a slight decrease in new launches.

Impact of Chennai floods on the property market

Chennai floods in 2015 have left a grave impact on the real estate market, disturbing the city’s sentiments. Prospectiveinvestors have held back on buying decisions to purchase properties in low lying areas of Chennai. The realty sector faceda whopping loss of Rs.30,000 crore approximately. Micro markets in Chennai which are adversely affected and shunned bymajority of the buyers post-floods are Tambaram, Urapakkam, Mudichur, Perumbakkam, Velachery, Saidapet, Pallikaranaiand Keelkattalai.

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2. CITY ZONES OVERVIEW

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Overview: City Zones

Chennai, being a coastal city bound by Bay of Bengal on the eastern direction, the city has been constantly growing andexpanding in-land. Presently, there are four broad zones in Chennai namely Central, West, North and South zones

Central Zone

The central zone of Chennai is the oldest, most developed and is the commercial heart of the city. Central Chennai offersexcellent connectivity and there are a huge number of offices in the Central Business District (CBD). This zone of Chennaiconstitutes of both high-rise residential properties as well as independent units and bungalows.

Prominent Localities: Egmore, T Nagar, Anna Salai, Nungambakkam, Mambalam, Triplicane, Boat Club Road and PoesGarden

Illustration 1.0 : Map depicting Central Chennai Zone along with its prominent localities

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West Zone

With increasing saturation in Central Chennai, West Chennai has evolved in terms of real estate development. Presence ofMultinational companies like Hyundai, Dell, Nokia, Samsung and Saint-Gobain along with the electronic hardwareestablishments in Sriperumbudur and Auto ancillary manufacturing units in Oragadam led to a growth in the residentialmarket in this zone. IT and financial companies along the Chennai Bypass Road and ORR are boosting up real estate in WestChennai

Overview: City Zones

Prominent localities: Maduravoyal, Vanagaram, Iyyappanthangal, Avadi, Poonamallee, Sriperumbudur, Villivakkam, Porur,Koyambedu, Ambattur and Oragadam

Illustration 2.0 : Map depicting West Chennai Zone along with its prominent localities

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Overview: City Zones

North Zone

When compared to West and South zones of the city, Northern Chennai predominantly comprises of industrial pockets andport-related activities due to the presence of the Chennai Port and Ennore Port; thereby restricting real estate growth inthis region. Other factors hampering development here are narrow arterial roads and non-availability of vacant land.

Prominent localities: Red Hills, Tondiarpet, Perambur, Ayanavaram, Vyasarpadi, George Town, Madhavaram, Purasavakkam,Kolathur and Ennore

Illustration 3.0 : Map depicting North Chennai Zone along with its prominent localities

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South Zone

Due to the presence of IT parks, SEZs and manufacturing units, the South Zone of Chennai has evolved as a commercialhub along the Old Mahabalipuram Road (OMR) and Grand Southern Trunk (GST) Road. These establishments in turn havegiven a boost to the real estate market in this region.

Prominent localities: Velachery, Maraimalai Nagar, Navalur, Alandur, Old Mahabalipuram Road (OMR), Perungudi, GrandSouthern Trunk (GST) Road, East Coast Road (ECR), Adyar, Medavakkam, Chromepet, Siruseri, Vandalur, Tambaram andSholinganallur.

Overview: City Zones

Illustration 4.0 : Map depicting South Chennai Zone along with its prominent localities

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3. INFRASTRUCTURE OVERVIEW

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Infrastructure Overview

Major Infrastructure Projects: Existing

Name Connectivity Description

Old Mahabalipuram Road (OMR)

From Madhya Kailash junction to Mahabalipuram

It connects the city centre with the southern part of Chennai viz. Perungudi, Siruseri and Kelambakkam

East Coast Road (ECR)From Thiruvanmiyur to Mahabalipuram

Exists parallel to OMR, it connects coastal suburbs of South Chennai

Bypass RoadFrom Krishna Nagar toMettupalayam

It connects southern Chennai to Northern Chennai

Inner Ring RoadConnects OMR in Thiruvanmiyur to SH 104 near Manali

It runs close to Central Chennai through locations viz. Koyambedu, Villivakkam, Anna Nagar

