Thinking of buying a plot in Chennai? Is it the only affordable option in Chennai?

Venu Gopal, Chennai

22nd December 2014

Real estate News in Chennai

affordable housing project

chennai real estate

plot buyers

chennai infrastructure

plot development in chennai

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Hi Venu gopal,

Thinking an average budget of Rs 20 lakh as affordable, it is quite interesting to note that almost 90 per cent of the supply in Chennai in this budget range is for plots. However, the maximum demand in the city exists for apartments. Nonetheless, buying a plot for Rs 20 lakh and then constructing a house on it would by no means be affordable.

Pavan kumar, Chennai

22nd December 2014

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Hi Mr Venu,

According to me, supply of plots is high on the outer peripheries of the city where developing a residential township may not be feasible as these areas are as yet devoid of any social and physical infrastructure. In addition, lack of connectivity is also a major concern.

subramanya, Chennai

22nd December 2014

Hi,
Due to lack of habitable conditions, builders are not very keen on constructing apartments, but these are the only locations that have available land at low prices. This explains why the only affordable option in the city is for plots.

Priya Sharma, Chennai

22nd December 2014

@ venu gopal,

It is also noted that buyers are more keen on buying apartments. Today, buyers in Chennai prefer to invest in apartments and condominiums due to better lifestyle and quality of living and security aspects etc.

Most of the real estate investments are funded by home loans. Banks offer loan for apartments in the range of 75-90 per cent while it is 60-70 per cent in the case of plots. Also, unless it’s a plotted development by builders, investors are mindful of the perceived risks while buying plots. This explains the low demand in the upto Rs 20 lakh category in Chennai as most of the supply is concentrated for plots.

VKumar, Chennai

22nd December 2014

Hi Mr Gopal,

So does this mean that buyers in Chennai cannot get a home that can be defined affordable? It might be a little difficult to get a built-up space in a livable environment for Rs 20 lakh ,affordable housing can be defined on three parameters – size of the apartment, cost of the apartment and income level of the home buyer. Thus, in Chennai, an affordable home may be defined as a project with an apartment size of upto 60 sq m within a cost of Rs 30 lakh.

Ravi Kumar, Chennai

22nd December 2014

Hi Mr Venu Gopal,

As per my knowledge, some locations where one can find homes within this budget range are Kelambakkam, Thaiyur, Kalavakkam on the Old Mahabalipuram Road (OMR) and a few locations on the Grand South Trunk (GST) Road. These areas have witnessed sustained traction.

Srinivas , Chennai

23rd December 2014

@ Venu Gopal,
In my point of view, the disparity that exists between demand and supply in the upto Rs 20 lakh category again highlights the need for infrastructure development to precede residential development if we are to utilise the land parcels in the outskirts of the city.

Alex Stephen, Chennai

23rd December 2014