The Indian real estate market is to witness an upswing this year due to events such as banks reducing interest rates and RBI offering incentives for infrastructure financing. If you are planning to invest in real estate, Chennai is a great option as it is now considered among the top twelve rising realty destinations in the world.
Among the major players in south India, Chennai has steadily become the desired choice of residence for several reasons. Apart from being a preferred location for the top IT companies, the city is also known for being an automotive and electronic manufacturing hub. The government in recent years has undertaken steps to increase the city’s growth potential by improving infrastructure and existing facilities.
The growing interest in Chennai as a commercial and IT hub has resulted in tremendous growth in employment opportunities, which has led to an increased demand for commercial and residential spaces. The government has proposed several infrastructural projects that will improve the quality of life for the citizens as well as boost the property market. Several projects are lined up in the outskirts of the city, like Old Mahabalipuram Road (OMR) and Grand Southern Trunk Road (GST), which enjoy great connectivity with the city.
As a metropolitan city, Chennai has a lot to offer to its residents. With premier educational institutions, top-notch medical facilities,and abundant entertainment options, the city has everything that you seek in a place of residence. Affordable housing spaces along with a well-connected public transport system make Chennai a desired location.
Top Reasons to Invest in Chennai
If you are thinking of buying a property or investing in real estate, consider the following reasons to invest in Chennai:
- Land rates in Chennai are affordable and reasonably priced when compared to other metros like Bangalore, Mumbai, or NCR.
- Projects such as Chennai Metro Rail, Chennai Mass Rapid Transit System, and Chennai-Bengaluru Industrial Corridor will boost real estate activity.
- Projects based in suburbs like OMR offer a range of premium and affordable housing.
- The proximity of OMR to Special Economic Zones (SEZs) also makes it a profitable investment.
- For those buyers who are not end-users, Chennai has a thriving rental market that ensures a good rate of rental returns.
- The city is expected to garner sizeable investments, which augurs well for the real estate market.
- There has been a steady increase in housing demand across all sectors, from the mid-end segment to the high-end luxury segment.
Factors Leading to Growth in Real Estate in Chennai
The Chennai real estate sector is set to revive and grow in the coming years. There are several factors contributing to its growth. Some of them are:
RBI’s mandate on reduction of interest rates has increased buyer optimism.
- Substantial increase in office and mall supply, as seen in absorption of millions of square feet of office space, has led to an appreciation of the real estate market.
- The growth of the IT population has resulted in an interest in residential spaces both in and around the city.
- The ongoing Chennai Metro Rail project has spurred growth in residential prices along the project’s corridor.
- Investments made in locations within the city have always yielded attractive returns in capital value as well as rental returns.
- Consequently, projects based in suburban locations have seen appreciation in investment as they promise affordable and better options for homebuyers.
The Future of Real Estate in Chennai
In the recent past, Chennai has slowly emerged as a key location for national and international companies. With a supply of 10 million sq. ft. of quality IT SEZ, the city has been attracting corporates with premium office spaces at an affordable price. The increased investment in the city has led to a growth in employment opportunities and developed the city into a bustling metropolis.
Improvement in infrastructure, quality of civic life, availability of educational and medical facilities, and affordable housing make Chennai a desirable real estate investment option. With great connectivity, public transport, skilled workforce, and development of social infrastructure, Chennai gives you every reason to invest in it.