Chennai: A Growing Opportunity in Residential Real Estate

0CTOBER 2009
CHENNAI
A GROWING OPPORTUNITY IN RESIDENTIAL REAL ESTATE
1
THE
GATEWAY
TO
SOUTH
INDIA...
2
Chennai, the commercial and cultural capital of South India, has managed
to retain its traditional roots while acquiring a cosmopolitan character. This
vibrant city has struck a beautiful balance between the modern and the
traditional. And the most fascinating aspect of this city is that it continues to
grow and expand with the passage of time. In this light, ICICI Property Services
bring to you the Chennai Residential Property Report - an in-depth view of
what makes the city tick, and the real-estate opportunities that it has to offer.
3
Chennai: A Fact File
Chennai, formerly known as Madras, is the capital of the Indian state of Tamil Nadu. Popularly known as
"Gateway to South India", it is located on the Coromandel Coast of the Bay of Bengal and is spread across
181.06 sq km. With an estimated population of 7.5 million (4.3 million as per 2001 Census), it's the fourth
largest metropolitan city in India and one of the largest metropolitan areas in the world. Although the city has
acquired a contemporary and cosmopolitan character, it still has preserved its traditional Tamil roots. It
possesses a rich historical heritage that provides an incomprehensible charisma to the city.
Chennai is a prosperous abode of fascinating monuments and churches whose origin dates back to the era
of Portuguese and British. The Portuguese invaded in the 16th century and were followed by the Dutch, and
East India Company. The British were able to establish their undoubted domination in the city and the
Fort St. George became the hub around which the British authority developed and expanded. Later, the city
was acknowledged as the seat of Madras presidency and today stands as a momentous city of India.
In 1997 the city was renamed as Chennai from the earlier 'Madras'. The name change, symbol of the city's
identification with its Tamil rather than colonial past, was associated with Chennaipatnam. Tradition suggests
that Chennaipatnam was the name for one of the two villages located near the site Francis Day selected for the
East India Company factory three hundred and fifty years earlier.
The city has embraced both the new and the old with ease and is still growing and has turned into a fast paced
but full of life metropolitan city. Accredited to its location, Chennai boasts of a number of tranquilizing
beaches, parks and historic landmarks which is a blessing of nature for the tourists as well as the residents. As
a relief to the people, these beaches and natural surroundings come to liberate. With a very distinct culture,
the people of Chennai have a special interest in music, dance and all other art forms of South India.
4
Administrative Framework
Chennai, the capital city of Tamil Nadu, is the fourth largest Metropolitan City in India. The Chennai
Metropolitan Area (CMA) comprises –
• The city of Chennai

