Velachery-Perungudi-OMR BELT

 

Chennai witnessed more than 32,800 new residential unit launches, with absorption of approximately 22,700 in 2013. Most of the absorption happened on corridors populated with IT companies. Chennai has been a very robust but a conservative market. Its unique feature is that it’s a market driven by end users.

The demand drivers for residential absorption are robust and the IT story has strong growth potential, of late Chennai has seen influx of new large MNC’s who have set up shop for the first time in the city. This further reinforces the focus of IT Companies towards the city. Being a port city and one of the largest manufacturing hubs in South India has propelled the residential demand in Chennai.

Traditionally, Chennai has been the most preferred city in the entire South India and it continues to attract investments as it offers the best of educational, healthcare, infrastructure and good quality of life.he beginning of 2014 (Q1) has started with a positive sentiment due to the optimistic outlook by customers.

There are a lot of factors influencing the growth and development of the residential sector in Chennai. These key observations pertaining to the realty market are instrumental for prospective buyers who are keen on making a good investment decision. The developments of IT and ITES companies have brought a huge increase in the market. There was absorption of 4 million sq.ft. of commercial office space, predominantly by IT/ ITES companies, in 2013 alone. With the city’s IT population alone reaching 4.5 lakh, the indication is strongly towards the development of real estate along the outer areas of the city.

With limited land parcels in and around the city the land prices are on an uptrend. The construction and labour costs to the developer have escalated the input costs by about 10-15%. However the developers have still held on to prices and not passed on the additional burden to the customers. With the decision making time reducing and customer coming out in the market, the prices are bound to go up, in the near future.

Chennai is constantly growing and emerging into a major IT, automotive and an electronic manufacturing hub. Commercial demand has never seen a negative growth. A lot of new companies are investing and setting base in the city, creating more employment opportunities thereby stimulating the residential demand in and around the city.

Infrastructure is being developed to suit the needs of various industries that are setting foot into the city. Focus is on the Outer Ring Road (ORR) were the Phase I (Vandalur to Nazarthpet – NH 4) has already been completed. ORR Phase II where land acquisition is in advance stages will boost the real estate activity along this corridor.

Chennai and its adjoining cities are among the best for primary and higher education in the country today. Healthcare and medical facilities in the city are also among the best available in the country. Development of new hospitals, schools, malls and multiplexes in the emerging locations are all stimulating growth for the city’s residential real estate industry.