Chennai

1 JLL’s Tour of India’s Top Residential Hotspots | Chennai

JLL’s Tour of India’s Top

Residential Hotspots
Chennai Edition
2 JLL’s Tour of India’s Top Residential Hotspots | Chennai
Preface
Chennai, the city which embodies
a perfect amalgamation of rich
cultural heritage with modern
technology, is the subject of our
second edition in the series JLL’s
Tour of India’s Top Residential
Hotspots. The metro’s strong
manufacturing base, along with
development of IT/ITeS spaces is
etching a new skyline on its urban
landscape. Large infrastructure
developments (including Chennai
Metro Rail, Chennai Suburban Rail,
flyovers, bridges and radial roads),
a well-diversified demand base and
stable polity are some of the drivers
for real estate growth in the city.
Within this macrocosm, a few
micro-markets are emerging as
preferred residential destinations
in the city. Typically, home buyers
evaluate surrounding social and
physical infrastructure, affordability,
supply of high quality housing stock,
timely delivery and future potential
for price appreciation, before
arriving at the big decision of where
to buy a house. So which locations
in Chennai are currently looking
attractive on these parameters? This
edition of JLL’s Tour of India’s Top
Residential Hotspots attempts to
evaluate various locations through
multiple-criteria-decision-analysis office assets indicating confidence
and arrive at the two top residential in real estate markets in the city.
hotspots in Chennai. With continued stability of the
ruling party in the state, there is
Offering a wide spectrum of
hope that under-construction
residential spaces, Chennai
infrastructure projects will see
caters to high-end IT population
timely completion.
fuelling demand for mid and
high-end homes. At the same We do hope the report provides
time, it also caters to a traditional new interesting insights to both
manufacturing class, with limited homebuyers and developers.
affordability. This gives rise to The evaluation matrix should
demand for affordable housing. assist homebuyers looking for a
Moreover, two distinct cultures suitable location. We hope that it
flourish in the city side by side. A will also benefit developers who
local culture and a cosmopolitan are looking for new locations for
culture. This unique culture of their future investments.
Chennai is often reflected in the
architecture of homes in the city.
Traditional designs incorporated
with new technology and high-rise
residential towers with traditional
interior designs, characterise
the unique features of Chennai’s
residential market.
Increased activity in office markets
has also acted as a spur for
enhanced residential absorption.
The city regained its importance on
the radar of institutional investors
in 2018 and Mapletree as well as Ramesh Nair
Ascendas-Singbridge Group have CEO & Country Head, India, JLL
made some large investments in RN.Office@ap.jll.com
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 3

Contents
Chennai and it’s development dynamics 4

Approach to identifying residential hotspots 10

Active residential hotspots in Chennai 14

Top two residential hotspots in Chennai and their growth prospects 21

4 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Chennai
and it’s development dynamics
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 5

Diverse economic base propels

residential demand
Chennai is a key economic
powerhouse of India with a diverse
economic base of manufacturing
and service industry. It is the base
for 30% of India’s automobile
manufacturing and 40% of India’s
auto component industry. The
metropolis is the second largest
city in terms of IT exports in India
after Bengaluru. Along with this,
Chennai port has India’s second
largest container facility that drives
the development of oil refineries
and the ship-building industry,
essentially contributing to the
city’s economy. In addition to this,
healthcare, tourism and Tamil
film industry are other important
industries that contribute to the
city’s economy. This clearly explains
that Chennai is a residential market
for all segments of the economy,
from affordable to luxury.
According to Oxford Economics,
Chennai’s economy is expected
to grow more than 7% every year
between 2017 and 2021, and it is
going to be the third fastest growing
city in Asia after Delhi and Ho Chi
Minh City. This is further promising
for the growth of its residential
sector as economic growth attracts
migrants into the city and also
improves the buying capacity of the
city dwellers.

Chennai
India’s
Base for
automobile
30% manufacturing

Chennai
India’s auto
Base for
components
40% manufacturing

Chennai
India’s
IT exports
2 nd
6 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Diverse economic base characterises

Chennai’s cosmopolitan culture
The diverse economic base of
Chennai not only attracts people
from all parts of the country, but also
from different parts of the globe.
Expats and technology professionals
from all parts of India have settled
in Chennai. Therefore, the city holds
its local culture and cosmopolitan
culture parallel to each other. This
diverse culture of Chennai reflects in
the architecture of houses in the city.
Traditional designs incorporated
with new technology, high-rise
residential towers with traditional
interior designs characterise the
unique housing requirements of
today’s homebuyers in Chennai’s
residential market.

