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Navigating Opportunities in Chennai’s Real Estate Landscape
December 09, 2023
As one of India’s most vibrant cities, Chennai stands at the crossroads of commerce, culture and connectivity. Chennai real estate is abuzz with investment opportunities owing to the rapid infrastructure growth. The primary contributors to Chennai’s property market are the IT and automobile sectors.
This bustling metropolis is also home to some of the country’s most prestigious universities and colleges. With both students and job seekers making a beeline for Chennai, it’s good news indeed for the real estate market. Reports by an online real estate marketplace predict that the prices of real estate properties in Chennai are expected to rise by 5.5 to 6.5%, making it a good time for investing in the city.
Chennai has many facets to its identity with significant developments in various fields – from industry, education and healthcare to culture and spirituality. Two of the fastest-developing localities in Chennai are Medavakkam for its superior connectivity and Korattur for its proximity to industrial hubs.
Ranked as one of the most desirable South Indian cities, here are the top reasons why real estate investment in Chennai has huge possibilities for growth:
Boost in Urban Infrastructure Development
Multiple Government initiatives are underway in Chennai to improve the roadways and the sanitation network and rejuvenate water bodies and street infrastructure. Many parks, community halls and libraries are also planned to boost the social infrastructure in the city.Enhanced Transportation & Connectivity
Numerous Road projects in arterial networks are in the pipeline to improve connectivity. The Metro Rail Network has eased city traffic to a great extent and the second phase is expected to be completed by 2025. Key road projects coming up here include the Singara Chennai project, Mount Poonamallee elevated corridor, Madhya Kailash junction flyover and Mount Medavakkam subway.Rising Employment Opportunities
The growing IT and industrial sector have turned Chennai into a popular job seekers’ hub. The city is home to Tidal Park, Asia’s largest IT park, making it a popular location for IT professionals. The increase in job opportunities consequently fuels the demand for office spaces and growth in commercial real estate.Encouraging Market Demand & Supply
Chennai is bound to have an influx of professionals from across the country. The growing population has created scope for the development of the residential real estate sector in Chennai. There is a surge in the demand for luxury housing in several parts of the city.In response to this evolving landscape, prominent builders in Chennai have redirected their focus towards providing luxurious housing options. A prime example of this shift is Brigade Icon in Mount Road, an integrated lifestyle enclave in the heart of the city. Offering an array of opulent living spaces, this development is complemented by an integrated clubhouse and a wealth of amenities, catering to the discerning tastes of modern residents.Favourable Regulations & Policies
The state government has introduced various initiatives to support industrial and commercial property investments. The first is the introduction of RERA to enhance transparency in real estate transactions. The project registration can be easily verified through the TNRERA online portal. Another important parameter is the Floor space index or FSI / Floor area ratio or FAR. The FSI is the proportion of a building’s total finished floor area to its whole plot of land. This is a crucial indication for both homebuyers and developers. A higher FSI can be seen as a positive factor in terms of investment potential.
Conclusion
The future of real estate in Chennai looks promising. Especially with the massive transformation the city is undergoing with regard to infrastructure and connectivity. Chennai property investors can reap substantial benefits by diversifying their real estate investment portfolio.
Demographic shifts, including population growth, urbanisation and changes in income levels affect the demand for certain types of properties. So it is important to do the right market and location research to mitigate risks. However, the growth of the property sector in Chennai will depend on the industry adapting to changing dynamics and embracing new Proptech and sustainable practices.
If you are an aspiring homebuyer contemplating a move to Chennai, here’s a project by the Brigade Group worth exploring – Brigade Xanadu located at Mogappair West has Spanish-themed homes featuring a multitude of amenities.
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