Multi-faceted, modest and unassuming, Chennai is a city of neighborhoods. Like many other cities, each neighborhood of Chennai has its own personality. The legacy and the architectural styles found in each of these small communities, contribute to a cultural tapestry that is unique and dynamic. Earlier known as Madras, Chennai is the capital city of Tamil Nadu and sits on the Coromandel Coast of the Bay of Bengal.
Chennai is the city that accounts for an important share of US $185 billion investment in the state, and is expected to aid in the creation of new jobs and thus the increased demands for real estate, suggest the market experts and analysts. Searching for a suitable property in Chennai, and making smarter investments is the new mantra for these youngsters working here now. Read More
Chennai is renowned as the Detroit of India now, with leading automobile manufacturers like BMW, Ford, Renault, Hyundai, Nissan, Mitsubishi, and Daimler transforming the city into an automobile hub. Also the pace at which the real estate market has picked up in Chennai, is impeccable and has paved way for development of property in Chennai and surroundings.
Population: 8.2 million (As of 2016)
Administration: Greater Chennai Corporation (GCC)
Area: 426 km2
Population rank in India: 3
Ethnic composition: Telugu, Kannadiga, Malayali, Marathi and others.
Buy & Rental Price Trends in Chennai
The residential segment of Chennai has witnessed a boom in the recent years. A number of economic and infrastructure drivers have affected the demographic growth of the posh localities of the city, which has directly changed the face of real estate Chennai. One of the important factors is the growth of automobile hub and the establishment of IT, ITES, and Banking, Financial services & Insurance (BFSI) industry in the city.
As Business Standard reported in 2016, absorption rate of the properties in Chennai have gone up from 26.6% in 2014 to 31.3% in 2015, while there was a decrease in new launches in 2015 and 2016, helping the unsold inventory to clear up and facilitating market correction.
Types of popular properties in Chennai
Homes with the tag of ready to move remain the most prioritized property in Chennai real estate segment and have lured the buyers and investors. The demands for the 2 BHK units have been particularly higher. South Chennai, which is the hub for IT and corporate world, has received major housing demand in the affordable category. Homes in the sizes ranging from 800 - 1000 sq. ft., have fetched most of the buyers in 2016. Seeing the demands, the property rates in Chennai have gone up, while the income levels of the buyers remain stable. This is the reason why the smaller homes are more in demand. A few years back, the homes in the area range of 1000 - 1200 sq. ft. were the most preferred ones.
Apartment culture being picked up
Apartments well equipped with modern facilities like modular kitchen, stylish bathrooms, lively living rooms and cozy bedrooms are the most desirable ones. Builders have come up with all new projects and providing investors and buyers with the best apartments and homes. The upper and middle section of the society has also posed demands for the independent houses and penthouses, which are quite expensive and fewer in number. There has been an increasing trend of constructing other facilities like swimming pools, gyms, clubs, etc. The prices of these places are definitely high and only a few can afford to buy such costly homes.
Chennai Real estate growth drivers:
The demand for the Chennai property market is high because of following reasons:
Suburbs are offering all types of community living residential schemes, including high and low rise buildings, independent houses, bungalows, penthouses, township projects, commercial spaces, shopping malls, eateries and hotels, as well as entertainment centers. Investing in the South Chennai suburbs like KK Nagar, Kotturpuram, Mylapore, Tambaram among others would certainly be an advantage for investors. Within the region, southern suburb, Singaperumal koil is believed to be an ideal residential investment option, and a higher appreciation rate is expected in future.
Since the economy of Chennai is benefitted because of such as automobiles, IT, computers, software & hardware, pharmaceutical industries, and many others, there has been creation of jobs on a regular basis in those industries. Chennai being the second biggest exporter of software has developed as a big business center that includes investments and projects from various corporate giants and has offered jobs to the deserving candidates.
The retail segment has also created a spur in the realty segment of Chennai, with the opening of a number of shopping malls and complexes in the city. There have also been requirements of parks and open spaces in the city to avoid excessive crowding, and offering green belts in the areas.
Infrastructure in city
Chennai's southern suburbs are named among the top 10 emerging investment hotspots across India. The state government has plans for extension of the six-lane project from Siruseri to Mahabalipuram, which is expected to boost the realty activities as and other infrastructural growth on Old Mahabalipuram Road. A number of other developments are planned to boost the market values here, thereby giving a boost to real estate in Chennai.