• 16 Municipalities
• 20 Town Panchayats
• 214 Village Panchayats in 10 Panchayat Unions
The extent of CMA is 1189 sq. km. The CMA falls in three districts of the Tamil Nadu state viz. Chennai District,
part of Thiruvallur District, and part of Kancheepuram District.
The extent of the Chennai District (covered in Chennai Municipal Corporation area) is 176 sq. km. and
comprises 55 revenue villages in five Taluks [viz. (i) Fort-Tondiarpet Taluk, (ii) Perambur-Purasawalkam Taluk,
(iii) Egmore-Nungambakkam Taluk, (iv) Mambalam-Guindy Taluk and (v) Mylapore-Triplicane Taluk].
In Thiruvallur District, out of total district area of 3427 sq. km. 637 sq. km. in Ambattur, Thiruvallur, Ponneri and
Poonamallee taluks fall in CMA.
In Kancheepuram District, out of 4433 sq. km. 376 sq. km. in Tambaram, Sriperumbudur and Chengalpattu
Taluks fall in the Metropolitan area.
Population
CMA CITY
1. Extent 1189 Sq. Km 176 Sq. Km
2. Population
1981 46.01 Lakhs 32.84 Lakhs
1991 58.18 Lakhs 38.43 Lakhs
2001 70.41 Lakhs 43.43 Lakhs
2011
(Projected) 88.71 Lakhs 49.50 Lakhs
Source: CMDA
5
Infrastructure
The city of Chennai is well connected internationally and to other parts of India vide all the modes of transport.
There is an International airport in Chennai that connects to other parts of the world and the regions within the
country. The airport has separate terminals for International flights (Anna Terminal) and Domestic flights
(Kamaraj Terminal). Chennai airport is the main hub for arrivals and departures in south India. It services
around 8 million passengers a year, over half of which are flying domestically. Although modernization works
have been undertaken in the past a further extensive upgrade is planned to be carried out by 2011.
Chennai has an excellent suburban train network with four routes: 1. Chennai Central 2. Arakkonam 3.
Tambaram- Chennai Beach and 4. Chengalpet. Chennai Central and Egmore are the two train terminuses for
long distance trains from other parts of India.
Chennai is superbly connected to other parts of India by the 'Golden Quadrilateral' transport project.
Metropolitan Transport Corporation (MTC) buses operated and owned by the Tamil Nadu government ply
throughout the city.
Metro Rail
The Government of Tamil Nadu has approved in principle the two initial corridors mentioned as below –
Corridor Length
Washermenpet to Airport 23.085 km
Chennai Central to St. Thomas Mount 21.961 km
Total 45.046 km
Source: www.tn.gov.in
The Government of India is also keen on implementing this Project and has approved the Chennai
Metro Rail project in January 2009. Tentatively, the project is programmed for completion in the financial
year 2014-2015.
6
SEZ Update
There are about 29 notified SEZs in Chennai as of July, 2009 spread across 1321 hectares. Most of them are
concentrated in Kancheepuram. Majority of the SEZs belong to IT/ITES (62%) as is reflected in the below pie
chart, electronics, hardware & related services being the second best (14%).
SEZ classification as per Usage
Electronics of
Electronics Telecom
Multi-use Hardware & hardware &
3% Related Services support Services
15% 3%
Engineering
Sector incl.
auto ancillaries
3%
Footwear
3%
FTWZ
3%
Hardware &
Software
3%
IT/ITES
67%
Source: Ministry of Commerce & Industry, Dept. of Commerce
7
A detailed list of all the SEZs in Chennai is tabulated as below:
Sr. Area
Name Location Type
No. (in hectares)
1 Arun Excello Infrastructure Pvt. Ltd. Kancheepuram IT/ITES 11.1
2 Chennai Business Park Private Limited Manchipuram IT/ITES or BPO 11.8
Cognizant Technology Solutions India

3 Siruseri & Kazhipattur villages IT/ITES 10.9
Pvt. Ltd.
4 DLF Infocity Developers (Chennai) Ltd. Kancheepuram IT/ITES 13.3
5 Electronics Corporation of Tamil Nadu Kancheepuram IT/ITES 152.7
Tambaram Taluk,
6 Electronics Corporation of Tamil Nadu IT/ITES 80.8
Kancheepuram District
Aiyappanthangal, Porur,
7 Estra Park Private Ltd IT/ITES 10.2
Chennai
8 ETA Technopark Pvt. Ltd. OMR IT/ITES 10.4
9 ETL Infrastructure Services Ltd. Tambaram Taluk IT/ITES 10.6

Electronics Hardware &
10 Flextronics Technologies (I) Pvt. Ltd. Sriperumbudur, Kancheepuram 101.2
Related Services
Sriperumbudur Taluk,
11 Foxconn India Developer Pvt. Ltd. IT & Electronics Hardware 10.4
Kancheepuran District
12 Hexaware Technologies Ltd. OMR, Siruseri IT/ITES 11
Sriperumbudur, Kancheepuram
13 J Matadee Eco Parks Pvt. Ltd FTWZ 40.6
District
Sriperumbudur Taluk,
14 Jay Gee Hitech Infraventures Pvt Ltd IT/ITeS 11.89
M/s. Hacciendaa Infotech & Realtors Sholonganallur village, Old
15 IT/ITES 26.6
Private Limited Mahabalipuram
Engineering Sector
16 New Chennai Township Pvt. Ltd. Kancheepuram 125
including auto ancillaries
17 New Chennai Township Pvt. Ltd. Kancheepuram Multi-Services 121.9
18 Platinum Holdings Pvt. Ltd. Kancheepuram Hardware & Software 10.6
19 Shriram Properties & Infrastructure Pvt. Ltd. Perungalathur IT/ITES 10
Tambaram, Taluk,
20 SNP Infrastructure Pvt. Ltd IT/ITES 11.1
8
Electronics of Telecom
State Industries Promotion Corporation of hardware & support
21 Sriperumbudur 189.8
Tamil Nadu services including trading
& logistics activities
Electronics Hardware and

