Impact on Real Estate in Phase 2 Metro of Chennai
Construction of metros in urban cities has always had a dramatically positive impact on the real estate too. This trend can now be seen in Chennai as the construction of Phase 2 gathers speed.
Phase II will span 118.9 kilometers and include 128 stations. It consists of three segments: Corridor -3 from Madhavaram to SIPCOT (45.8 km); Corridor — 4 from the Lighthouse to the Poonamalle Bypass (26.1 km); and Corridor — 5 from Madhavaram to Sholinganallur (47 km). This phase of the project is expected to be completed by the end of 2026.
Impact on Revenue by Metro in Chennai
According to officials, as these areas are densely populated and near major business centers, property registrations have gone up, thanks to the connectivity promised by the metro being built. As Chennai citizens have traditionally bought land as an investment, CMDA (Chennai Metro Development Authority) reportedly announced an estimated 50% revenue boost to both the commercial and residential markets in these areas post pandemic; the number reaching close to 1,400 crores.
The value of land within 500 meters of metro routes has generally increased by 15–20%. More than 2.5 lakh documents were registered last year; this year, that figure increased to 3.3 lakh.
Revised Metro Plan
Chief Minister MK Stalin reviewed the CMRL proposal earlier this month to expand CMA from 1,189 sq km to 5,904 km. Based on this, the existing Chennai Metropolitan Area could be termed “CMA Central” and the proposed expanded areas “CMA North” and “CMA South.”
According to The New Indian Express, the 2,908 sq km of the Chennai Metropolitan Area North will be divided into eight areas — from Gummidipoondi, to Sriperumbudur. The South CMA, which will contain 1,809 sq km, will have seven — from Kancheepuram to Vandalur. Meanwhile the 1,189 sq km present Chennai Metropolitan Area will be regarded as CMA Central.
Real Estate Market in Chennai
S Sridharan, Chairman of the Urban Development/Affordable Housing Committee, Confederation of Real Estate Developers Associations of India (CREDAI National), said that the expansion of CMA will result in organized growth. He said ‘’The market has revived,’’ as most of the completed projects are sold out and ongoing projects have been picking up aggressively.
The current prices offered are 1 BHK: 610 sq ft: Rs 30 lakh on average; 2 BHK: 1,010 sq ft: Rs 45 lakh on average; 3 BHK: 1,460 sq ft: Rs 70 lakh on average; and 4 BHK: 2,590 sq ft: Rs 1.63 crore on average. This is due to the market value, which has raised expectations.
Post-Covid, developers point out, bigger houses are in demand due to WFH and online schooling. Many opt for a standalone apartment with the possibility of 3–5 stories as customization. This satisfies the needs of everyone in the family and it is excellent because builders like us work to perfect it for you.
For example Swathi’s VENKATKRISH in Adyar — is 3 stories building; Swathi’s BALA in Ashok Nagar — is 5 stories building within a 750 meters walk to the Ashok Nagar Metro Station; and our upcoming project — in Nandanam Extension is near the Nandanam Metro Station with a 600 meters walk.
Builders suggest real estate near metro stations is a good investment.
For inquiries about purchasing your dream home or becoming a joint venture partner, please contact us at 78459 27787 or 78459 37787.
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