Average annual Annual Per

Population1
household income2 capita income2

8.9 INR. 1.0 INR. 2.5

million million lakh

1. Population of Chennai 2018 “. www.indiaonlinepages.com.

2. Market Skyline, Nielsen Micro Marketing & Economics, 2017
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 7

New linkages pave way for emerging

residential markets
The city bus service network
in Chennai is operated by
the Metropolitan Transport
Corporation (MTC) Limited, while
Chennai Metro Rail and Chennai
Suburban Railway form the key
Mass Rapid Transit System (MRTS).
The city has an intricate road
network of 2,780 km connected
by MTC. These roads are further
extended by the development
of radial roads spreading across
250 km in and around Chennai
Metropolitan Area (CMA). Chennai
Metro Rail is partially operational
covering 45.1 km with 32 stations.
It is proposed to cover a total
distance of 164 km with 158 metro
stations. All these services – MTC,
Chennai Metro Rail and Chennai
Suburban Rail along with upcoming
link roads and ring roads (planned
or under construction) have opened
up new locations for residential
development in the city.

158
Elevated Corridor-
Proposed Metro Kilambakkam Taramani to Siruseri
Stations Bus Terminus

4
Status : Proposed
Status: Under Construction
National Highways
45.1 KM Metro Phase I NH5, NH45, NH48, NH205
Chennai International
Airport Expansion
118.9 KM Metro Phase II
OMR ECR Link Road
Status: Proposed
Status : Under construction

MRTS – Velachery to
St Thomas Mount Road
Status: Under Construction
8
State Highway
SH2, SH48, SH49, SH55, Greenfield Airport and
SH113, SH206 Aerocity in Mamandur
Peripheral Ring Road (80 km south of Chennai)
Status: Proposed
Status : Under construction

Infrastructure development drives

price northwards
Chennai also witnessed price
appreciation in various locations
due to inception or operation
of Chennai Suburban Railway
project and Chennai Metro Rail
project. A few examples: After the
announcement of Chennai Metro
Rail Phase II in 2016, Perambur in
north Chennai witnessed a price
appreciation of 5-6% year-on-
year and Poonamallee in west of
Chennai also witnessed a 2-3%
price appreciation year-on-year.
Infrastructure has been the only
growth driver for property prices
in the last two years in Chennai.
However, it was observed that
only a few key suburban locations
have witnessed a price increase
due to announcement of metro
rail links. In 2018, the green line
connecting Chennai Central to St
Thomas started operations. But
these locations did not witness any
significant price appreciation due
to this infrastructure development.
8 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Gaining importance on the radar of

institutional investors
Institutional investment in real
estate plays a key role in the
development of a city. Chennai
regained its importance on the radar
of institutional investors in 2018.
Mapletree Investments bought SP
Infocity – jointly owned by Canada
Pension Plan Investment Board
and Shapoorji Pallonji Investment
Advisors for INR 24 billion. SP
Infocity is a 2.7 million sq ft office
asset, located in Perungudi.
Another large investment includes
Ascendas-Singbridge Group
acquiring a 531,432 sq ft land parcel
in Pallavaram-Thoraipakkam road
to build an IT Park with 2.3 million
sq ft of built up space. This trend is
likely to continue as Chennai has a
few other quality office assets with
high occupancy that are being
assessed for investment purposes.
Such investments indicate
positive sentiments in the city and
this consequently rebuilds the
homebuyer’s confidence to invest
in Chennai.

Major infrastructure projects in Chennai - existing and proposed

Metro Phase 1
Metro Phase 2
Major upcoming flyovers
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 9

Office and manufacturing sector growth drives

residential demand
Chennai is the second in India in
terms of IT exports, after Bengaluru.
This clearly indicates that the
city has a strong technology base
driving the growth of office real
estate. Chennai has an office stock
of over 61.2 million sq ft. The city
witnesses an average annual net
absorption of 3 million sq ft, creating
new and improved opportunities
for employment. These strong
employment and income dynamics
are key demand drivers for the city’s
residential market.
Chennai also witnessed strong
growth in the manufacturing sector
in 2018. Large automobile and auto
component firms along with oil
refineries, shipping industry and
Chennai port, all these contributed
to strong residential demand in
the city.
Chennai witnessed a slight
slowdown in the residential market
due to the uncertainty brought in by
the implementation of Real Estate
(Regulation and Development) Act
(RERA) and Goods and Services Tax
(GST), in 2016 and 2017. However,
in 2018 the city witnessed a strong
increase in launches and sales.
This was also due to infrastructure
developments in the suburban areas
having good access to IT hubs in the
city. It opened up new opportunities
for residential development.
More than 14,000 units were
launched in the suburban areas of
Chennai in 2018.
Locations close to the key IT hubs
and a few emerging locations were
the best performing markets of the
city. They saw quarterly sales rate
(percentage of units sold against
units available for sale) of 10-12%,
which is higher than the quarterly
sales rate across other parts of the
city that were at 6-7%. Affordable
housing also performed well in
Chennai. Most affordable housing
projects located in the southern
and the western suburbs of Chennai
witnessed good sales in 2018.

