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The Emerging Suburb of South Chennai Guduvancheri, Chennai February 2018 Micro Market Overview Report ®

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Page 1: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

The Emerging Suburb of South Chennai

Guduvancheri, Chennai

February 2018Micro Market Overview Report

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Page 2: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing
Page 3: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

Micro Market Overview Report | Guduvancheri, Chennai 1

Located in the peripheral areas of south-western

quadrant of Chennai, Guduvancheri is emerging as

one of the prominent real estate hotspots. The micro

market is located alongside National Highway-45

(NH-45), which is also known as the Grand Southern

Trunk Road (GST Road). Surrounded by lakes,

Guduvancheri is located between Urapakkam and

Potheri. Guduvancheri’s calm and serene

environment has attracted several developers to

build residential complexes in this region. The micro

market is surrounded by busy areas such as

Maraimalai Nagar and Adhanur. Guduvancheri lies in

proximity to a multitude of IT Parks/SEZs such as

Shriram The Gateway and Mahindra World City SEZ.

In addition, SIPCOT Industrial Park located on OMR

Road is easily accessible from the micro market via

Kelambakkam – Vandalur Road.

The micro market has a well-developed social

infrastructure with the presence of several

educational institutes such as the SRM School of

Hotel Management, Bharathiyar Matriculation

Higher Secondary School, Saint Mary’s Matriculation

School and Guduvancheri Boys Higher Secondary

School. In addition, the micro market houses several

healthcare centers such as Christudas Hospital, Sri

Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

Home and Sumana Goodwill Home. Guduvancheri

also has good retail options with presence of

shopping complexes such as S.S. Shopping Mall,

Pattammal Complex and Devarajan Complex.

One of the fastest growing residential micro market located between Urapakkam and Potheri.

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About Micro Market

Page 4: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

2

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Connectivity

Guduvancheri is well-connected to various parts of

Chennai through a grid of roads and an established

rail network.

NH-45/GST Road – Guduvancheri lies in proximity to

NH-45/GST Road, which works as a key connector to

Chennai from other cities in South India. Also, this

road connects Guduvancheri to other parts of

Chennai.

Kelambakkam - Vandalur Road – Guduvancheri

enjoys hassle-free connectivity to commercial

establishments of Old Mahabalipuram Road (OMR)

via Kelambakkam - Vandalur Road.

Outer Ring Road (ORR) – Guduvancheri lies in

proximity to Outer Ring Road (ORR), which further

connects it to the western and northern quadrants of

the city. Also, the micro market enjoys seamless

connectivity to other prominent suburbs of Chennai

via Nellikuppam Road and Madambakkam Main

Road.

Guduvancheri Railway Station  – Guduvancheri

railway station of Chennai suburban rail network

eases rapid inter-city rail transportation.

Chennai International Airport - Chennai

International Airport is located at a distance of 26

km from Guduvancheri and easily accessible via GST

Road.

Proximity to the Grand Southern Trunk (GST) Road and Outer Ring Road provides seamless connectivity.

RoadRail

Airport

Micro Market Overview Report | Guduvancheri, Chennai

Page 5: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

Major Growth Drivers

3

Ÿ The GST Road, with the presence of SEZs,

integrated developments and excellent

connectivity to various parts of the city, is

evolving into a buzzing realty market. As a result,

micro markets adjoining this bustling road,

including Guduvancheri, and possessing an

adequate infrastructure coupled with availability

of ample land surely possess strong future

growth prospects.

Ÿ The micro market shares seamless connectivity to

two prominent SEZs of Chennai, namely Mahindra

World City and Madras Export Processing Zone

(MEPZ) via GST Road. In addition, commercial

establishments of OMR are also easily accessible

from Guduvancheri, which is an added advantage

for the residents of this micro market.

Perfect concoction of commercial and residential spaces contribute to the micro market's growth.

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Micro Market Overview Report | Guduvancheri, Chennai

Page 6: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

Location

4

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Guduvanchery

Maraimalai� Nagar� Industrial� Park

Ammapettai

Thiruporur

Kelambakkam

Thalambur

Sholinganallur

Thorajpakk

Velachery

St.� Thomas�Mount-cum-Pallavaram

Padapai

Tambaram

Perungalathur

Siruseri

MEPZ�-� SEZ

Accenture

Urappakkam

SRM� Institute� of� Science� &� Technology

dao

R�gni

R�retuO�ianneh

C

SIPCOTIndustrial� Park

Kelambakkam� -� Vandalur� Road�

dao

R�maru

pilabaha

M�dl

O

Ford� India� Pvt.� Ltd.

