Prices are in the range of Rs 20-50 lakh for 2-BHK units depending on the size and the location of these homes. Naturally, if you are opting for homes with amenities such as regular water and electricity supply and conveniences such as those found within society houses like joggers’ track, kids’ play area and shops within your premises, prices go up further.

The peripheries have shed their fringe-look. Of late, the profile of buyers has also been changing, from blue collared to white; the outskirts are now all encompassing.

Changing profiles

Top reasons for such a change include increased business investments and opportunities, relatively cheaper real estate prices, cultural diversity and multidisciplinary growth avenues such as digital marketing, advertising, engineering and business. All this has led to a sizeable proportion of new buyers, even non-locals to make real estate investments in the city.

Plots have given way to multi-storey apartments. Large townships have also entered Padapai, Oragadam and Sriperumbudur.

“Four-lane road stretches, IT companies, manufacturing industries, all these came to Sriperumbudur from areas like OMR. Increasing customer base also led to some business giants shifting into bigger units in these locations. When jobs come, buyers will not be far,” says Sushil Menon, a consultant in the city. Guduvancheri would benefit on account of the many IT, industrial as well as educational institutions.

Another reason is its connectivity to OMR and therefore, buyers, looking for an alternative to OMR, have a number of options. Proximity to the airport is another boon.

Incentives

For a first time buyer, Budget 2016 laid out some favourable provisions. If the value of the house does not exceed Rs 50 lakh, you are entitled for an additional interest deduction of Rs 50,000 per annum, provided the loan amount sanctioned is up to Rs 35 lakh. While this was good news for consumers, developers got to have their share with the announcement of cent per cent tax deduction on profits from affordable projects.

Such a move can further the cause of ‘Housing for All’. (There has been debates about the inequitable housing space calculation 30 sq mt in four metro cities and 60 sq mt in tier II cities. Even the three-year window for project completion could have been for a longer duration as approvals and construction typically take a long time). The direct and indirect tax benefits for affordable housing can catapult the Smart-city initiative too.

Options abound

What should be good news for home buyers is the fact that as per our inventory data, there are over 400 apartments across Chennai up for sale in the secondary market with a token price within Rs 20 lakhs. Your options double up if you are looking out for plots.

The city index for your city suggests that the average price growth is steadily climbing up. As of now, the good news is that unsold inventory is also piling up which makes it a buyers’ market, where you can negotiate. But various incentives plus pent up demand over the last two years may result in a further hike in prices.

A lot of big names are taking interest in launching affordable homes. Looking at trends in the city, it may be a good time to invest considering that real estate is seemingly making a comeback. Moreover, if you are sowing small, you needn’t be necessarily reaping small. Trends project that rental yield has been stable which is encouraging.

Sneha Sharon Mammen, Times Property, Magicbricks Bureau/ Chennai