Grade A office market dynamics

Stock Average
Vacancy Rental Growth
61.2
million sq ft
9.5% 5% Y-o-Y

Data as of Q4 2018
Source: JLL REIS
10 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Approach
to identifying residential hotspots
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 11

Approach to the study

15
Locations
Selected based on
highest launches
in last three years

10
Locations
Selected based on
residential hotspots
identification matrix

Top 2
Locations
Based on

Chennai
decision matrix and
qualitative analysis

The study was conducted to identify
residential hotspots in Chennai.
A list of 15 locations depending on
the size of Chennai were selected
and analysed based on the following
key parameters
• Infrastructure
• Real Estate
• Future Growth Potential
A decision-making matrix was
designed considering the key
parameters mentioned above
along with their sub-parameters.
Data for the decision-making
parameters and sub-parameters
was collated for each location.
Based on the data, the decision-
making parameters were rated
and analysed for each location.
Top 10 locations were selected
based on the score of the
decision-making matrix. They
were further studied closely and
analysed qualitatively.
Finally, top 2 locations in Chennai
were selected and studied in detail.
12 JLL’s Tour of India’s Top Residential Hotspots | Chennai
Identifying residential hotspots: Decision
matrix parameters
This study identifies that home buyer’s decision to buy a house is mostly decided on basis of three major parameters.
Connectivity
Connectivity of the location with the
rest of the city and the infrastructure
to support it become the core
deciding criteria for home buying.
Distance from established business
hubs and travel time to and from
them is also considered closely
while deciding on location. Based
on the fact, a weight of 35% is
allocated to this parameter.
Real 30%
Estate
Quality of life
Social infrastructure in terms of
access to schools, health care, daily
shopping needs and entertainment,
is another important criteria for a
home buyer, as a compromise on
this affects their day-to-day life.
Again, based on its importance, 35%
weightage is given to this criteria.
35% Connectivity
Residential
hotspot
identification
matrix
Real estate
Real estate in terms of availability
of projects based on the budget of
the home buyer, is a very important
decision-making parameter. Along
with this, the availability of projects
by good developers and price
appreciation in the location are
also considered. As pricing is the
one real estate sub-parameter that
has very high importance and the
rest are second in terms of priority,
a weight of 30% is allocated to
this parameter.
35% Quality
of Life
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 13

Decision Matrix Parameters and Sub-Parameters

Connectivity Quality of life Real estate

Market
Access to MRTS
Access to primary healthcare Attractiveness

25% Access to multi

speciality hospitals 10% 30%
Percentage of cumulative

Distance from nearest

Access to schools 15% sales in new launches
against new launches
business hub

20%
Access to daily
shopping needs 20% Price
Appreciation
Travel time in
peak hours
25%
20% Water supply 10%
Price appreciation
in last three years

Proximity to any large

infrastructure project
proposed to be developed Power supply 10%
10%
Real
Estate Projects
Access to malls and multiplexes
Access to 25%
Access road organized F&B 5%
5% Presence of good
developments or developers

10%
Law and
order/security

Distance from
international airport

10% Access to youth friendly facilities

Sales
Velocity
Access to
recreational
facilities- city 2.5% 20%
parks, zoo,
theater etc.
Distance from nearest
intercity railway station Sales velocity in
last three year
10%
14 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Active
residential hotspots in Chennai
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 15

Top 15 residential locations

Madhavaram

Perambur
Avadi
Anna Nagar

Poonamallee Manapakkam
Iyyapanthangal

Guindy
Thirumudivakkam
Pallavaram
Madipakkam
Tambaram-Vandalur
Pallikaranai

Mambakkam Sholinganallur

Guduvancheri Navalur- Kelambakkam

Mahindra World City Tambaram-Vandalur

Chennai’s top 15 residential locations for the study and analysis of residential hotspots were selected based on the
intensity of residential project launches in the locations over last three years (2016, 2017, 2018). The top 15 locations
are as follows:

• Madhavaram • Pallikaranai • Anna Nagar

• Poonamallee • Guduvancheri-Mahindra World City • Thirumudivakkam
• Pallavaram-Madipakkam • Avadi • Sholinganallur
• Mambakkam • Guindy
• Perambur • Tambaram-Vandalur
• Manapakkam-Iyyapanthangal • Navalur- Kelambakkam
16 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Chennai’s top 15 residential locations in terms

of connectivity
Guduvan
avaram cher
Madh i Access to nearest MRTS station - Metro rail
r Tam 1 stations / Intra city train stations/bus stations
bu ba
ra
eram Distance from nearest established business
P 2

m
hubs or work places

3 Travel Time in peak hours

Pa
lla
di

var
Ava

Distance from nearest intercity railway station

am
5 Distance from International airport

Pallikara
Proximity to proposed infrastructure projects
Anna Nagar

7 Access Road

nai
5 6 7 7 6 5 4
3 4 3 2
1 2 1 How to read this chart
• The chart rates every location on seven parameters

n a ll u r
(listed above)
Guind

• Every circle in the chart is numbered (1 to 7)

a
ling

and represents the concurrent parameter from

y

Sho

the above table. For eg: The outermost circle is

numbered 1 representing the parameter ‘Access to
nearest MRTS station - Metro rail stations / Intra city
train stations/bus stations’
Po
o

