The Evolution of Chennai Real Estate since last 10 years

How do you time your entry in to any investment channel, especially in terms of real estate? Is it the juncture when the markets are booming and everyone is just joining the fray, ? Does that sound the right kind of investment decision for you ? Probably, not!

So today this article is going to help you realise, why it is the best time to invest in chennai, now. Let's start by getting to know the history of the location and its growth in the last few years.


CHENNAI CITY

One of the most beautiful South Cities of India - Chennai, it is the largest economic hub, cultural hub and educational centre of South India. The City always clings to its rich cultural heritage from the past, while it also accommodates all the modern necessities of life.

A survey by the Mercer’s Quality of Living Survey noted Chennai to be one of the safest cities in India, and is used as an example of one of the third largest expatriate existence in India. Another known fact remains, that chennai is justifiably called the ‘Detroit of India’, the city boasts of over one-third of the country’s automobile industry operating from there.


History of real estate in Chennai

Stories of how chennai calamities affected real estate prices in chennai.                  Home prices facing sea, even in flood zones, tend to bounce back to the previous prices eventually. Similarly after the 2005 tsunami, there were many assumptions and predictions that the passion for owning a home overlooking the sea in Chennai would take a backseat and would never see a rise, while the demand would fall by over 60-70 per cent. But anecdotal data on coastal property prices in Chennai  showed that even though prices fell to half after the tsunami, it recovered to earlier levels within two years and continued to see a descent growth then onwards.


No Bubbles waiting to burst

A real estate bubble is a characterization of an unhealthy spurt that occurs in the  housing prices, instead of a gradual rise which ideally should keep pace with the rate of inflation or the rise in the median incomes. Speaking of which, Chennai's real estate market values have always been constant and flowing. It never shows a sudden strike or fall. Except in the cases of natural calamities, like the one in 2005 as mentioned above.

Usually when the bubble bursts, the real estate prices tumble, leading to a major collapse in real estate market. Eventually the prices are expected to settle down to more realistic or even competitive levels. However in chennais case, there is no such risk. Market rate of Chennai Real Estate is increasing day by day. Currently various real estate companies  are happily investing their money in Chennai since it provides good returns according to the analysis and discovering unexplored suburban areas to their advantage.

Checkout the bar graph below to see the trend of property prices since 2014 to 2019

 



Let’s discuss, reasons why Chennai Real estate is a good investment in the market.

1.Sub-Urban Areas
Chennai is one of those cities of south that has many Sub-urban areas that still remain unexplored. Yet there is a demand for housing and it is very high in Chennai especially the areas like OMR, Sholinganallur, Medavakkam, Siruseri, Oragadam are not explored by many large companies, which resulted in the increase of real estate market value. However the potential companies have recently started working on these suburban areas.

2.Demand for housing
The major sectors of chennai's economy are communication, healthcare, ower, waste management and banking. In the last few years the city has also been able to widen its economic horizon, focusing especially on business process outsourcing (BPO) and IT services. In fact, since it is among the leading exporters of these services in the whole country there are great job opportunities, waiting to be grabbed. Leading to a massive migration of people from other parts of India to chennai in need of jobs and eventually a place to stay . One of the major reasons for the demand for housing. In chennai, housing and the real estate market is benefited because of this migration process.

3. Infrastructure developments
In India, Chennai is one such city to reach new heights in developing amazing infrastructure projects including huge tunnels for transport, flyover to cover distance, metro rail for convenience and many other projects achieved their initial purpose and have inspired plans for new ones.
Several proposed infrastructure projects across Chennai are hugely responsible for a stir in real estate market


Some of the recent infrastructural developments in chennai

CMRL – Chennai Metro Rail Limited
Satellite Bus Terminus in Madhavaram
Chennai International Second Airport
6-lane Vandalur Flyover
Porur Flyover

4. Interest of people wanting to buy houses
The people in Chennai and their interest are just scattered or rather diverse and there are different budget categories. After realising this by analysis, the real estate companies started creating projects on different budgets for potential customers. There is always a huge demand for Homes and residential investment, but it falls into different categories like budget apartments to luxury apartments. Even though chennai has been concentrating more on affordable and budget categories, it also provides luxury apartments for the NRIs holding deep pockets who seek the best in terms of luxury.


How RERA affects the game

The Real Estate Regulation Authority formed in all states by a parliament legislation, is aimed to increase reliability in the sector and help with better dispute resolution between the buyer and the promoter. It has already tightened regulation for the real estate projects. It has published a list of registered projects, agents and also rejected and withdrawn projects, thus making the information easily available to a buyer.

