Chennai’s property market has always been end-user-driven. Of late, the residential segment has been exhibiting a good deal of
investments. The following post provides an insight into south Chennai’s
property market. Read on to know more.
Introduction
Driven
primarily by the end-users, Chennai’s residential real estate market is usually
characterized by stances of conservatism that have long been adopted by buyers. While 2013 recorded a little slump in the residential real estate
segment, 2014 is predicted to be a somewhat good year for the segment.
Although
Chennai is known as the Detroit of India for its base for the automobile
industry and it is also one of the leading Indian port cities, its residential
property market has been primarily driven by the IT/ITeS sector. Since the
advent of the IT sector in the city during the early 2000s, the residential
property market has been witnessing a substantial upsurge. However, of late due
to the global economic downturn, the real estate sector’s growth –plans have
not only been heralded but also recorded a dip in the demand for housing
properties. Apart from this, transactions within the Chennai residential market
is largely dominated by the end-users, which is why the price trends within the
segment have moved in accordance with genuine sales figures and thus ruling out
any chances of volatility within the market.
In
2013, Chennai witnessed the launching of nearly 33,000 residential units with
an approximate absorption of 23000 within that year itself. Interestingly, most
of the absorption has taken place along the IT corridor of the city. South
Chennai has a prominent residential market and the region has been witnessing a
rapid growth in the recent past for quite some time now. Some of the key
highlights of the south Chennai residential property market are explained below: The
Old Mahabalipuram Road (OMR) has been one of the biggest bets within all the
major micro-markets of south Chennai. This entire 26 kilometer of stretch has
not only witnessed a good launch pad for residential projects but also
substantial absorption rates.
The
neighbourhoods of Perungudi, Karapakkam and Thuraipakkam have also witnessed a
sound upsurge in the sales figures of residential inventories. There has been a
moderation in sales volumes mostly due to existing price-levels along with an
absence of proper infrastructure. Therefore, smaller residential projects have
been dotting the entire region with a price brand of INR 5000 –INR 6000 per
square feet. Experts are of the opinion that this region is bound to witness a
strong infusion of a fresh supply of inventories in the forthcoming months.
Other two micro
markets of the region – Sholingannalllur and Perumbakkam have been the
better-known players within the region. These micro markets have also witnessed
a slight spurt with most of the price trends remaining a more or less same. The
price bands of the residential properties of these neighbourhoods range between
INR 4400 – INR 4700 per square feet. The regions are gradually climbing up the
real estate ladders thereby a demand for villas and other high-end residential
properties are expected to come up in the region.
On
the other hand, Tambaram and Velachery’s property markets have been attracting
thousands of home buyers. The neighbourhoods have recorded the launch of
multiple products belonging to the higher-mid segment. Property price trends in
these areas have been ranging between INR 4500 per square feet INR 4700 per
square feet. These micro markets are expected to hold on to their own in the
coming months.
A
lot many factors are expected to accelerate the growth of the residential
property market of Chennai in times to come; one of the leading reasons behind
them being the rapid infrastructural development all across the city. The metro
railway almost on its way to completion and the monorail gaining momentum, the
Chennai property market is expected to remain stable the way it is right now.
So, if you are looking for investment opportunities in the city, now is the
time.
Guest Author
Sampurna Majumder, A Skilled Writer, and An Ardent Blogger, Delhi, India
Guest Author
Sampurna Majumder, A Skilled Writer, and An Ardent Blogger, Delhi, India