subject: Chennai Residential Mart An Emerging Trends [print this page] Witnessing the steady growth in its residential property market in the past few years with economy springing back to action. The residential real estate market too recovered strongly. The demand of residential property in Chennai has increased the price substantially and a number of new residential property have been launched in market.
Growth in residential property of Chennai may be relate to the fact that it is primarily end-user driven. Investor participating in long term in nature thereby moderating a high-risk market scenario. The confidence level in the end-users to proceed with their purchase decisions has seen since 2010 as the stability is seen in the real estate market.
Primarily the peripheral locations of the Chennai city where majority of the affordable property are located as demand was more obviously in the mid-end category. Unfavorable global economic state of affairs and a higher rate of interest in the second and third quarter of the year moderately suppress the optimism in the real estate market of Chennai and slower the sales figures.
The gentle economic conditions, developers went ahead with their plans and several large scale residential projects were announced last year 2011. This is due to the fact that Chennai real estate market is primarily self-sustained and is not much affected by the sudden growth in the global market.
SUPPLY and DEVELOPMENT:
Chennai is slated to witness the extraction of around 67500 residential property in the approaching three years. Southern Chennai leads the real estate market in terms of number of residential apartments under construction accounting for 68% total number of residential apartments coming in Chennai followed by the western region with 27%.
Due to the presence of the IT corridor in southern part of Chennai is mostly preferred by people employed with the IT/ITes sector. The new residential property are situated along the OMR locations such as Perungalathur, Thoraipakkam, Perungudi, Tambaram and Sholinganallur. Several new residential property in Chennai launches in Kelambakkam which is more investor driven due to its lower prices an emerging real estate market on the OMR.
IT/ITes corridor of OMR is turning fast into a self-sustaining region with a number of good schools, colleges, hospitals and organized retails thereby further increase in residential real estate market growth in the region.
Western region can be made of Sriperumbudur where a number of residential properties by leading developers have been launched. This location is strategically located on the Chennai Bangalore Highway and improved infrastructure coupled with the presence of major industries that continue to drive residential prospects in the region.
According to the study of United Nation, Chennai has a deficit around 60000 housing apartments. Near about 6000 of which is the higher income group, 12000 in the middle income group and 18000 in the low income group segment. Economically weaker sections in Chennai need 24000 housing apartments while around 67500 residential property are in the pipeline they will be provided to the housing needs of the high income and the mind income segments only. Which has led to the demand for a change in the Chennai development control rules to facilitate more residential property growth.
Developers are faced with pressure on pricing in the forthcoming quarters with the quantum of supply lined up in the aforementioned categories. The prices are unlikely to decline drastically due to the rising cost of construction.
