In 2017, the Chennai Metropolitan Area was expanded by eight times and all of the Kancheepuram district, along with Chengalpet, became a part of it. Since then, the demand for properties in the area, especially Chengalpet, is on the rise. The area lies 50 kms south of the main city. Earlier, the area was under the Gram Panchayat and most of the land was acquired with minimal permissions. This was the time, when most of the builders bought land and built housing projects. As urbanisation spread to the neighbouring districts of Chennai, Chengalpet, also known as Chengalpattu, came under its influence. At the same time, several educational institutes and reputed tech companies entered this region and this boosted the demand for rental properties in the area.
Chengalpet: A suburb for affordable housing
There are a number of affordable housing projects in the area, which have attracted investors and end-users alike. The demand for housing projects in Chengalpet, can also be attributed to the region’s connectivity to the main city. Commuters can take a train or buses to the main city. While public buses have good frequency, the Chengalpattu Railway Station is a major halting point for south-bound and suburban trains. Also, infrastructure is another major factor that attracts investors to the area. It already has a number of good schools and medical facilities, along with entertainment hubs where most of the millennials and young couples living in the nearby areas flock to. According to reports, several multiplexes are also set to come up in the region, which could further boost retail investments in the area.
Property prices in Chengalpet
|1BHK||Rs 8,000 per month||Rs 11 lakhs onwards|
|2BHK||Rs 10,000 per month||Rs 20 lakhs onwards|
|3BHK||Rs 12,500 per month||Rs 28 lakhs onwards|
According to property consultant Knight Frank, Chennai witnessed a marginal increase in sales, at 3%, in 2018. The report blamed the sluggishness in the market on the crisis in the NBFC sector, which squeezed the flow of credit to both, developers and home buyers. In Chennai, the effect was more visible on buyers, as the disbursal of home loans took a hit. Nevertheless, it was for the first time since 2012 that Chennai witnessed a growth in sales.
As per data available with Proptiger.com, Chennai has witnessed a massive improvement in project launches in the quarter of January-March 2019, recording an increase of 115% over the corresponding quarter of the previous year. Also, Chennai has the highest share of completed units in India. The data adds that there are over 70 ready-to-move-in and 6 under-construction projects in Chengalpet.
Things to look out for, while seeking a property in Chengalpet
- OMR-Chengalpattu Link Road: The National Highways Authority of India is planning to widen the Chengalpattu-Thiruporur Road into a four-lane stretch, which will provide an alternate route to Chengalpet via Old Mahabalipuram Road (OMR). Once this becomes operational, commuters coming from Thuraipakkam, Sholinganallur, Thiruvanmiyur, Medavakkam, Pallikaranai and Neelankarai, can reach Chengalpet without entering Tambaram.
- Chengalpattu-Airport Elevated Flyway: A proposed 36-km elevated link road, will connect the area directly with the international airport, which will reduce travel time by an hour and 10 minutes.
- Water shortage: At times, Chengalpet faces acute water scarcity. A few areas have to pay drinking water tax, as well. While the region lies close to the Palar river, the situation is not better than any other main areas of Chennai, where water is already scarce. The water shortage has also hit real estate construction and the developers have raised concerns over depleting water sources and dependency on private water tankers for construction purposes. Several projects have also been delayed owing to this reason.
According to S Sridharan, vice-president, CREDAI (Chennai Chapter), “Providing water to workers at construction sites, has also become an issue, of late. Already, we are under stress over inadequate water supply. If the situation worsens, it will lead to a slowdown in constructions in Chennai.”