State Industries Promotion Corporation of related support services
Mancheepuram 140.7
22 Tamil Nadu including trading &
logistics operations
State Industries Promotion Corporation of
23 Kancheepuram Footwear 62.2
Tamil Nadu
24 Syntel International Pvt. Ltd. Kancheepuram IT 11.7
25 Tata Consultancy Services Ltd. Siruseri & Egattur IT 28.5
Kanagam Village /
26 Tril Infopark Ltd IT/ITES 10.24
Thiruvanmiyur Village , Chennai
27 Unitech Infopark Ltd Mancheepuram IT/ITES 10.2
Sriperumbudur Taluk, Electronics Hardware &
28 Velankani Technology Parks Pvt. Ltd. 57.5
Kancheepuran District Software & ITES
29 Zillion Estates Pvt.Ltd. Kancheepuram IT/ITES 18.6
Source: Ministry of Commerce & Industry, Dept. of Commerce
9
Major Locations within Chennai
We have classified the real estate space in Chennai into four distinct zones – North, South, West & Central.
The major locations in each of these zones have been presented below.
Madhavaram
Korattur
Tondiarpet
Avadi Villivakkam Perambur
Mogappair Ayanavaram
Ambattur
Anna Nagar Parry
Kilpauk
Nolambur Egmore
Alwar Thirunagar
Nungambakkam
Kodambakkam
Porur T. Nagar
Sriperumbudur Valasaravakkam Bay of Bengal
KK Nagar Vadapalani
Ashok Nagar
Saligramam Alwarpet
Mandaveli
Manappakkam
MRC Nagar
Saidapet Raja Annamalai Puram
Adyar
Adambakkam
Madipakkam
Velachery
North Chennai
Pallikaranai
South Chennai
Tambaram
ad
Central Chennai
lipuram Ro
West Chennai
Selaiyur
Urapakkam Karappakkam
Old Mahaba
Sholinganallur
Kelambakkam Note: Map not to scale and is for illustration purposes only
10
Retail Space
Majority of the malls are in the Central parts of the city. Spencer Plaza on the Mount Road, Central Chennai, is
the biggest mall with an area of around 1 million sq. ft. constructed in three phases. Details of all the malls
have been tabulated as below:
Organised Retail Development
Total Area
Sr. in million Status
Mall Name Site Location Zone
No. sq. ft. (as on July 2009)
(Approx.)
1 Abirami Mega Mall Purasaiwalkam North 0.15 Operational
2 Ampa Center one Poonamalee High Road Central 0.30 Completed but
not operational
3 Chettinad Plaza OMR South 0.30 Completed but
not operational
4 City Centre RK Salai, Mylapore Central 0.35 Operational
5 Express Avenue Off Mount Road Central 0.80 Under construction
6 Indi Mall Nanicakam Manipkan Road Central 0.10 Operational
7 Ispahani Centre Nungambakkam High Road Central 0.05 Operational
8 Riverside Mall OMR South 0.75 Under construction
9 Spencer Plaza Mount Road Central 1.00 Operational
Source: ICICI Property Services
11
Supply of Residential Units coming up by June 2012
Chennai would see a supply of approximately 63.48 million sq. ft. of residential space by the year 2012 with
nearly two-third of the units concentrated in South Chennai. Also within South Chennai, the 2 BHK and 3 BHK
are the most popular segments as they account for over 90% of the overall supply.
Average Size
Apartment of a flat No. of Total Area
Zone Size (in sq. ft.) Units (Million sq. ft.)
North 1 BHK 550 180 0.1

2 BHK 1039 3201 3.32
3 BHK 1433 2702 3.87
Total 6083 7.29
South 1 BHK 550 1850 0.91
2 BHK 970 19945 19.34
3 BHK 1200 14202 17.04
4 BHK 1850 710 1.31
5 BHK 2300 345 0.79
Total 37052 39.39
West 1 BHK 550 850 0.46
2 BHK 1047 8746 9.15
3 BHK 1369 3796 5.2
Total 13392 14.81
Central 2 BHK 1094 459 0.5
3 BHK 1652 866 1.43
4 BHK 2000 30 0.06
Total 1355 1.99
Total Supply ready by June 2012 in Chennai 57882 63.48

