Buying Property in Chennai: Some Noticeable Trends

Anumalhotra By Anumalhotra, 7th Sep 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/24ah94xi/
Posted in Wikinut>Guides>Property & Real Estate>Buying A Home

There are some noticeable trends that can be useful to know before you buy a property in Chennai. The interest of the NRI investors has increased in 2013. There has been a rise in demand for real estate in the first quarter.

Introduction

Chennai's real estate seems to be a promising market, thanks to the quality infrastructure and the residential property-index faring better than in the other cities. Owing to these, property in Chennai has attracted developers and buyers equally well. The undergoing market trends for the current year were analyzed and these have brought to the fore the real picture as where the property is progressing. Let us have a look at a few trends noticed in the first quarter of 2013.

Rise in Investors' Interest

NRI investors are showing interest in Chennai’s real estate, the reasons being many. Some of them have roots in the city, so they feel connected to this place. In addition, those who are planning to return to India want to use property as end-users. They also want to use it as a residence for their families in India. Their investment in commercial projects is also a major highlight of real estate in the city. These NRIs mostly invest by forming partnerships with others or framing a private company.

Imbalance in Demand-Supply Ratio

Another noticeable trend is the excess of demand for property as compared to the supply available. So, the correction in prices is not likely to happen this year. The exorbitant rise in the construction prices is another factor that is responsible for the delay in the correction of prices. As far as the commercial property in Chennai is concerned, the trend is just the reverse: a large number of office spaces are unoccupied in IT-driven localities like OMR (Old Mahabalipuram Road).

Price Trends

Talking about the price trends in some hot localities of Chennai, we see that the current per square feet rate for cities like Thoraipakkam and Velachery are in the range 5000-6500/ square feet. In case of Velachery, a small rise in demand for real estate has been noticed due to the better connectivity of the locality. The rise in demand, however a low value, is expected to go steadily this year. Thoraipakkam, in spite of lack of basic amenities, expects to see a slight rise in the demand.

Property in a region like Thalambur is a spectator of some of the top-class villas and row-houses. The buyers are showing interest here and, in the months to come, housing projects of some renowned developers are expected to get launched in the area. In addition, several small plotted constructions can also be seen dotting the area. An area where the development of luxury and super-luxury structures can be seen is ECR (East Coast Road). For buying property here, a buyer needs to have a budget ranging between Rs. 3-6.5 crore/unit.

Type of Demand

Another highlight of the property in Chennai is the higher demand for three BHKs over two BHKs, where the gap between the areas of the two is not very wide. Development of Chennai Metro shall be able to bring better connectivity and thus, higher demand for real estate in the areas covered by it.

Tags

Buy Property, Buying A Home Or Renting One, Buying And Selling Property, Property In Chennai

Meet the author

author avatar Anumalhotra
Content developer based in India. Relevant exp of 3 years into writing about travel, health, and real estate.

Share this page

moderator Steve Kinsman moderated this page.
If you have any complaints about this content, please let us know

Comments

author avatar Fern Mc Costigan
8th Sep 2013 (#)

Thank you for the feedback and tips!

Reply to this comment

Add a comment
Username
Can't login?
Password