Avadi, Chennai: From Prominent Defence Hub to Housing Hotspot

Sanjay Chugh, Head – Chennai, ANAROCK Property Consultants

Avadi in western Chennai is situated along the Chennai-Thiruvallur NH 716 – 23 km from the city centre.

Over the years, this micro market has transformed from a major defence hub to a key real estate hotspot, with both residential and commercial developments.

Attracted by its green and serene environment, homebuyers (including current and ex-defence employees) have purchased properties in this locality.

Avadi has seen robust infrastructure growth in the past few years, boosting residential activity by both end-users and investors.

Given its heritage, Avadi houses many defence and military establishments such as Indian Air Force, Heavy Vehicles Factory (HVF), EFA – Engine Factory, to name a few.

Additionally, the IT-ITeS sector and other industries also have a base in and around Avadi. This fact, coupled with its well-defined defence ethos which lends it a secure feel, make Avadi a preferred residential location for their employees.

Avadi also hosts several well-known educational institutes and healthcare facilities, and is well-connected to other key localities including Thiruvanmiyur,  Poonamallee,  Tambaram,  Guindy,  Ambattur,  Anna Nagar,  and Porur, to name a few.

  • Road:

Chennai-Thiruvallur NH 716 connects it to other prominent locations such as Ambattur, Anna Nagar, Kolathur, etc. Avadi Main Road connects the micro market to NH 48 and Kovilpadagai Road connecting Thiruvallur Highway via MDR 575.

  • Rail:

Avadi railway station serves the neighbourhood of Avadi and is the major railway terminal of the Chennai Central-Arokkonam section of the Chennai Suburban Railway Network.

  • Air:

Chennai international airport is approximately 27 km from Avadi.

Housing Supply Trends

Housing Supply Trends

  • Around 5,580 units have been launched in Avadi since 2013 till Q1 2019. The overall growth of the IT-ITeS and industrial sectors in and aroundAvadi have boosted residential demand.
  • 2014 saw highest launches (around 52% of total) mainly in the affordable (< Rs 40 lakh) and mid-segment (Rs 40 lakh – Rs 80 lakh) categories.
  • Launches have been significantly low post-2014 as a series of economic reforms and policies had been introduced thereafter. The 2015-Chennai floods further dampened the real estate scenario in the entire city. Just when things were beginning to improve in 2016, DeMo, RERA, and GST badly hit the realty market of Avadi.
  • Out of the total new supply in Avadi, 81% (approx. 4,510 units) is ready-to-move-in while another 16% will be completed within a span of one year
  • Merely 3% of the total inventory is expected to be complete within 2-3 years – a healthy trend indicating that developers here have been focussing on project completion during the last two years. This micro-market has ample ready homes.

The price trend in the micro-market has been in the range of INR 3,400-3,800 per sq. ft. from 2015 to Q1 2019, with improving scope for appreciation.

Interestingly, despite low launches from Q1 2017 to Q1 2019 due to the impact of economic reforms, property prices in Avadi appreciated over 6%in the same period.

There are 1,150 unsold units in the market, out of which only 260 are under construction and remaining are ready-to-move-in.


With maximum real estate activity in the affordable and mid-segment categories, Avadi is fast transforming into a buzzing realty hotspot.

Despite reduced launches in 2016 and thereafter, property prices have appreciated and this is drawing investors along with end-users.

Avadi is also the most-preferred housing destination for people working in the nearby IT hubs such as Ambit & Indiabulls IT Park and the DLF IT Park.

This, along with the existing connectivity, the presence of defence establishments and good infrastructure facilities, make Avadi an excellent bet for homebuyers and long-term property investors.

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