Connectivity continues to remain one of the biggest concerns for north Chennai residents with thousands of commuters struggling every day

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3 Employment North Chennai is primarily an industrial area and is governed by business and trader community, locomotive workshops, government offices and port related activities. Chennai Port and Ennore Port are located in this region. Contrary to South Chennai which currently boasts of over 75% of Chennai s office space stock, North Chennai houses none. Restricted employment opportunities have resulted in sluggish real estate growth in this region. Connectivity Currently Chennai has 4 suburban rail networks. The North Line connects the Northern parts of Chennai namely Tondiarpet, Ennore, Gummidipoondi with Central Chennai. The West line from Chennai Central to Tiruvallur is the oldest rail network in Chennai around which the city thrived and development started. It also divides the Northern part of the city from Central and Western areas. One of the major arterial roads the Chennai Kolkata Highway (NH5) starts at the Basin Bridge and connects Chennai port with North Chennai. Besides this road connectivity in North Chennai still remains a question with thousands of commuters struggling every day. The long due underpass in Villivakkam was inaugurated in June 2012 and has improved the traffic conditions to an extent. The Perambur flyover and Perambur Locoworks road over bridge are two of the major projects to be implemented in North Chennai in recent years. They are expected to ease traffic congestion in the area. The Chennai Bypass Road is in close proximity to the western end of North Chennai and thereby gives better connectivity to the micro markets Korattur, Madhavaram. Connectivity continues to remain one of the biggest concerns for north Chennai residents with thousands of commuters struggling every day Infrastructure North Chennai is known to be the neglected area by the government authorities. Connectivity, flooding due to lack of storm water drain network, contaminated drinking water and improper sanitation system are some of the major grievances of the residents. Outer Ring Road The second phase of the Outer Ring Road (Nemilichery Nallur Minjur) will connect NH 205 to the NH 5 in North Chennai via a six lane highway. Currently the first phase of the Outer Ring Road connecting Vandalur to Nemilichery is under construction. Chennai-Ennore Port Road Connectivity Project Expected to be completed in June 2013, the project is a SPV (Special purpose vehicle) comprising of National Highways Authority of India, Chennai Port Trust, Government of Tamil Nadu and Ennore Port Ltd., as partners. The project was conceived in 1998 at an estimated cost of Rs.150 crores. Work started

4 only in January 2011 with a revised estimate of Rs.600 crores. The project is considered vital for the future development of Chennai Port, as it is planned to upgrade the city roads, connecting the Port to the hinterland and thereby improve the efficiency of cargo evacuation. Chennai Residential Market Zone Wise Distribution of Stock 16% 1% 15% Chennai Metro Rail Even though the under construction Chennai Metro doesn t directly connect North Chennai but the nearest station at Anna Nagar will help improve the connectivity of North Chennai localities with the airport, Vadapalani, St. Thomas Mount and other South Chennai micro markets. 68% CENTRAL NORTH SOUTH WEST (Source : IndiaProperty.com) Stock and Absorption The residential supply in North Chennai is subdued and constitutes of only 15% of the total under construction stock in Chennai. Lack of job opportunities and thereby limited demand and lack of vacant land parcels closer to the city are some of the reasons for it. The demand here comes from the industrial, port and public sector employees who have worked and lived in the area throughout their lives. North Chennai being older Chennai has traditional set of buyers. Unlike South and West Chennai most of the investors in North Chennai are residents of North Chennai itself. The area would see steady growth in the future with stand alone houses giving way to low-rise apartment complexes. With improvement in connectivity and better infrastructure facilities in the future one can expect an increase in demand for residential properties in north Chennai. Capital Value Residential Property Rates in Major Residential Markets of North Chennai MICRO MARKET CAPITAL VALUE (INR psft) Kolathur Tondiarpet Korattur Madhavaram Perambur Puzhal Puzhal (Land) Having traditional set of buyers, North Chennai sees demand from its existing set of residents mainly industrial, port and public sector employees

5 Budget Preference of Buyers in North Chennai 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Unit Size Preference of Buyers in North Chennai 40% 30% 20% 10% 0% < 700 sqft sqft sqft sqft > 1500 sqft (Source : IndiaProperty.com) < 30 L L L L > 100 L (Source : IndiaProperty.com) North Chennai has high percentage of middle class population with over 70% buyers looking for properties under INR 50 Lacs budget with over 55% of the buyers having a preference for unit size ranging between sqft. Major population in North comprises of public sector employees, railway workers and port employees who desire to settle down close to the areas where they have spent major part of their lives working. Micro Markets Perambur, Tondiarpet, Kolathur are the major residential localities of the region. With number of under construction projects, Madhavaram is growing as an in-demand residential micro. Locality Preference of Buyers in North Chennai 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Kolathur Korattur Madhavaram Perambur Puzhal Thiruvotriyur Tondiarpet Villivakkam (Source : IndiaProperty.com)

