Large residential projects, A Developer’s insight
Real estate is one of the most profitable investment an Individual can invest in. Especially in fast developing city like Chennai where demand for residential space is very high due to the migrating working population from the city centre to the suburbs, Consideration of what type of buildings and where to build them is substantial. By careful analysis and thorough investigation a huge profit margin is easily obtainable.
Large residential projects:
Large residential projects get more attention in the eyes of investors. Investors are attracted to the city’s core locations where market trends are suitable for development of large residential projects. The apartments range between 2 crores to 5 crores which are affordable to the high-net worth individuals. These locations are also prefered by people who look for these kind of locations for traditional purposes. People who are not able to afford these apartments are forced to resort to the suburbs without any other rigid choices to rely on.
The sales of these types of flats in the prime core areas of the city are slow. But investors invest in these regions to stay in good quality entitled residential areas. Most of the sales in the core areas are primarily due to the location and necessity.
Reasons to espouse large projects:
People have diverse reasons to invest in these core areas. For example, People still want to invest on flats in Mylapore owing to the location of the ‘Sabhas’. Some people have been living in the area for generations and hence they redevelop their houses into apartments and continue to live in them. Others who has invested their assets in plots elsewhere sell these assets to find a flat for them in the prime core residential area. One such case was when government employees invested in Madipakkam suburb for plots with just few thousands are selling them now for crores to invest it on the core areas. Whichever be the case the reason still persists that necessity and tradition drives these people to invest in places of such high land value.
Lack of land is not the only reason:
Apart from constructing only a few apartments in the core area due to lack of land only few apartments are constructed at times because buyers feel the necessity to have less neighbours to have much more peaceful life. A typical example is the project that’s coming up at present on College road. The apartments are about 4,200 sq.ft. in size and cost is estimated about 10 Crores. The developers of this project reckon the High-net worth individuals prefer this type of least number of apartments in the surrounding for privacy and have the idea this gives a better quality of life. Apartments are ideal in large parcels of land that are far away from each other in core areas. These apartments contain every social amenity like club house, gym, maybe even a small theater.
Profitable projects:
Even though the apartments in the core areas are a necessity to some people due to various reasons when compared to the small projects in suburbs they bring a better turnover owing to the fact that it is sold at a faster rate and demand for them is far more higher.