12
Distribution of residential supply (no. of residential units) in the pipeline across Chennai
Distribution of Residential Supply
2% 11%
23%
64%
North South West Central
13
North Chennai
Major Locations
Ayanavaram, Kilpauk, Korathur, Madhavaram, Perambur, Tondiarpet, Villivakkam.
• At Tondiarpet in North Chennai is located the fishing harbour.
• The harbour makes up a popular attraction in the north. The region is inhabited by a local
population, most of which are employed in the popular industries located here.
• The eastern boundary of the northern localities is limited by the famous Buckingham Canal.
• The presence of the second major port here makes it an important trade centre.
• The northern locality also houses some of the reputed companies like Parryware, Indian
Bank and also the Chennai Port Trust, etc.
• Commercial supply of approximately 3 million sq. ft. is expected by end of 2010 which
translates to over twenty seven thousand new employment opportunities.
• Prince Foundations, Vijayshanthi, EMAAR MGF are some of the prominent developers in this
region.
• EMAAR MGF has its ongoing project 'Esplanade' at Tondiarpet, which plans to house
over 450 units.
Residential Market in North Chennai
Saleable
Area
(sq. ft.)
Average Apartment Size of 2 BHK (in sq. ft.) 1039
Average Apartment Size of 3 BHK (in sq. ft.) 1433
Total supply (in mn. sq. ft.) by Jun 2012 7.29
Total supply (in no. of units) by Jun 2012 6083
14
Distribution of Apartment Type in North Chennai
Distribution of Apartment Type: North Chennai

3%
44%
53%
1 BHK 2 BHK 3 BHK

Some of the Residential Projects in North Chennai
Capital
Values (Rs.) No. of Date of
Project Developer
for 2BHK as in Units Completion
Sep 2009
Esplanade 4.8 million Aug 2010
EMAAR MGF 256
Phase 1 onwards
Prince Prince 1.75 million
588 Mar 2012
Village Foundations onwards
The Ozone Group 9.5 million 1600 Dec 2011
Metrozone onwards
TVH Lumbini True Value 8.2 million
Square Home onwards 435 Ready
Sunny Vale Chaitanya 4.5 million

400 Mar 2012
onwards
15
Residential Property Rates in prime residential markets of North Chennai
Average
Rentals for
Capital
Location 2 BHK Outlook
Values
(Rs. / month)
(Rs./sq. ft.)
Purusuwakkam 5500-7000 10000-15000 S
Annanagar 5000-6500 10000-15000 S
Aynavaram 3500-4500 6000-8000 S
Ambattur 3000-3500 4000-7000 SW
*Rates mentioned are based on Built-up area & are subject to amenities, upkeep & may vary from apartment to apartment within the
same building.
Outlook Key: R - Rising • F - Falling • S - Stagnant • SW - Stagnant but likely to weaken • SS - Stagnant but likely to strengthen
Property Price Movement Index (March 2005 - June 2009)
North Chennai
400
350
300
250
200
150
100
50
0
Mar Mar Mar Jun Sept Dec Mar Jun Sept Dec Mar Jun
2005 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
Annanagar Kilpauk Perumbur Ambattur Tondiarpet Avadi
Source: ICICI Mortgage Valuation Group (Assuming 100 as a base reference no. for March -2005)
16
Comparison of actual (A) and real & logical (R&L) price movement
The real & logical (R&L) price is considered to move in line with the consumer price index. Below chart brings
out a comparison between quarterly property price movements and changes in consumer price index for
North Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation
figures for each zone.
North Chennai
350
300
250
200
150
100
50
0
2005 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
North (A) North (R&L)
As the above graph indicates, the property prices in North Chennai have been increasing more than
proportionately as compared to the consumer price index, and till recently, the trend seems to continue.
17
South Chennai
Major Locations
Adambakkam, Chromepet, Madipakkam, Medavakkam, Nanmangalam, Padur - Kelambakkam - Karapakkam
- Sholinganallur - Semmencherry on Old Mahabalipuram (OMR), Selaiyur, Tambaram, Urapakkam,
Velachery.
• South Chennai features many popular attractions including some of the famous pilgrim sites
in the city.
• The region also houses certain historical landmarks, which often forms tourists' hotspots.
• At Meenambakkam is grounded the Chennai Airport. The airport features both national and
international terminals.
• Southern Railways provide railway services and a vast network of roads hooks up the place.
• Some of the important tourist spots located in the southern suburbs are Elliot's Beach,
Guindy Park, Theosophical Society, Sivan Park, Periyar Science and Technology Centre,
Kapaleeswarar Temple, Karaneeswarar Temple, Soundareswarar Temple, Marundeeswarar
Temple, Santhome Basilica, etc.
• The region hosts a number of residential places and commercial centres.
• Grand Southern Trunk Road or GST road offers one of the best transportation infrastructure
in Chennai in terms of connectivity as it is well connected by road, rail and air; which is the
core factor for the emergence of this new corridor.
• The GST stretch has witnessed good industrial and commercial development and has
` emerged as the SEZ corridor of Chennai and includes the Mahindra World City, a public
private initiative, which houses IT giants like Infosys, Wipro and leading auto companies
like BMW, Renault. The Shriram Group is setting up around 5 million sq. ft. of IT park - “The
Gateway” within a SEZ on the GST road near Tambaram.
• OMR is also termed as the IT corridor of Chennai. IT majors like Infosys, Wipro, TCS,
Cognizant, 3i Infotech, HCL, Polaris have their offices located here.
• Commercial supply of approximately 16 million sq. ft. is expected by end of 2010 which
translates close to 0.15 million new employment opportunities.
• Key developers like Purvankara, HIRCO, DLF, India Bulls, L&T, Mantri, etc have a presence in
this region.
18
Residential Market in South Chennai
Saleable
Area
(Sq. ft.)
Average Apartment Size of 1 BHK 617
Total Supply (in mn. sq. ft.) by Jun 2012 39.39
Total Supply (in no. of units) by Jun 2012 37052
Distribution of Apartment Type in South Chennai
Distribution of Apartment Type: South Chennai

