CHENNAI: The capital values in Nungambakkam and Adyar have dropped 9 to 15 per cent as landlords and developers have reduced prices to attract buyers to these premium locations, according to a study by Colliers International, a global real estate consultant.
The study states that capital values in Sholinganallur, Besant Nagar and Alwarpet too saw an average annual dip of two to three per cent because of low demand.
Now, the capital value in Nungambakkam is around Rs 19,000 to Rs 26,000 a sqft and Adyar is Rs 13,000 to Rs 17,000 a sqft, says Arvind Nandan, director, valuation and advisory, South Asia, Colliers International.
He also said rental values in Adyar and Besant Nagar dipped by 17 per cent annually from peak values. Arvind also said developers were slashing prices because of unsold real estate inventories. He said that on OMR most of the inventories in areas like Padur and Navalur were unsold.
Ajith Chordia, Chennai president, Confederation of Real Estate Developers Association of India (CREDAI) agreed that the developers had slashed apartment prices in Nungambakkam and Adyar but denied that land prices there had dipped.
Colliers International study predicted the second half of 2016 after the Assembly elections could spark a demand revival because of reforms in the sector.
Even the smart city project was expected to push up capital values of T Nagar, said Arvind. He added that the major blow for Chennai’s realty market was the failure to implement key projects such as the bus terminus at Madhavaram, as well as infrastructure projects.