Mostly driven by strong demand from multinational companies, IT, banking and financial sectors commercial rental values in Chennai’s Central Business District (CBD) that encompasses Nungambakkam, Salai, Anna Nagar and Adyar areas have increased by 5-15 per cent in the past six months, sources inform, adding that these companies require Grade-A quality office space in Chennai but are not satisfied with the present state of infrastructure.
Current commercial rental value in Chennai varies from Rs 30-55 per sq. ft, while rental values of commercial properties in Chennai viz. offices and shops located at CBD region is reported to have the highest rental values at around Rs 45-55 per sq. ft. These rental values decreases off CBD region of about Rs 35-40 per sq. ft.
Chennai properties around the south-west part of the city are likely to enjoy a northward rally in the next couple of years. The business opportunities created by the modernization of airport would boost the property values in the areas around the facility. As per the reports of MagicBricks reports, the capital value for a residential apartment in Vela Chery hovers between Rs 2,500 and Rs 3,000 per sq. ft, at present. The market observers say that the capital values and rentals have already corrected by about 10-20 per cent in the past 8-12 months and market is apt for investment purposes.
According to the property experts, the areas of Guindy and Vela Chery would be among the most-benefited. Besides, the property prices in Chennai’s Saidpet area are also likely to go up as the airport project would progress.
Property investors might also be interested in locking properties around Inner Ring Road, in expectation of earning handsome gains. The road connects the central city localities like Kodambakkam and Mambalam with the airport.
Most encouragingly, the hotels and hospitality industry can leverage the benefits by securing suitable land areas in the areas. As the number of incoming passengers would rise in Chennai, demand for hotel rooms and service apartments would trigger like a bullet.
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