Chennai has witnessed steady growth in its market of residential property within the past few years, barring the amount of economic slowdown within the country. The downturn brought the important estate market to a standstill, market of residential property in Chennai has seen a rebound ahead of anticipated.
The economy springing back and the residential real estate market too has recovered strongly. Demand has returned for residential property in Chennai where the prices have increased substantially and a number of new projects have been launched in the market.
The increase in Chennai residential market may be attributed to the fact that it is primarily end-user driven. The investor participation is long term in nature of real estate, thereby mitigating a speculative market scenario. Stability in the real estate market since 2010 has instilled confidence in the end-users to proceed with their purchase decisions.
The demand of residential property in Chennai was additional evident within the mid-end status, primarily towards the peripheral locations of the town where majority of the cheap comes are located. Despite the subdued economic conditions developers went ahead with their plans and several other large scale comes were announced throughout 2011 that led the property market of Chennai primarily self-sustained and isn't a lot of plagued by the upheavals within the international markets.
Development and Supply:
Chennai is slated to witnessed the infusion of around sixty seven thousand five hundred residential units within the forthcoming 3 years. South Chennai leads the market in terms of variety of residential units underneath construction accounting for sixty eight percent of the entire variety of units arising within the town followed by the western region with twenty seven percent.
As the United Nations study shows that Chennai embrace a deficit of around 60,000 housing units. From which, about 6,000 of them are within the high income cluster phase, 12,000 within the middle income cluster and 18,000 within the low income cluster. As the economically weaker sections in Chennai need 24000 housing units. While around seven thousand five hundred residential units are in the pipeline they will catering to the housing needs of the high income and mid income segments only.
Leading the demand for a modification in Chennai town development management rules to facilitate additional residential growth. With the quantum of supply lined within the aforementioned status, developers is also faced with pressure on pricing within the forthcoming quarters. The prices are unlikely to say no drastically attributable to the rising cost of construction.
While OMR has remodeled to a most popular high-end residential property destination micro-markets like Perambur and Tondiarpet towards the north and Sriperumbudur within the west are rising as newer growth corridors with the launch of many residential property in Chennai .
The other micro-market that's gaining prominence is that the ECR stretch within the south that includes a variety of premium villa developments bobbing up in next few years. Nonetheless, a serious issue that must be addressed is that the lack of social infrastructure within the peripheral locations of town that have seen majority of the comes being launched with a reasonable costs. while not the social infrastructure, these comes shall not witness positive worth movement and can have an adverse result on their sales.