Chennai’s real estate provides multi investment options
Chennai has been a real estate hub where investors wants to invest their capital as their first choice if they are expecting a fast return. But recently there has been a slack in Chennai’s real estate. This is mostly due to the lack of amenities and policies which tend to increase the price of real estate properties which in turn discourages buyers. This slack of sale is even though comparatively low and the demand exists enough to reel in customers for these developers to buy their properties, the market seemed stable and consistent for the affordable apartments.
Current Scenario:
The current scenario wasn’t favouring much of the micro markets. The OMR being an insulated over these adverse effects the other micro markets were facing an oversupply condition. The supply was exceeding the demand in some localities that the slack in sales extended even higher in the case of GST and Oragadam.
Profitable investments:
There was not much of a profit from the rental of residential places. The price appreciation is estimated around 12-15 % per annum and the residential building appreciate 18 – 25 % by the implementation phase. The developers of residential buildings usually attracts customers by designating a price which has been determined previously to use it as an investment. This way is usually resorted to in order to not suffer a shortage in capital investments due to hike in prices and cost of labour.
Other investing options:
Investors who are ready to wait for long term to expect a return can invest in land which will require a minimal capital investment unlike people investing in build up areas like villas and flats. Some areas which are suitable for investing in long term in Chennai in the upcoming years are areas like Oragadam if the investment size is around 10-12 lakhs and could expect a better return in 5 years, GST road with investment size of 5 lakhs in 10 years and areas like Sungavarchathiram and Trivellore with investment size of 8 lakhs and waiting period of 8 years.
For investing in commercial property an investment size of 20 crores is required. The areas are available in lease with limited option. They see an appreciation of 9- 11 % per annum.
Investing in Chennai is profitable if considerable research is done on the investment area before investing as some areas are suffering a slow growth pace even the demand is stable due to the over supply.