• Colors represent ratings which are on a scale of

na

ur

a ll
al
m

ee poor to excellent. Refer legend.

av

N
• For example: The rating for Pallikaranai for
Ma parameter 1 as per the colour code in the legend
nap ka m
a k ka bak is average, for parameter 5 it is excellent and for
m
Thirumud Mam parameter 2 it is average.
ivakka m

Legend

Poor Excellent

Top five locations in terms of connectivity

Guindy | Anna Nagar | Tambaram-Vandalur | Manapakkam-Iyyapanthangal | Pallikaranai

Access to nearest MRTS station Guindy, Anna Nagar and Tambaram- Distance from nearest
- Metro rail stations / Intra city Vandalur topped the list as they established business hubs or
train stations/ bus stations all have metro or suburban rail work places
Chennai Metro Rail and Chennai stations that are either operational Distance from the workplace is
Suburban Railway are the two key or under construction. Locations another important criteria for a
Mass Rapid Transit System (MRTS) where metro stations are proposed home buyer. The study has taken
in Chennai. Therefore, connectivity were given the subsequent highest into account the distance of the
of the location with Chennai Metro score. Metro lines are proposed in locality from the nearest established
Rail stations or Chennai Suburban Perambur, Avadi and Guduvancheri- business hub. Off-Central locations
Rail stations has been considered Mahindra World City. So they were of Chennai, Old Mahabalipuram
as one of the top parameters to rated second on this criterion. Road (OMR) have been taken as
select the residential hotspots.

established business hubs for the
study. Tambaram- Vandalur and
Sholinganallur were the top scorers.
Travel time in peak hours
Generally, travel time in peak hours
as a criterion is directly correlated
to distance from established
business hubs. Chennai city also
witnesses this direct correlation.
Therefore, Tambaram-Vandalur and
Sholinganallur have the highest score
as they are close to the business
hubs and travel time from these two
locations to reach the business hubs
is less.
JLL’s Tour of India’s Top Residential Hotspots | Chennai 17
Distance from nearest intercity
railway station | Distance from
international airport
Although the distance from the
nearest intercity railway station and
from the international airport is not
amongst the most important criteria
for selection by the home buyer, it is
preferred to have good connectivity
with the railway station and airport.
Tambaram-Vandalur, Anna Nagar
and Guindy have direct access to
intercity railway stations. Meanwhile,
as Chennai International Airport
is within the city limits many
locations top the proximity to the
airport criteria.
Proximity to proposed
infrastructure projects |
Access Road
Proximity to any large infrastructure
project drives the demand due to the
future potential of the location. On
this criterion, Puzhal, Perambur and
Manapakkam-Iyyapanthangal scored
high as there are infrastructure
projects proposed across the city
around which there are residential
developments.Presence and quality
of access road to the location is
mostly applicable for emerging
locations. Most of the locations in
Chennai score high on this.
18 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Chennai’s top 15 residential locations in terms of

quality of life
Guduvanch
havaram eri
Mad
1 Access to Schools
Tam
r
bu ba
ram 2 Access to Primary health care
eram
P
3 Access to Multispeciality Hospitals

4 Access to daily shopping needs

Pa
lla
di

var
Ava

Security/ Law and order

am
6 Water supply

7 Power

Pallikar
Anna Nagar

8 Access to Malls and Multiplexes

anai
9 10 11 11 10 9 8
9 Access to Resturants and food courts
6 7 8 7 6
5 5 4
1 2 3 4 3 2 1 10 Access to Youth friendly facilities

Access to recreational facilities - city parks,

ur
a n a ll 11 zoo, theatre etc
Guind

ling
y

Sho

How to read this chart

• The chart rates every location on eleven parameters
(listed above)
Po

• Every circle in the chart is numbered (1 to 11) and

ona

ur

al represents the concurrent parameter from the above

al
m

le e
av

N table. For eg: The outermost circle is numbered 1

representing the parameter access to schools
Ma
na ka m • Colors represent ratings which are on a scale of poor
pa k bak
ka m to excellent. Refer legend.
Mam
Thirumudivakkam • For example: The rating for Pallikaranai for parameter
1 as per the colour code in the legend is nearing
excellent, for parameter 2 it is excellent and for
Legend parameter 5 it is average.

