Lure of high-end apartments in heart of the city

According to Cushman and Wakefield, a global commercial real estate services company, these localities are witnessing high growth as they are located in the more affordable price bracket of the luxury segment. Shveta Jain, managing director (Residential), Cushman & Wakefield says that the average price for high end and luxury segment launched in 2015 had decreased by around 5 to 8 per cent over the previous year. 

Reduction in unit sizes original plans was another strategy used to bring down the overall price of a premium project. “The year 2014 witnessed the launch of around 1,015 units in the luxury and high end segments together, while the same was around 480 units in 2015. 

Leading developers like Olympia Group, Navin Housing, Ceebros, True Value Homes, Puravankara Projects, and VGN launched projects in these segments in 2014 and 2015,” Jain added. 

Cushman and Wakefield reports that Boat Club and Poes Garden were the most sought after micro-market segments in the city. Nungambakkam, Alwarpet, and Kotturpuram were also among the preferred localities for luxury residential segment. 

Ajit Kumar Chordia, managing director, Khivraj Tech Park Private Limited said that since land in Chennai remains expensive, flats cost around Rs. 10,000 per sq.ft. in most of the localities falling within city limits (excluding the expanded area) “Both, the location of the apartment and features offered, can determine whether a project comes under luxury or premium segments. 

The number of home buyers for these million dollar homes is around 300 per annum and demand is normally static,” he said. C

hordia pointed out that due to the economic slowdown and increase in land prices, these homes have become costlier, even as demand is muted. The most preferred areas of choice for luxury homes in Chennai were Boat Club, Raja Annamalai Puram (R.A. Puram), Alwarpet and Nungambakkam, said Chordia. 

However, other areas are also gaining as preferred destinations, said Chordia. Anna Nagar, Egmore and Kilpauk are turning out to be emerging areas for high end segment in the city because of their large parcels of land, wide roads, good connectivity and sound infrastructure. 

According to realty developers and home buyers, luxury and high end apartments, should have facilities including private swimming pools, clubhouse, gymnasium, spa, landscaped garden, ample car parking, high ceiling, large windows and a grand visitor’s lobby.