Real Estate Surge in Sholinganallur: Over 5,000 Units Planned for Next Year

Sholinganallur, a key area along Old Mahabalipuram Road (OMR) in South Chennai, is experiencing significant growth in real estate. Over the next year, more than 5,000 high-end residential units will be added in tall buildings, further transforming the area. Previously known as a hub for IT professionals, Sholinganallur is now attracting a broader group of buyers, including those from nearby areas along the East Coast Road (ECR), thanks to improved metro connectivity. However, local residents are calling for better infrastructure to keep up with this rapid growth.

Sholinganallur has been one of the most popular residential areas in South Chennai, with around 8,300 residential units launched between 2018 and the third quarter of 2024. Out of these, 69% of the projects are still being built, while the remaining 31% are ready for people to move in.

The area saw a large increase in new homes in 2020, making up 34% of all new housing in South Chennai that year. This caused a temporary oversupply, and developers slowed down new projects in 2021. As a result, there were fewer launches that year. However, since 2022, the market in Sholinganallur has bounced back, showing steady demand. By the third quarter of 2024, the area's market share had reached 23%, indicating that interest is strong again.

When it comes to the types of homes being built, the majority of the new projects (66%) are in the mid-range price category, between ₹40 lakh and ₹80 lakh. But there’s also a growing demand for more expensive properties, especially those priced between ₹1 crore and ₹2.5 crore. This shift shows that people are willing to invest in higher-end homes in the area, reflecting the increasing appeal of Sholinganallur.

Investment details

Sholinganallur is a spot for property investment, with apartments priced at an average of ₹6,750 per square foot. Some projects show price growth:

• DRA D Elite: 40.4% annual growth.
• Casagrand First City: 32.1% annual growth.
• ASV Alexandria: 12.8% annual growth.

Overall, property prices dipped slightly by -0.7% YOY, but the area is still attractive for investors, especially with high rental yields in projects like Casagrand Royale. Nearby areas like ECR, Karapakkam, and Medavakkam offer similar price ranges.

Rental details

For renters, Sholinganallur has options for different budget:

• Affordable Rentals (< ₹16,000/month): Limited options, ideal for budget-conscious renters.
• Mid-Range Rentals (₹16,000–₹21,000/month): A few properties fit this range.
• Premium Rentals (> ₹21,000/month): Over 110+ options, with average rents between ₹20,900 and ₹43,800/month.

Despite its growth, residents highlight the pressing need for improvements in essential infrastructure, including roads, sewage systems, and water supply. "Thirteen years ago, Sholinganallur was incorporated into the Greater Chennai Corporation, covering 20 wards and seven village panchayats. However, the area still faces issues with inadequate water supply and sewage connections. Moreover, the overhead power lines have yet to be converted to underground systems, causing frequent accidents," said D. Raman, President of the Confederation of Sholinganallur Residents Welfare Association.