Real estate scenario in Chennai:
Real estate properties are not only linked to the investors and the buyers. Healthy economy plays a
crucial role here, and thankfully world economy is strong enough to boost the real estate market.
Chennai is the most conservative metropolitan city, and the same mindset is reflected when it comes to
real estate. Have you ever looked at many congested locations, and vast areas that are not occupied?
This is because Chennaites love to get settled in areas that have all amenities, and not prefer to take
risk. The industrial corridor however, has opened gates wide enough that all Chennaites have started
reconsidering the decision of settling down in thickly populated areas only.
Influence of infrastructure evolution:
Infrastructure developments that are on the cards, and that exist definitely tell Chennai’s real estate
industry is going to see a boom. Best examples are Orgadam, OMR highway and South West areas.
Orgadam which had been acres of land filled with trees and bushes was neglected by Chennai.
Yes, honestly 6 years back I would have discouraged anyone to invest in and around Oragadam,
Thoraipakkam or Pallikaranai. Now, this is a prime location, and all industries related to automobiles can
be found here. Slowly, the nearly locations have started acquiring importance that the entire West
Tambaram had become a fit place to dwell for the urban population that would like to move closer to
this industrial corridor.
This is a mere example of the city that has started expanding now. Rail auto hubs, aero space park at
near Sriperumbudur, mono rail and metro rail projects, Vishakapatnam – Chennai industrial corridor,
and the Greenfield airport that is yet to peep in, all are seen as not only advancements in the segments
of commutation and infrastructure. They are hints that augur the places that would see a huge surge in
price in living conditions in Chennai.
Markets that see regular growth of capital value:
With the improvements in infrastructure, and growth of industrial sector, it can be seen that the
employment opportunities are overwhelming in this city. Such a scenario is directly linked to flourishing
real estate and hiked prices. The same is why you would be able to see the prices going up in areas like
Velachery, Adyar and Mylapore. Make a note that these are all settled areas with thousands living there,
and considered next only to posh localities of the city.
Apart from these micro markets, there are also the high end localities that do see a consistent rise in the prices, regardless of the market scenario. R.APuram, Abhiramapuram, Kotturpuram and Alwarpet have the reputation of places that are posh.
Furthermore , the handiness of the landscape being less here, ensures that the prices keep hitting high
anytime of the year.
The CBD areas, witness the construction of apartments that are around 3000 to 4000 square feet area.
Voila, and you grab the fact that these are meant for the upper income group or the upper middle
income group. With the price range of around 10 crores, and expecting to see capital values increase in
the coming years, these locales rock. In chorus, take a peep at the GST and OMR. In spite of the
population growing in these areas, and huge surge in the real estate market, you would be able to see
hoardings urging to buy the ready to move in apartments. The finished housing units remain unsold
here. Major attributes for unsold housing units are the demand is lesser than supply. When the urge to
find a suitable house to dwell in GST is high, not many realtors understood that availability of individual
land plots are preferred over apartments in Chennai, still. Realtors need to understand the market
depends on the investors than the economy, need or anything else when it comes to Chennai real estate.
Recent years have also seen major floods and natural calamities. It was shocking to see age old areas,
built during British administration and ancient settlements standing robust during these calamities.
Unfortunately, poor planning and violations of law had been exposed posing a threat to locales in and
around GST and OMR. The result, many housing units that would been occupied with pride now are
seen unsold, or vacant. But, it is high time to remember, people neglected ECR not more than 3 to 5
months after the 2004 Tsunami.
For a realtor, always the micro market areas like Velachery, Anna nagar, Adyar and Nungambakkam are
seen to be healthy. These areas should be considered as the ones that suit to the appetite of the buyers.
Potential buyers of upper income group, upper middle income group and middle income group consider
these locales perfect for settlement, for the reputation and amenities are to a large extent flawless.
Developers find it easy to sell off the projects even when the construction had just begun. Realtors do
consider GST and OMR of high potential, in the coming years. These areas are demanding attention of
the middle income group. High income group can find satiating projects getting ready in Boat Club
Adayar, Poes Garden and ECR.
Community projects are becoming the recent hits in the city, especially in locations that are less
populated with nil amenities. Such projects assure generous landscaping, club houses, gyms, swimming
pools, schools in the campus, ATM, pharmacy, entertainment sources, eco friendly, spas, and the most
important factor, the proximity to industries or IT corridors. These reasons urge people who travel a lot
to workplaces to move to community environments. These ensure that well equipped residential
projects are sure to see immense growth. Developers need to hunt for locations that have facilities or
allow being equipped with new facilities.
Poise of growth:
The Real Estate Regulatory Bill is expected to bring in more transparency in the process of buying and
selling properties. While a few investors can worry if the prices may go down a lot, buyers can be happy
about laying hands on new properties at reasonable prices. However, this transparency can only boost
business making it a win-win situation for everybody in the business.
Put together, these facts drive home the fact that Chennai is growing not only in terms of real estate
sales, but also in landscape. It is slowly encompassing outskirts, and realtors are able to bring in all
amenities to attract more buyers. The city is all set for growth in various segments, and real estate isn’t