Till last month, P.S. Mahesh, promoter of Banyan Tree Estates, marketed his DTCP-approved seven-acre villa plot layout at Pudupattu village near Sunguvarchatram in Kancheepuram district as an investment offering a “100% profit guarantee”, banking on its proximity to the proposed Parandur greenfield airport.But this month, the social media promotions for his company’s layout do not mention the word ‘Parandur’ anywhere in them. Instead, they just mention “Buy your land near Sunguvarchatram”.That’s because the ruling Tamilaga Vettri Kazhagam (TVK) government has almost given up on the proposed ₹27,400-crore Parandur greenfield airport project. The government’s stand is in line with the party’s stance to support the locals who are against the proposed airport, as it would affect several waterbodies across 13 villages. The State government now feels there is not enough vacant space to build a runway without affecting the waterbodies, and hence it is not pushing ahead with the proposed airport.
“The announcement of a large infrastructure project like an airport will surely result in a substantial increase in land prices in that region. While investors who moved in early would be alright, those who got in at a later stage may be stuck”Mehul DoshiPresident, CREDAI ChennaiAs a result, realtors in the region have no option left but to stop promoting their projects.“Parandur airport was a big opportunity for growth for real estate investors. Without that, there is a slowdown,” says Mahesh. For instance, his Aerovilla project at Pudupattu village near Sunguvarchatram was seeing a ₹50 to ₹100 per sq.ft. price appreciation every month until May this year. After the Assembly election results and with a new government, there has been no appreciation in prices due to the general apprehension about the future of the Parandur airport project.“While the price per sq. ft should have moved to around ₹1,500 per sq. ft by now, we are still quoting the same ₹1,300 per sq. ft that was prevailing a couple of months ago. Layouts closer to the existing Chennai–Bengaluru National Highway continue to command around ₹2,500 per sq. ft,” says Mahesh.