1%
2% 5%
38%
54%
1 BHK 2 BHK 3 BHK 4 BHK 5 BHK

19
Some of the Residential Projects in South Chennai
Capital
Values for Units Project
Building Developer
2BHK as in available completion
Sep 2009
Metro Polis Akshaya Homes 3.6 million onwards 436 Jun-2010
Belvedere Akshaya Homes 3.3 million onwards 260 Dec-2011
Garden City DLF 3.2 million onwards 3493 Jul-2011
Etopia I Doshi Housing 3.9 million onwards 155 Oct-2009
Doshi Nakshtra - I Doshi Housing 3.3 million onwards 125 Dec-2010
Eden Park L&T 4.8 million onwards* 650 Dec-2010
Ouranya Bay True Value Homes 3 million onwards 1044 Sep-2011
Upscale Hiranandani 8.5 million onwards 1080 Aug-2010
Palace Garden HIRCO 4.7 million onwards 970 Jun-2011
Greens India Bulls 2.7 million onwards 1134 Jul-2011
Swan Lake Purvankara Builders 3.2 million onwards 609 Sep-2010
Synergy Mantri Builders 2.32 million onwards 624 Mar-2010
Bollineni Hillside BSCPL 3.08 million onwards 1300 Jun-2010
Cosmo City Provident Housing 1.69 million onwards 2174 Jul-2011
Unihomes Unitech 1.3 million onwards 1040 Sep-2011
Merryland Navin's 4.33 million onwards 70 Oct-2009
Serenity Sabari reality 1.1 million onwards 936 Apr-2011
Lotus Pond Vijayshanthi 1.1 million onwards 400 Jan-2012
Adena Akshya 1.7 million onwards 199 Oct-2011
Gold City Dugar MME 1.01 million onwards 400 Sep-2011
* Capital Values mentioned for a 3 BHK
20
Residential Property Rates in prime residential markets of South Chennai
Average
Rentals for
Capital
Values
(Rs. / month)
(Rs./sq. ft.)
Velachery 4000-5000 8000-10000 S
Sholinganallur 3500-4000 7000-10000 SW
Pallikarnai 2800-3300 5000-8000 SS
Madipakkam 2800-3200 5000-7000 S
Padur 2000-3500 5000-6000 F
Kelambakkam 1800-2500 4000-5000 F
Tambaram 3000-3400 6000- 8000 SW
same building.
Property Price Movement Index (March 2005 – June 2009)
South Chennai
450
400
350
300
250
200
150
100
50
0
2005 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
Velachari Pallikarnai OMR Tambaram Medavakkam
Source: ICICI Mortgage Valuation Group (Assuming 100 as a base reference no. for March 2005)
21
South Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation
South Chennai
350
300
250
200
150
100
50
0
2005 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
South (A) South (R&L)
Over the years, there has been a widening disparity with respect to the pace at which property prices have
increased in South Chennai as compared to the consumer price index. This gap has reduced to a certain
extent in the last few quarters, due to softening of property prices.
22
West Chennai
Major Locations
Ambattur, Aminjikarai, Annanagar, Avadi, KK Nagar, Manapakkam, Mogappair, Nolambur, Porur,
Saligramam, Sriperumbudur, Vadapalani.
• The western areas are less congested compared to other regions. The localities provide
some of the best apartments and residential quarters in the city.
• West Chennai features a number of planned townships. Localities like Anna Nagar consist of
regular planned blocks of residential places. The Ambattur region, which forms an extension
of the city, comprises one of the leading industrial estates in the city and at large.
• The region is amply provided with hotels, hospitals, schools, banks and other commercial
enterprises.
• The Vadapalani Temple, grounded at Vadapalani region, is a popular place of worship in
West Chennai.
• Commercial supply of approximately 11.4 million sq. ft. is expected by end of 2010 which
translates to over 1 lac new employment opportunities.
• ETA Star Property Developers has their on-going project "Jasmine Court" with over 200 units
