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East Coast Road, Kovalam, Kanathur-Reddykuppam, Chennai 603112
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CRZ question is important and well-asked. The Kovalam-ECR stretch technically has a CRZ boundary. However, plots east of ECR (between ECR and sea) face stricter CRZ-II/III restrictions. Plots west of ECR (the road separates the plots from the water in most locations) are generally in CRZ-II zone where regulated residential construction is permitted with specific setbacks. Since G Square has RERA registration (TN/01/Layout/0122/2022) and the project is on the western side of ECR based on the address, the CRZ clearance is likely obtained. But ask G Square specifically: (1) which CRZ zone does this fall in, (2) what is the permitted floor height, (3) any restrictions on rooftop structures. These matter for actual construction.
I visited the site last monsoon – the Kovalam stretch on ECR does take on a beautiful quality during rain. The plots face reasonable road access and the G Square development appears to be on good ground (not the marshy low-lying coastal stretches that exist further south toward Kelambakkam ECR belt). The infrastructure (blacktop roads, drainage, compound wall) was complete on the section I saw. Ready to construct status is genuine. One thing to check: sea-facing plots in the ECR zone tend to see higher salt content in the air which accelerates corrosion on steel and certain paints. If you build, use marine-grade or coastal construction specifications.
The commercial plot opportunity is real. My cousin has a beach homestay in Kovalam and on weekends during Pongal, Diwali, and New Year she gets fully booked at ₹4,500-5,000/night for a 3-bedroom villa. Annual gross revenue exceeds ₹8L from 35-40 occupied weekends/holidays per year. A commercial plot on ECR Kovalam at ₹3,650/sqft to build a 5-room homestay (construction cost ~₹60L) could yield ₹10-15L/year gross. Airbnb hosts from Kovalam regularly appear in Tamil Nadu's top-earning host lists. The ECR hospitality micro-economy is real.
For residential use, the question is who buys beach-adjacent plots as primary residence. My observation from similar ECR projects: 60-70% buyers are second-home/investment buyers, not primary residence. The weekend commute from central Chennai to Kovalam is 45-60 minutes via ECR which is manageable. But daily commute from Kovalam to, say, Anna Nagar would be 90 minutes each way – impractical. This project targets people who can afford a second home or people who genuinely work near ECR/Siruseri/Perungudi OMR area. At ₹40L entry point for the smallest plots, it's accessible enough to consider as a second home investment.