Pallavaram-Thoraipakkam radial road is the new destination for Chennai-ites who look to invest in a new property. A survey conducted by IKIA Research team has revealed that the location is gaining preference due to the easy connectivity it provides between OMR and GST together with its accessibility to the airport. The average time required traveling on this stretch of 15 kilometers between OMR and GST road is 40 minutes, which is much lesser when compared to the time taken to travel a similar distance within the city. With the metro increasing its connectivity into the suburbs this location will be accessible in minutes.
Corporates could not wish for a better location to set up shop here due to the above reasons. The fact that there is connectivity to the main arterial roads has made this a destination, developers are vying for. Embassy Splendid Techzone, a SEZ Project venture between Embassy group and SNP Infrastructures Pvt Ltd is developing a 2 million square feet office space in this location. This project is aiming to complete its first phase by year 2019.
Throwing open an office space close to 2 million square feet, would mean employment opportunities 1 lakh job seekers, by the IT and ITES sector who will be the major occupiers of this space. This will translate into more housing demand here in the future.
IKIA research team has put together a list of housing projects in the Embassy SEZ. These are all under construction or launched recently. The land parcels were acquired by developers when they were available at lower rates. Most of the reputed developers in Chennai are developing their projects here. Close to 95% of the inventory supply is in the 2BHK and 3BHK category and the rest 5% in the 1BHK category.
The projects are priced very competitively currently, making it an ideal investment destination for buyers. The prices range between Rs 4999 and Rs 6979 per sq.ft. These prices may increase when the SEZ projects come to completion and demand increases.
IKIA Research team foresees a capital selling price appreciation in the range of 5% to 7% year on Year plus a high rental demand growth at its peak this locality, once large corporate and the IT sector occupies the office spaces in the SEZ. Hence, this may be an ideal investment for those looking at RE investments that will provide returns within a span of few years, and for those who are looking at a steady rental income for a longer time span. Half a million square feet of residential inventory is already cleared as of now.
IKIA Research has put together the indicative price per square feet of some of the projects in the corridor.
The SEZ will initiate growth potential along the corridors of Velachery-Tambaram main road connecting Velachery and Tambaram via Medavakkam and Pallikaranai. Also along the Medavakkam Main road which connects Nanganallur and Medavakkam via Keelakattalai and Nanmangalam.
Another plus to the location is the elevation of the corridor which provides a natural protection from floods, now a priority for Chennaiites. With the above connectivity and other advantages mentioned here, the location will prove to be strategic to corporates. Chennai is watching this space grow, making this a significant chapter in the city’s RE book.