Poor Excellent

Top five locations in terms of good quality of life

Guindy | Manapakkam-Iyyapanthangal | Poonamallee | Sholinganallur | Perambur

Access to Schools Access to Primary health decent primary health care facilities.
Access to schools is an important care | Access to Multispeciality Pallikaranai, Sholinganallur,
part of the quality of life. As per Hospitals Poonamallee, and Manapakkam-
a recent study, the average age Health care is another important Iyyapanthangal have access to
of home buyer’s driving demand criterion to assessing quality of multi-specialty hospitals.
ranges between 25 and 40 years. life. Puzhal, Perambur, Avadi,
This indicates that most of them are Poonamallee, Manapakkam- Access to daily shopping needs
likely to have school-aged children. Iyyapanthangal scored the highest Access to daily shopping needs
On this parameter, many locations in access to primary healthcare. is important for day-to-day life
in Chennai scored high. Meanwhile, suburban locations and this criterion is also of high
in southern Chennai scored the importance for selecting a house.
least. However, the lowest score However, on this criterion most of
was 3, which means they too have the locations scored well.

Security/ Law and order |
Water supply | Power
Most locations in Chennai have
similar conditions in terms of
maintaining law and order,
water supply and power. So
these parameters did not have
much influence on the scores of
the locations.
Access to Malls and
Multiplexes | Access to
Resturants and
food courts
Chennai has shortage of malls
and multiplexes. Therefore,
most of the locations could not
JLL’s Tour of India’s Top Residential Hotspots | Chennai 19
score high on this. Few established
residential locations have easy
access to malls and multiplexes
like Anna Nagar, Guindy, Perambur,
Pallavaram, Sholinganallur, Navalur-
Kelambakkam. Most locations
across Chennai have good access
to restaurants and food courts with
presence of fast food corners and
fine dining restaurants.
Access to Youth friendly
facilities | Access to
recreational facilities - city
parks, zoo, theatre etc.
As discussed earlier, the average age
for most home buyers in Chennai
ranges between 25 and 40 years and
there is a good inflow of migrant
population. A large number of
them prefer facilities such as fitness
centers, spas, pubs and access to
high speed internet at reasonable
cost. Most of the locations topped
in these facilities. Many of the
remaining are upgrading depending
on the demand for these facilities.
Access to recreational facilities that
are at the city level is good for most
locations in Chennai.
20 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Chennai’s top 15 residential locations in terms of

real estate parameters
m
havara Guduvanc
heri
Mad Average Y-o-Y price appreciation in last
ur Tam 1 three years
ramb ba
ra
Pe Market attractiveness - Cumulative of three

m
2 years of sales in new launches against
cumulative new Launches

Pa
3
di

lla
Presence of good developments or developers
Ava

var
am
4 % Sales penetration in last three years

Pallikara
Anna Nagar

How to read this chart

nai
• The chart rates every location on four parameters
4 4 3 (listed above)
2 3 2
1 1
• Every circle in the chart is numbered (1 to 4) and
n a ll u r represents the concurrent parameter from the above
table. For eg: The outermost circle is numbered
Guind

1 representing the parameter Average Y-o-Y price

a
ling

appreciation in last three years

y

Sho

• Colors represent ratings which are on a scale of poor

to excellent. Refer legend.
• For example:The rating for Pallikaranai for parameter
Po

1 as per the colour code in the legend is excellent, for

o na

r
alu

a ll parameter 2 it is good.
m

ee
av

N
Ma
nap k am
a k ka bak
m
Thirumudivakka m Mam

Legend

Poor Excellent

Top five locations in terms of real estate parameters

Guindy | Pallikaranai | Mambakkam | Perambur | Puzhal

Real estate parameters, especially witnessed maximum price Tambaram-Vandalur, Pallavaram,

in terms of pricing and availability appreciation in the last three Pallikaranai, Navalur-Kelambakkam
of good projects is very important years. Most of this price and Anna Nagar, and they scored
to drive sales in a location. appreciation can be attributed to second highest.
Average price appreciation in infrastructure development. Chennai has a presence of good
Chennai across locations ranged Market attractiveness and sales developers and good projects across
between 1-5% year-on-year penetration indicate the demand all locations. Most location scored
depending on the demand in for locations. Guindy was the most well on these parameters.
last three years. Pallikaranai, attractive location. Meanwhile,
Mambakkam, and Guindy sales penetration was high in
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 21

Top two
residential hotspots in Chennai
and their growth prospects

Guindy Pallikaranai
Mount Poonamalle Medavakkam and
high road PTR road
22 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Guindy
Mount Poonamallee High Road

