Among the four metropolitan cities in India, the port city of Chennai has a unique advantage of a major hallway to Southern India. Typically the city is catering to the leading off shore industries, but with time Chennai is becoming lucrative place to go for IT and ITeS industries. Chennai real estate value is relatively more affordable due to the availability of large tracts of unutilized land. Chennai can also be gaining advantage over neighboring cities like Hyderabad and Bangalore owing to the access to space and work force. The low operational cost and more affordable lodging is the other motive bring interest of foreign businesses. The upswing in the service sector of Chennai is impacting the quality if life, infrastructural facilities and real estate market of the city. The growing IT\/ITES sector is good news for Chennai’s property market. The property prices in Chennai are very reasonable as compared with Bangalore. The city offers good infrastructural facilities and healthful business environment. These elements are prompting IT companies, MNCs along with other big corporate houses to choose Chennai over Bangalore. Worldwide companies are keen on opening their facilities, campuses or branch offices within the city. This trigger in the demand of commercial and retail property is finally represented on the residential section as well.
Not only has this increased the capital and rental values of commercial property, it’s also fuelled a demand for housing for its workforce. There’s been an active demand for flats and apartments. Residential land prices in Chennai have showed a significant upward trend in the last quarter. Taking into consideration the inroads of multinationals into the city the hospitality industry is also upbeat. To be able to attract the company traveler several up market hotels have been established at Chennai in the last decade. International hotel chains like JW Marriott, Radisson has built resorts within the city. This has further improved the real estate actions within the city. Cashing on the trend majority of the upcoming projects are catering to the needs of higher class end user.
Professionals, who flock to Chennai because of employment, ultimately look for affordable houses. A broker source informs that the cost of residential property in Chennai has doubled in the last 3 years. Areas like the Boat Club Road have witnessed a four fold increase in residential values in last few years, adds the source. Areas that are near to the IT corridors have registered 100-150% growth in residential real estate values like Adyar, old Mahaballipuram, Ambattur and Kotturpuram. Property developers, too, have sensed this phenomenal potential in Chennai Real Estate. New residential projects are priced at 2,500 – 4,500 Rs\/ sq ft for the apartment ranging from 1,200-1,500 sq ft.
To make the most of this situation, some developers have even increased the launch prices of their upcoming projects. In several cases, this price rise is as steep as 20-25%. Chennai’s residential real estate is poised for further growth. The commercial and retail infrastructures are also being braced up to cater to the new demand.