Guduvancheri, Chennai
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® Guduvancheri, Chennai The Emerging Suburb of South Chennai Micro Market Overview Report February 2018 About Micro Market Located in the peripheral areas of south-western Road is easily accessible from the micro market via quadrant of Chennai, Guduvancheri is emerging as Kelambakkam – Vandalur Road. one of the prominent real estate hotspots. The micro The micro market has a well-developed social market is located alongside National Highway-45 infrastructure with the presence of several (NH-45), which is also known as the Grand Southern educational institutes such as the SRM School of Trunk Road (GST Road). Surrounded by lakes, Hotel Management, Bharathiyar Matriculation Guduvancheri is located between Urapakkam and Higher Secondary School, Saint Mary’s Matriculation Potheri. Guduvancheri’s calm and serene School and Guduvancheri Boys Higher Secondary environment has attracted several developers to School. In addition, the micro market houses several build residential complexes in this region. The micro healthcare centers such as Christudas Hospital, Sri market is surrounded by busy areas such as Venkateswara Clinic, Vasantham Clinic, K. R. Nursing Maraimalai Nagar and Adhanur. Guduvancheri lies in Home and Sumana Goodwill Home. Guduvancheri proximity to a multitude of IT Parks/SEZs such as also has good retail options with presence of Shriram The Gateway and Mahindra World City SEZ. shopping complexes such as S.S. Shopping Mall, In addition, SIPCOT Industrial Park located on OMR Pattammal Complex and Devarajan Complex. One of the fastest growing residential micro market located between Urapakkam and Potheri. ® Micro Market Overview Report | Guduvancheri, Chennai 1 Proximity to the Grand Southern Trunk (GST) Road and Outer Ring Road provides seamless connectivity. Connectivity Guduvancheri is well-connected to various parts of the city. Also, the micro market enjoys seamless Chennai through a grid of roads and an established connectivity to other prominent suburbs of Chennai rail network. via Nellikuppam Road and Madambakkam Main Road. Road Rail NH-45/GST Road – Guduvancheri lies in proximity to NH-45/GST Road, which works as a key connector to Guduvancheri Railway Station – Guduvancheri Chennai from other cities in South India. Also, this railway station of Chennai suburban rail network road connects Guduvancheri to other parts of eases rapid inter-city rail transportation. Chennai. Kelambakkam - Vandalur Road – Guduvancheri Airport enjoys hassle-free connectivity to commercial Chennai International Airport - Chennai establishments of Old Mahabalipuram Road (OMR) International Airport is located at a distance of 26 via Kelambakkam - Vandalur Road. km from Guduvancheri and easily accessible via GST Outer Ring Road (ORR) – Guduvancheri lies in Road. proximity to Outer Ring Road (ORR), which further connects it to the western and northern quadrants of ® Micro Market Overview Report | Guduvancheri, Chennai 2 Major Growth Drivers Ÿ The GST Road, with the presence of SEZs, Ÿ The micro market shares seamless connectivity to integrated developments and excellent two prominent SEZs of Chennai, namely Mahindra connectivity to various parts of the city, is World City and Madras Export Processing Zone evolving into a buzzing realty market. As a result, (MEPZ) via GST Road. In addition, commercial micro markets adjoining this bustling road, establishments of OMR are also easily accessible including Guduvancheri, and possessing an from Guduvancheri, which is an added advantage adequate infrastructure coupled with availability for the residents of this micro market. of ample land surely possess strong future growth prospects. Perfect concoction of commercial and residential spaces contribute to the micro market's growth. ® Micro Market Overview Report | Guduvancheri, Chennai 3 Location Chennai Internal Airport d Velachery a o R St. Thomas g Mount-cum-Pallavaram n i R r e t MEPZ u O - SEZ i a n n e Thorajpakk h Tambaram C d Perungalathur Sholinganallur a o R m a r u p Padapai i Accenture l a b a h a K M e lam b d Urappakkam a l kk d a Thalambur O a m o - R V a k n n d Apollo Hospital ru a T lu + r Siruseri rn R e o h Guduvanchery a t d u o S d n SIPCOT a Kattankulathur r SRM Institute of Science & Technology Industrial Park G / 5 4 y Ford India Pvt. Ltd. a w h ig Maraimalai Nagar Industrial Park H l a n o i t a N Kelambakkam Ammapettai Mahindra World City Thiruporur Business Park Airport Outer Ring Road Industrial Park Main Road Prominent location School Lake + Hospital Railway Track ® Micro Market Overview Report | Guduvancheri, Chennai 4 65% of the inventory to hit the residential market in less than 1 year. Residential Market Assessment New Launch Supply Age of Inventory (Launches between 2012 to 2017) 2,500 4% 4% 2,000 27% 1,500 Units 1,000 65% 500 0 Ready to Move-in < 1 year 1-2 year 2-3 year 2012 2013 2014 2015 2016 2017 Ÿ Due to its strategic location and excellent Ÿ Of the overall supply in Guduvancheri, nearly 27% connectivity to key suburbs of South Chennai, is complete. Interestingly, 65% of inventory is likely Guduvancheri added around 6,600 units in the to complete in the next 1 year, which connotes a last 5 years. further rise in absorption, as projects nearing completion generally witness better traction. Ÿ However, post Chennai floods of Q4-2015, the new launch supply recorded a whopping Ÿ Only 8% of the overall supply in Guduvancheri is decline. Around 89% decline was recorded in likely to complete post 1 year. Developers with 2016 as compared to the previous year. Also, under construction projects are presently 2017 remained subdued in terms of new launch focusing on speeding up the construction supply mainly due to political turmoil in the activities, so as to avoid RERA penalties on state and implications of demonetization, RERA execution delays. and GST. Ÿ Of the overall supply, nearly 26% is still available in the primary market. ® Micro Market Overview Report | Guduvancheri, Chennai 5 Guduvancheri's average price as of Q4 2017 is around INR 3,800/sft. Residential Market Assessment Micro Market Price Movement wrt Supply 2,000 3,900 3,800 3,700 1,500 3,600 3,500 1,000 3,400 3,300 INR / sqft. Number of Units 3,200 500 3,100 3,000 0 2,900 Q1-2015 Q2-2015 Q3-2015 Q4-2015 Q1-2016 Q2-2016 Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 New Supply (In Units) Ÿ Guduvancheri’s average price as of Q4-2017 is Ÿ Irrespective of subdued launches during the last around INR 3,800/sqft. The ascending price trend 2 years, the micro market has recorded a 9% delineates the rising housing demand in the surge in capital values in Q4-2017 as compared to precinct. Q1-2016, which is mainly due to an improvement in sales. ® Micro Market Overview Report | Guduvancheri, Chennai 6 Outlook Ÿ Guduvancheri’s strong future growth prospects micro market as one of the most sought-after will surely attract real estate players to develop suburbs of South Chennai. The micro market, this micro market similar to key suburbs of South easily accessible via OMR, has ample land bank Chennai such as Tambaram and Pallavaram, availability for future developments. The which are also located alongside the GST Road. property prices in Guduvancheri are relatively Also, massive commercial developments along cheaper than the nearby micro markets and the the buzzing GST Road has already attracted future certainly looks promising. 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 Overview Report | Guduvancheri, Chennai 7 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. ® 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..