Vignesh Hospital

The Indian
Kedar Hospital Public School

Hindustan
International School

St. Thomus Hospital

Hindustan
International School
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 23
Guindy
Mount Poonamallee High
Road: A self sustained
residential location
Guindy-Mount Poonamallee High
Road and their neighbourhood
locations, Ekkattuthangal, Velachery,
Grade A office market Alandur, Nanganallur, Manapakkam,
dynamics - Guindy Porur and Iyyappanthangal are
located in the central and west part
of Chennai. Guindy is one of the
greenest locations within the city
as it has Guindy Race Course and
Stock Guindy National Park. This location
13.1 million sq ft
is well connected to the residential
submarket and rest of the city not
only through roads, but also
through Guindy railway station,
Guindy metro station. Guindy is one
of the key IT hubs of Chennai and
Vacancy Mount Poonamallee High Road.
5%
All these above factors drive high
demand for housing in Guindy-
Mount Poonamallee High Road.
It witnesses residential demand from
mid to high economic segments due
Average to easy access to manufacturing and
Rental Growth IT business hubs.
4% Y-o-Y The demand for Guindy- Mount
Poonamallee High Road is driven
by the business park developments
in and around this location. The are
many business parks by reputed
developers and stand alone office
buildings that are already operational
in Guindy and along the Mount
Poonamallee Road, and add to a
total office stock of 13.1 million sq ft.
Another 15 - 16 million sq ft of office
space is proposed to be developed
and expected to be operational
in next five years. Guindy is a self
sufficient location and has good
social infrastructure. This location
has good youth friendly facilities
such as fitness centers, spas,
restaurants and cafes. The location
has high speed internet at reasonable
cost. All the aforementioned factors
drive the residential demand in
this submarket.
Commercial Grade A office market
is strong in Guindy and along Mount
Poonamallee High Road with
presence of many good business
parks and stand alone office
buildings. In the last two years – 2017
and 2018, This submarket witnessed
strong leasing activity decreasing
its office vacancy to 5%. This strong
leasing activity drove the rents to
increase by about 12% in 2018.
However, the average rental growth
in Guindy over the last five years has
been 4%.
Grade A Office rents in Guindy
66
64
62
60
58
56
54
52
50
2014 2015 2016 2017 2018
Rents in INR per sq ft per month
Average rents based on actual transactions
Source: JLL REIS
24 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Residential market update

Guindy 1800
Demand and Supply of Units

Mount Poonamallee High Road 1600

Central geographical location 1400

1200
drives residential demand 1000
800
600
400
200
0
2014 2015 2016 2017 2018

Units launched Units sold

Traditionally, Guindy - Mount This submarket have land available

Poonamallee High Road and for future development. Therefore, Price in INR per sq ft
surrounding locations had a new residential launches are likely
low rise residential settlement. to be good in this location. In 14000
However, with the onset of IT addition to this, another
12000
development, this submarket 15 - 16 million sq ft of office space
10000
witnessed the construction of is likely to be operational and this
good quality office parks by is expected to keep the residential 8000
many builders. This drove the demand upbeat in this submarket. 6000
residential demand and the This demand is likely to support 4000
launch of residential projects by a healthy price appreciation in
2000
reputed developers. A few of the Guindy - Mount Poonamallee Road
developers include Puravankara in the medium to long term. 0
2014 2015 2016 2017 2018
Group, Phoenix Mills, VGN and
Source: JLL REIS
Casa Grand Homes who launched
their residential projects in Guindy
- Mount Poonamallee High Road.
Geographically, this submarket
is located in such a way that it
has good connectivity with the IT
hub, airport and railway station.
This also makes it an attractive
residential location. Most of the
projects in this submarket and
surrounding locations cater
to all types of housing. Good
demand and limited supply kept
pushing the price upwards. This
submarket saw an average annual
appreciation of 5-7% in last five
years when prices were stable
across the rest of the city.
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 25

