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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