Kelambakkam and OMR realty supply overruns demand

OMR has become an investment hub for any real estate investor in Chennai. The demand for real estate properties along the OMR has been increasing ever since the IT hub has encroached in this area. Since then the demand has been rising steadily but there has been a considerable demand and supply mismatch in the previous quarter leading to fall in prices. This actually does not mean that the demand has decreased in these areas, rather it actually means that demand has seen consistent increase while the supply has increased in a different pace than the demand due to “oversupply”.

OMR is not the only place where this situation of “Oversupply” has happened. Localities like Kelambakkam has also suffered fall in prices due to increased supply. Flats which were sold for Rs. 37 lakhs last year are sold 4-5 lakhs lesser value at the present time. While the demand for single floor units was 11% the supply has been 35% in the current year. This so termed “Oversupply” is prevalent in most of the localities in south Chennai. Over 100 plus projects are stocked without being sold due to this situation. This is mainly due to the misinterpretation and miscalculation by the developers over the extent of the demand in these localities.

Investing in these areas is wiser since this current situation won’t last forever and the prices are set to rise again when the demand and supply are caught up. These areas are well developed with both social and physical infrastructure with workplaces in proximity which is the most ideal spot for the workers to settle in. There is also a wide variety of investment opportunities like apartments, villas, builder floors etc. Investment ranges varies from 20 lakhs for 1 BHK till over a crore for villas and luxury apartments. Be it the investing for profitable returns or buying properties to settle in, this could be the right time for it.