Rise of real estate development in North Chennai

The Hindu

17-07-2025

North Chennai plays a protagonist in Tamil films such as Pudhupettai, Polladhavan, and Vada Chennai. From Madhavaram, Tiruvottiyur, Ennore, and Manali to Kolathur, Royapuram, Perambur, Purasawalkam, and Tondiarpet, they have all been showcased for their notoriety, featuring cramped living conditions and a lack of infrastructure. However, there has noticeable plot twist in the last three years. Long-time residents here are now seeking improved housing options, while local traders who were once confined to compact living spaces are now upgrading to larger and more luxurious homes. Recognising the untapped potential here, developers are queuing up to put up their projects here. And not just that, in the last three years, north Chennai has experienced a notable increase in property prices. Developers say that people in this zone are now looking at properties priced anywhere between ₹80 lakh up to a few crore. According to CREDAI (Confederation of Real Estate Developers Associations of India) Chennai, real estate values have appreciated significantly over the last two years in north Chennai, with land prices rising by 30% to 60% across key locations.
In particular, Madhavaram, Perambur, and Minjur have seen notable growth. Rental values have also increased by 15% to 20%, driven by rising demand from working families, migrants, and improved connectivity to the city's commercial hubs, says CREDAI, the apex body of private real estate developers in India.
Another set of data that was collated by V.S. Sridhar, executive managing director, Tamil Nadu and Kerala, and Head GCC Advisory-Operations, Cushman & Wakefield, shows that between 2022 and the first-half of 2025, north Chennai saw close to 7,000 residential units launched across key localities. Madhavaram leads the pack. 'Madhavaram led with 2,390 units, followed closely by Perambur with 2,349 units. Tiruvottiyur recorded 687 units, while Kolathur and Villivakkam contributed 319 and 299 units, respectively,' says Sridhar. 'Other areas like Tondiarpet, Royapuram, and smaller localities added modest numbers.' The first half of 2025 has already seen a healthy momentum with nearly 1,400 units being launched, indicating that the second half will witness steady activity, he adds.
Recently, G Square acquired 62.38 acres of land to develop 1,091 ready-to-construct villa plots spread across key micro-markets, including Red Hills, Puzhal, and Karanodai, entailing investments to the tune of ₹230 crore. Casagrand is also evaluating some projects in the North Chennai area. Diptakirti Chaudhuri, chief marketing officer of Casagrand, says that localities such as Madhavaram, Perambur, and Kolathur are witnessing a wave of premium gated communities and high-rise apartment projects. 'Casagrand's offerings in these prime pockets are priced between ₹7,000 to ₹9,000 per sq.ft. In contrast, certain locations in north Chennai have already crossed ₹15,000 per sq.ft., surpassing average prices in the OMR belt,' he says.
Sanjay Chugh, director and city head, Chennai, Anarock Property Consultants Private Limited, says areas such as Minjur, Moolakadai, and Avadi are drawing attention due to proximity to proposed economic hubs like the TIDEL Park at Pattabiram and upcoming metro extensions. 'Perambur continues to attract mid-segment buyers,' he shares.
Commercial development
While residential developments have been on the rise, the region is also witnessing commercial growth, which includes IT parks, retail hubs and logistics centers. 'Looking ahead, the submarket is expected to see an additional two MSF [million square feet] of supply from developers such as Voora and Purvika Kwality Group, to meet the rising demand for good quality office spaces,' Sridhar says.
Chugh points out that the Tamil Nadu government's warehouse policy would be a game-changer for north Chennai. He says, 'With the Tamil Nadu Warehousing Policy expected to be unveiled by late 2025, industry players are eyeing streamlined approvals, single-window clearances, and zoning clarity for cold storage, logistics parks, and multi-modal hubs. For hubs like Ennore and Manali — already gaining traction due to port proximity and NDR's FTWZ [Free Trade Warehousing Zone] — this policy could catalyse large-scale investments and infrastructure-grade leasing.' He also highlights that the NDR Group, which is strengthening the region's logistics backbone with over 7,00,000 sq.ft. Free Trade Warehousing Zone (FTWZ) in Ennore, is now reshaping the retail landscape with a ₹200-crore shopping mall in Madhavaram.
The challenges
Despite all this, developers feel that a lot needs to be changed as the region continues to grapple with long-standing urban and environmental challenges that threaten to cap its true potential. They state that chronic flooding during monsoons — largely due to inadequate stormwater infrastructure and encroachments on key water bodies such as the Buckingham Canal and Otteri Nullah — remains a seasonal crisis. Layered over this are the effects of unregulated urbanisation, which has led to rampant solid waste mismanagement and groundwater contamination, especially around industrial hubs like Ennore, Manali, and Kodungaiyur.
Developers suggest that immediate steps should focus on reviving the Kosasthalaiyar River Basin through desilting, rejuvenation, and encroachment clearance. This would provide long-term flood resilience. In parallel, scaling up the Integrated Stormwater Drainage (ISWD) system using climate-adaptive designs could bring relief to the flood-prone wards.
A developer shares that in these dense, mixed-use neighbourhoods, residents regularly face the harsh realities of fly ash emissions, sewage overflows, and airborne industrial pollutants, posing serious public health and ecological risks. While state-led initiatives such as the North Chennai Development Scheme aim to address these issues, progress has been uneven, often slowed by fragmented execution and ageing civic systems. For private developers and institutional investors, this lack of consistency continues to be a barrier to long-term commitment.