Key Areas To Be Impacted Because Of The Upcoming Metro In Chennai

 

Chennai is all set to get a Metro makeover in the next few years. Here are some important areas where the real estate market is expected to boom

Chennai is currently undergoing an extensive expansion of its Metro rail network with the development of new corridors and extension lines. “Completion of the Chennai Metro Rail Phase-I project has already enabled convenient access to several key locations in the CBD, Off-CBD, and GST Road micro-markets in recent years. This in turn also created an extensive opportunity for the development of social infrastructure, healthcare facilities, educational institutions as well as commercial spaces including offices, retail outlets, etc,” says Anshuman Magazine, chairman & CEO - India, South-East Asia, Middle East and Africa, CBRE. Now, with the Chennai Metro Rail Phase-II project, the city is bound to get a huge boost in terms of connectivity, and as a result, the real estate market will see an upward tick.

Decoding the real estate growth because of Metro

There are multiple reasons why property rates zoom upwards when it comes to areas impacted by mega projects like the Metro. Highlighting the details about the same, Srinivas Anikipatti, senior director - Tamil Nadu and Kerala, Knight Frank India says, “Property prices along current and upcoming Metro lines in Chennai have generally experienced an upward growth, with certain areas like Anna Nagar, Ashok Nagar, Sholinganallur seeing notable price increases due to the Metro. The extent of the price increase can vary based on factors such as the specific Metro line, the stage of development, the neighbourhood’s existing infrastructure and amenities, and the overall demand and supply dynamics in the real estate market."

Therefore, consider a few factors before targeting areas affected by Metro development. Magazine concludes, “The strategic development of commercial and retail areas around Metro stations holds significant potential for bolstering both the economic and social vitality of these growth corridors. Potential homebuyers in the city should consider proximity to Metro stations, property price trends, presence of social infrastructure, redevelopment opportunities, and government incentives as key decision-making factors in these Regions.”

Key areas to be impacted 

Various micro-markets are going to benefit from the upcoming Metro projects in Chennai. Sanjay Chugh, city head – Chennai, Anarock Group shares a few key details for your benefit:

·                     “North Chennai (Washermenpet, Korukkupet, Tondiarpet, and Tollgate): Traditionally underserved by rapid transit, this region will see improved accessibility to other parts of Chennai. Enhanced transport can stimulate local businesses and potentially attract new investments.

·                     South Chennai (Sholinganallur, Siruseri, and the surrounding IT corridor): This area, being a major IT hub, will benefit from better connectivity, aiding thousands of commuters. Enhanced Metro connectivity may lead to increased property values and spur real estate development here.

·                     West Chennai (Porur, Valasaravakkam, and Poonamallee): Improved access to Central Chennai can lead to growth in suburban residential development. This region hosts numerous educational institutions and hospitals, which will become more accessible.

·                     Central Chennai (Anna Nagar, Arumbakkam, and Koyambedu): With Koyambedu already being a major transport hub, the Metro will further enhance its connectivity. Increased footfall due to the Metro may boost retail and commercial activities.

·                     Peripheral areas (Kilambakkam and Vandalur): As connectivity improves, peripheral areas may see more residential and commercial development. Better public transport can limit the extent of urban sprawl and associated issues.

·                     Industrial regions like Ambattur: Enhanced connectivity might boost industrial activity by improving access for workers and reducing transportation costs. There is potential for new job creation in the industrial sector.

·                     Commercial and business districts (Egmore, Nandanam): Businesses in these areas could see increased client and customer access in the near future. Modern Metro infrastructure may lead to urban renewal projects in these older districts.”

Chennai Metro Rail Phase II

Phase II of the Chennai Metro has been planned for a length of 118.9 km in total with 128 stations. It consists of three corridors i.e. Corridor-3 from Madhavaram to SIPCOT with a length of 45.8 km; Corridor-4 from Lighthouse to Poonamalle Bypass of 26.1 km and Corridor-5 from Madhavaram to Sholinganallur of 47 km. The estimated cost of the project is Rs 63,246 cr (including IDC) as per the official website of CMRL. This proposal is under process and is proposed to be completed by the end of 2026.