Chennai’s real estate scenario in 2013 and what to expect in 2014

Chennai is one of the important hotspot for real estate sector. With fast developing economy and it has a constant demand for both infrastructure and residential units. Even though Chennai’s real estate is sailing a smooth sail all over the year it has it’s own crests and trough. It faced tough challenges starting from the basic components required for building like raw materials, labour etc to policy level changes which affected real estate market.

Rising demand:

The year 2013 saw maximum number of projects in the suburban areas especially in the areas near OMR where all the IT hubs are concentrated. This demand will continue through 2014 and with more industries coming in and the corporation making more steps to improve the infrastructure facilities the demand is bound to increase more in this area. Most of these demand is for 3 BHK houses ranging from 30 – 60 lakhs.

Infrastructure playing a key role:

New infrastructure arrival is an asset to real estate market. The new monorail and metro rail projects have been estimated to be completed soon in late 2015. This will ease the load on the road and reduce the congestion thereby promoting accessibility by reducing the travel time. It is then an obvious reason when accessibility improves the more demand for real estate increases. The demand increases along these metro corridors appreciating the prices tremendously.

Policy changes:

The upcoming election might not affect real estate market unless there is crucial policy changes which affects real estate market oriented causes. But policies could be made up for faster approval of projects and strong policies to reduce the interest rate and induce liquidity. Approval for buildings has been a hassle for a while discouraging the market on both ends the buyer and the seller. But on a overall view Chennai’s real estate in 2013 was aloft inspite of all the difficulties and troubles it has gone through.