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Infrastructural boost expected to jumpstart Ponneris real estate market

By Farozan Akhtar (http://www.99acres.com/articles/author/farozan)
October 15, 2015
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In frastru ctu re u p grad e worth more th an Rs 13 crore cou p l ed wi th th e smart ci ty tag i s exp ected to p rovi d e an i mp etu s to
b oth resi d en ti al an d commerci al real estate d evel op men t i n Pon n eri .
Located 35 km to the north of Chennai, Ponneri is set to become a hot property in the real estate market. Adding to its appeal as a proposed
Smart City, it will receive Rs 13, 314 crore worth of infrastructure upgrade as a part of the Chennai-Bengaluru Industrial Corridor (CBIC). This is
aimed at driving industrial growth and job generation to this yet-unexplored town.

aimed at driving industrial growth and job generation to this yet-unexplored town.
According to A V Murali, Director, Green Earth Properties, Unlike south and west Chennai (http://www.99acres.com/articles/bangalore-chennairecord-highest-number-of-new-launches-in-h1-2015.html), the northern region is still quite uncharted when it comes to real estate. He points
out lack of sound infrastructure and primitive inventory as the major reasons. Currently, settlement in Ponneri is principally around the
Ponneri Highway and the arterial roads. Residential segment here comprises of small dwellings and independent houses. Apartment culture
has not arrived here yetand land prices are extremely cheap.
According to data from 99acres.com, a residential plot of 600 sq ft can be easily purchased for Rs 1 lakh while a 2000 sq ft plot would cost
approximately Rs 25 lakh. Cherion Jacob from Big Ben Properties tells us that commercial properties in the surrounding areas can fetch
anywhere between Rs 250 to 600 per sq ft depending on its accessibility from the main roads.
Several Japanese companies dealing in automobiles and auto parts have their factories in North Chennai as Ponneri is close to two ports
Kamarajar and Kattupalli, which are important for import and exports of goods. Besides factories, there are small shops dotting the residential
areas.
Real estate d eman d exp ected to ri se
Once the infrastructural scene improves, there will be a huge inux of investment in this area. Owing to its proximity to two major ports as well
as the metropolitan city of Chennai, Ponneri has the potential to serve both national and international markets. This will mean greater demand
for commercial properties including warehouses and factories. Ponneri is expected to become the rst choice for Japanese companies invested
in India and also for development of industrial parks and commercial spaces.
Housing demand is also expected to surge with the creation of thousands of new jobs. This will attract work force from the neighbouring areas
resulting in huge demand for residences in dierent price categories. Jacob mentions that people have even started constructing villas in the
outskirts of Chennai as this whole region, combined with the prospering IT sector in Chennai and Andhra Pradesh, is soon expected to become
a huge growth corridor. Murali agrees and adds that this region will become attractive for real estate investment among people working in the
surrounding IT sector, assuming that infrastructural development occurs speedily.
According to local experts, the Smart City plan along with the CBIC proposal will hopefully improve the social infrastructure of this sleepy town
which has only a handful of schools and hospitals at the moment. Betterment of transportation infrastructure and economic sustainability is
expected to steeply raise real estate prices. Being located on the route to tourist destinations like Lake Pulicad and Tirupati is also going to work
in Ponneris favour.
Murali concurs saying that, The Smart City tag (http://http://www.99acres.com/articles/will-the-smart-city-plan-improve-punes-real-estate.html)
along with abundance of cheaply priced vacant land is expected to make Ponneri an attractive choice for investors and developers alike.
Potential investors have already started enquiring about available properties. However, the real impact on the real estate market will be visible
only in three to ve years.
However, some would like to wait until land acquisitions are complete to speak more on the issue. With the real estate market facing a
slowdown throughout the nation, a new growth corridor would undoubtedly be a boon for the industry. Hence, investors are waiting with bated
breath to unlock the true potential of this underrated region.

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