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  • Ultimate Guide for Chennai Real Estate Investment

    Chennai-Real-Estate-Investment

    Chennai has been recognized as a global market for real estate investments. It is a city that buzzes with aspirations and opportunities. The cultural mélange and modernized lifestyle has attracted the youth of the country to settle in Chennai. Chennai has been ranked as one of the most desirable South Indian cities as it is home to IT corridors, economic growth and educational opportunities. , Commercial investments are some of the main factors contributing towards this.City Infrastructure developments, Higher employment opportunities

    Chennai stands out with its modern-colonial balance, which is made visible through their unique architectural designs, food, tourist locations, etc. Chennai is also emerging to be a smart city as it has a firm hold on the IT, automobile, and residential sector.

    Buying a property in Chennai is definitely one of the best decisions as it is a great investment option. Some of the main factors contributing toward this is the rapid infrastructure developments, newer commercial investments and higher employment opportunities. The main contributor of Chennai’ realty market is its IT and automobile sector as it opens up several job opportunities. There has also been a visible growth in the residential real estate sector owing to the rising population. The main focus of the builders in Chennai is to provide homebuyers with luxurious and comfortable housing units proximate to the workplaces.

    Chennai Demographics

    Population

    Chennai, the capital city of Tamilnadu is also known as the gateway of South India and is located in the coastal region along the Bay of Bengal. It is also the economic activity center of the Southern India. The population of Chennai according to the UN World Population Prospects in 2021 is 11.2 Million (1.12 Crore). Chennai has also been recorded as the third largest city to host expatriate population after cities like Mumbai and Delhi.

    Religious Ratio

    Chennai has been ranked as the fifth largest urban agglomeration city of India and the 30th in the world. According to the census of 2011, 80.7% belongs to the Hindu population while 9.4% are Muslims, 7.7% are Christian and 1.1% are Jains.

    Literacy Rate

    The literacy rate of Chennai stood at an average of 90.20% in the last census. The census of 2011 also recorded the literacy rate among men in Chennai to be 93.70% while 86.60% was recorded in women. The majority of the population talks in Tamil and is followed by languages such as Telugu and English.

    Land rates in Chennai

    Geography

    Chennai is a low-lying area and the surface of Chennai is interestingly known to be flat as a pancake. The surface raises slightly as the distance from the sea shore increases. However the average elevation of the city is not more than 22′ above mean seal-level. Chennai has always been credited for its pleasant scenery. It is called as the town which is open to the sky and full of mangoes, coconuts, guavas and oranges gardens.

    Government rates

    The land rates determined by the government are called as the guideline value of the land. The land rates are determined according to the infrastructure growth in a particular locality. The rates are revised periodically in order to keep the market rates intact. The price of the property also varies from one area to another. The registration of a property above the recorded guideline value will result in new guideline value. The value ranges from Rs 18,890 per sq. ft. in Thiyagaraya Nagar to 2,500 – 7,038 per sq. ft. in Kelambakkam.

    Chennai Real Estate Market Forecast 2024

    In 2023, the Chennai real estate market is anticipated to continue its upward trend. The city has always been a sought-after location for real estate investment, and recent trends indicate that it is likely to continue this trend in the future. Several factors contribute to the growth of the real estate market in Chennai, making it an attractive destination for investors.

    One of the key elements affecting the city’s real estate market is Chennai’s reputation as an IT hub. The city is home to a large number of IT companies, including Tidal Park, Asia’s largest IT park. The existence of these businesses has increased demand in the city for both residential and commercial properties. The working population in the IT sector has a high demand for residential properties because they want convenient and comfortable living quarters close to their place of employment.

    The city’s expanding population is another element that supports the expansion of Chennai’s real estate market. There is a growing need for affordable housing in the city due to the increase in students and job seekers. As a result, Chennai’s developers now give top priority to the construction of affordable housing. For those looking to invest in real estate in Chennai, there are currently a number of projects being developed to meet this demand.

    Along with the demand for residential properties, Chennai’s commercial real estate market is anticipated to expand in 2024. The city is home to a number of industries, such as the automotive, textile, and electronics sectors, which have helped the commercial real estate market expand. The commercial real estate market is anticipated to expand as a result of the recent expansion in the manufacturing sector, which has seen businesses like Intel and Apple relocate a sizable portion of their manufacturing operations to India.

    When making a real estate investment, it is important to take into account a number of aspects, including the availability of clean water and other public amenities. Chennai is a prime location for real estate investment because it performs well on these criteria. The city’s infrastructure is well-developed, with access to the airport made simple, good roads, and public transportation. Due to the city’s closeness to the sea, it has become a well-liked tourist destination, which has prompted the construction of numerous top-notch hotels and resorts.

    Finally, the Chennai real estate market is anticipated to expand in 2024. The city’s reputation as an information technology center, its expanding population, and the need for affordable housing are all factors that are causing the real estate market to expand. The expansion of the manufacturing sector is anticipated to fuel growth in the commercial real estate market as well. Chennai presents an appealing investment opportunity for those looking to invest in real estate, with a number of projects currently under construction to meet the demand for affordable housing.