Pallikaranai
Medavakkam - PTR Road

AKG Public School

Global Hospitals
NPS School
26 JLL’s Tour of India’s Top Residential Hotspots | Chennai
Pallikaranai
Medavakkam - PTR Road: A fast
emerging residential location
Pallikaranai - Medavakkam and
PTR Road and their surrounding
locations Keelkattalai,
Grade A office market Kovilambakkam and Perumbakkam
dynamics - Pallikaranai - are located in south of Chennai.
Medavakkam - PTR Road Although Pallikarnai - Thoraipakkam
and PTR Road is not connected
through Chennai Metro Rail or
Chennai suburban railway, the
road connectivity with other parts
Stock of the city is good. However, the
9.2 million sq ft PTR Road is well connected with
the OMR and this improves the
connectivity of the submarket with
the IT hub of Chennai. At present,
commuters use MTC buses or
auto rickshaws to commute. The
Vacancy Thoraipakkam – Pallavaram, 200 ft
1.8%
Radial Road is passing through this
submarket. This submarket came
in demand for residential projects
due to its close proximity to the
OMR IT hub. Large business parks
Average set up by reputed national and
Rental Growth international developers along with
many stand alone office buildings
5% Y-o-Y on the OMR are easily accessible
from Pallikaranai - Medavakkam -
PTR Road. All these business parks
have good occupancy levels that
is driving the housing demand for
surrounding locations.
Pallikaranai - Medavakkam - PTR
Road is self sufficient in terms of
its social infrastructure as it has
good schools, hospitals, shopping
and all requisite facilities. It is a
very youth friendly location with
fitness centers, spas, restaurants
and cafes. The location has high
speed internet at reasonable cost. All
these aforementioned factors make
Pallikaranai - Medavakkam - PTR
Road an attractive location
for homebuyers.
Commercial Grade A office market
demand is strong along pre-toll OMR.
There is hardly any space available
for leasing in this office precinct
and rents have escalated fast in the
last two years along pre-toll OMR.
In the last 12 months, office rents
have appreciated by more than 7%
and the demand is likely to remain
strong for the coming years in this
IT hub. The residential demand
for surrounding locations such as
Pallikaranai - Medavakkam - PTR
Road is expected to increase further.
Grade A Office Rents in pre-toll OMR
70
65
60
55
50
45
40
35
30
2014 2015 2016 2017 2018
Price in INR per sq ft per month
Average rents based on actual transactions
Source: JLL REIS
 JLL’s Tour of India’s Top Residential Hotspots | Chennai 27

Pallikaranai Residential market update

Employees of business parks Demand and Supply of Units

drive residential demand 1000

900
800
700
600
500
400
300
200
100
0
2014 2015 2016 2017 2018
Pallikaranai - Medavakkam - PTR less than 100 units except a few like
Road has a large marshy land. It was Puravankara Projects and Landmark Units launched Units sold
a low rise and low density residential constructions which are more than
development. However, with the 200 units in size.
start of IT development in Chennai, Price in INR per sq ft
A bridge is being built in
office real estate developed along
Medavakkam on Medavakkam
OMR, thereby creating residential 5400
-Velachery Road. This will improve
demand by the employees working 5300
the accessibility of Pallikaranai -
in these IT parks in and around OMR.
Medavakkam - PTR Road. About 5200
As the residential prices in locations
another 4.3 million sq ft of office 5100
in the immediate vicinity, such as
space is likely to be operational in 5000
Velachery, Guindy and Taramani
pre-toll OMR. These office spaces
started appreciating, locations 4900
will also see good demand. Most of
such as Pallikaranai, Medavakkam, 4800
the residential demand coming from
Keelkattalai, Madipakkam, and
these office spaces will spill over to 4700
Thoraipakkam started witnessing
Pallikaranai - Medavakkam - PTR 4600
the demand for residential projects 2014 2015 2016 2017 2018
Road submarket. This high demand
by the middle income groups.
and low supply scenario will keep
It is very interesting to observe that the price appreciation healthy in Source: JLL REIS

the annual sales in Pallikaranai Pallikaranai - Medavakkam - PTR

- Medavakkam and PTR Road Road and neighbourhood locations.
and surrounding locations have
exceeded the annual launches.
This kept the price appreciation
healthy in this submarket. Most
of the projects in Pallikaranai and
its surrounding locations cater to
the mid-income group. As land
availability for large developments
in Pallikaranai - Medavakkam
- PTR Road is limited due to its
surrounding marshy lands, most
of the projects are launched with
28 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Growth Price Arbitrage - Anna

Nagar and Perambur

prospects 12000
10000
8000
6000
4000
2000
0
2014 2015 2016 2017 2018

Anna Nagar Perambur

Price arbitrage of Other Emerging Locations

Emerging Locations that can be Hotspots
Emerging locations in Chennai such
in future
as Perambur, will mature faster During the study, we observed
as they have support of a mature that there are few other locations
location–Anna Nagar. Mogappair is that have the potential to be
5 km away and Perambur is 11 Km future residential hotspots due
away from Anna Nagar and both can to the ongoing development
be reached in less than half an hour. of good quality physical and
As Anna Nagar is slowly saturating social infrastructure. A few such
as a market, locations, such as locations are:
Mogappair and Perambur in the
• Perambur
north will slowly gain prominence.
Moreover, being located so closely, • Pallavaram- Madipakkam
most of the social infrastructure can • Navalur-Kelambakkam
be shared between these locations.
The current price arbitrage will work
in favour of home buyers as these
locations are likely to witness an
increased demand. Eventually, this
increased demand will narrow down
the price arbitrage. Perambur is
experiencing the same phenomenon
being close to Mogappair and Anna
Nagar. It is observed that these
locations are already witnessing
that the price difference is slowly
narrowing over the years.

