Macro and Micro factors altering Chennai’s real estate development
Real estate is one of the important forms of income to the economy of India with almost 10% contribution. It has its own pull and push factors which affects the real estate market both micro and macro level. These are the deciding factors which not only plays an important role in the development of the real estate it also determines the monetary growth of the market.
Factors influencing the real estate:
An active civic body and practical thought minded state Governments are real assets to real estate. They help in evolving demand naturally and in a well organized manner. They constitute the macro factors. Satisfactory index of people living in a locality along with quality of life of Individuals and services offered in the locality also include in macro factors. But some facilities can’t be made available country wide in a uniform manner. And the micro markets with this facility increase in demand when compared to other micro markets in that particular city. This forms as the micro factors and by analyzing each individual micro markets these micro factors can be studied extensively and improved.
How do these factors affect Chennai?
The perspective of macro factors for Chennai is astoundingly great. With a very deep history of 350 years when the English East India Company had their base as Chennai and developed the city it has been experiencing a steady growth in economy, infrastructure, quality of life and various other aspects. As for connectivity it has the one of the busiest international airport, well connected by railway and roads and has one the important ports in India. It is also well established with well renowned colleges like SRM, IIT, MIT etc. schools, hospitals now being called as the gateway to the south. The multi composed culture of people all over from India and the being one of the four important cities in India adds to its positive criteria of demand pulling macro factors.
Apart from this the IT corridor in OMR, the manufacturing industries especially the automobile manufacturing units, various tourist spots attracting people from all over the world and India are some other macro factors. It is also deemed as the headquarters for the south Indian cinema.
On the case of micro factors the demand and cost varies in different micro markets. South Chennai and south west Chennai has more real estate demand when compared to the north part. But this scenario might not last forever. The macro factors could greatly influence and change these micro factors immensely. Hence the deciding factors i.e. the macro factors can easily modify micro factors and can modify demand and cost ratios irrationally depending on the case.
