Indian Realty Market: The Scenario in 2014
According to an Indian realty market outlook 2014, the economy of India is growing at a steep rate with mesmerizing figures of 4.5% y/y by the closing of 2013.
There is a certain positivity that is already visible:
- Advent of more and more global companies has elevated the brand value of a city
- Growing industrialization has enabled metropolitan cities to attract more skilled people to come and join industries
- Government initiatives like the construction of IT hubs and other industrial setting have added another winning chapter to the urban growth story
- Bringing in metro trains has been a major breakthrough
Let us explore, one such highlighted state, Chennai.
Chennai City: A Snapshot
Chennai is one city in South India that reflects the immense potential of India’s information technology domain and outsourcing prowess. IT hubs, developed infrastructure, low cost, and skilled labor are some of the factors that have made the city to stand class apart and leave behind other metropolitan cities in India.
A high migration rate is also an important contributing factor that is driving the realty tasks to go really higher.
On a quarterly basis, which is the steepest data recorded ever, the migrating populace is increasing that is in turn leading towards increased demand for accommodation options. Here is a detailed picture of the realty trends in Chennai, 2014
Current Realty Market Scenario
As per Residential & Office report on the Chennai realty market, researched and commissioned by Knight Frank India today, Chennai has been a victim of sluggish economic growth and slowdown in the real estate sector towards the closing of 2013. Other negative factors were surging interest rates and high inflation that led to negative sentiments within the domain. The sales volumes were also badly affected with builders left in grief.
The marginal reduction in the prices and innovative schemes formulated by the government of India are some factors that are expected to bring Chennai’s realty market to life. The initiative has been a success and has left a positive mark on the market. As per the report, the positivity will be coupled with following trends prevailing:
- IT/ITeS sector will be the key drivers of the Chennai Realty market
- The demand for smaller office spaces will be high owing to mushrooming Small & Medium Enterprises (SME)
- The residential realty space demand will also be high owing to high migration rate in Chennai
The spruced up demand is very much locality dependent and here are some of the areas that will witness major realty activities:
Few Highlighted Localities
Introduction of metros, the monorail corridor, and the outer ring road will assuredly enhance the connectivity between many cities in Chennai.
The advent of metros has catapulted the facet of Chennai and the prevailing realty market in recent times. All the four regions of Chennai; North, South, East, and West have been serving the needs of builders and dynamic buyers’ sentiments.
- South Chennai
The southern part of Chennai is the most sought-after region at the current moment and is riding high on the success of a range of residential projects available at affordable prices. Some of the localities that are tagged as favorite real estate destinations are:
A general state survey clearly indicates that South Chennai has been kept for major residential projects and this part witness maximum buyer’s response.
- North Chennai
Northern Chennai is a region that is captured by builders for commissioning commercial realty projects. One of the highlighted regions in the north part is Perambur, which is flocked by some of the known and big builders from all over the country.
Pizza Hut, Reliance, Brand Malls, and Multiplexes are some of the realty projects that are shining bright here.
- Eastern and West Chennai
Rest of the Chennai is under the light of a mix of commercial as well as residential projects owing to increased migration activity and construction of office spaces and companies.
Chennai is one of the favorite realty destinations for builders and each of its regions is being loved and recommended by the buyers as well as the entire Indian realty market.