The Hindu : Tamil Nadu / Chennai News : No surprise, property values refuse to remain stationary realty check

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Thursday, Jul 31, 2008
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Tamil Nadu

Tamil Nadu - Chennai

No surprise, property values refuse to remain stationary realty check

Aloysius Xavier Lopez

Proximity to railway stations is a major factor for higher rentals

— Photo:S.S.Kumar

SETTING PACE: Railway stations in the vicinity means more rental and property values.

CHENNAI: Proximity to railway stations is a major factor deciding property and rental values in residential areas in many cities. The case of Chennai is no different with rental values near the stations remaining always high.

The proposed Chennai Metro Rail has contributed a lot to the property and rental value appreciation recently in areas such as Koyambedu and Anna Nagar, said V. Sadasivam, a leading property valuer.

The Chennai Beach – Chengalpattu line, with the GST Road running parallel for several km, has determined the appreciation of property and rental values in many areas. “The railways’ role in property and rental appreciation of residential areas near railway stations is relatively higher beyond St. Thomas Mount as the outlying areas experience a higher rate of growth,” he said.

“The residential rental value in St. Thomas Mount has increased from Rs.4 a sq.ft to Rs.10 a sq.ft owing to proximity to the railway station over the last three years,” says G. Babu, a property commission agent.

The St. Thomas Mount and Chromepet, purely residential areas, are quickly transforming into commercial hubs on account of the rail connectivity. The property value is around Rs.1 crore a ground. The eastern side of Pazhavanthangal without traffic disturbance is a residential area where middle class people exercised their residential option. The rental values have increased from Rs.6 a sq.ft to Rs.15 a sq.ft in Alandur and Chromepet in the recent years.

Ranganathan Street in T. Nagar, which was a purely residential area 30 years ago, has turned into a prime commercial hub of Chennai. The land value is around Rs.5 crore a ground, higher than that of Pondy Bazaar, which originally was the commercial hub. One of the major driver for Ranganathan Street and South Usman Road emerging as the hub is the presence of a railway network nearby, says Mr. Sadasivam.

“Our advertisements of the sale of property in T. Nagar also focus on the proximity to railway stations which gets an upbeat response,” says one builder.

The MRTS station in Mylapore also has increased the property and rental values but only beyond 500 metre radius of the station. People prefer areas which are 500 metre away from the station as the areas nearby include a slum and is also congested and polluted. Middle class people who look for residential accommodation near railway stations because of the easy accessibility nowadays go beyond Tambaram as the rail connectivity is good and rates affordable. Suburban railway stations such as Perungulathur, Guduvanchery, and Maraimalai Nagar are examples of catalysing residential growth around railway stations in the suburbs.

Residential areas near the Paranur station near Mahindra City have experienced rental growth from Rs. 2 a sq.ft to Rs.5 a sq.ft in recent times.“Rental values have increased from Rs. 3 to Rs. 8 a sq. ft. near railway station in Perungulathur,” says S. Karthik a resident.

The residential area in a five-km radius near the railway station in Guduvanchery has also experienced rental growth. More residential plots are being developed in Urapakkam by players such as L&T. The TNHB projects have come up in Maraimalai Nagar.

The Chennai Central to Arakkonam line is not well connected with road network. The prime concern for people is proximity to rail network. The rentals have increased from Rs.4 to Rs. 10 a sq. ft near the railway station in Villivakkam. Many schools have also come near the station and this further increased the rentals and property values.

The layout of the TNHB in Korattur was sold focussing only on the railway station. The value land near the station is Rs.70 lakh while it is Rs.30 lakh just 2 km away from the station. Avadi and Ambattur are also witnessing similar conditions. Annanur, originally an agricultural area near Avadi, also does not have better road access. The area in 1-km radius of the railway station has increased rental values from Rs. 2 a sq. ft to Rs.7 a sq.ft.

“The new railway station near Anna Nagar which came up some years back increased the rentals of the areas proximate to the station,” said J. Murugan, a broker. As the rates were already high in many areas covered by the MRTS, the increase in rentals near railway station is not appreciable as these areas were also interconnected by road network earlier.

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