Real estate trends for 2020 in Chennai
Despite the economic slowdown, Chennai has hit the real estate industry last year with great calmness. In 2019, Chennai has seen a 6% yearly rise in residential sales. During the later half of the year, Chennai has seen an 8% increase in residential sales yearly.
Ready to move-in homes and nominal housing was the primary real estate trend in Chennai, which prompted the builders to plan new projects accordingly in 2019.
Let us have a glance at the top 5 trends that will define the real estate in Chennai in 2020:
Co-working
According to a recent study about 13 million Indians will work from co-working space by 2020. Chennai has been the epicenter of the coworking revolution. The study has claimed a 5 times increment in co-working spaces ranking at 2% in 2017 to 10% in 2018. This trend is more likely to increase in 2020 as well. The real estate industry for shared working spaces in Chennai is driven by some of the top and established companies who are now realizing the benefits of having flexible offices.
More development in North Chennai
The real estate market in Chennai is user-end driven and supports fast pace increase, expansion of industries and commercial activity. North Chennai is a busy industrial area, the region’s economy is always centered around maritime and trading. North Chennai’s real estate future seems powerful, dominated by the presence of large companies like Indian Oil, Manali Petrochemicals, and IT corporate houses. The need for infrastructure and connectivity to the region is also a boosting factor in the real estate industry. Projects like the completion of the outer ring road stretch from Nemilichery to Minjur, the Chennai peripheral ring road connecting to Ennore Road from Poonerji junction, and the corridor three and five of the metro rail are factors which are going to increase the real estate activity in Chennai in 2020.
Co-living Spaces
Co-living spaces are going to hit the roof in 2020. Yet another trend driven by millennials, co-living spaces are overtaking India by a storm. Co-living spaces have been set in motion by 55 million students and workers who are looking for inexpensive living with full accommodation facilities. A recent study shows that 70% of millennials prefer co-living spaces with quality amenities. Following Mumbai and Delhi, Chennai is also grabbing this trend really fast attracting young working professionals and students in the region.
Tenants turning Homeowners
Around 64% of people who rent homes now are planning to buy one in 2020. Due to the sanction of home loans and static prices, people have gained confidence in buying homes rather than renting out places. Ready to move-in homes do not attract GST and this is one of the many reasons for increased homeowner-ships in Chennai. A study from the Tamil Nadu housing registration department shows the increase of 30,000 new property registrations in November 2019 and revival and continued growth is expected in 2020. The reduction of GST for affordable projects has made an active proposition for renters.
Development in South Chennai
There has been a massive growth in South Chennai over the past few years with OMR and ECR transforming into major IT hubs of the region. Due to the increased commercial activity in South Chennai suburbs like Adyar, Injambakkam, Velachery, and Thoraipakkam have witnessed growth in the residential market. These suburbs are located near the IT corridor and industrial area of South Chennai which led to the rapid development of new projects with amenities like schools, colleges, hospitals, and other basic amenities to attract buyers.
These trends are surely going to be the top trends in the capital city of Tamil Nadu. With the increase in development across the city, Chennai is facing a rapid development in the real estate industry with thousands of new properties being developed all across the city.
