- Home
- Real Estate
- Metro rail to energise Chennai real estate
Metro rail to energise Chennai real estate
Like other major cities, Chennai has experienced a sluggishness in the real estate market. However, the inception of the metro has always acted as a price booster in the backdrop of this situation. Earlier Thirumangalam area of Chennai experienced a 15–35 per cent surge in land values near metro stations. Rates increased 8–10 per cent in Bengaluru's CBD micromarket as well as a select SBD areas like Indiranagar, CMH Road, Jayanagar, Malleswaram, Yeshwanthpur, and Rajajinagar.
The 7.4 km first metro line which opened in 2015 connected important areas including Airport, Government Bus Depot, South Chennai, and the Central Business District. Now the 118.9-km Phase II project of Chennai Metro Rail being built at a cost of Rs 61,843 crore is set to cover another 93 km in the coming years and the plan is to extend it till Parandur, where a greenfield airport has been proposed. This development experts have suggested that this will have a positive impact on the real estate scenario. T. Archunan, Director - Projects, Chennai Metro Rail Corporation confirmed this when he informed the audience that, "Once we publish the alignment for a new metro line, construction activities and real estate densification is witnessed within 300-500 meters on either side of the line. By the time we complete the project in five years, the cost of office spaces and housing increases.”
For ensuring timely completion of mega infrastructure projects including metro rail projects Ashwin Moghe, Sr. Vice President, Aditya Birla Group (Ultratech Cement) suggested the implementation of the PDCA cycle "The PDCA cycle," he clarified "is a continuous loop of planning, doing, checking (or studying) and acting which makes way for a simple and effective approach to solve problems and manage change.”
Residential sales in Chennai grew 8 per cent YoY in 2022
Source : Housing.com
V. Nagarajan, Editor and Publisher, A guide to Chennai real estate points out that in the current scenario Mount Poonamallee road and GST corridor are some of the areas poised for growth, adding that the metro rail is catalysing growth of real estate especially in the GST corridor.
Source : Housing.com
The residential segment has been a resilient player in the Chennai real estate market and a lot of this is attributed to developments which unfolded during the pandemic. Vikram Vidyala, Senior Executive Director, Zonal Head – South, CBRE says "The pandemic has definitely accelerated the demand for residential units as people have realised the importance of owning a home and having a comfortable and safe living space. With remote work becoming the new norm, people are also looking for homes with more space, amenities, and a better work-life balance. This has resulted in a shift towards larger apartments with additional rooms and balconies, and even towards independent houses and villas. Moreover, with interest rates at historic lows and attractive payment plans being offered by developers, the affordability of buying a home has also improved, which has further boosted the demand for residential units."
Even in the office space segment too the story has been quite buoyant. According to Knight Frank's India Real Estate 2022 study, the post-pandemic expansion in Chennai's various industries, particularly IT, ITES, and health, appears to have sparked a historically high rate of demand for commercial spaces on a lease basis. The research states that around 6.5 million square feet were absorbed in 2022. The majority of office space transactions on OMR took place in the Kandanchavadi, Taramani, and Kottivakkam neighbourhoods.
Though the residential and office segment is doing well, It seems that the retail space in Chennai is taking a beating Ramkumar K, President, Association of Professional Property Consultants of Chennai says "The organised retail in Chennai Real Estate has reached a point of saturation with about six million square feet of retail. However, there is still a lot of interest in retail activity across South and West Chennai. Data centres thankfully are witnessing a growth trajectory in Chennai, more so because the government is promoting investments in this space."
Though the year began with a dose of uncertainty in the global housing market which had real estate investors worried pan India, it was realised that the impact of this development will not haemorrhage the real estate scenario in India and a growth of 8 per cent has been predicted by the market experts. So overall, even though there may be some challenges and uncertainties in the Chennai real estate market in 2023, it is still expected to grow steadily, with a focus on affordable and well-connected properties that cater to the changing needs of buyers and investors.
