Chennai: One of the Most Stable Real Estate Markets in the Country
The real estate market in southern India has shown an overall growth in terms of demand and supply of properties, in the last 5 years. Tamil Nadu has witnessed an impressive growth in industrial development, which has in turn provided a good platform for the growth of residential and commercial properties.
Builders are coming up with new projects in Tamil Nadu because of the infrastructure facilities, the opening up of business corridors, the opportunities that the cities here offer, and the growing migrant population.
Chennai, being the capital of the state has been witnessing a lot of development in terms of various industries, properties and infrastructures. Chennai is one of the markets along with Bangalore which has been stable when compared to its other southern counterparts like Hyderabad which saw a steady slump. Even as markets up north were reeling under the real estate slump, Chennai remained one of the more profitable markets. The heightened interest for land among builders in places like Ambattur, Porur, Tambaram, and Pallavaram clearly defines the upcoming establishments and investments in these areas. A property in Chennai located in these micro markets could fetch good return on investment.
The Grand Southern Trunk Road (GST Road) is one of the busiest National Highways connecting Chennai to Trichy. Starting from Kathipara Junction at Guindy the highway connects the Chennai International Airport and many upcoming residential and commercial localities like Pallavaram, Chrompet, and Tambaram. These localities are close to the city and are well connected via road and rail. Apartments for sale in Chennai along the GST Road belt can cost anywhere between INR 4000 to INR 6000.
The commercial establishments on GST Road didn’t pick up pace due to governments’ focus on establishing OMR as the IT Hub. For the same reason the localities along GST Road didn’t see similar price appreciation and demand as residential properties on the OMR belt. The Information Technology sector has been the main reason for the growth witnessed by the OMR belt. Localities such as Velachery, Thiruvainmiyur, Perungudi, Shollinganallur, and Thoraipakkam has emerged as favoured destinations for end use and investments because of the presence of the IT/ITeS companies in the OMR belt. These micro markets are also prime rental destinations for the same reason.
Another reason to invest in a property in Chennai is the metro connectivity this city is going to receive soon. Prices are already increasing in the areas which are going to witness this connectivity. The Chennai Metro is set to have two lines under Phase I with a total of 41 stations. A part of the project is expected to become operational towards mid-2014. When metro connectivity comes into play the prices for properties such as apartments for sale in Chennai which are located within 2 kms from the metro stations will see a price appreciation of about 20 to 30 percent.
Localities in north Chennai are also witnessing an increase in demand. With the markets in the south becoming saturated, the focus is moving northwards. Micro markets such as Perumbur, Avadi, and Villivakkam are becoming popular among the buyers in Chennai.
