During the economic downturn of year 2008, whereas the opposite neighbouring and glamorous property market of Bangalore and Hyderabad fell by 24-29 per cent, the Chennai market fell solely 8.3 per cent. Restricted offer of land and pent-up demand is how NHB s Residex defines Chennai property market. However, what truly has created the market of property in Chennai stand out is that 1st of all property market is driven by the top users and then town has seen most of the property transactions among the Central Business District areas solely. That speaks volumes regarding the expansion potential of town likewise.
If the National Housing Bank’s property value index NHB Residex could be a truthful indicator, the value of residential property in Chennai has doubled from the downturn value of 2008, best appreciation than the other part of the India. What has helped the real estate market of Chennai beat the more glamorous Mumbai, New Delhi and even Bangalore in value appreciation? Chennai, for long had the smallest amount provided of land on the market for building property among the metros. It had been conjointly a plot-oriented market and multi-apartment models are the new fancy so attracting a premium.
The real-estate activity in Chennai is considerably driven by end-users compared with alternative markets and this can be one reason why costs aren't too volatile and are holding up well.
Real Estate in Chennai has been undergoing a shift in its trends recently. The cost of property in Chennai are on rise since long, particularly the industrial property rates. The rates of commercial property in Chennai are remarkably high in areas like it IT, Anna Nagar, T.Nagar and Adyar. As these localities have reached saturation and new industries & software corporations are turning out at NH4, GST Road and OMR. These new developments are returning in reasonable limits and bigger areas.
The booming commercial segment and growing influx of IT professionals have pushed the residential demand and costs to a brand new high in Chennai over the previous few years. The Chennai commercial market has witnessed exceptional growth that is attributable to the offices engineered for the IT business (as IT Parks or IT Special Economic Zones), that represent eighty six per cent of the operational workplace stock in Chennai. Consistent with a report by Real Estate Intelligence Service of JLLI, 2011 had ushered in renewed interest in non-IT workplace area in Chennai particularly from corporations wishing to relocate their offices to higher grade buildings. The expected recent offer of non-IT workplace area ought to witness active absorption at the right rentals. There'll be larger demand for investment grade workplace areas inside the town, since there's a severe dearth of top quality workplace buildings within the central areas.
Chennai’s high streets still stay a favorite location for retailers as conversion rates in high streets are higher compared with those in malls. The neighbourhood of expensive residential catchments, ample space for a hassle-free automotive park and proximity to the town centre are the key demand drivers for high-end streets. The high streets of Khadar Nawaz Khan Road (KNK Road) and Wallace Garden Road have emerged as vital retail destinations for world luxury, fashion and premium brands.
While, the commercial property in Chennai have reached some extent when it's terribly troublesome to buy a property in outstanding locations, the residential property in Chennai preferences also are changing. Property in Chennai are gaining popularity day by day because of the rise in population and lack of house. Several outstanding builders in Chennai are building property comprising of luxurious residences, providing ultra fashionable facilities. With young professionals stepping into a lot of for rented units, the approach to life residences are attracting huge investments from NRIs.
With the announcement of the monorail project in Chennai, the land price in Chennai goes to envision another dramatic modification. A crisscrossing network of 4 monorail corridors running to a complete length of 111 km is predicted to feature to the beautification of town and build Chennai by and huge traffic free. Chennai infrastructure is wanting forward to match to the international standards.
Unlike alternative metro cities land costs in suburbs are nonetheless to succeed in the height and also the concept of satellite city nonetheless to catch fancy even once Jayalalitha Government is keen to develop a lot of satellite cities. In most elements of Old Mahabalipuram Road, GST Road and also the Chennai-Bangalore Highway, the land transactions are very few. Surprisingly, several new residential property in Chennai were launched along these corridors over the past 2 years and even received sensible patronage from buyers. However that has not translated into a rise in land costs along these stretches.
This indicates the potential of Chennai’s suburbs to emerge as a gorgeous retail destination. Larger residential catchments within the suburban areas combined with a lot of affordable rentals compared to those within the prime town are expected to act as key driving forces for retailers to extend their presence within the suburban precincts of Chennai within the long run.