Poonamallee
A future affordable suburban
residential location
Poonamallee, located on the west
of Chennai and is fast emerging
as an affordable residential
location due to good connectivity
with core city through Mount
Poonamallee Road. It is well
connected with industrial hubs
such as Ambattur and Avadi and IT
cluster at Manapakkam. Therefore
most of the residential demand
for Poonamallee is driven by
employees of these business hubs.
Good connectivity and access
to low cost land is driving the
development of affordable
residential projects in the area.
However, the affordable projects
that are saleable in this submarket
have to be designed in appropriate
size and priced reasonably. New
construction technologies that
can reduce construction costs
can be applied to the projects to
make them pocket friendly for
home buyers.
Poonamallee is about 10 kms away
from Manapakkam. However, the
travel time to reach the IT cluster
is less than half an hour. Similarly
industrial hubs, Ambattur and
JLL’s Tour of India’s Top Residential Hotspots | Chennai 29
Avadi can also be reached in less and Poonamallee to a large extent.
than half an hour. As such, the Therefore, the demand for mid
lower mid to affordable housing to affordable segment housing is
demand of the employees likely to increase over the long term.
in the IT Park and industrial Meanwhile the surrounding industrial
setups in Ambattur and Avadi hubs will also contribute to the
is catered for by Poonamallee. housing demand of Poonamallee in
Another 13-14 million sq ft of medium to long term.
office space is expected to come
up around Manapakkam by
reputed developers. This is likely
to contribute to the residential
demand of Poonamallee in the
mid to long term.
Poonamallee witnessed good price
appreciation over last two years
while residential prices in most of
the locations in Chennai remained
stable over this period. The price
appreciation in these two years
was mostly because Chennai Metro
Rail Phase II was announced and
Poonamallee is proposed to have a
metro station. The future prospects
of Poonamallee are good as a
residential market as it has well
connected land available at low
cost. In addition to this, Chennai
metro Rail connectivity will ease
the commute between the IT Park
30 JLL’s Tour of India’s Top Residential Hotspots | Chennai

About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our
vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can
achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL
is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of
over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.
For further information, visit jll.com

About JLL India

JLL is India’s premier and largest professional services firm specialising in real estate. With an estimated revenue for FY
2018-19 expected to be approx. INR 4,000 crore, the Firm is growing from strength to strength in India for the past two
decades. JLL India has an extensive presence across 10 major cities (Mumbai, Delhi NCR, Bengaluru, Pune, Chennai,
Hyderabad, Kolkata, Ahmedabad, Kochi and Coimbatore) and over 130 tier II & III markets with a cumulative strength of
close to 11,000 professionals.
The Firm provides investors, developers, local corporates and multinational companies with a comprehensive range of
services. This includes leasing, capital markets, research & advisory, transaction management, project development,
facility management and property & asset management. These services cover various asset classes such as commercial,
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JLL India won the Five Star Award for ‘Best Property Consultancy at the International Property Awards Asia Pacific 2018
-19. The Firm was also recognised amongst the ‘Top 100 Best Places to Work in India’ in 2017 & 2018 in the annual sur vey
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Residential Services
As urban living experts, we can help you get the most out of the cities you love to live in. Our unique understanding
and research into the residential market means we can support your ambitions to buy, sell, rent, or invest. We offer our
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into a reality, we offer a complete end-to-end service. For others with specific requirements, our specialists can help you
achieve the best results. Unbiased advisory backed by real time research is our most invincible asset. Local market know-
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Disclaimer
This report is published for general information only and not to be relied upon as a sole source for any investment
decision. Although high standards have been used in the preparation of the information, analysis, views and projections
presented in this report, no responsibility or liability whatsoever shall be accepted by JLL for any loss or damage
resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material
does not necessarily represent the view of JLL in relation to particular properties or projects. Reproduction of this report
in whole or in part is not allowed without prior written approval of JLL to the form and content within which it appears.
JLL’s Tour of India’s Top Residential Hotspots | Chennai 31
32 JLL’s Tour of India’s Top Residential Hotspots | Chennai

Contacts
Research enquiries Business enquiries Author
Dr. Samantak Das B. Sreenivasa Rajeev Trivita Roy
Chief Economist and Head Research & REIS Director - Residential Services, Chennai Director - Research and REIS
samantak.das@ap.jll.com sreenivasarajeev.b@ap.jll.com trivita.roy@ap.jll.com

property.jll.co.in

Jones Lang LaSalle Property Consultant (India) Pvt Limited © 2019. All rights reserved. All information contained herein is from sources deemed
reliable; however, norepresentation or warranty is made to the accuracy thereof.