Chennai realty prices stay unaffected by tsunami

The killer tsunami waves that hit Chennai have not had any adverse impact on the property prices on the suburbs along the coast. The prevailing prices ranges from Rs 1,700 per sq ft to Rs 2,500 per sq ft in Kottivakkam, Pallavakkam and Neelankarai areas extending till Mahabhilipuram.

Nakshatra Roy, chief consultant (commercial), True Value Homes Private India Ltd, said that it is only the property owners of unapproved land in Kottivakkam and Neelankarai who are largely selling their properties.

Roy said that the CMDA does not provide approval for properties that are located 500 metres from the seashore as it comes under the Coastal Regulatory Zone I (CRZ). The properties, which have been damaged due to tsunami, have been predominantly on CRZ.

According to the Development Control Rules for Chennai Metropolitan Area of June 2002, only agriculture nursery, forestry, water tanks and fertilisers can be done in the CRZ. Most of the owners of the unapproved properties are taking undue advantage of this clause and are constructing buildings that are not permitted, Roy added.

Real estate builders have been looking at promoting properties along the East Coast road with good prevailing prices but there is no approved land available for sale.

The CMDA has stopped providing approvals for residential and commercial constructions along the beach since 1998, after a non -governmental organisation had obtained stay from the Madras High Court.

The constructions happening in Palavakkam and Valamiki Nagar got approvals prior to 1998. Ramesh Nair, senior manager (corporate solutions), international real estate consultant for Jones Lang LaSalle, said that selling and buying of property takes at least two to four months.

Though the tsunami might have created apprehensions among the people on buying property along the ECR, it has definitely not made owners of large properties panic into selling in the near future, he added. The fear factor is only a short-term phenomenon, he added.

However, as the Tamil month starting from 14 December to14 January is considered inauspicious for property transactions there isn't much activity anyway, real estate sources said.