An Insight into South Chennai’s Residential Property Market

♠ Posted by at Wednesday, May 28, 2014 in ,,, at Wednesday, May 28, 2014
Chennai’s property market has always been end user driven. Of late, the residential segment has been exhibiting a good deal of investments. The following post provides an insight into the south Chennai’s property market. Read on to know more. 

Introduction


Driven primarily by the end users, Chennai’s residential real estate market is usually characterized by stances of conservatism that has long been adopted by the buyers. While 2013 recorded a little slump in the residential real estate segment, 2014 is predicted to be a somewhat good year for the segment.




Although Chennai is known as the Detroit of India for its base for the automobile industry and it is also one of the leading Indian port cities, its residential property market has been primarily been driven by the IT/ITeS sector. Since the advent of the IT sector in the city during the early 2000s, the residential property market has been witnessing a substantial upsurge. However, of late due to the global economic downturn, the real estate sector’s growth –plans have not only been heralded but also recorded a dip in the demand for housing properties. Apart from this, transactions within the Chennai residential market is largely dominated by the end users, which is why the price trends within the segment has moved in accordance with genuine sales figures and thus ruling out any chances of volatility within the market.

In 2013, Chennai witnessed the launching of nearly 33,000 residential units with an approximate absorption of 23000 within that year itself. Interestingly, most of the absorption has taken place along the IT corridor of the city. South Chennai has a prominent residential market and the region has been witnessing a rapid growth in the recent past for quite some time now. Some of the key highlights of the south Chennai residential property market are explained below: The Old Mahabalipuram Road (OMR) has been one of the biggest bets within all the major micro-markets of south Chennai. This entire 26 kilometer of stretch has not only witnessed a good launch pad for residential projects but also substantial absorption rates.

The neighbourhoods of Perungudi, Karapakkam and Thuraipakkam have also witnessed a sound upsurge in the sales figures of residential inventories. There has been a moderation in sales volumes mostly due to existing price-levels along with an absence of proper infrastructure. Therefore, smaller residential projects have been dotting the entire region with a price brand of INR 5000 –INR 6000 per square feet. Experts are of the opinion that this region is bound to witness a strong infusion of a fresh supply of inventories in the forthcoming months.

Other two micro markets of the region – Sholingannalllur and Perumbakkam have been the better-known players within the region. These micro markets have also witnessed a slight spurt with most of the price trends remaining a more or less same. The price bands of the residential properties of these neighbourhoods range between INR 4400 – INR 4700 per square feet. The regions are gradually climbing up the real estate ladders thereby a demand for villas and other high-end residential properties are expected to come up in the region.

On the other hand, Tambaram and Velachery’s property markets have been attracting thousands of home buyers. The neighbourhoods have recorded the launch of multiple products belonging to the higher-mid segment. Property price trends in these areas have been ranging between INR 4500 per square feet INR 4700 per square feet. These micro markets are expected to hold on to their own in the coming months.

A lot many factors are expected to accelerate the growth of the residential property market of Chennai in times to come; one of the leading reasons behind them being the rapid infrastructural development all across the city. The metro railway almost on its way to completion and the monorail gaining momentum, the Chennai property market is expected to remain stable the way it is right now. So, if you are looking for investment opportunities in the city, now is the time. 

Guest Author
Sampurna Majumder, A Skilled Writer and An Ardent Blogger, Delhi, India

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