Mahindra� World� City

daoR�knurT�nrehtuoS�dnarG�/54�ya

whgiH�lanoita

N

Kattankulathur

Apollo� Hospital +

Chennai Internal Airport

Airport

Industrial Park

Prominent location

Lake

Railway Track

Business Park

Outer Ring Road

Main Road

School

Hospital+

Micro Market Overview Report | Guduvancheri, Chennai

Page 7: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

5

Residential Market Assessment

Ÿ Due to its strategic location and excellent connectivity to key suburbs of South Chennai, Guduvancheri added around 6,600 units in the last 5 years.

Ÿ However, post Chennai floods of Q4-2015, the new launch supply recorded a whopping decline. Around 89% decline was recorded in 2016 as compared to the previous year. Also, 2017 remained subdued in terms of new launch supply mainly due to political turmoil in the state and implications of demonetization, RERA and GST.

Ÿ Of the overall supply, nearly 26% is still available in the primary market.

Ÿ Of the overall supply in Guduvancheri, nearly 27% is complete. Interestingly, 65% of inventory is likely to complete in the next 1 year, which connotes a further rise in absorption, as projects nearing completion generally witness better traction.

Ÿ Only 8% of the overall supply in Guduvancheri is likely to complete post 1 year. Developers with under construction projects are presently focusing on speeding up the construction activities, so as to avoid RERA penalties on execution delays.

65% of the

inventory to hit the

residential market in

less than 1 year.

New Launch Supply Age of Inventory (Launches between 2012 to 2017)

Ready to Move-in < 1 year 1-2 year 2-3 year

®

0

500

1,000

1,500

2,000

2,500

2012 2013 2014 2015 2016 2017

27%

65%

4% 4%

Units

Micro Market Overview Report | Guduvancheri, Chennai

Page 8: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

Micro Market Price Movement wrt Supply

6

Residential Market Assessment

Ÿ Guduvancheri’s average price as of Q4-2017 is around INR 3,800/sqft. The ascending price trend delineates the rising housing demand in the precinct.

Ÿ Irrespective of subdued launches during the last

2 years, the micro market has recorded a 9%

surge in capital values in Q4-2017 as compared to

Q1-2016, which is mainly due to an improvement

in sales.

Guduvancheri's

average price as of

Q4 2017 is around

INR 3,800/sft.

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2,900

3,000

3,100

3,200

3,300

3,400

3,500

3,600

3,700

3,800

3,900

0

500

1,000

1,500

2,000

Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017

New Supply (In Units)

Q4-2017

Num

ber

of

Units

INR

/ s

qft

.

Micro Market Overview Report | Guduvancheri, Chennai

Page 9: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

Outlook

7

Ÿ Guduvancheri’s strong future growth prospects

will surely attract real estate players to develop

this micro market similar to key suburbs of South

Chennai such as Tambaram and Pallavaram,

which are also located alongside the GST Road.

Also, massive commercial developments along

the buzzing GST Road has already attracted

several property developers to expand their real

estate portfolio.

Ÿ Guduvancheri’s serene environment coupled

with excellent connectivity and affordable

property prices has already established this

Ample land bank

availability at cheaper

prices is attracting

the real estate players

to Gudavancheri.

micro market as one of the most sought-after

suburbs of South Chennai. The micro market,

easily accessible via OMR, has ample land bank

availability for future developments. The

property prices in Guduvancheri are relatively

cheaper than the nearby micro markets and the

future certainly looks promising.

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Micro Market Overview Report | Guduvancheri, Chennai

Page 10: Guduvancheri - Micro Market Overview report v3 - Micro Market Overview Report.pdfhealthcare centers such as Christudas Hospital, Sri Venkateswara Clinic, Vasantham Clinic, K. R. Nursing

All information in this report is provided solely for internal circulation and reference purposes. ANAROCK makes no statement, representation, warranty or guarantee as to the accuracy, reliability or timeliness of the information provided. No part of this report may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods.

The ANAROCK Group is one of India's leading real estate services company having diversified interest across real estate value chain. The Group's key strategic business units comprise of the Residential business: broking and advisory services to clients; Investment business: debt, equity and mezzanine funding, and Research and Consulting business. ANAROCK's Investment arm has built a revolutionary business model of bulk-purchasing residential apartment inventory through a proprietary investment fund.

With a growing team of over 1000 professionals, ANAROCK operates in all key property markets across India - Mumbai, Chennai, Bengaluru, Gurgaon, Noida, Hyderabad, Kolkata and Pune, and has international presence in Dubai. With in-depth market information, quality advice and developer tie-ups for optimal deals, we have been serving the industry since 2011.

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