North Chennai is witnessing a surge in real estate development with over 50 new residential projects currently in various stages of development.
Real estate experts attribute this growth to various reasons, including the expansion of Chennai Metro and ongoing infrastructure projects in the region.
The availability of affordable land here attracts buyers. Notably, land prices in north Chennai are lower compared to other parts of the city, making it a cost-effective option for real estate projects. The north Chennai region comprises places such as Madhavaram, Tiruvottiyur, Perambur, Kolathur, Purasawalkam, Tondiarpet, Ennore, Manali, Royapuram, Sowcarpet and Moolakadai.
According to details shared by the Confederation of Real Estate Developers Associations of India (CREDAI) Chennai, the presence of e-commerce segment is driving the demand, with places from Madhavaram-Red Hills belt till Periyapalayam and Orakkadu cluster witnessing high absorption rate. The Periyapalayam Road and Red Hills are emerging as preferred corridors for Grade A developments, with the presence of large warehouse facilities. All these factors are attracting real estate developers.
“North Chennai is poised for exponential growth in the coming years, driven by a confluence of factors, including the expansion of the Chennai Metrorail, development of new infrastructure projects, and the increasing affordability of land. Its strategic location, industrial ties and connectivity make it a thriving hub, shaping the region into a sustainable and inclusive cityscape,” S. Sivagurunathan, president of CREDAI Chennai, said.
Jerry Kingsley, Head – Strategic Consulting & Value & Risk Advisory India, said: “Many new developers have ventured into north Chennai with mid-sized projects. We are also witnessing a trend of established developers, who had earlier refrained from [taking up projects] in this part of Chennai, currently launching high-rise residential towers in these areas.”
On the pricing in this region, Mr. Kingsley said: “Each project is different with respect to sizing, location and type. The tentative range for residential apartments in these areas would be ₹5,000 per sq ft. to ₹15,000 per sq ft.”
Ranjeeth Rathod, Managing Director of DRA Homes, who has three ongoing projects in north Chennai, pointed out that the region was a hub for traders. There are IT firms here. Many logistics firms have also come up, he said, adding: “All these are pushing up the demand for homes. Places like Tiruvottiyur have picked up and got into apartment culture.”
“North Chennai owns the city’s cultural and lifestyle essence. However, till recently, its image was marred. Infrastructure projects here, such as the development of Minjur Satellite township, ‘Vada Chennai Valarchi Thittam’, are definitely helping increase confidence among buyers, said a source in the real estate industry.
However, there are challenges too. Industry players and people in the region whom The Hindu spoke to said many areas in north Chennai face water shortages, especially during summer, and highlighted the need to improve water supply infrastructure. “Inadequate drainage systems contribute to waterlogging and flooding during rain, posing risks to residents and infrastructure. Besides, shortage of parks, playgrounds, and public spaces limits recreational opportunities and affects the overall well-being of the community,” said a CREDAI official.
CREDAI said that the State government’s announcement of the ‘Vada Chennai Valarchi Thittam’ with a substantial investment is a positive step. However, a comprehensive and sustained approach, involving collaboration with local communities, was essential to address the multifaceted challenges faced by residents in north Chennai.
