Chennai Real Estate Likely To See Good Times In 2012

Chennai's residential property market saw steady growth in terms of pricing

, demand and supply in contrast to what was been witnessed in many of the more volatile cities over the last couple of years. Chennai' residential property market is predominantly end user driven and this fact did a lot of sustain consistent absorption throughout 2011.

The absence of overt speculation has been ensured that developer has move pricing of residential property in a stable and gradual manner. Increased job security in the city has definitely helped the real estate market to maintain buoyancy and a positive outlook. Last year it became increasingly evident that Chennai's residential real estate market is significantly dependent on the IT/ITES sector. Demand for residential homes has now reached a comfortable and dependable growth trajectory from which developers are taking their market cues.

In Chennai the preferred size for 2BHK and 3BHK has been increased during the recession in the revival phase. The main reason for this upgrade in preferences is increased budgets made possible by improvement in the performance of the IT/ITES sector. This being the welcome trend which is enabling architects, planners and developers to come up with better quality dwelling units.

In Chennai an affordable housing units continue to rule the roost in areas where social infrastructure lags and capital value are therefore lower. There is a very healthy demand in both primary and secondary markets, since supply is scarce in both owing to the severe lack of land within the city. Land pricing has in fact surpassed the buying capacity of developers and this has put pressure on their ability to come up with viable residential property. Lack of supply and exorbitant pricing are causing both the end users and investor segments to take a closer look at suburbs with decent infrastructure.

In year 2011 the residential property pricing in Chennai rose between 8-30% in different areas, but these rises took place in small compartments and in proportion to the actual sales in particular location and residential projects. Developers expect a similar trend to prevail in the year 2012.

Areas to be watched in Chennai are Madhya Kailash Sholonagnallur this area is witnessing a clear supply- demand mismatch with demand outstripping supply. With new employment being generated in this corridor and corresponding absorption of IT space, this area and its peripheries are witnessing extremely healthy demand for residential property. Its proximity to the city adds to the appeal of this area, which will see good appreciation over the coming years and Velachery is also seeing consistent growth because it is one of the few areas which are seeing holistic and self-sustaining development with malls and other social infrastructure improving. Velachery is definitely next in line for good appreciation and growth in residential property destination.

by: lokeshmanu24

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