Make way for PG homes

Builders in Chennai have found a new market for their product, particularly for single bedroom tenements. 

Thanks to the burgeoning floating population of professionals belonging to IT and ITeS, automobile, education and engineering sectors from various states and within Tamil Nadu, the city has been witnessing huge demand for PG accommodation and 1 BHK flats on rent. The rental too has hit the roof due to the high demand.

Since the city is also home to several colleges, both within the central business district and on the outskirts, students from outside Chennai generally look for safer places to stay, where their food and other basic needs are taken care of much to the relief of their parents. And, builders and house owners are taking advantage of this unprecedented rush for smaller homes.

“Students and professionals from other states prefer Paying Guest (PG) accommodation.  These units are well furnished with basic facilities. They too provide homemade food for tenants. Most of them have facilities such as Wi-Fi connectivity, LCD television with DTH connection, refrigerator, magazines, furniture, etc. Each room is being provided with a single bed, study table, wardrobe and dressing table,” says Niharika Kapoor, an IT professional working in Taramani, who stays at Velachery.

The hubs for PG accommodation in Chennai are Mambalam, Nungambakkam, Velachery, Kodambakkam, Tambaram and Mylapore. Some of the places where IT professional look for homes are Thiruvanmiyur, Thorapakkam, Sholinganalur, OMR, Karaipakkam, Medavakkam, Porur and Iyyappanthangal.

The rates too vary as per the facility available. For non A/C accommodation with hosts of other facilities homeowners are charging anywhere between Rs 6000 to RS 10,000 per month and for non A/C rooms without sharing, one has to shell out between Rs 3500 to Rs 5.500, says Gopal Menon, a student, who stays in Tambaram West.

Majority of the demand for PG accommodation is in locations, which are closer to the IT corridors of the city. However, maximum supply is concentrated in Thorapakkam, Thiruvanmiyur and Sholinganalur, which is close to IT corridor, since it has cheaper transportation towards work places.

“People, who may be professional or student come to the city from other states. They look for safer place to stay for few months. Hence, they prefer PG accommodation rather than renting small-sized apartments, where they have to pay huge security deposit,” says  Sridharan, who let out PG rooms exclusively for girls in Velachery.

The unprecedented demand for PG accommodation or independent single bedroom apartments has forced many denizens to convert their homes into PG accommodation for better earning. ‘We have a few projects for joint development for PG accommodation- cum-single-bedroom apartments from owners in Tambaram, Thoraipakkam and Porur. We have making one in Iyyappanthagal, where the demand is more since it is closer to DLF IT Park and Sri Ramachandra Hospital, says Somesh Verma, Senior Marketing Manager of Om Ganesh Construction.

Needles to say, the real estate prices are going up in certain pockets of the city where it has huge demand for such accommodation. In places like West Tambaram, Kattupakkam, Ramapuram, Kundrathur and Chrompet, the demand is more for single room tenements being sought by college students, nurses and IT professionals.