in Kattupakkam while Jain Housing are developing “Nakshatra" which has over 550 units in
Nolambur.
Residential Market in West Chennai
Saleable
Area
(sq. ft.)
Total Supply (in mn. sq. ft.) by Jun 2012 14.81
23
Distribution of Apartment Type in West Chennai
Distribution of Apartment Type: West Chennai
6%
28%
66%
1 BHK 2 BHK 3 BHK
Some of the Residential Projects in West Chennai
Capital
Project Developer
Sep 2009
Alliance Bouganvilla Alliance 6.5 million onwards 300 Dec 2010
Prince
Residenzia 1.87 million onwards 294 Dec 2010
Foundations
Minerva VGN 3.81 million onwards 572 Dec 2010
Infinity Vijayshanthi 1.6 million onwards 588 Dec 2011
Subha Mangala Navins 4.2 million onwards 62 Completed
24
Residential Property Rates in prime residential markets of West Chennai
Average
Rentals for
Capital
Values
(Rs. / month)
(Rs./sq. ft.)
Aiyyapanthangal 3000-3200 6000-8000 S
Valsaravakkam 3500-4200 8000-10000 S
Mogappair 3000-4000 6000-8000 SS
Porur 2500-3500 6000-8000 SW
Saligramam 4000-4500 8000-10000 S
same building.
Property Price Movement Index (March 2005-June 2009)
West Chennai
350
300
250
200
150
100
50
0
2005 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
Aiyyapanthangal Mogappair Ramapuram Vadapalani

Nolambur Vanagaram Sriperumbudur Porur Saligramam
25
West Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation figures
for each zone.
West Chennai
350
300
250
200
150
100
50
0
2005 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
West (A) West (R&L)
In West Chennai too, there exists a wide disparity between the property prices and the consumer price index,
as is seen from the above chart.
26
Central Chennai
Major Locations
Adyar, Alwarpet, Egmore, Kodambakkam, Mahalingapuram, Mandaveli, Nungambakkam, Parrys, T Nagar.
• Central Chennai is a major commercial hub in the city.
• The region as such is replete with business enterprises, and includes presence of corporates
like CRISIL, Indian Oil etc.
• This region also houses a number of tourist attractions in the form of monuments and
buildings established by the East India Company.
• The central region of Chennai city comprises suburbs like George Town, Egmore,
Triplicane, Nungambakkam and Royapetah.
• The localities feature some of the best hospitals, educational institutes, foreign banks and
shopping arcades.
• Also present are some popular tourist attractions like Fort St. George Complex, Government
Museum, Parthasarathy Temple, Aamir Mahal, Big Mosque, etc
• Commercial supply of approximately 0.94 million sq. ft. is expected by end of 2010 which
translates to over eight thousand five hundred new employment opportunities.
• True Value Homes and Chaitanya are amongst the prominent developers in this zone. True
Value Homes is developing an over 400 units project in Purasawakkam while Chaitanya is
associated with "Sunny Vale" in Ayanavaram.
Residential Market in Central Chennai
Saleable
Area (sq. ft.)
Total Supply (in mn. Sq.ft.) by Jun 2012 1.99
27
Distribution of Apartment Type in Central Chennai
Distribution of Apartment Type: Central Chennai
2%
34%
64%
2 BHK 3 BHK 4 BHK
Some of the Residential Projects in Central Chennai
Capital
Project Developer
Sep 2009
Vrudhi KGYES 12.7 million onwards 27 Oct-2010
Rani Meyammai Chettinad 18.0 million 250 Ready
Towers Housing onwards
Dayton Heights Navins 11.7 million onwards* 88 Dec-2009
Doshi Housing LLANSTEPHAN 18.0 million onwards 29 Ready
* capital value mentioned for a 3 BHK
28
Residential Property Rates in prime residential markets of Central Chennai
Location Average Capital Rentals for 2 BHK Outlook