Outer Ring RoadFrom Vandalur till Nemilichery The six-lane highway connects GST

Road with the Chennai-Bangalore Highway and NH-205

Chennai-Bangalore Highway (NH-4)

From Chennai Central Railway Station to Bangalore

It connects western areas namely Poonamallee and Sriperumbudur with the city Centre

Chennai Kolkata Highway (NH-5)From Basin Bridge to Kottur It connects Chennai Port with the

Northern parts of Chennai

Anna Salai-GST Road (NH-45)From Fort St. George to Mahindra World City via airport

It provides connectivity from city Centre to southern Chennai.

Table 3.1: Existing Infrastructure Overview – Road Network

Rail Network

Road Network

Name Connectivity Description

MRTSChennai Beach - Thiruvanmiyur -Velachery

It connects Velachery via TIDEL Park to the central part of Chennai

Suburban Rail: West LineChennai Central - Avadi - Tiruvallur-Arakkonam

It connects the North-western areas of Ambattur and Avadi with central Chennai

Suburban Rail: North LineChennai Central - Ennore -Gummidipoondi-Sullurpeta

It connects northern Chennai with Central Chennai via Tondiarpet

Suburban Rail: South LineChennai Beach- Chengalpattu-Villupuram

It connects southern Chennai with Central Chennai via St. Thomas Mount

Suburban Rail: South-West LineChennai Beach - Tambaram -Chengalpattu

This line runs parallel to GST Road, connecting the Central Chennai with Mahindra World City via Tambaram

Suburban Rail: West-North LineChennai Central- Tiruvallur-Arakkonam- Tiruttani

It connects the central part of Chennai with the west-northern parts via Villivakkam

Suburban Rail: West-South LineChennai Beach- Royapuram-Washermanpet- Perambur-Arakkonam

It is the longest line running in the west-south direction from Central Chennai.

Table 3.2: Existing Infrastructure Overview – Rail Network

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Illustration 5.0 : Map depicting existing infrastructure in Chennai

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Infrastructure Overview

Major Infrastructure Projects: Upcoming

Name Connectivity Description Tentative commissioning

Ponneri Smart City Ponneri

A 21,995 acre area in Ponneri is being developed as a major industrial node and smart city over the next 20 years in three phases

Yet to be announced

Greenfield Airport Sriperumbudur

It is the second international airport built on 4,820 acre along NH-4. It is expected to operate along with the existing airport at Meenambakkam

2017

Chennai-Bangalore Industrial

Corridor (CBIC)

Runs through Chennai, Sriperumbudur, Chittoor,

Ponnapanthangal, Ranipet, Chittoor, Bangarupalem, Palamaner, Bangarpet, Hoskote and Bangalore

The corridor (which passes through the states- Andhra Pradesh, Tamil Nadu and Karnataka) is proposed to boost commerce between South India and East Asia by enhancing the transportation of goods from industrial nodes to Chennai/Ennore ports

Yet to be announced

Chennai Aerospace Park Sriperumbudur

The aerospace industrial park is being set up on a 250 acre campus (expandable to 700 acre). It is proposed to cater exclusively to aerospace technology and manufacturing of its components.

Yet to be announced

Table 3.3: Upcoming Infrastructure Overview

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Infrastructure Overview

Major Infrastructure Projects: Upcoming

Road Network

Name Connectivity Description Tentative commissioning

Outer Ring Road Phase IINemilicherry- Nallur-

Minjur

It will connect NH-205 with Chennai-Kolkata highway and TiruvottiyurPonneri Panchetti (TPP) Road at Minjur through a six-lane highway

2017

Maduravoyal ExpresswayMaduravoyal- Chennai

Seaport

It is a 19 km elevated expressway proposed between Maduravoyal in the west and Seaport along the Cooum River. The project is currently on halt pertaining to disagreements on alignment of the expressway

Yet to be announced

Table 3.4: Upcoming Infrastructure Overview – Road Network

Name Connectivity Description Tentative commissioning

Metro Corridor IWashermenpet - Chennai Central station - Chennai

International Airport

It will connect Chennai International Airport and central Chennai via Guindy

2017

Metro Corridor IIChennai Central - Anna Nagar - Vadapalani - St.

