Affordable houses are the new trend in Chennai
Real estate has been an evergreen field with an always existing demand from the end users. New projects are a direct result of existing demands. But looking on an overall scale, In general terms the increasing price trend tends to increase and supplement the demand. Demand is the deciding factor in real estate and the market will continue to flourish without fail as long as the demand for the houses and residential spaces strive.
So what causes demand in a micro market? Of course good infrastructure, better connectivity, faster developing pace, availability of residential space etc. are some driving factors for demand. But the main driving factor for any demand has been affordable costs. Thus demand and price trends are inseparable and has been the causing factor of each other.
Low prices are the leading demand causing factor in real estate markets. Realty experts believe that the demand increases consistently irrespective of what micro market it is depending on the price of the properties. They also state that apartments with the price range of Rs. 3,500 – 4,000 exert more demand than high end flats in a specific micro market. High end deals are often met with low demand from the less percentage of high end customers in the population. Even when the market is sluggish affordable houses still had consistent demand.
Chennai’s realty market is driven mostly by the consumers. A consumer driven market like this will aim for the maximum sales at minimum profit. Hence the price was made affordable reducing the sizes of the units to equate the soaring land costs and labour charges. In Chennai apartments with a price range of about 40 – 50 lakhs had a huge demand in every micro market and still the demand seem to increase rather than decreasing. The suburbs are splattered with these kind of affordable houses near to working places hence they stock nearly 80% of the residential demand of the city. These suburbs include the ones that lie around the OMR road near the IT hub. One can easily fetch a 2 BHK apartment in this area with a budget of about 30 – 60 lakhs depending on the location of the apartment.
In summary, the price of properties is the leading factor to decide the amount of demand and the amount of sales. Rise in property prices might lead to decline in sales and also could reduce the rate of absorption. Affordable houses are the new trend of real estate in Chennai.
