Chennai believed to be one of the most preferred realty destinations in South India is said to have a robust yet conservative market. But the most unique feature of the market is that it is driven by end users. However, the sentiment was not very bullish due to the prevailing stagnancy in the recent past, the market has shown fast signs of recovery. The market has successfully captured a great amount of traction amongst buyers and property in Chennai is again in huge demand.
Captured below are the key factors that has led to the increasing demand of property in Chennai:
Chennai is constantly growing and emerging into a major IT, automotive and an electronic manufacturing hub. Commercial demand has never seen a negative growth. A lot of blue chip companies are entering into the space with an intention to set up their base in the city, creating more employment opportunities. This is increasingly stimulating the residential demand in and around the city. Several new residential projects in Chennai are being initiated to cater to the growing demand. Infrastructure is being developed to suit the needs of various industries that are setting foot into the city. Focus is on the Outer Ring Road (ORR) were the Phase I (Vandalur to Nazarthpet – NH 4) has already been completed. ORR Phase II where land acquisition is in advance stages is expected to boost the real estate activity along this corridor. Chennai and its adjoining cities are among the best for primary and higher education in the country today. Healthcare and medical facilities in the city are also among the best available in the country. Development of new hospitals, schools, malls and multiplexes in the emerging locations have fuelled the city’s residential real estate growth.
The Public Transport lines across the city are taking a turn for the better with more bus services and routes announced by the government facilitating faster and better commuting. Along with this, the Chennai Metro Rail project and the Monorail project have driven residential prices along their respective corridors.
Unlike any other Indian metropolitan cities, the residential market in Chennai is driven by end users who constitute 80-90% of the buyers. Launching of several residential projects in Chennai with high end projects and world class infrastructure has spoilt the buyers for choice. This buyer base provides a strong foundation to long term investments in the city’s residential market as it reduces market volatility. It is observed that buyers make an investment decision keeping in mind the various schemes and offers that are being offered by developers. Also in the current market the buyers have a wide choice of locations, apartment sizes and prices, which may not be available in the years to come, due to the increase in demand in the near future. Apart from Chennai city, locations close to the IT hubs, specifically on the OMR and ECR is expected to witness a lot of traction and interest from buyers due to factors such as employment opportunities and development of social infrastructure.