Thomas Mount

It will connect the city Centre and St. Thomas Mount

2017

MRTS ExtensionVelachery - St. Thomas

Mount

It will connect the metro and MRTS lines at St. Thomas Mount, connecting GST Road to Perungudi and Central Chennai

2017

Monorail Corridor I Vandalur - Kathipara

It will connect Vandalur and Tambaram with central Chennai via Velachery

Beyond 2020

Monorail Corridor II Poonamallee - KathiparaIt will connect West Chennai via Porur

Beyond 2020

Monorail Corridor III Porur - VadapalaniIt will increase connectivity between Porur and Vadapalani

Beyond 2020

Rail Network

Table 3.5: Upcoming Infrastructure Overview – Rail Network

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Illustration 6.0 : Map depicting upcoming infrastructure in Chennai

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4. RESIDENTIAL MARKET OVERVIEW

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Residential Market Overview

The Chennai residential market has witnessed anincrease in new launches during H1 2016 over H22015, the residential supply in the city had beendeeply affected by the flood in H2 2015.

2016 remained a relatively silent time frame in theChennai residential market, as the city has witnesseddecrease in new launch supply during this period,compared to previous years.

Figure 4.1: Residential Property Supply Trend in Chennai

With more residential demand in the market orientedtowards ready-to-move units, there is a high developerinterest in projecting much earlier completion schedules.

About 95 per cent of the under construction residentialsupply is about to hit the market by 2017

Figure 4.2: Residential Property Possession Trend in Chennai

Luxury residential projects are seen to be taking agood share of the market from the second half of 2015with growing appetite of the homebuyers for premiumapartment projects.

Figure 4.3: Residential Property Budget Breakup Trend in Chennai** Note: A-Affordable, M-Mid, L-Luxury, UL- Ultra Luxury

Residential Supply Trend (half yearly) – 2012 onwards

Possession Trend (half yearly) – 2012 onwards

Residential Supply segmentation Trend (half yearly) – 2014 onwards

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Residential Supply Property Type Distribution Trend (half yearly) -2014 onwards

Residential Market Overview

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Figure 4.4: Residential Property Typology Distribution Trend in Chennai

Inline with other metro cities, though Chennai has been picking up the trend of Apartment culture, the city also continues toshow a good appetite for Independent Houses and Villa units.

Limited availability of land near to city Centre has inclined the developer interest towards vertical growth of the city.

Zone wise Supply Trend (half yearly) -2014 onwards

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Figure 4.5: Zone Wise Supply Trend in Chennai

It is a known trend that the residential market in the city of Chennai is driven by two major industries, the IT sector towardsthe South along both OMR and ECR roads and the manufacturing industry which leads the way towards East and South-eastalong GST and Sriperumbudur Roads.

The realty market in North Chennai remained subdued, due to non availability of land parcel for residential developmentand congested roads in the region.

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Residential Market Overview

Key Micro Markets of the Chennai City

As per the discussion above, we can understand that OMR Roadhosts multiple residential markets. This serves employees fromnearby technology commercial establishments and has been amajor go-to destination for home buying as well as rental units.

Lately there has also been growing interest in the residentialcorridor being developed along the GST Road with prominentmarkets including Chrompet and Guduvanchery.

Figure 4.6: Key Micro Markets in Chennai

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Pallikaranai

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AvadiOragadam

Poonamallee

Ambattur

Perungalathur

Pallavaram

Medavakkam

Kelambakkam

Chromepet is the second top micro-market in Chennai. Positioned in Southern part of Chennai, Chrompet real estate iswitnessing great demand from the IT professionals. This micro market is situated along the Grand Southern Trunk (GST)Road, close to Tambaram and next to Pallavaram. Having a strategic location, this suburb is easily connected to all parts ofthe city through road and railway networks.

Located in the outskirts of South Chennai on the National Highway 45, Guduvanchery is being increasingly preferred forbuying residential properties by home buyers due to well-laid infrastructure, easy accessibility to railway station, airport andproximity to educational institutions namely SRM University, Mahindra World School, Vidya Mandir CBSE School, SankaraVidyalaya etc.

