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Sholinganallur is an established residential node located on the IT corridor towards the south of Chennai. The advent of Information Technology business parks and dedicated Special Economic Zones (SEZ) in this region marked the rise of Sholinganallur as the next big financial and economic hub of Chennai. Surrounded by other IT-based suburbs such as Perungudi, Siruseri and Taramani, Sholinganallur has been a regular attractor of a large IT-based population. Moreover, Tamil Nadu Government's Industrial Development Corporation TIDCO is building a Financial City in Sholinganallur to house global financial corporations.
Located at the junction connecting East Coast Road to Tambaram, Mudichur and Adyar to Mahabalipuram along Old Mahabalipuram Road, Sholinganallur is an important junction in Southern part of Greater Chennai. Situated at a distance of 14.3 km from Tambaram, 2 km from East Coast Road (ECR) and 13 km away from Adyar, this growth node is well connected by roads.
Sholinganallur is home to a number of IT/ITES companies. Many large IT corporates like Infosys, Wipro, TCS, Automotive Robotics, PayPal, eBay, HCL Technologies, Cognizant, Tech Mahindra have their operations here. Sholinganallur’s population continues to grow rapidly as the influx of IT based workforce is very high in this region. Rapidly growing employment opportunities, good asset appreciation, presence of outstanding Infrastructure with proximity to beaches at ECR and a host of entertainment avenues make this locality a favourable residential destination as well.
The positives in the residential market can be attributed to many factors. Apart from proximity to IT Corridor and SEZs, Sholinganallur enjoys improved connectivity via OMR and other robust road structures. Connectivity with Velachery railway station and various public transit systems and improved socio-economic conditions are major growth drivers for this region.
The major housing area in Sholinganallur includes Akkarai, Panaiyur, Rajiv Gandhi Nagar and MGR Nagar which are located in East Coast Road. Seeing the rising demand, Tamil Nadu Government’s Housing Board has created a satellite township at Shollinganallur with IT parks, schools, playgrounds, parks and a bus terminus. The TNHB township of 4,000 residences is situated next to the upcoming 200 acres of National Maritime university complex. Major real estate players such as DLF is currently building 3,500 apartment complex and offering amenities such as hospitals, schools and entertainment avenues in Sholinganallur.
The residential property prices here range between Rs 5,000 and 5,500 a sq.ft. However, the appreciation levels have been a little sluggish off-late, which is evident with the entire industry at the moment. Sholinganallur has a very active rental market, offering a rental yield of 3-3.5 per cent primarily due to the perennial influx of large working population. However, once the economy is back on track after demonetization, the locality is expected to rise once again and promises great returns on investment over middle to long term.
The writer is Managing Director - Chennai & Coimbatore, JLL India