Forbes Magazine has ranked Chennai as the 4th largest flourishing city of India. The year 2017 witnessed the launch of 4418 new units. The real estate market of Chennai is comprised of several micro markets with Perumbakkam, Porur, Pallikaranai being the most ideal among them. Reflecting on the economic growth and property demand, residential properties here range from Rs. 3500 to Rs. 8300 per square feet with the addition of almost 1.2 Lakh units, in 2017.
High-rise residential properties like Radiance Realty in some of the major locations like Perambur and Poonamallee are contributing towards making Chennai a buyer’s market. With reasonable home loans and increased job opportunities, investing in Chennai is becomes an ideal option due to:
Dominant Mid and Affordable Housing Segments
The third quarter of 2017 witnessed the new launches of new projects in South Chennai, amounting up to only 13%. The decline has only contributed to an increase in the demand for ready-to-move apartments across all housing segments. The southern region is in a rapid development stage which is enhancing the housing market across Thoraipakkam – Pallavaram Road and Grand Southern Tusk Road among major areas.
The most popular budget range of independent house for sale in Chennai is the mid-segment apartments ranging between Rs. 40 Lakhs to Rs. 80 Lakhs, comprising of almost 44% of the entire property market. Affordable housing comes second accounting for 29% of the overall supply. The increase in mid-segment is largely due to the Government’s Housing for All scheme.
Lowest Inventory Overhang
As per the last quarter of 2017, Chennai has recorded the lowest inventory overhang among all other major cities of the country. The inventory left unsold amounted to 27000 units which amounted to a humongous Rs. 17500 Crore. Also, the expected period for the full absorption of inventory overhang in only about 32 months in Chennai, which is far less than Delhi’s 75 months and Mumbai’s 61 months. The restriction of supply and stability in demand contributed to a major decrease of 24% in the inventory overhang. Micro markets like Singaperumal Koil and Medavakkam are amongst the major areas where the supply of affordable residences was maximum. The projects in these areas ranged from Rs. 2200 to 3400 square feet.
Infrastructure, Trends and Market Opportunities
The sales have been dominated by the housing segment of flats of sale in Chennai costing from Rs. 50 Lakhs in the first half of the last year. On its way to a buyer’s market, people usually prefer the locations which have adequate connectivity with hubs, the social infrastructure is great and provides ample job opportunities. Prices of property are on an increase which makes people less interested in purchasing residences in suburban areas. The major localities recording highest demand are Porur and Tambaram. With improved connectivity and development of smart cities like Ponneri, real estate appeal is likely to grow in the future. Apart from that, the Chennai-Bangalore Industrial Corridor is a major attraction which would boost the residential demand.
The supply and demand of the apartments are greatly balanced in the real estate market of Chennai. Almost 49% of buyers prefer apartments which are followed by 29% of people interested in buying plots. Even after demonetization hitting the market, the demand has picked up, which resulted in making Chennai a consumer-centric and consumer-confident market. Having a great urbane and modern population, the affordable residential houses and independent houses for sale in Chennai pose a great investment opportunity for investors. Radiance Realty and many other projects built by reputed and trusted builders only add to the increased demand for residences ranging below Rs. 25 Lakhs. Bajaj Finserv Homes and Loans provide wholesome assistance from helping in purchasing properties to get an approval of loans with a smooth procedure.
Chennai Real Estate market value is expanding each day. At present, numerous real estate organizations are simply putting their cash in Chennai since it gives better returns. Here, how about we examine that why it is too great to put resources into the Chennai real estate showcase. The Real estate showcase in Chennai will dependably a tremendous interest and the rate of development has been proceeding for a long time with no droops. What’s more, the market will never go down in this industry. This is the reason it is too great to put resources into Chennai real estate ventures.
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