Chennai Real Estate MARKET 2014 – GOING FORWARD..


by Mr. Sanjay Chugh, Jones Lang LaSalle India


The 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.


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