Chromepet

Guduvanchery

OMR Road

OMR or the Old Mahabalipuram Road is the top micro marketfor real estate developments in Chennai. The road harboursmultiple micro markets such as Taramani, Perungudi,Thoraipakkam. Emergence of IT/ITeS establishments along thisroad has given a boost to the residential as well as commercialdevelopment.

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5. 2016 RESIDENTIAL RECAP

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2016 Chennai Residential Market Recap

South Chennai60% West Chennai

37%

North Chennai2%Central Chennai

1%

South Chennai West Chennai North Chennai Central Chennai

Figure 5.1: New Launch Supply Split Zone Wise

Zone Wise Distribution of New Launch Supply - 2016

Chennai has seen active residential launches towards bothSouth and Western zones in the year 2016 even thoughdeveloper interest towards South Chennai is growingsignificantly as compared to Western Chennai.

West Chennai is observed to be slowly catching-up withresidential launches in the Southern markets and offersmore affordable alternatives in comparison. There is hugescope of growth and is seen to be concentrated in someprominent markets such as Vadapalani, Poonamallee,Vanagaram, Avadi, Iyyapanthangal and Porur from therest.

South Chennai has been a busy destination for developersresulting in more diverse residential markets offering a range ofaffordable and mid segment projects. Recent interest has beenidentified in markets such as MaraimalaiNagar,Navallur,Kelambakkam,Madambakkam, SingaperumalKoil and Kolapakkam the most amongst others.

South Chennai Key Micro Markets - 2016 West Chennai Key Micro Markets - 2016

Figure 5.2: South Chennai Key Micro MarketsFigure 5.3: West Chennai Key Micro Markets

22%

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Vanagaram

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Porur

Avadi

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Maraimalai Nagar

Navallur

Kelambakkam

Madambakkam

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Kolapakkam

Others

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2016 Chennai Residential Market Recap

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Segmentation of New Launch Supply - 2016

Figure 5.4: Segment wise break up

** Note: A-Affordable, M-Mid, L-Luxury, UL- Ultra Luxury

Emergence of large scale residential projects by someof the prominent developers and builders in the cityare the reason for domination of Affordable and Midsegment projects both towards West and SouthChennai.

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Segmentation of New Launch Supply Breakup wrt Key Micro Markets of South & West Chennai - 2016

Figure 5.5: Segment wise property break up

South Chennai has been more in focus in terms oflarge scale residential projects with more traits ofaffordability. These seem to be majorly concentratedin markets such as Singaperumal Koil, Madambakkamalong with Kelambakkam amongst others.

Western Chennai has seen a more premium segmentresidential launches this year with Vadapalani havingall luxury projects.

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2016 Chennai Residential Market Recap

OMR – A Closer Look

Also known as the ‘IT Corridor’, OMR (Old Mahabalipuram Road)is promoted by Government of Tamil Nadu as a world-class techdestination with about three-fourths of Tamil Nadu’s softwareexports being shipped out of the corridor which runs fromMadhya Kailash to Siruseri. More than 1.2 lakh employees workat the IT companies present in this belt. Along with the presenceof Asia’s largest IT Park i.e. Tidel Park, the other technology parkspresent here are SIPCOT IT Park, TECCI Park, International TechPark, Futura Tech Park and Pacifica Tech Park.

The prominent IT/ITeS establishments in this corridor are TataConsultancy Services, Wipro Technologies, Infosys, PolarisSoftware Lab, Cognizant Technology Solutions, HCL Technologies,Satyam Computer Services, Wipro Technologies, ScopeInternational, Accenture India, Photon Infotech and BahwanCyberTek Group.

Price Trend of key Micro Markets along the corridor

0

1000

2000

3000

4000

5000

6000

7000

8000

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Kelambakkam Thoraipakkam Maraimalai Nagar

Sholinganallur Karappakam Semmencherry

Perungudi Navallur

Figure 5.6: Price Trend

There has been a marginal increase of prices witnessed inOld Mahabalipuram road and its adjoining micro markets,the residential property prices in the key micro marketsremained muted and weaken during the third quarter of theyear 2016. On an average, the key micro markets along the50 km stretch have grown at the rate of 4 percent on YOY.

