Koyambedu-Pattabiram metro to go via Avadi CHENNAI: Chennai Metro Rail (CMRL) plans to expand its network with the submission of a detailed project report for a new 21.76 km extension from Koyambedu to Pattabiram along the Outer Ring Road. The project, estimated to cost `9,744 crore, aims to enhance connectivity across several key areas like Mugappair, Ambattur and Avadi chennai l Friday l April 18, 2025 l `9.00 l PAGES 42 l late city EDITION CHENNAI ■ MADURAI ■ VIJAYAWADA ■ BENGALURU ■ KOCHI ■ HYDERABAD ■ VISAKHAPATNAM ■ COIMBATORE ■ KOZHIKODE ■ THIRUVANANTHAPURAM ■ BELAGAVI ■ BHUBANESWAR ■ SHIVAMOgGA ■ MANGALURU ■ TIRUPATI ■ TIRUCHY ■ TIRUNELVELI ■ SAMBALPUR ■ HUBBALLI ■ DHARMAPURI ■ KOTTAYAM ■ KANNUR ■ VILLUPURAM ■ KOLLAM ■ TADEPALLIGUDEM ■ NAGAPATTINAM ■ THRISSUR ■ KALABURAGI Very Good Wake up to News Happy Morning Chennai Mount Poonamallee Road (MPR) and Pallavaram-Thoraipakkam Road (PTR) have emerged as dual engines of growth, transforming into key commercial corridors. In 2024, these micro markets accounted for 6,000 residential unit launches— about 30% of the city’s total. “PTR is quickly gaining traction,” said VS Sridhar, Executive Managing Director, (Tamil Nadu & Kerala), and Head of GCC Advisory-Operations at Cushman & Wakefield. “Together, MPR and PTR accounted for one-third of Chennai’s leasing activity last year and they are expected to deliver nearly 60% of future office supply over the next two years, with a strong pipeline of Grade A+ office space.” These corridors are also catalysing residential growth in nearby neighbourhoods like Manapakkam, Porur, Pallikaranai, and Medavakkam—driven by improved connectivity, available land, and access to employment hubs. Residential prices have followed suit, rising 7% year-on-year to an average of `4,854 per square foot, reflecting both stable demand and disciplined supply. Infra, Affordability and Broader Access Chennai’s residential demand, while robust, remains grounded in end-user affordability, Anikipatti noted. Ongoing infrastructure investments—especially new metro lines and the Tamil Nadu government’s Grid of Roads initiative—are extending the urban envelope, unlocking development potential in previously underinvested areas. This decentralised growth pattern is evident in rising interest across north and west Chennai. While southern zones like Velachery and Tambaram remain popular, areas like Manali, Korukkupet, Ambattur, and Avadi are gaining traction, which suggests a maturing market with better geographical distribution of demand. Central business districts such as T Nagar and Nungambakkam continue to command premium values. Chennai’s real estate boom spurs new urban growth axis Housing sales rose by 10% in the first quarter, thanks to MPR and PTR commercial corridors. At 2.6 mn sq.ft, nearly 10% of India’s total activity in green-certified office spaces happened in Chennai and regulatory clarity. Infra, metro trains push decentralised growth Infrastructure investments, especially new metro lines and the TN government’s Grid of Roads initiative, are extending the urban envelope to previously underinvested areas However, Chennai’s future lies in its ability to foster inclusive urbanisation, spreading growth beyond its historic heartlands. The Confederation of Real Estate Developers’ Associations of India (CREDAI) projects a 20-25% growth in residential real estate nationwide in 2025, fuelled by a combination of infrastructure upgrades, credit availability and aspirational urban , migration. Chennai is expected to mirror, if not outpace, this trend, particularly with the expected acceleration in new supply across emerging corridors. Over 19,000 units were registered in 2024 across 182 projects under the Tamil Nadu Real Estate Regulatory Authority (TNRERA). CREDAI anticipates a 15-20% increase in launches this year, spurred by newly accessible land parcels Calls for Inclusive Growth While the overall trajectory is positive, developers are urging the state government to do more to support home ownership, particularly among women. CREDAI has advocated for stamp duty concessions for female buyers, similar to those offered in Maharashtra. Sridhar believes the momentum in the office sector will also help underpin residential demand. “GCCs continue to dominate the city’s leasing activity accounting for 42% in Q1-25, , up from the two-year average of 32%. These tenants are increasingly choosing emerging corridors for their affordability and scalability .” Anshuman Magazine, Chairman & CEO of CBRE India, noted that Chennai, alongside Pune, is becoming a preferred destination for global tenants thanks to its talent base and infrastructure readiness. “India’s office sector is on a firm footing, and cities like Chennai are wellpositioned to ride the next wave of strategic expansion.” With both commercial and residential segments growing in tandem, Chennai is fast shedding its conservative real estate reputation, making a strong case for itself as one of India’s most dynamic urban property markets. ENS anpat Singh Meena spent nearly a decade renting a house in Chennai. Now, with interest rates nudging lower, the 40-year-old central government employee believes the moment has come to make the leap from tenant to homeowner. “I am looking for a 2BHK or 3BHK within a 5km radius of Anna Nagar,” says Meena, who is prepared to pay an EMI of `45,000—almost double the `25,000 he currently pays as rent. Meena is not alone. For a growing number of aspiring homeowners, particularly in urban India’s midincome segments, the Reserve Bank of India’s (RBI) recent 25-basis-point cut to repo rate is seen as a cue to act. In a market where home affordability is tightly linked to cost of borrowing, even mild shifts in rates can change purchasing power. “The rate reduction is a welcome development for the residential real estate market,” says Anshul Jain, CEO (India) at Cushman & Wakefield. “It will boost sentiment among mid-segment home buyers, who constitute the bulk of housing demand.” Though incremental, the cut signals the RBI’s intent to maintain a pro-growth bias while keeping inflationary risks in check. For lenders, it reduces the cost of capital. For borrowers, it lowers EMIs—a direct incentive to take or expand home loans. In