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CHENNAI | RESIDENTIAL

Market Indicators
Relative to prior period

Market Q3
2014

Market Q4
2014

Market Q1 Market Q2
2015
2015F

CAPITAL RATE
RENTAL RATE
NEW PROJECTS
CONSTRUCTION

This quarter Chennai residential market remained active


with demand coming from both end users and investors.
The demand was primarily for projects nearing
completion or ready to move in properties located in
micro-markets like Velachery and Medavakkam stretch
which have future growth potential due to low land prices
and developers offering project amenities in affordable
prices as compared to projects located along OMR belt.
Due to change in state environment assessment
clearance norm for under-construction projects many
projects were on hold. Earlier the certificate can be
obtained before the project completion but now it is
mandatory to obtain the environment clearance certificate
before the project launch. Due to this fewer prime
projects were completed this quarter such as Amara
Akasha by Amara homes at Perungudi, DLF
Commanders Court by DLF Ltd. at Egmore and
Appaswamy Mandarina by Appaswamy at
Kotturpuram. These projects were priced in the range of
INR 10,500 18,000 per sq ft in secondary market.
In premium segment new launches were in the price
range of NR 11,500 21,000 per sq ft. Projects launched
in this segment include Purva Evoq by Purvankara
Group at Guindy, Presidency by VGN Developers at

Market Trends
MICRO MARKETS

CAPITAL VALUES
(INR PSF)

% CHANGE
QoQ

YoY

Nungambakkam. Besides these several projects were


laucnhed in the price range of INR 3,100 6,750 per sq
ft including; Skanda by Navin Housing at Chromepet,
Harmony Victoria by Harmony Group at Potheri and
Emami Tejomaya by Emami Realty at Navallur.

Average Capital Value Trends

Average capital values in 1Q 2015 were largely remained


stable across all the micro market, except
Nungambakkam and Adyar where rents decline each by
9% QoQ and T Nagar where rents rose by 10% QoQ.
In a major land transaction Puravankara Group entered
into a partnership with a private equity group to acquire
around 31.69 acres in Poonamallee with a development
potential of 3.3 million sq ft. The land will be used to
develop a affordable housing project under the brand
'Provident' in three phases. The project is expected to be
launched with all statutory approvals by the end of this
financial year with a target of completion within 60
months.

Source: Colliers International India Research

Average Rental Values

Colliers View
Chennais residential real estate is expected to see rise
in demand from both investors and end users in 2015.
Development of grid road along Outer Ring Road and
other infrastructure initiatives such as metro system and
rail over bridges will improve connectivity within various
part of the city and will drive residential demand in
peripheral areas. Overall capital and rental value are
expected to see marginal appreciation in next three
quarters but rents will remain stable.

National Director
Residential Services
sumit.jain@colliers.com

Manager
Residential Services | Chennai
abubaker.siddeek@colliers.com

Director
Residential Services| India
arvind.kapoor@colliers.com

Source: Colliers International India Research

Associate Director
Research Services
surabhi.arora@colliers.com

Manager
Research Services
sachin.sharma@colliers.com

Colliers International (India)


Property Services Pvt. Ltd.
Copyright 2015 Colliers International.
The information contained herein has been obtained from sources deemed
reliable. While every reasonable effort has been made to ensure its accuracy, we
cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are
encouraged to consult their professional advisors prior to acting on any of the
material contained in this report.

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National Director
Valuation & Advisory
Services and Research
amit.oberoi@colliers.com