In a 2012 investment advisory report, Knight Frank ranked Medavakkam in southern Chennai sixth among 13 micro markets in order of investor return over the next five years. Three years later, it still retains the potential to invest in. With capital values rising steadily, it has now become one of the most preferred investment hubs of Chennai. Of course, given the likely increase in both social and physical infrastructure facilities expected in the next few years the trend of price appreciation is likely to remain. Says Sarita Hunt, managing director-Chennai & Comibatore, JLL India. “It is advisable to invest in the next few months in the right product to cash in on this.”
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Medavakkam is adjacent to the suburbs of Sholinganallur, Selaiyur, Madipakkam, Keelkattalai, Velachery and Tambaram. What works in favour of Medavakkam is that it is strategically located between the Old Mahabalipuram road (OMR) or IT corridor and Grand Southern Trunk Road (GST Road) with easy connectivity to Velachery and Pallikaranai. The micro-market is at a distance of 14 km from ChennaiAirport and 25 km from the Chennai Central Railway Station. The NanmangalamReservedForest is only 3 km away.
Says Kanchana Krishnan, director- Chennai, Knight Frank (India); “Medavakkam has good social infrastructure in terms of housing, schools and hospitals.” There are also business class hotels in Medavakkam. It also houses reputed schools and colleges and hospitals. “There are, however, not many avenues for entertainment,” says Maneesh Gupta, director-valuation & advisory services and residential Services, Colliers International.
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Over the past two years capital values in Medavakkam have moved up by 15-20 per cent. “It currently ranges between Rs.4,000-Rs.5,200 per sq.ft,” says Hunt. This would depend on location, brand, size of development and specification offered.
Adds Hunt, “With the augmentation of infrastructure facilities promoted by the government, the appreciation in capital value is likely to continue.” A 2BHK apartment in Medavakkam will be available for rent in the range of Rs.8,000-Rs.10,000 per month while a 3BHK apartment would be available in the range of Rs.12,000-Rs.15,000 per month.
“Considering the positive economic indicators and government’s focus on affordable housing and availability of quality land banks this micro market should see better appreciation in the medium term,” says Krishnan.
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