As per report by Housing.com, the sales and launches of real estate in Chennai in 2022 were only higher than Kolkata among other metropolitan cities in India. At the recently concluded Construction World Design Build (CWDB) Conclave and Awards in Chennai organised by FIRST Construction Council, experts suggested, even in the backdrop of ongoing sluggishness in real estate, the residential segment will continue to drive growth in the Chennai real estate market and initiatives like metro connectivity will aid it. Like other major cities, Chennai has experienced a sluggishness in the real estate market. However, the inception of the metro has always acted as a price booster in the backdrop of this situation. Earlier Thirumangalam area of Chennai experienced a 15–35 per cent surge in land values near metro stations. Rates increased 8–10 per cent in Bengaluru's CBD micromarket as well as a select SBD areas like Indiranagar, CMH Road, Jayanagar, Malleswaram, Yeshwanthpur, and Rajajinagar. The 7.4 km first metro line which opened in 2015 connected important areas including Airport, Government Bus Depot, South Chennai, and the Central Business District. Now the 118.9-km Phase II project of Chennai Metro Rail being built at a cost of Rs 61,843 crore is set to cover another 93 km in the coming years and the plan is to extend it till Parandur, where a greenfield airport has been proposed. This development experts have suggested that this will have a positive impact on the real estate scenario. T. Archunan, Director - Projects, Chennai Metro Rail Corporation confirmed this when he informed the audience that, Once we publish the alignment for a new metro line, construction activities and real estate densification is witnessed within 300-500 meters on either side of the line. By the time we complete the project in five years, the cost of office spaces and housing increases.” For ensuring timely completion of mega infrastructure projects including metro rail projects Ashwin Moghe, Sr. Vice President, Aditya Birla Group (Ultratech Cement) suggested the implementation of the PDCA cycle The PDCA cycle, he clarified is a continuous loop of planning, doing, checking (or studying) and acting which makes way for a simple and effective approach to solve problems and manage change.” Residential sales in Chennai grew 8 per cent YoY in 2022 Source : Housing.com V. Nagarajan, Editor and Publisher, A guide to Chennai real estate points out that in the current scenario Mount Poonamallee road and GST corridor are some of the areas poised for growth, adding that the metro rail is catalysing growth of real estate especially in the GST corridor. Source : Housing.com The residential segment has been a resilient player in the Chennai real estate market and a lot of this is attributed to developments which unfolded during the pandemic. Vikram Vidyala, Senior Executive Director, Zonal Head – South, CBRE says The pandemic has definitely accelerated the demand for residential units as people have realised the importance of owning a home and having a comfortable and safe living space. With remote work becoming the new norm, people are also looking for homes with more space, amenities, and a better work-life balance. This has resulted in a shift towards larger apartments with additional rooms and balconies, and even towards independent houses and villas. Moreover, with interest rates at historic lows and attractive payment plans being offered by developers, the affordability of buying a home has also improved, which has further boosted the demand for residential units. Even in the office space segment too the story has been quite buoyant. According to Knight Frank's India Real Estate 2022 study, the post-pandemic expansion in Chennai's various industries, particularly IT, ITES, and health, appears to have sparked a historically high rate of demand for commercial spaces on a lease basis. The research states that around 6.5 million square feet were absorbed in 2022. The majority of office space transactions on OMR took place in the Kandanchavadi, Taramani, and Kottivakkam neighbourhoods. Though the residential and office segment is doing well, It seems that the retail space in Chennai is taking a beating Ramkumar K, President, Association of Professional Property Consultants of Chennai says The organised retail in Chennai Real Estate has reached a point of saturation with about six million square feet of retail. However, there is still a lot of interest in retail activity across South and West Chennai. Data centres thankfully are witnessing a growth trajectory in Chennai, more so because the government is promoting investments in this space. Though the year began with a dose of uncertainty in the global housing market which had real estate investors worried pan India, it was realised that the impact of this development will not haemorrhage the real estate scenario in India and a growth of 8 per cent has been predicted by the market experts. So overall, even though there may be some challenges and uncertainties in the Chennai real estate market in 2023, it is still expected to grow steadily, with a focus on affordable and well-connected properties that cater to the changing needs of buyers and investors.
Related Stories
Gold Stories
Innovision Wins NHAI Toll Collection Contract at Aashpur Fee Plaza
Innovision Limited has informed stock exchanges that it has been awarded a user fee collection and facility maintenance contract by the National Highways Authority of India (NHAI). The letter of award was issued on 10 August 2026 for operations at Aashpur Fee Plaza at design kilometre 231.100 on National Highway number 91 between Aligarh and Kanpur in Uttar Pradesh. The engagement covers collection of user fees for four and more lane sections and the upkeep and maintenance of adjacent toilet blocks including replenishment of consumable items. The contract was secured through a competitive e-te..
Bharat Electronics Secures Rs.5,410 mn In Orders
Bharat Electronics Limited (BEL), a Navratna Defence Public Sector Undertaking, has secured additional orders worth Rs.5,410 million (mn) since the last disclosure on 31 July 2026. The fresh awards raise the company's recently reported intake and were announced by way of a regulatory filing on 10 August 2026. The orders span multiple business verticals and are incremental to contracts already under execution. The update follows the company's routine disclosure obligations to the stock exchanges. Major orders received include communication equipment, electro optics, ammunition fuzes, Chemical B..
United Drilling Tools Receives US Order For Gas Lift Mandrel
United Drilling Tools Limited said it has received an order from Tri Lift Services Inc of the United States for the supply of a gas lift mandrel to be used in the oil and gas industry. The company said the disclosure was made to listing authorities under the Securities and Exchange Board of India listing rules and the SEBI master circular of November 2024. The notice set out the nature of the contract as commercial and awarded by an international entity. The order is to be executed in the ordinary course of business and carries an estimated contract value of Rs four point eight three million (..
Related Articles
Latest Updates
Recommended for you
Advertisement
Subscribe to Our Newsletter
Get daily newsletters around different themes from Construction world.
subscribe to the newsletter
Don't miss out on valuable insights and opportunities
to connect with like minded professionals