Values (Rs. / sq. ft.) (Rs. / month)
Adyar 6500-9000 10000-15000 S
T. Nagar 6500-9000 10000-15000 S
MRC Nagar 7500-10000 15000-25000 S
Mandaveli 5000-7500 10000-15000 S
Egmore 6500-7500 7000-10000 S
Alwarpet 8500-10500 15000-20000 S
R. A. Puram 7500- 9000 10000-15000 S
Nungambakkam 9000-11000 15000-20000 S
same building.
Property Price Movement Index (March 2005 - June 2009)
Central Chennai
400
350
300
250
200
150
100
50
0
2005 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
Adyar Saidapet MRC Nagar Mahalingapuram Kodambakkam

Mandaveli Egmore Alwarpet R.A.Puram Nungambakkam T Nagar
29
Central Chennai. Since zone wise inflation data is not available we have substituted the Chennai inflation
Central Chennai
350
300
250
200
150
100
50
0
2005 2006 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009
Central (A) Central (R&L)

The property prices in Central Chennai have constantly increased at a pace higher than that of the consumer
price index as reflected in the above chart.
30
Chennai Residential Real Estate Absorption Index
Chennai Residential Real Estate: Absorption Index
120
100
80
60
40
20
0
Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09
The residential transactions in Chennai declined during second and third quarter of 2008-09 due to the overall
slowdown effect, however the last quarter (Jan 09 - Mar 09) has seen a spurt in the transactions, assisting the
absorption index to attain levels as were at the start of the year.
31
Location Attractiveness Index
We have short-listed below six prime locations in Chennai and critically examined them on various
parameters like infrastructure, residential costs in the region, future employment prospects, etc. as detailed
in the matrix below. OMR besides Mogappair appears to be scoring above other locations due to the
reasonable residential costs coupled with proximity to commercial development and future infrastructure
prospects.
Mogappair-
Porur (Mount- Ambattur
Velachery GST Poonamallee) belt OMR Sriperumbudur
Infrastructure (connectivity, roads,
proximity to markets, schools)
Residential Cost
Proximity to/Presence of
organised retail
Proximity to Commercial
Development
Future Infrastructure Development
Future Employment Generation
Good / Low Cost

Above Average
Average / Medium Cost
Below Average
Bad / High Cost
32
About Research & Consultancy
ICICI Property Services is a division of ICICI Home Finance Company Limited, a 100% subsidiary of ICICI Bank.
ICICI PSG provides real estate solutions to home seekers, corporate investors, space occupiers and developers
/landlords. ICICI Property Services addresses the entire bandwidth of a real estate deal from concept to
conclusion. Research & Consultancy (R&C), a specialised group within ICICI PSG, offers both real estate advisory
and consumer demographic analysis backed by both primary & secondary research. The following chart explains
in brief the various services offered by R&C.
Feasibility Studies Asset Advisory Strategic Advisory Market Research
• Location Analysis • Optimum Land Use •Entry Strategy •Supply Estimation

