After the downwards in year 2009 that had spelt doom for the economy, though for a brief whereas however the costs of property in Chennai are on an upward spiral and also the realty sector is currently witnessing a boom harking back to the pre-recession days.
Demand for residential property in Chennai continues to stay high and recovery has been higher then different major cities within the south like Hyderabad and Bangalore. Many residential property that have been launched in the suburbs in last few months are a pointer to this fact. Nature of investors in the Chennai real estate market has a lot to do with its growth story.
Rise in the prices of property in Chennai has perhaps not been as steep as in other cities such as Mumbai and Bangalore. Cities like Mumbai a lot of speculators work are at work in the market as said by Mr. Prakash Challa, National Vice President of CREDAI. During the downfall there was a drop in prices of about 15-20% and post recession the pent-up demand was partly responsible for the quick recovery of the market in the city.
There has been a large growth within the producing and also the service sectors within the town. OMR (Old Mahabalipuram Road) has become a favorite destination for the new-age IT staff, previous producing centres on the outskirts of town are finding a brand new takers. Most of the house consumers in these areas are from the operating category.
Employees of the IT and producing sectors include an enormous chunk of consumers in these areas. They need the means that and shopping for residential property in Chennai provides them proximity to their workplaces. Daimler India, the subsidiary of Stuttgart based mostly Daimler AG announced a brand new cluster line at their producing facility in Oragadam. Maybe the developments like these have given the investors a reason to believe that these areas too can develop in a very massive approach in close to future.
For example: Mr. Mukesh Kumar Kothari, a town primarily based businessman has bought land on the outskirts hoping a capitalize on the expansion in these areas. As it’s terribly troublesome to shop for property among the town hence he have bought a plot on the outskirts as a result of he feels in close to future the value of the residential property in Chennai can increase and there'll be additional development in these areas.
The price rise of the residential property in Chennai is being ascribed to the increased price of land. The recent hike in the guidelines of the value has only added to the cost. In year 2005, the cost of land in Sholinganallur was Rs. 1.5 Crore per acres but by 2008 it suddenly rose to Rs. 20 Crore per acres as said by Mr. Prakash who feels that the cost of construction has gone up adding to the cost of land.
The increase within the value of construction may be indicative of some quite artificial shortage within the steel and cement trade, a town primarily based Structural Designer feels that the worth hike may be a results of increased construction activities. As these days such a lot of construction is occurring and even with the upper costs folks are shopping for the property in Chennai. because it is well-known incontrovertible fact that the Chennai realty is predominantly an end-user’s market giving the realty scene within the town some stability. folks are shopping for in spite of high costs as a result of they understand that if they don’t decide currently, the costs can increase even any.