The announcement that Ponneri would be one of three smart cities in the Chennai-Bangalore corridor, along with the expansion of Chennai Metro Rail to northern Chennai, has increased consumer interest in residential properties in northern Chennai. For years, northern Chennai was underdeveloped with little consumer interest, as most preferred living in southern Chennai near jobs and amenities. However, as southern Chennai has become too expensive for many middle-income groups, northern localities like Perambur, Kolathur, and Madhavaram now offer more affordable housing options. Major infrastructure projects have helped boost demand and property values in these areas are expected to rise 30% or more in the coming years.

1. Realty limelight shines on north Chennai
A few months back, Finance Minister Arun Jaitley announced in his maiden budget speech that
Ponneri in north Chennai would be one of the three smart cities in the Chennai-Bangalore Industrial
Corridor.
This recent announcement coupled with the extension of phase II of Chennai Metro Rail, has
sparked consumer interest in northern Chennai. For many years, this region of Chennai was one of
the underdeveloped pockets of the city with very little consumer interest as migrant as well as local
IT/ITeS employees preferred residing in south Chennai, primarily on account of its proximity to
business districts and relatively better developed social infrastructure.
According to a residential report by Indiaproperty.com, in 2013 the focus of buyers looking for
apartments in Chennai residential market was on 2BHK properties with 35% consumer demand
having a budget of INR 30 – 50 lakhs. This indicates a demand for more affordable and mid income
residential properties. As apartments in central and south Chennai have become unaffordable for
most middle income groups, the north Chennai localities of Ponneri, Tondiarpet, Madhavaram,
Perambur and Ayanavaram have become the practical and favoured choice for budget flats in
Chennai.

2. Perambur
Perambur is one of the popular residential destinations in North Chennai. This locality boasts a
higher standard of living as compared to surrounding areas. With good social infrastructure in place,
the suburb has seen a steady growth of schools, hospitals, shopping malls and multiplexes.
Perambur has seen a 32 percent rise in demand and it is expected that with further improvement in
connectivity and better roads, capital values in Perambur will appreciate by over 30% in next 5 years.
Kolathur
Kolathur is another popular residential localities in North Chennai that offers many affordable
options for home buyers averaging at INR 5000 per sq ft. With improvement in connectivity, quality
projects and better infrastructure facilities in the future one can expect an increase in demand for
residential properties in Kolathur.
Madhavaram
Madhavaram is one of the major localities in North Chennai. It is located along the Great Northern
Trunk Road (also known as NH 5 or Chennai – Kolkatta Highway). Property rates in this locality vary
between INR 3800 – INR 4500 per sq ft. The locality has good future prospects for those looking for
budget flats in Chennai as the government owns major chunk of the land here and the area is likely
to remain green with minimal scope for unorganised real estate development. With a number of
under construction projects, Madhavaram is growing as an in-demand residential micro market.
Lack of infrastructure was one of the prime reasons for the under development of north Chennai,
but with major infrastructure initiative undertaken by the government more developers and
consumers are looking towards the north for apartments in Chennai.
Source: http://pbytes.indiaproperty.com/realty-limelight-shines-on-north-chennai/