subject: Residential Property, the Favorite in Chennai [print this page] Residential Property, the Favorite in Chennai
Chennai, one of the most populated cities of Southern India, is located on the Coromandel Coast of Bay of Bengal. The real estate activities in the city have become rampant with numerous large scale projects coming up. Leading property developers are actively participating in real estate developments in Chennai.
Real estate sector has been undergoing a transformation from last few years. Earlier restricted to the sphere of metropolitan cities, it is now moving rapidly to tier-III & IV cities and towns. The entire country is developing with innumerable state-of-the-art structures coming up across residential, commercial and retail sectors. Though metros like Delhi and Mumbai have saturated, Chennai still has some untapped potential for land development. And metro cities being the first preference, real estate in Chennai is growing at full swing especially after the exit of the recession.
After a long period of time, real estate in Chennai has finally come to terms with property trends observed in India. Since, housing is the hottest favorite these days, residential property in Chennai is developing rapidly with large number of flats, apartments, residential complexes, etc. coming up. During the economic slowdown when property prices slackened considerably, the dealers started offering discounts, freebies and other incentives on land purchase. This is why the demand for property in Chennai never died down with investors coming forward even in the recession times. Subsequently, the demand continued to grow while supply was almost static with developers shying away from making further investments. This resulted in a supply deficit which then led to doubling and even trebling of property rates in the city. The property rates in Chennai are spiraling up now with the economic recovery reaping huge benefits for many.
The sky rocketing prices of Chennai real estate are further fuelled up with the additional service tax to be levied on properties. Realty builders are asking buyers to cough this tax amount which is 2.5% of the property price i.e. if you buy a flat for Rs. 50 lakhs, you will have to pay Rs. 1.25 lakhs as tax. This fiat announced in Union Budget has upset buyers as they already need to pay hefty sums for parking facilities, society fees, development charges and other hidden costs. Since this tax is to be charged on under construction residential properties and on those completed but yet to receive occupation certificate, buyers are stuck. VAT may be levied soon too, so, in addition to the soaring property prices, these concomitant charges have led to market increase in property costs across the country.
The residential property market in India is getting expensive day by day with not only capital but rental values also following an upward trend. The rental rates for 2 BHK apartments in Chennai start from Rs. 7,000 and go as high as Rs. 25,000 per month depending on the area. It is good to take help from property dealers and brokers while looking for a flats in Chennai especially if you are new to the city. It is going to rise higher in coming times which makes it wiser to invest in Chennai real estate now. Even retail and commercial property in the city are witnessing huge developments and the subsequent price rise. This makes Chennai (formerly known as Madras) a much sought after property destination for both buyers and investors.
Indian real estate sector is poised to grow rapidly with mammoth scope and potential for property developments. After the big jump in property rates and the successive price correction, the realty industry is moving towards stability. Buyers are rejoicing with real estate becoming the most profitable asset of today's era.
