Forget the weather, Chennai brings you more reasons why you should be investing here than thinking otherwise.
Cities that have a job pool have a tendency to attract more investors and buyers. As a result, the capital appreciation in these cities is likely. Bangalore, Delhi, Pune and Chennai are such cities. Let’s look at the reasons
Optimistic market
Globally acclaimed design house Savills, Candy & Candy, and Deutsche Asset & Wealth Management report says that Chennai is among the twelve rising cities that would outdo the prime global cities in terms of real estate. What is cited as the reason is the fact that it is a cultural hub.
“Prices in these rising cities are generally much lower than in the world cities, which make them more accessible and attractive to yield-seeking real estate investors,” says the report.
What makes Chennai a cultural hub? If an area metamorphoses into a community hotpot, it means there is a scope of further job creation. The IT/ ITes has been an encompassing industry. Moreover, more companies like Bosch and Siemens, Yamaha, automotive related industry proposed in the Japanese Industrial Township, all of these are examples of how Chennai is becoming an investment hotspot for business worth crores.
Localities like Old Mahabalipuram Road (OMR) and the Velachery to Tambaram stretch are viewed as being investor-friendly not only because of the IT establishments here but also because of the resultant equipped civic and social infrastructure.
Arun Kumar, founder and MD of Casa Grande, a company that holds almost 30 per cent of market share as villa developers says, “OMR seems to be the potential are with healthy demand for real estate development. The areas in and around OMR would see healthy appreciation.”
Similarly, Mehul Doshi, director, Doshi Housing says, “OMR continues to be the preferred destination because of IT establishments and a balanced mix of residential, retail and schools.”
Infrastructure
What gives a push to the real estate in terms of residential properties? “Water and drainage connections are also expected along road in the next couple of years and this will give a further boost to the real estate growth on the OMR stretch,” says Doshi.
Infrastructural developments, both physical and social, are quickly catching pace. The second phase of the Outer Ring Road and the Chennai Metro and the Monorail project are indications of how the region as a whole promises about a good time for real estate.
Kumar says, “We believe both rail networks will have a great impact on infrastructure development. They will reduce the traffic congestion and make the city accessible. A major beneficiary of the metro rail projects is the sub-urban areas that get connected to the cities and this leads to increase in property prices.”
Return on Investments
You do not need to blindly follow what others tell but you can rely on data! As per data with Magicbricks, Chennai offers a good yielding potential. Take for example, areas like Anna Nagar. Capital values that stood at Rs 6175 per sq ft in 2013 reached Rs 10,400 per sq ft in 2014, a whopping 68 per cent rise!
You are thinking of investing before it is too late, aren’t you?
Source: Times of India / Magicbricks.comBureau