Parandur Airport Dropped: What It Means for Property Prices in Kanchipuram

What happened?

DT Next reported that the state-run TIDCO, replying to a Right to Information query, confirmed that the government has informed AAI the Parandur project is off. According to the report, TIDCO said early technical and field studies for another location have begun, but nothing has been chosen or confirmed.

DT Next said the state's chief minister told the legislature on 24 August that Parandur would be abandoned. The reasons given were farmland, water bodies, flooding and the effect on people living there. The report adds that AAI had earlier compared Parandur with Pannur, Padalam and Thiruporur before Parandur was picked.

According to DT Next, the state has since looked at Cheyyur, in Chengalpattu district, and Manellore, close to Gummidipoondi in Tiruvallur district. It asked for a pre-feasibility assessment of both, yet TIDCO says neither is final. The paper's reading is that the airport plan is back at the stage of choosing a site.

Which sectors are affected?

• Parandur, Kanchipuram district
• Chennai second-airport corridor
• Cheyyur, Chengalpattu district
• Manellore near Gummidipoondi, Tiruvallur district
• Plotted land and agricultural land near the old Parandur proposal

Distance from the projects

Distances as sourced on our research pages.

Potential impact

Land and plot prices around Parandur were likely carrying some expectation of an airport. With the project dropped, that expectation has no official backing, so asking prices may soften or stop rising, and sales could slow. How much of the premium was ever actually priced in is not something our data shows, so treat any estimate of a fall with caution.

For the rest of the Chennai region, the picture is open. Cheyyur and Manellore are being studied, but a study is not a decision, and an airport that is yet to have a site is years from operating. Any area that rallies on speculation about the next site is taking the same risk Parandur buyers just faced. For context, Chennai's city-wide average in our data is 9,200 per sq ft, with a rental yield of 3.3%, and neither figure is changed by this news.