Real Estate in Chennai - Trends in 2014

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Real Estate in Chennai - Trends in 2014

Chennai is poised for a significant turnaround in real estate development. So far, there hasbeen no scope for the expansion of large-sized township projects comes inside the town.Developers had been quite happy to create 12-30 units with restricted or no amenities, verylittle or no inexperienced cowl and intensely restricted open areas. Of these restricteddevelopments can go a translation within the coming years.

In the coming months, Chennai can see a significant amendment during this facet, with astring of township projects comes by developers of national stature beneath execution andnearing completion. These township projects comes have token plot coverage, that paves themethod for big inexperienced cowl and ‘lung space’ inside the project. this can be one moreincentive to take community living, that was for the most part unparalleled till as late as 2006.

The new game changers within the Chennai residential land house are generous landscaping,serene atmosphere, colleges inside the field, huge club homes, place of business facilities foreach indoor and outside sports, multiplexes within the section, health care, restaurants andhuge swimming pools.

Supply & Demand

Chennai’s residential market is witnessing extended demand within the affordable phase –specifically for units within the worth vary of Rs 35-60 lakh – in locations which provide asuitable degree of social infrastructure.

Overall, Chennai’s approximateabsorption of residential units isalleged to be within the varybetween 28,000 and 30,000 unitsper annum, with most of theabsorption happening on OMR andclose to the IT passageway.

It is still a preponderantly end-userdriven market, with 60-65 percentof the consumers longing forself-occupation. Residential houseinvestors in Chennai tend torequire a long read, the processbeing to appear at off-loading their

holdings inside a median time span of 5-7 years. This attribute more strengthens the market’send-user behaviour.

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Pricing

Chennai may be a stable market whereby residential property costs move in accordance withactual sales. Worth volatility attributable to different factors has been utterly excluded. As aresult, costs have dropped at most of the projects over the previous few years.

Moreover, residential property in Chennai isdriven a lot of by locations instead of byspecifications and amenities. Theinsufficiency of land parcels and conjointlythe value of premium FSI inside the townhave created relentless upward pressure onresidential product valuation.

This has resulted within the available choicesin these locations shooting well past thebudgets of even the higher materialistic.Price for traditional flats with minimum or

no amenities inside Chennai town will vary from Rs. 1.5 crore 5 crore.

Lack of locations with sensible infrastructure has hindered the availability of land, that hasresulted in valuation going upwards whereas the valuation remains stable or stagnant inlocations that lack sensible social infrastructure. The requirement of the hour in Chennai’sresidential land market may be a sensible provide of land in order that the new locations maybe spread out and also the requisite social infrastructure and different utilities may be place insitu.

Growing Steadily

Chennai property market has beenstable with moderate value appreciationof eight 100% in 2012. Within-progress infrastructure comes takingform, the demand and capital values areexpected to rise across all sectors. targetimprovement of public modes oftransport has been one amongst theforemost highlights in Chennai. Thiscan be evident from the growth of theprevailing highways, work on Chennairailroad and therefore the Outer route.


Approval of 3 new bridges connecting ECR and OMR at Neelankarai, Palavakkam andKottivakkam is anticipated to impact the capital values. Going forward growth in Chennaiwouldn't only be determined by the IT/ITES sector, however additionally the transportcorridors of the higher than mentioned infrastructure comes.

Chennai market is wanting forward to the MRTS and BRTS comes to relinquish the town abrand new face in 2014-15. 2012 has seen the town shift capitalist focus from the standardOMR, ECR to the WEST and NORTH of Chennai. The operationalization of the TIDCO &Ascendas SEZ at Tiruvallur and therefore the operationalization of the new airfield atSriperumbudur in 2015 is driving interest within the North & West Chennai regions.

Stock and Absorption

World uncertainties and IT/ITES sector going slow withtheir growth plans compact the real estate situation inChennai with high percent. Although the main target onresidential sector from developers finish was high, andChennai market saw remarkably high range of recentlaunches in 2012. Sales were moderate compared to thenew residential provide additional to the market. In 2013Chennai residential market is probably going to examinefew launches compared to 2012 however improvement

in sales with an overhang of 18-22 months.

Property Forecast 2014:

End Users drives the Property market in 2014 Residential property prices will either stabilize or will appreciate marginally in

2014 Property budget of Home Buyers is likely to remain the same in 2014 Apartment is the preferred choice of home buyers


CONTACT DETAILS

ETA STAR PROPERTY DEVELOPERS LTD

Chennai Citi Centre, 4th floor,

10/11, Dr.Radhakrishnan Salai,

Mylapore, Chennai – 600 004

Tel: +91 44 39 11 3900 / 3911 , 234 66 666 / 777

Fax: +91 44 39113939, 234666 00

Website: www.etastar.com

Email: [email protected]

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