Changes in Chennai Real Estate for the better(!)

Real estate scenario in Chennai has always been engulfed by preference onthe Central Business District (CBD) primarily because of lack of infrastructuraldevelopment in the city’s outskirts. Absence of good schools, modern retailcenters, state-of-the-art hospitals, contemporary recreation centers anddeficient connectivity were often cited as reasons why the city and its CBDemerged favorable for several decades in terms of Real Estate investment.

However, this mindset has taken a nosedive with the establishment ofnumerous multinational companies from every industry in the suburban andmicro-markets of Chennai. Commercial development formed the basis forheavy infrastructural development in the city. The Government has laid downbig plans in terms of infrastructural progress in these regions in order todecongest CBD traffic and these plans are underway today.

Game Changers in Chennai Real Estate

All these years, builders in Chennai only considered development offarmhouses in places like OMR, GST Road and ECR. But today, the place is nolonger what it was even 6 years ago. Large scale development that can defyeven the most modern of countries can be witnessed in Chennai’s outskirts.The demand for housing has suddenly skyrocketed in these regions.

The new game changers in the Real estate map of Chennai include Eco-friendly landscaping amenities, tranquil environment, integrated self-sufficient townships, modern entertainment options, multiplexes, fully-equipped healthcare facilities and world class hotels and restaurants. OMR,ECR, ORR, Sriperumbudur and GST Road are no longer remote inaccessibleplaces. They have transformed into self-reliant destinations with round-the-clock connectivity with the CBD.

The Modern Real Estate Climate

Community living has finally realized its potential in Chennai. Since manysuch townships and modern home concepts are underway in the suburbanmarkets of the city, the complete potential and further surge in housingdemand will be observed only when they reach the stage of completion.Modern residential communities are reminiscent of global living spaces thatare often the dream destinations of both residents of the city and migratingpopulation especially from other countries.

Despite the high momentum in demand for high priced homes, Chennai’sResidential market continues to be dominated by demand for affordablehomes in the range of Rs. 35 to 60 lacs with substantial social infrastructure.Interestingly and expectantly, most of the residential space absorption inChennai happens around the IT corridor or OMR and GST Road.

Places like Medavakkam and Perumbakkam are observing heavydevelopment of modern residential units since such is the demand. Also, theReal Estate in Chennai has changed in one more way besides the choice oflocation and nature of homes.

Location plays a huge role when it comes to investing on Real estate. Theregion must do well and hold immense scope for giving you good return onyour investment. Proximity to important amenities and good neighborhoodswill not just make living there simpler but also fetch exponential capitalappreciation in the long run. Today, end users are not just looking at buyinghomes for self-use but are also investing in properties for rental gains. Thequantum of invest-able income has increased and hence such significantchanges. Chennai is all set to witness a Real estate high.

Behind the Colossal Growth of Real Estate in Chennai

Real estate market in Chennai has been a subject of surprise for Real estateexperts across the world. What once was a city with conservative outlook anda lot of agricultural land in its outskirts is today a sprawling city with amazingpotential for a Real estate boom. So, there must have been more than onetrigger that caused the major boom.

Industrialization: Advent of several new age and traditional industriesalong the arterial roads of Chennai paved way to the demand for manystate-of-the-art commercial buildings. Chennai was the most soughtafter owing to its location, abundance of land, favorable climate andpotential for growth and hence the city slowly became a hub forindustrial development. IT/ITES corridor at OMR/ECR and electronic,automobile and glass manufacturers on Sriperumbudur and severalothers in the Central Business District and other regions of the city arestellar examples of commercial development.

Increased Employment opportunities: Tremendous commercialdevelopment and accelerated scope easily attracted migrants fromother parts of the country and also from many quarters of the world.Rising employment opportunities have created the demand fornumerous housing units thereby causing an upsurge in residential realtyas well.

Heavy Infrastructural development: All round realty and industrialgrowth made the city equip itself in its infrastructure as well. So, theadvent of other industries further accelerated.

Expansions: Real estate in Chennai really began making its mark as thecity began its geographical expansions so as to accommodate regionsthat were once deemed remote.

A number of infrastructural projects are focused on different parts of Chennaiinstead of focusing on uniform growth. The most prestigious of them all is theMetro project that plies through specific regions. Regions that lie in andaround the areas of massive infrastructural development also receivemaximum real estate investor attention. With increase in residential andcommercial real estate demand in these areas, builders in Chennai alsoincrease supply in these high-in-demand areas.

A number of industrial projects including the ones on the IT/ITES corridor,Sirperumbudur industrial belt and even the Central Business District areahave a lot of takers in the residential real estate market as well. People preferto be based out of areas that are closer to their workplaces and henceindustrial growth prone regions are also hubs of residential development.

Demand patterns have known to be phased in Chennai. Real estate investorsprefer certain regions in the city due to a wide variety of reasons. And as asignificant number of people begin to invest in a specific region; the trendcatches on and larger groups of people are attracted by the area’s suddenappeal. And as demand for real estate increases in that specific region, pricesalso increase. Thus it becomes a desired circle for Real estate builders aswell.

Real estate in Chennai may have suddenly and rapidly burgeoned due tovarious factors that have made the city a preferred hub for industries, buildersand investors alike but the trend is likely to stay on and offer bigger returns tothose who act quickly.

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