Dated : July 1, 2022
With the state looking to expand the existing airport and planning to build a second airport in Chennai, let’s find out how it will impact the real estate sector
The recent proposal to expand the Chennai airport over the Adyar river is expected to push up the real estate prices in the area. Though the expansion of the existing airport was expected to be completed in 2015, the current deadline is six months from now. The expansion would allow the airport to accommodate 50 to 60 million passengers per annum and thus increase the footfall in the city.
Harsh Vardhan Patodia, president, CREDAI says, “Over the years, Chennai’s real estate has established its foothold as a favoured city to invest in owing to its rapid development. The introduction of IT parks and data centres, among other projects, has improved residential real estate in the city. The growing employment hubs also lead to the requirement of more employees. Enhancing the airport’s capabilities means ease of travel for those wishing to come to Chennai for work purposes. The lush green area of Adyar, which is currently popular due to its proximity to Elliot’s beach will now have a new identity. As more people pour into the city, areas around the airport – like Adyar – will witness improved commercial activity.”
Asset advisor Bhadresh Mehta says, “Areas like Pallavaram, Velachery, and Porur are in the radius of five to seven kilometres from the current airport. These residential areas offer homes at Rs 7,000 to Rs 8,000 per sq ft, depending on the amenities provided. Once the extension is completed, these areas are expected to witness an increase in business opportunities.”
Furthermore, Chennai is also an IT hub with ports and rich mercantile markets, which are witnessing a rise in population density. This boost has generated more employment and migration to the city, which was evident in 2011 census of the city that recorded a population of 8,653,521 in the Chennai Metropolitan Area against that of the previous census (4,343,645 in 2001). Additionally, in a big move to ease air traffic, the Union ministry of civil aviation (MoCA) has also planned to open a second airport in Chennai.
The Centre has identified Parandur and Pannur for constructing the second airport, and is currently in the process of finalising the spot. At Pannur, 4,500 acres of land has been identified, while 4,791.29 acres has been shortlisted at Parandur.
A feasibility report submitted by the state officials, however, indicated Pannur to be the frontrunner as the area is located 49 kms away, about an hour and 26 minutes from Chennai Central. On the other hand, Parandur is 73 kms away and the average time taken to travel will be around an hour and 54 minutes.
Developers expect a seven to 10 per cent price appreciation in these areas once the work begins.
Niranjan Hiranandani, vice-chairperson, NAREDCO, says, “Globally, a new airport brings in real estate development. While Bengaluru and Navi Mumbai are domestic examples, Dubai is one of the many global examples. The real estate development includes residential, commercial, retail, hospitality, healthcare, and entertainment. It also boosts infrastructure development and drives real estate growth in peripheral locations. Hence, a new infrastructure development leads to new employment, draws investment, and economic activities, which is followed by more demand for residential as well as commercial real estate. This culminates into an ‘advantage housing’ scenario.”
Patodia adds, “The introduction of an airport in the region will only attract more homebuyers as a consequence of increased connectivity. As a result of this, the area would witness new project launches, which would augur well for the consumers, and will help in improving the sentiment alongside aiding the holistic development of the real estate sector.”
Area…………………………..Rs per sq ft (avg)
- Sriperumbudur…………….Rs 3,800
- Pannur……………………….Rs 6,000
- Parandur…………………….Rs 4,200
- Adyar…………………………Rs 13,000
- Sunguvarchatram………..Rs 4,000
- Source: Magicbricks Research