Chennai Suburbs New Address For Affordable Housing Along Link Roads
If you have a budget of Rs 30 lakh and are scouting for an apartment away from the din and dust of Chennai, your future address could be along Vandalur-Kelambakkam Road or Avadi-Poonamallee Road. These areas, branching out of major roads linking two national highways on the Chennai suburbs, are emerging as destinations for affordable housing projects.
Areas located around 40 km from the city are best suited, say experts. While the presence of employment hubs in the industrial and information technology sector is contributing to the traction in the southern periphery, rail and road connectivity, ample educational institutions and healthcare facilities are a major advantage on the western fringes.
Chief operating officer, strategic consulting, India and Sri Lanka at Jones Lang LaSalle, said, Chennai, had four major regions which could house such projects. The southern Chennai suburbs have the highest number of residential stock followed by southwest and west comprising areas including Paruthipattu, Ayanambakkam, Thiruverkadu and Kundrathur. Though the north too, has demand and the supply is low because of the presence of industries and port-related activities.
He said the demand for budget homes was in the one and two BHK (bed, hall and kitchen) categories costing between Rs 12 lakh and Rs 30 lakh. Last year, the Centre accorded infrastructure status to affordable housing, facilitating an increase in availability of loans at low-interest rates and long-term funding for developers. An incentive for first-time home buyers includes a maximum interest subsidy of Rs 2.67 lakh given through the Pradhan Mantri Awas Yojana (PMAY).
Though the demand for such housing is on the rise, a high land cost in the Chennai suburbs is dissuading developers. Though the demand is high for houses below Rs 20 lakh, the increased cost of acquiring land makes it unviable for affordable housing in the suburbs. So developers are exploring land in extended suburbs, said Vice-president at Confederation of Real Estate Developers’ Association of India (CREDAI), Chennai chapter.
But cheap land rates in extended suburbs come with poor infrastructure particularly lack of connectivity, water and sewerage facilities, he pointed out.
The affordable housing segment faces high demand but supply is less than 10%, says the director, Knight Frank (India), Chennai. To tap the robust demand in this category, it is important for the government to regulate and bring in easier regulatory mechanism for affordable housing projects, incentivise the participation of public-private partnerships and increase the floor space index, she said.
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