• Market Analysis Analysis •Pricing Strategy •Demand Projections
• Size, Pricing, Phasing • Site Analysis & •City and Region •Expected Absorption
SWOT Prioritisation and Trends
and Positioning
(Space Programming • Catchment Analysis Expansion Strategy •Demographic Analysis
& Demarcation for • Trade & Tenant Mix
Optimum Utilisation •Consumer Trends
of space) • Land Valuation •Consumer Behaviour
• Financial Analysis Analysis
33
DISCLAIMER
This document is being communicated to you solely for the purposes of providing our views on current market trends.
This document is being communicated to you on a confidential basis and does not carry any right of publication or disclosure to any third
party. By accepting delivery of this document each recipient undertakes not to reproduce or distribute this presentation in whole or in
part, nor to disclose any of its contents (except to its professional advisers) without the prior written consent of ICICI HFC Ltd., who the
recipient agrees has the benefit of this undertaking. The recipient and its professional advisers will keep permanently confidential
information contained herein and not already in the public domain.
This document is not an offer, invitation or solicitation of any kind to buy or sell any security and is not intended to create any rights or
obligations. Nothing in this document is intended to constitute legal, tax, securities or investment advice, or opinion regarding the
appropriateness of any investment, or a solicitation for any product or service. The use of any information set out in this document is
entirely at the recipient's own risk.
The information set out in this document has been prepared by ICICI HFC Ltd. based upon projections which have been determined in
good faith by ICICI HFC Ltd. There can be no assurance that such projections will prove to be accurate. ICICI HFC Ltd. does not accept any
responsibility for any errors whether caused by negligence or otherwise or for any loss or damage incurred by anyone in reliance on
anything set out in this document. The information in this document reflects prevailing conditions and our views as of this date, all of
which are subject to change. In preparing this document we have relied upon and assumed, without independent verification, the
accuracy and completeness of all information available from public sources or which was provided to us or which was otherwise
reviewed by us. Past performance cannot be a guide to future performance.
No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. The
information set out herein may be subject to updating, completion, revision, verification and amendment and such information may
change materially.
For further enquiries please mail us at:

propertyservices@icicihfc.com
or
for more on our research reports & periodicals,
please log on to www.icicihfc.com/kc/research.html
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0CTOBER 2009

• The city of Chennai

SEZ classification as per Usage

Source: Ministry of Commerce & Industry, Dept. of Commerce

1 Arun Excello Infrastructure Pvt. Ltd. Kancheepuram IT/ITES 11.1

2 Chennai Business Park Private Limited Manchipuram IT/ITES or BPO 11.8

Cognizant Technology Solutions India

5 Electronics Corporation of Tamil Nadu Kancheepuram IT/ITES 152.7

9 ETL Infrastructure Services Ltd. Tambaram Taluk IT/ITES 10.6

18 Platinum Holdings Pvt. Ltd. Kancheepuram Hardware & Software 10.6

19 Shriram Properties & Infrastructure Pvt. Ltd. Perungalathur IT/ITES 10

Electronics Hardware and

Organised Retail Development

North 1 BHK 550 180 0.1

Total Supply ready by June 2012 in Chennai 57882 63.48

Distribution of Residential Supply

North South West Central

Source: ICICI Property Services

Residential Market in North Chennai

Distribution of Apartment Type: North Chennai

1 BHK 2 BHK 3 BHK

Some of the Residential Projects in North Chennai

Sunny Vale Chaitanya 4.5 million

Property Price Movement Index (March 2005 - June 2009)

Annanagar Kilpauk Perumbur Ambattur Tondiarpet Avadi

North (A) North (R&L)

Source: ICICI Property Services

Distribution of Apartment Type in South Chennai

Distribution of Apartment Type: South Chennai

1 BHK 2 BHK 3 BHK 4 BHK 5 BHK

Property Price Movement Index (March 2005 – June 2009)

South (A) South (R&L)

Source: ICICI Property Services

Residential Market in West Chennai

Distribution of Apartment Type: West Chennai

1 BHK 2 BHK 3 BHK

Source: ICICI Property Services

Some of the Residential Projects in West Chennai

Property Price Movement Index (March 2005-June 2009)

Aiyyapanthangal Mogappair Ramapuram Vadapalani

West (A) West (R&L)

Source: ICICI Property Services

Residential Market in Central Chennai

Distribution of Apartment Type: Central Chennai

2 BHK 3 BHK 4 BHK

Source: ICICI Property Services

Some of the Residential Projects in Central Chennai

Location Average Capital Rentals for 2 BHK Outlook

Property Price Movement Index (March 2005 - June 2009)

Adyar Saidapet MRC Nagar Mahalingapuram Kodambakkam

Central (A) Central (R&L)

Chennai Residential Real Estate: Absorption Index

Future Infrastructure Development

Future Employment Generation

Good / Low Cost

Feasibility Studies Asset Advisory Strategic Advisory Market Research

• Location Analysis • Optimum Land Use •Entry Strategy •Supply Estimation