cities like Chennai, where demand remains robust but affordability remains tight, the impact could be meaningful. A `50 lakh home loan over 20 years, for instance, would see its monthly EMI fall from `44,986 to `43,391 if the interest rate drops from 9% to 8.5%. That `1,600 monthly saving aggregates to over `3.8 lakh over the life of the loan. The Tamilnad Mercantile Bank CEO S Nair described the rate adjustment as “a significant opportunity” for first-time buyers. “Lower EMIs make home ownership more attainable for young professionals and families with moderate incomes,” he says. “For a `25 lakh loan over 20 years, borrowers could save Repo rate cut a boon for borrowers, banks The cut signals the RBI’s intent to maintain a progrowth bias while keeping inflationary risks in check. For lenders, it reduces the cost of capital. For borrowers, it lowers EMIs PO Corridors of Change RBI rate cut gives cost-conscious buyers shot at their dream homes G EXPress ILLUSTRATION An Express connect Initiative RE OP EN C hennai’s residential real estate market has kicked off 2025 with notable momentum, as both buyers and developers bet on the city’s evolving infrastructure and commercial promise. Housing sales rose by 10% year-on-year to 4,357 units in the first quarter, with new supply climbing 5% to 4,576 units, as per data shared with TNIE. The south Indian metropolis is emerging as a balanced urban growth centre, where end-user demand, policy support, and investor interest are beginning to align. “The market has maintained a steady rhythm in the first quarter, and the momentum is likely to continue through the year,” said Srinivas Anikipatti, Executive Director (Tamil Nadu & Kerala) at Knight Frank India. He cited robust commercial leasing, particularly from global capability centres (GCCs) and coworking operators, as a leading indicator of the city’s rising appeal as a business hub. Indeed, office activity has paralleled the housing market’s performance. Chennai registered 2.6 million sq feet of office leasing in Q1, contributing 10% of India’s total leasing activity in green-certified office spaces, as per CBRE. Scan for more VGN nearly `1 lakh in total payments.” From the supply side, developers sense an opening. “Reduced borrowing costs for developers will also help projects run more smoothly and may even speed up new construction,” says Ashish Bhutani, CEO of Bhutani Infra. He adds that the rate cut arrives at a time when broader global factors could also steer capital into the Indian property market. “Trade shifts like the US’ 26% tariff on Indian goods could prompt NRIs to re-evaluate their investment strategies,” Bhutani says. “NRI investments have already surged in luxury and commercial real estate segments. These tariffs may accelerate that trend.” Yet, the impact of RBI’s move will not be uniform. Borrowers on loans linked to the external benchmark (such as repo rate) may benefit within weeks, while those tied to the older MCLR framework may experience a lag as banks adjust internal rates—a process often criticised for its sluggishness. Economists also caution that the central bank’s action should not be mistaken for the beginning of an aggressive easing cycle. Inflation remains sticky, and with global economic signals still mixed, the RBI is expected to proceed cautiously Nev. ertheless, for a sector that has endured a decade of shocks—demonetisation, GST rollouts, the pandemic, and rising input costs—any directional support is welcome. Fo r M e e n a , t h e c a l c u l u s has shifted. And for India’s real estate ecosystem, the hope is that many more will reach the same conclusion. ENS Own a piece of Avadi, Chennai’s next hub I n Tamil, the word ‘Aa’ means cow and legend has it that Avadi got its name from the abundance of cows once found here. Today Avadi is no longer just , a name, it’s a symbol of growth, opportunity, and transfor mation. From being a serene locality to emerging as a strategic industrial and residential hub, Avadi is Chennai’s next big destination. land rates, but with potential for higher returns thanks to ongoing industrial and infrastructural projects. Excellent Connectivity With rail, road, and bus networks, Avadi is connected to all parts of Chennai and beyond. Upcoming metro extensions will further boost accessibility From apartments and . gated communities to commercial complexes and office spaces, Avadi is witnessing a construction boom that will redefine the city . Hub of Power and Progress Avadi is a powerhouse of industrial and technological advancement. It is home to major defence manufacturing facilities like the Heavy Vehicles Factory (HVF), Combat Vehicles Research and Development Establishment, and the Ordnance Clothing Factory IT companies, tel. ecom service centres, real estate ventures, transport networks, and a well-connected bus and railway system, all making Avadi an ideal location. Diverse, Thriving Community People from all walks of life from across Tamil Nadu have settled here. Many from various parts of India have also called Avadi home, creating a inclusive social fabric. A Mega Leap in Infra A 5,00,000 square feet industrial Rising Demand park has been set up at Pattabiram in Avadi on 10 acres of land, with an investment of $2.3 billion. This game-changing project is set to create thousands of jobs, boost local economy, and increase land value exponentially . Global tech giants like Dell Technologies and Tata Consultancy Services (TCS) have announced plans to establish operations here — putting Avadi on the map as a tech and innovation corridor. Affordability Meets Appreciation Compared to other Chennai suburbs, Avadi still offers affordable With industries moving in and job opportunities rising, there is a growing demand for housing, rental spaces, and commercial establishments — a perfect storm for smart investors. Avadi also offers a perfect mix of urban convenience and green surroundings — with schools, colleges, hospitals, markets, parks, gyms, yoga centres, and places of worship — everything within easy reach. Government backing With active support from the Tamil Nadu Government and Greater Chennai Corporation, Avadi is benefitting from planned urban development, smart city initiatives, and civic upgrades. ENS