Chennai’s suburban real estate will experience nearly 15 % price appreciation
Chennai being one of the metropolitan city has a huge demand for real estate sector. It is one of the major hub for industries like automobile and software which increases a huge demand for housing and office spaces. The real estate sector of Chennai was at hike at the first quadrant of 2013 and the sales started to slack as the year proceded. This is due to several factors like the supply exceeding the demand, the hike on price of the construction materials and labour cost and several financial policy changes that affected the registration cost making the cost hike more. Inspite of this several properties are coming up all over Chennai due the political stability and secure friendlier society. Chennai is considered to have one of the best societies to live in.
Investing period and location:
The time for investment in properties is good at the present. Even though there’s hike in the price of the materials and labour this price hike is absorbed by the builders due to the heavy competition. But this scenario is soon about to change. The price hikes will reflect on the overall cost from March, 2014 on the projects which are under construction at the present time. The most demand lies in apartments and plots and the demand for villa type buildings are comparatively low. Oragadam, Guduvanchery, Perumbakkam, Tambaram, Vandalur, Ambattur, Poonamallee, Porur are some of the localities where the demand is rising every day and the price is affordable around 40-50 lakhs.
Price appreciation:
These areas are looked upon by the Chennai corporation and there is fast development of infrastructure in these areas. The infrastructure development includes roads, sewerage and drinking water. Adding to this the CMRL corridor passes through these area which again increases the demand. All these factors will enable to see a price appreciation of about 10-15 % in a period of six months to a year. Also the construction cost will increase the price of projects under construction. Most of the middle class people are moving towards luxury apartments due to their disposal income and tax benefits. The NRIs also invest in Chennai in 2 BHK houses to get a shelter for their parents or to just own a house in Chennai.
