In 2012, the demand of Real Estate in Chennai observed significant movements in terms of buyer interest and large volumes of land and property transactions. In 2013, markets began to slow down, In 2014?
Real estate Market in Chennai from 2012 through 2014
Real Estate Market in Chennai
from 2012 through 2014
2012 through 2013
In 2012, the demand of Real Estate in Chennai observed significant movements in terms of
buyer interest and large volumes of land and property transactions. 2012, therefore saw a
big wave of property development and realty project launches in the peripheral and
suburban regions of Chennai. Both buyers and builders in Chennai engaged in large
volumes of land transactions in regions like GST Road, Medavakkam, Perumbakkam, OMR
and Sriperumbudur as the regions were poised for dramatic potential.
In 2013, markets began to slow down; While other metropolitan cities faced a slump in
Real Estate demand, Chennai sustained and did quite well undeterred by market drivers.
But in the third quarter of 2013, the falling of rupee, market uncertainty and turbulent
economic conditions made the sales velocity to drop its pace. However, Chennai picked up
by the end of the fourth quarter of 2013. There was a sudden spurt of interest in the Real
Estate market of Chennai especially from the NRI segment. Builders in Chennai introduced
schemes and newer projects considering the dynamics of the market and buyer interest
then. But 2014 is expected to take the path of its predecessor and cater to the demands of
Real Estate in Chennai is a very striking phenomenon. While the Central Business District
has always enjoyed distinction of being the most preferred and the most invested in, there
are other more silent counterparts in the city that have been growing steadily and today
reigning supreme. The peripheral regions of Chennai have been witnessing immense
residential and commercial growth in the last two decades. Large plots of agricultural lands
have been usurped to make way for thriving Real Estate activities, since the demand for
Real Estate in the city has been skyrocketing. Chennai’s Real Estate market has been
largely end-user driven and hence economic slowdown has not affected the city’s realty
prospects as much as it’s done with other metropolitan cities.
2014, a lucrative market!
2014 has begun with a positive outlook for Real Estate in Chennai. After the turbulent times
faced in 2013, prospective customers have created futuristic demand for Real Estate
properties in the city. There are a number of factors that support the growth and demand of
realty in Chennai this year. These factors are going to be responsible for enabling
prospective buyers make certain and good investment decisions in 2014.
Apartments for sale in Chennai have been the highest-in-demand trend when realty in the
city picked up. The trend is most likely to continue in 2014 with considerable increase in
demand for independent homes and villa houses as well.
Reasons contributing to favorable Realty demand
Real Estate in Chennai has for a long time been influenced by the growth of technology
companies in the city. 2014 is going to be no exception to the rule. In 2013, there was a
massive absorption of 4 million sq ft of commercial office space in Chennai. This indicates
further employment opportunities, increased population and higher demand for housing
and development. Chennai’s IT population by itself stands at 4.5 lacs. This is a big number
and is only expected to increase going forward.
No impact of Higher input costs
Construction and labor costs contribute to one of the biggest
costs for the builders in Chennai. Although, they have been
increased by 10 to 15 percent, it is not reflected in the price of
apartments for sale in Chennai; Thanks to the Real Estate
builders in Chennai.
Also, land parcels in Chennai are dwindling owing to increase in land prices. However, these
have not begun to translate in property prices. Hence, 2014 is a favorable time for Realty
investment since prices are most likely to increase in the future.
The infrastructural scenario in the city has impacted the Real estate business. There are a
number of development projects that escalate the commercial growth of the city. There is a
lot of focus on the growth of Outer Ring Road that has seen the completion of Phase I and
progressing to Phase II. Moreover, the Chennai Metro project is another most-awaited
infrastructural development task in the city. Further, there are new schools, malls and
hospitals that are sprouting in the city time and again.
Chennai has always been considered as a favorable destination for Real Estate investment
in South India. It has consistently attracted investors with the best of educational,
infrastructural, healthcare and quality of life. However, investment on Real Estate in
Chennai assumed newer and larger proportions with the entry of multinational giants in
IT/ITES, manufacturing, chemical and automobiles. This advent accelerated career
prospects immensely thereby increasing the percentage of migrants to the city. This
increase in residents of Chennai creates residential demand in the form of property
purchases and rental options.