Opportune time to buy residential property in Chennai Suburbs
Industry experts indicate that it’s the most opportune time to buy a residential property in the peripheral areas of Chennai. Due to an oversupply of residential projects coupled with stable prices on the fringes of the city, it is a classic case of plenty to choose from. With residential projects within a radius of about five to six km from the heart of the city having virtually sold out all their units, developers have begun to explore possibilities of constructing their projects towards the fringes.
City buyers more positive
The average residential buyer across the country has been adopting a cautious approach in recent times. This is primarily due to the instable political and economic situation prevailing across the country. Both end users and investors have maintained a low profile in the last year. This has resulted in a luke-warm response to many residential projects across the country. However, compared to many other major cities like Mumbai, Delhi NCR and Hyderabad, the buyer sentiment has been far more positive in Chennai.
Supply along fringe areas
The end-user demand for residential property in Chennai is mostly restricted to the heart of the city. However, most of the supply for residential units is centered around the peripheral areas of the city like Old Mahabalipuram Road (OMR), Grand South Trunk (GST) road and Oragadam. Based on past trends, it has been seen that Chennai has the potential to absorb about 40,000-50,000 residential units annually. Currently, OMR alone accounts for about 20,000 residential units while GST, Oragadam and a few other fringe locations account for about 30,000 units.
Opportunity for end-users
Considering that there is an over-supply of residential units in these fringe areas, developers need to adopt a ‘wait and watch’ approach with regards to selling their unsold inventory. This has resulted in low investor activity coupled with low speculation with regards to sale of inventory. Developers have also adopted a ‘middle-road’ path to offload their unsold inventory. This presents an ideal opportunity for end users to buy residential property along the suburbs. The present scenario not only allows him to choose from a wide range of residential options but also enables him to avail of discounts that many developers are offering to boost sales.
Fringe areas with considerable supply
Some of the areas along OMR where there is considerable supply of residential units are Karappakam, Sholinganallur, Navallur, Egattur, Kalipathur, Padur, Kelambakkam, Thiruporur etc. Besides, there is also a large supply of residential units along GST in many areas. They include areas like Irumbuliyur, Ranganathapuram, Vinayakarpuram, Kadaperi, Chitlapakkam, Chromepet, Pallavaram, Sriperumbudur etc.
Prices and developers
Prices for residential apartments in these areas range between Rs.3000-5000 per sq. ft. Some of the prominent completed residential apartment projects in Karappakam are Urban Tree Oakwood by Urban Tree Infrastructure, Copper Dawn by Copper Nest Developers etc. Sholinganallur has some important projects like Enrico Towers by Sreenivas Housing, Virukshaa Serene by Virukshaa Properties etc. Important projects in Kelambakkam are Ramky Elysium by Ramky Wavoo Developers, Shri Janani Vaidooriam by Shri Janani Homes etc.
Future Prospects
Due to the oversupply of residential units along the peripheral areas, end users will be spoilt for choice with regards to choosing between different units. Hence, developers will have to resort to various measures like discounts as well as additional features so as to maintain a competitive edge over other similar projects. In course of time, with the development of infrastructure and connectivity in these areas, the demand for residential property will also increase, resulting in considerable appreciation in prices as well. Hence, investing in residential property with an eye on long-term returns presents a lucrative option as far as buyers are concerned. Moreover, it also presents a feasible option for buyers looking to purchase residential property at affordable prices, away from the hustle and bustle of the city.
