Real estate development in Chennai: An overlook of past and the future

Chennai surfing over crests and troughs in the real estate market over prices, demand and supply. Even though it has one of the most stable real estate market without any huge depreciation for past few years there has been slack in sales and reduction of absorption rate of the residential units throughout the year 2013.

Real estate scenario in 2013:

The main reason for this slack is the slowdown of the economy in the whole country. The year started with a sharp development with rapid sales in the first quadrant and there was fall subsequently. The areas around OMR and ORR experienced high prices due to the concentration of the IT industries and a cheaper affordable land and also availability of land. In the later period of the year the stock had been considerably rising due to decrease in sales.

Infrastructure improving real estate development:

The sales is expected to improve in the coming years. With the metro project coming in and the rapid infrastructure development by the corporation, the sales is expected to have a robust boost. This improves the connectivity between the different parts of Chennai decreasing the volume of traffic substantially. It is expected there will be overall hike in real estate market along the whole metro corridor.

What does 2014 have in stock for real estate?

The year 2014 might have a bitter start for real estate. The elections might also play important role for real estate. Stable Government which establishes better reforming policies could bring a large change in real estate. The major region which attracts a heavy demand will be the suburbs around the OMR due to the concentration of IT industries. OMR not only houses affordable houses it also offers every type of houses from 1 BHK economic flats to luxurious villas and over 6 BHK flats. Other demand attracting areas are Velachery – Tambaram belt with areas such as Medavakkam, Vengaivasal, Selaiyur etc. Their infrastructure and proximity to the IT belt attract this demand.

A few ways to promote real estate could be faster approval for buildings, tax breaks for affordable housing, reducing labour shortage and excepting housing project from environment clearance.