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Tamil Nadu
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Chennai
well placed: Owners of residential buildings near schools are laughing all the bank to the bank. CHENNAI: Proximity to schools is one of the factors that has played a major role in the rental appreciation of residential apartments in and around the city. Though the demand for new property or those available for rent near educational institutions is not new, it is now on the rise like never before with parents keen on getting their children admitted to good schools. “A rental appreciation of 30 to 50 per cent has taken place in Gopalapuram, thanks to the impact of DAV School. The Royapettah area beyond Lloyds Road, just a km away, has relatively normal rental rates,” says V. Sadasivam, senior civil engineer and property valuer. “SBOA School, Anna Nagar West Extension, also has displayed a strong pull factor of parents looking for a school-friendly house for their children, particularly higher secondary students,” he says. With the area near SBOA School and Junior College showing signs of metamorphosing into a commercial neighbourhood from a residential locality, the task of those searching for residential accommodation has become tougher, he says. According to valuers, the land value near the school has increased from Rs.35 lakh per ground in 2002 to 1.6 crore now. “Areas just 1.5 km away have half the rental value of the SBOA neighbourhood,” says a civil engineer. Says a land valuation expert, “The chain effect of executives, with urgent need for a house near good schools, agreeing to pay a huge sum as rent has been one of the reason for the rising rentals. Recently, a bank executive agreed for a Rs.23,500 rent for a 1,300 sq.ft flat on Park Road near SBOA School. This kind of demand also acts as trigger for higher rate of rental appreciation around schools.” The increase in rentals has been even 80 per cent around some schools in certain parts of the city, he adds. The Area around PS Senior Secondary School, Mylapore, has also seen a rise in rental values over the past few years. Another reason for the families looking for accommodation closer to educational institution is the insistence of many schools that they would only admit those residing nearby. The parents too want their children feel comfortable going to school. This has also contributed to this rental development. “The DAV School and Velammal School in Mogappair have been another factor of rental appreciation of the surrounding areas. The area covered by 500-m radius of both the schools has rates of Rs.18 to Rs. 20 a sq.ft compared to the normal rate of Rs.12 to Rs. 14 in the area,” says another property valuation expert. This effect is visible in areas such as Besant Nagar, Adyar and Thiruvanmiyur. The north Chennai localities, which have seen relatively lesser rental appreciation as a whole in the past few years, have also demand for houses/apartments near educational institutions. Areas near Baktavatchalam Vidyashram Higher Secondary School in Korattur have rental values of Rs.12 a sq.ft., almost 100 per cent more than the prevailing rate in areas away from the school, says Mr. Sadasivam. The Don Bosco School and St. Johns in Villivakkam also have played a role in increased rentals in the neighbourhood. The rentals in the neighbourhood of Don Bosco School on Papermills Road, Korattur, have also increased . Interestingly, the increase in rental valuation near schools has come at a time when the Registration Department is experiencing a dip in registration. “Registration has come down 30 per cent this year on account of lower sale transaction,” says a Land Registration Department official.
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