RERA was formed in Tamil Nadu in June 2017. It has 280 projects registered in 2017 and 548 in 2018 so far. Among the 548 projects registered in 2018, 317 are from Chennai and Kanchipuram district. But even so, RERA has made slow progress in Tamil Nadu and needs to do a much better job capturing all the existing projects.

The combination of excessive supply, high prices and consumption being low, translates into huge inventories across India.  The consumption side has also been impacted by the demonetization phase. Clearly the current status says that it is the buyer’s market  and it will remain for the next few quarters. But not for very long!

With RERA in place, developers are now focusing on completing their existing projects. The new home launches, across top eight cities in India, have gone down by more than 75 percent in the third quarter of the current fiscal, as per industry research reports. The number of project launches overall has gone down by 40 percent and more in the first 9 months of the current calendar- year. These trends show an obvious hint  that the supply side will gradually find some equilibrium with demand, and prices will subsequently start picking up pace. Hence this is the best time to make a move.


Futuristic Approach - Real estate - Chennai - India

With the implementation of the key policy reforms like RERA and GST the year 2018 has turned out to be an inflexion point for real estate and started to weed out the inefficiencies from the sector, leading to an era of transparency and accountability better than resident initiated back in 2007. As the industry is coming to terms with the government will reflect on the fueling growth in the sector through interim Budget 2019 to 2020.

To find the best investment spots in chennai check out- ( the following set of locations that are famous for their habitations). Please refer to the table below

The Best real estate investment destinations in Chennai
If you are here to checkout the best of what realty holds in Chennai, then have a look at these areas.


1. Avadi
Avadi is a location situated among the popular real estate destinations in Chennai as it is located in the proximity of growing commercial and industrial areas like  Ambattur,Thirumangalam  Anna Nagar and Avadi, it is well-connected to other parts of the city through excellent public transports. There are many excellent options for residential properties, plus the properties here are priced lesser compared to the other side of the city. In addition to that, various amenities such as big shopping malls, educational universities, schools, etc are located in the proximity of this location.

2. Ambattur
Ambattur is located close to residential areas like Anna Nagar and Mogappai and this has made it one of the popular sub-urbs in Chennai. This area has offices of various IT companies such as MilesTs, HCL Technologies, Dell and Tata Consultancy Services, which has further more enhanced Ambattur’s position as one of the best real estate investment areas in Chennai city.

3. Sholinganallur
This residential locality of Chennai Metropolitan City is located on the IT corridor in Sholinganallur. Its strategic location at the junction connecting East Coast Road to Tambaram, Mudichur and Adyar to Mahabalipuram, along Old Mahabalipuram Road, has further enhanced its stance as one of the best  residential locations. Additionally, closeness to nearby job oppertunities, good returns on properties, infrastructure and transport facilities, and proximity to sea facing cafes, beaches and other options for shopping and recreation make Sholinganallur an excellent investment destination in Chennai.

4. Mambakkam
Mambakkam is a popular location Located towards the southern part of Chennai, it is one of the best locations for living as well as investment. Closeness to facilities like schools and hospitals, and various options for residential properties including budget and luxury ones, has made Mambakkam a popular place for investment in the real estate market.

5. Korattur
From being a rural area in the early 20th century while now transforming into an urban township Korattur has seen a rise in interest of people wanting houses for investment and living. Many projects have sprung up in this short span of time in this year and this suburban area is popular for its budget residential options.

6. Mogappair
Mogappair is a fast-emerging neighborhood in the north-western part of Chennai. This area has seen a high demand for residential properties especially because it offers a range of options for quality housing for all budget categories to be precise from gated communities to luxury villas and apartments.

7. Pallikaranai
Pallikaranai is a location within chennai situated close to the IT/ITeS and industrial clusters of Chennai. Lot of new residential development has started to take place recently and infrastructure facilities are also good. These are the fast-emerging areas in Chennai where you can invest, real estate being one of the best investment options, it is also great for good habitat. These areas mentioned above have become the best places to invest in real estate in Chennai.

Especially because of their good return on investment, proximity to industrial hubs, adequate amenities, and various price range options.

To find the best prices and availability refer to Real estate Chennai
Related search :  Real estate in Mumbai ; Real estate in Bangalore

Disclaimer : The views expressed above are for informational purposes only. We do not guarantee the accuracy and completeness of the information and shall not be held responsible for any action taken based on the published information.