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Medavakkam is among the top developing localities in Chennai. It is surrounded by key localities such as Velachery, Pallikaranai, OMR and GST Road. Social and physical infrastructure has been strengthened in the region. Medavakkam has the advantage of wider interior roads and provides connectivity to all important regions of Chennai.
Medavakkam is also an attractive investment destination, as it has excellent connectivity to employment hubs, key city centres and the airport. Beside, it has numerous affordable housing options, with support infrastructure.
Supported by real estate drivers such as planned development, availability of premium office spaces and land, and access to social infrastructure, Medavakkam is set to witness significant price appreciation. With the proposal for a monorail and the future metro rail corridor, the region is likely to have a spur in real estate growth.
Medavakkam has plenty of options for investment in the residential sector, primarily from apartments and row houses. Prominent developers such as Embassy, Casa Grande, Navins, Malles and Plaza contribute to supply. From an investment point of view, there are very few retail and commercial options available. However, there are ample options for investment in the vicinity for future development.
Capital values in the area have witnessed growth of 15 to 20 per cent over two years and is now between Rs 4,000 per sqft and Rs 5,200 per sqft depending on the location, brand, size of development and specification offered. With the augmentation of infrastructure promoted by the government, the appreciation in capital value is likely to continue.
With more companies becoming operational in the ELCOT SEZ and the IT corridor, the demand for rental residential properties in this region is high. Rentals in the micro-market vary from Rs 10,000-15,000 for a two-bedroom hall kitchen (BHK) apartment and Rs 18,000- 25,000 for a three BHK. The demand is likely to continue for the next few years.
With the city growing south, demand for affordable housing is expected to pick up. Retail investors looking at capital appreciation should consider investments in the residential sector their first choice. There are quite a few projects with attractive valuations that one can look at.
The social infrastructure of this region is adequate, with many business class hotels, international schools, state of the art hospitals and numerous job opportunities. With capital value increasing at a steady rate, the region has already become one of the most preferred investment hubs of Chennai.
Investors should take a mid-term to long-term perspective, with a minimum gestation period of at least five years. During this period, the implementation of physical infrastructure initiatives by the government and establishment of social facilities in the region will provide a good return on investment.
The author is head -residential services, Chennai, JLL India
