Analyzing the Residential Real Estate Market of Chennai

by Sampurna Majumder

An end-user driven market, Chennai’s residential real estate segment has loads to offer. The following post explores the residential real estate segment of Chennai.

Read on to know more.

Introduction

Chennai, one of the leading metropolitan cities of India, is a well-known scholastic hub. Alternately, the city is also known for its automobile industry. Of late, Chennai has also turned out to be one of the leading Information Technology hubs of southern India.

In the last one and half decade, Chennai’s real estate market has noticed an explosion. From residential to commercial and now the retail real estate segment – all have been performing extremely well. Among the three segments, the residential segment is one of the leading and continues to dominate the real estate market of the city. Let’s explore them a little more;

Residential Realty Market of Chennai

The residential real estate market comprises more than 80% of the entire property market of the city. The IT boom has been considerably responsible for the growth of the residential real estate market. 

As IT companies, especially MNCs, started their operations in the city, it led to the generation of new jobs in the city. This in turn recorded more number of young professionals flocking to the city thus creating a demand for residential spaces. A sudden demand for rental flats in Chennai was noticed with the maximum takers being young IT professionals.

According to reports, more than 45000 properties in Chennai are available for residential sale. All these projects cater to various kinds of clients – right from high-end customers to the ones falling under the Middle Income Group – to modern-day serviced apartments – the Chennai realty souk has everything in it platter. The locality of Srriperumbudur is one of the upcoming neighbourhoods of the city that has recorded a sudden upsurge. Top-notch builders have capitalized on this area and it is currently home to some of the premium projects of the city.

Similarly, the Old Mahabalipuram Road (OMR) is the latest realty hotspot in Chennai currently. Region has recorded a major boost in the residential segment with the IT corridor scoring the maximum marks.

Experts are of the opinion that, the residential real estate market of Chennai has more potentials than that of other major Indian cities. This is because; even the residential segments of the Central Business Districts (CBDs) have recorded an upscale growth. Major areas like Numgambakkam, Mylapore and Egmore have noticed an increased growth in the property prices.

The rate at which the Chennai real estate market is going up, it can be said that the market is about to witness a completely new high. In the next couple of years, more than 1000 apartments are expected to be launched targeting the cream users. These apartments are believed to be priced between INR 5 cores to INR 6 crores. Such promising projects are of course located in the neighborhoods of Numgambakkam, Egmore and Mylapore. It has been reported that one of the builders jumped up to as high as Rs. 15 cores for the residential projects launched in the region.

Is a Price Correction Expected?

As per expert opinion, prices within the residential real estate market will improve considerably in the coming months. Improvement has already been on the rise and now with the government taking up robust infrastructural measures, the markets are expected to improve all the more. Most of the micro-markets are expected to remain stable within the real property market.

The Chennai real estate market has loads of options and now with the government taking up much initiative to improve the infrastructure, the Chennai real estate market definitely has loads of options on offers.

  

Author Bio: Sampurna Majumder is a professional writer and a passionate blogger. Currently she is writing content for several websites that cover latest trends related to real estate in India such as these as well as other fields.

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