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2016 Chennai Residential Market Recap

Project/Unit Launches along the corridor

Property Segment

Project Name Builder Name Locality Total Units Min. Ticket Prize

Affordable Advaita Blossom Advaita Homes Kelambakkam 356 1,985,998

AffordableSree Harsham Sree Builders Maraimalai

Nagar32 2,734,623

AffordableStepsStone

PrasanasApartment

StepsStoneConstructions

Sholinganallur 76 3,042,239

Mid Ashiana Sumbham

Ashiana Housing Maraimalai Nagar

872 1,952,160

Mid BBCL Midland BBCL Sholinganallur 108 3,667,083

Mid PBEL City Tower Siesta

PBEL Property Development India Pvt Ltd

Kelambakkam 68 3,873,750

Mid Radiance Liberty Radiance Realty Developers India

Ltd

Navallur 484 2,379,405

Luxury Casa Grande Perungudi

Casa Grande Private Limited

Perungudi 50 6,600,000

Table 5.1: Key Launches of 2016

Three projects namely, Advaita Blossom by Advaita Homes, Ashiana Sumbham by Ashiana Housing and Radiance Libertyfrom Radiance Realty Developers India have been some of the star projects to be noted down in terms of scale andaffordability. While Casa Grande Perungudi by Casa Grande Private Ltd is a luxury residential markets to look out for.

Developer Share along the corridor

43%

24%

17%

5%

4%3% 2%

2%Ashiana Housing

Radiance RealtyDevelopers India Ltd

Advaita Homes

BBCL

StepsStoneConstructions

PBEL PropertyDevelopment India PvtLtdCasa Grande PrivateLimited

Surely, OMR Road has been the concentration of bigbuilders in the city. This year, there have been multipleresidential launches catering to affordable and midsegment mostly from well known builders in the citysuch as Ashiana Housing, Radiance Realty DevelopersIndia Ltd, Advaita Homes and Casa Grande Pvt Ltdamongst many others

Figure 5.7: Developer Share

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Outlook

The Chennai residential market is one of the most stable amongst the top major cities and has witnessed exponentialgrowth over the past decade. IT/ITES, manufacturing and trading industry has changed the real estate landscape of the cityand will continue to do the same. Additionally, Tamilnadu government initiatives to improve and upgrade the currentphysical infrastructure development will boost the real estate activity in the city.

The Real Estate (Regulation and Development) Act and the Benami Transactions (Prohibition) Amendment implemented inthe year 2016, will ensure the transparency in real estate sector and also help home buyers to take informed decisions. TheCentre’s move to demonetize Rs 500 and Rs 1000 currency notes has hit the residential property market, making it morefavorable for the buyers. Property developers in the city are reported to be cutting prices by up to Rs 20 lakhs on slow-moving projects.

With the impact of demonetization and regulatory bills on the Chennai residential market, the coming time frame will surelywitness price correction and transparency in the unorganized real estate sector, it seems that for home buyers “ache din”will not be a distant dream.

The South and West Chennai micro-markets shall continue to remain as the most sought after destinations for home buyersdue to the availability of commercial office spaces, improved social and physical infrastructure and IT population in theregion.

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Copyright © 2007-16 QuikrHomes | CommonFloor. All rights reserved.The information provided herein is based on QuikrHomes & CommonFloor data which is collected from various publicly known sources viz, websites, documents and mapsincluding QuikrHomes & CommonFloor's proprietary data model. Projects mentioned in the report are selected solely on basis of various parameters including number ofunits, price range and unique selling point, among others. The selection, omission, or content of items does not imply any endorsement or other position takenby QuikrHomes & CommonFloor.The information is provided on an "as is" and "as available" basis. QuikrHomes & CommonFloor expressly disclaim warranties of any kind, whether express or implied,including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose and non-infringement.

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Rahul Panwar Meruga Pallavi Abhai Mani Chaturvedi Asst. Manager | Research Research Associate | Research Senior Manager | Research & Data Services [email protected] [email protected] [email protected]