6 Perambur Perambur is one of the early settlements of Chennai around which the city grew. It was primarily dominated by the railway employees working for Perambur Locoworks and Carriage works. It is considered as a good locality to live in North Chennai. Primarily a residential area, it is densely populated with pockets of commercial developments. The Spectrum mall is the only organised retail present in the area. The area has always been in demand amongst locals. It s in proximity to the Chennai Central station and Egmore Station (about 5 kms from both). Capital values in the area have appreciated by over 20 30% in the past 2 years. Being a low lying area with poor access, until recently the developers were not interested in Perambur. But over the years the infrastructure has drastically improved in the area and after opening of the Perambur flyover the connectivity issue also got resolved. One of the common trends in the area is individual houses getting converted into apartments having units. Also some of the old mills have given way to huge vacant land parcels, giving way to big residential developments in the area. The area holds good potential as it s close to the city with infrastructure in place along with decent property pricing. Kolathur Kolathur is one of the popular residential localities in North Chennai and is now part of the State Assembly Constituency. It is well connected to the city as it s adjacent to the Grand Trunk Road connecting Kolathur to Anna Nagar. The Chennai Bypass Road is also in close proximity to Kolathur, giving the locality easy access to the Western and Southern Chennai suburbs. Closest Suburban Rail stations to Kolathur are Villivakkam and Perambur Locoworks. The completion work of Perambur flyover and Perambur Locoworks road over bridge highly improved the access to the locality. It is a low lying area and is therefore floodprone. In recent times the storm water drain network in the area has improved. But electricity, contaminated water and sewage overflow remain few of the major issues in the area. Like any location accessibility plays a critical role in North Chennai in defining the residential demand for a micro market Ayanavaram Ayanavaram is one of the rare localities in North Chennai where the railway crossing is not a hurdle. Overall connectivity to the area is good. Close to the prime localities like Kilpauk and Pursaiwakkam, the micro market has high growth potential. The trend of individual houses getting converted into apartments is visible here. But except the main Konnur High Road, all the internal roads are narrow with small plot sizes. This is one of the restricting factors hindering the residential development in the area making the property prices comparable to Perambur which is location wise further ahead. Villivakkam Villivakkam is located next to the prime area Anna Nagar. Railway track crossing at Villivakkam is the biggest hurdle, limiting the

7 residential demand and capital values in the area. The Villivakkam underpass has improved traffic conditions in the area. Being a low lying area, the locality is prone to frequent water logging. The Konnur High Road and Jawaharlal Nehru Road are the major arterial road in the area connecting Villivakkam to Ambattur, Padi, Anna Nagar, Koyambedu. The plotted houses here are giving way to small apartment complexes. With poor infrastructure the area has not witnessed the growth which it should have because of its location. With government initiatives and improvement in physical infrastructure the area has potential to see high demand for residential properties. Madhavaram Madhavaram located along the Great Northern Trunk Road (also known as NH 5 or Chennai Kolkatta Highway) and the Chennai Bypass road is known for the Aavin milk dairy and mango groves. The locality has good future prospects as the government owns major chunk of the land here and the area is likely to remain green with minimal scope for unorganised real estate development. Because of its location, easy access to Chennai city, port and railways - CMDA developed a truck terminal here in The area often faces heavy traffic due to the trucks parked on the road. Some of the other issues that the locality currently faces are lack of adequate public transport facility, proper drinking water and poor sewage network. The Madhavaram Lake faces consequences of poor drainage and has been highly polluted over the years. Compared to South and West part of Chennai, properties in North Chennai are reasonably priced and improvement in connectivity and infrastructure would lead to steady growth in the area Puzhal Puzhal is located towards the end of the Chennai Bypass Road along the Great Northern Trunk Road. This gives it easy access to other parts of Chennai city and an advantage over rest of the developing localities in North Chennai. Currently the area lacks real estate activity but it is one of the localities in North Chennai to look for in the future. Access and affordability are two factors that will drive growth in the area. Located on the banks of Puzhal Lake or the Redhills Lake, the area is known for the Puzhal central prison which was setup in The Puzhal Lake is one of the major sources of fresh water supply in Chennai and prone to contamination from improper waste and sewage disposal from the prison resulting in both air and water pollution. The proposed monorail connecting Vandalur to Puzhal via Avadi has now been dropped owing to financial feasibility.

8 Outlook Residential market in North Chennai constitutes of a small percentage of 15% of the total under construction stock in Chennai. The area sees maximum demand from traditional set of buyers who have lived in the area. The demand here comes from the public sector employees, railway workers and port employee who have worked and lived in the area throughout their lives. Having high percentage of middle class population under INR 50 Lacs is the most proffered budget for residential properties. inadequate fresh water supply, improper sewage lines are few of the reasons for restricted growth in the past. With improvement in connectivity and better infrastructure facilities in the future one can expect an increase in demand for residential properties in North Chennai. The area would see steady growth in the future with stand alone houses giving way to low-rise apartment complexes. Lack of job opportunities, poor access due to presence of railway track, water logging,

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