Velachery real estate market is growing at break-neck speed but it still manages to retain its old world charm. Take a walk down the Taramani Link Road and the by-pass road and you can see a huge crowd of hip, 20-something girls and boys hanging out at the local eateries or busy shoppers making a beeline to high-end branded showrooms that dot the main road.
With skyscrapers and large residential complexes, amidst traffic snarls and a new landscape, Velachery has etched its own metamorphosis. The new Velachery is vibrant and is a work in progress.
Velachery is one of the older localities with good social infrastructure. However, the land is scarce as most of it has already been developed as many real estate developers are keen on setting up projects here. The location scored initially as it offered real estate developers plenty of lands to purchase. Now, the land has grown scarce.
Multi-storeyed developments, the hallmark of upcoming residential real estate areas in the city, dot this locality close to the IT Corridor.
Velachery, in the space of less than a decade, has become a hub of premium to mid-level residential real estate development due to the influx of IT professionals and rapid improvement of infrastructure.
Builders moved into the area post-2000 in large numbers as they scented the potential of a locality well-connected with Old Mahabalipuram, since renamed as Rajiv Gandhi Salai, and home to several IT companies (IT Corridor).
The Velachery real estate boom is part of a generalized increase in demand for housing in the city.
8 or 9 years back when real estate development was at the very beginning in Velachery, even the roads were not good. Now, every big retailer wants to have an outlet here. In the last five to six years, the locality has undergone a sea change. A lot of old buildings, particularly large bungalows, have been razed and very high-end commercial and residential buildings have come up. These have changed the very face of Velachery.
Rise in real estate prices in Velachery
While prices are stable currently, they have and are likely to rise with the increased development of IT commercial space in the area. Prices of two- and three-bedroom flats listed for sale or resale in several classifieds ads range from Rs.35 lakh to Rs.70 lakh for luxury housing currently.
Good road connectivity and road-widths that permit multi-storeyed development are frequently cited by builders as other advantages of the location.
The rapid development on arterial roads, such as Velachery Bypass, in the area and the rise in the property prices has also resulted in an increase in construction activity in interior areas.
Though many areas, particularly those in western Velachery lack good roads, are prone to flooding during heavy rains and not connected by Metropolitan Transport Corporation buses, people continue to prefer them in view of the appreciation in the property rates.
House owners in Velachery are also in the past few years finding it lucrative to let out their homes on rent and move to other areas closer to the city centre. Residents report that this has become a trend. House-hunters in the location area also find that rentals are geared towards IT professionals.
Velachery has developed into a residential hub today providing quality residential developments, commercial offices and glitzy malls with good retail options. One of the main reasons why Velachery is witnessing a huge facelift as compared to other older localities of the city, like Adyar, is its proximity to OMR. Another reason for the development in the area is its huge contribution to the IT industry.
Nearly 30 to 40% of IT employees are from this neighborhood. Their exposure to modern developments abroad and demand for quality residential space has pushed up the real estate development in this area. However, residents in the locality still like the area for its innate old world charm.
The government lacks clarity in promoting infrastructural developments here. This locality has the potential to be a huge separate township by itself. People of all income groups are nested here and witness the growth of the locality every day. However, frequent power cuts and long-pending road widening projects are impediments to its growth.
Water supply lines, better sewerage system, development of link roads and stormwater disposal systems are expected to be completed soon. Besides these, a number of other projects are being implemented in the area. A number of projects – Monorail, satellite bus terminus, lake beautification, Phoenix Mall, Grande Mall, etc, have already started or completed in this area.
Once all the proposed retail malls, commercial buildings, hotels and commodity markets are operational in the next couple of years, there will be a surge in economic activities in the area. This will also lead to demand for real estate, both residential and commercial, in the area. The locality has good connectivity and it will improve further in the coming years.
Residential real estate in Velachery holds a very good price, particularly the projects that offer the latest amenities. Prices for residential built-up areas range in a decent budget, depending on the type of construction.
With the opening of the Pallavaram Highway which leads to the International Airport at Meenambakkam, Velachery is the new gateway to South Chennai and is fast emerging as one of the most sought-after real estate hotspots of the city.