    RERA in Tamil Nadu & Rules and Regulations

    The Tamilnadu Real Estate Regulatory authority was set up on 22.06.2017 with the objective of ensuring transparency and efficiency in the real estate transaction. The TRERA is bestowed with the power to hear any disputes that arise between parties in both Tamilnadu as well as in Andaman and Nicobar Islands. They also carry out the registration activities for new projects, agents, builders, etc.

    Tamil Nadu RERA Registration Process

    The RERA Act mandates the registration of any building which exceeds 500 sq. ft. or any apartment having more than eight floors. The properties in Tamilnadu as well as in Andaman and Nicobar Islands can carry out the registration process by visiting the online portal of the Tamilnadu RERA authority.

    The Section 9 of the Act provides for the registration of real estate brokers and also prohibits any real estate agents and brokers from carrying out deals on plots or buildings, without registering themselves and their projects under the broker license Act and issuance. An agent is also required to fill in Form G for registering himself and Form A and Form B to register his project. Section 3 of the Act also provides the list of all necessary documents to be submitted by promoters or developers while registering their project.

    Fee

    While registering the project, you are also required to pay an amount decided by the government as registration fee. The contact details of RERA is provided in the online portal.

    How to check Land Ownership in Tamil Nadu

    Land ownership is one of the most important factors affecting property transactions. Government has taken efforts to digitize the land records. The digital land records of the Tamilnadu government are called as Patta Chitta. Patta is also called as the record of rights and is issued by the government. Chitta on the other hand is a document dealing with the land revenue records, land area, property owner name, type of land, etc.

    You are required to submit documents such as an electricity bill or tax receipts and a copy of the sales deed for the purpose of proving ownership in the property. You may apply for a Patta Chitta through the official portal of the Tamilnadu government. You may also verify the existing Patta online using the government portal.

    While transferring the property, you are also required to amend the Patta Chitta. You can make an application for changing the ownership name on the Patta through offline modes as there is no online means for the same. You may do so by visiting the Taluk or Village Administration Office in the locality of the property.

    Tamil Nadu Stamp Duty & Registration Charges 2024

    Property buyers will benefit from the Tamil Nadu government’s recent decision to revise the state’s stamp duty and registration fees, which will also help the real estate sector. The revision has resulted in a significant decrease in the registration fees from the previous rate of 4% to just 2%. This will lower registration fees for property buyers, making it a more appealing investment opportunity.

    The stamp duty rate revision will also benefit Tamil Nadu’s real estate market, which is another benefit. From April 1, 2023, the stamp duty rate will be reduced to 5% from the previous rate of 7%. A 7 percent stamp duty and a 2 percent registration fee will be charged for non-family settlements, which is also less expensive than the prior rate of 9 percent. The updated rates will aid in luring more buyers and enhancing the state’s real estate market.

    The government’s choice to reinstate the guideline values that were in effect up until June 8, 2017, will also be advantageous to buyers. The overall cost of registration will be decreased thanks to the 50% increase in the effective guideline values. Additionally, this will aid in bringing more buyers to the Tamil Nadu real estate market.

    In conclusion, the government should be applauded for its revision of the stamp duty and registration fees in Tamil Nadu, as it will help the real estate market and prospective buyers. More buyers are anticipated to be drawn to invest in the state’s real estate market as a result of the lower rates. The state’s economy will benefit from this action in addition to offering relief to homebuyers.

    Investment Opportunities in Chennai

    Chennai has been recognized as a great investment spot as it is an epicenter for developments mainly in the IT and automobile sector. These developments have aided in increasing the demand for the real estate property as well. The fact that Chennai has great connectivity and rapid infrastructural developments have further attracted several investment opportunities to Chennai. Some of the common areas in Chennai that are known for real estate investment includes, OMR, ECR, Urapakkam, Guduvancherry, etc.

    Some of the common areas of commercial real estate that you can invest in to maximize your returns includes the investments made in the office spaces, retails, rental spaces, industries, factories, etc. Investing in such properties is also a good form of investment for the middle class as they can maximize their profits. Investments made in commercial real estate earns the buyers higher returns on their sale while residential properties let out on rent, can earn you a stable and regular income. Chennai has also emerged to be a global market and this further makes Chennai a great spot for investment.

    Best Places to Invest in Chennai in 2024

    Chennai, the capital of Tamil Nadu, has been drawing investors from all over India and the rest of the world thanks to its sound economy, well-developed infrastructure, and high standard of living. Here are some of the top areas to think about if you intend to invest in Chennai in 2024:

    1. OMR (Old Mahabalipuram Road) – OMR is a prime location in Chennai, which has emerged as an IT hub. OMR is a hotspot for real estate investment because it is home to prestigious IT companies, educational institutions, and housing complexes. The proposed elevated corridor and upcoming metro rail project will improve connectivity even more, making it an excellent place to invest.
    2. Velachery – Velachery is a well-established residential area with a well-developed infrastructure, excellent connectivity, and high living standards. It is situated in the southern part of Chennai. The demand for properties in Velachery has increased as a result of the location of renowned hospitals, educational institutions, and shopping centers. It also has easy access to the OMR and ECR IT corridors, making it a prime location for investments.
    3. Adyar – Adyar is one of the most posh and upscale residential areas in Chennai. Numerous reputable hospitals, shopping centers, and educational institutions are located there. The area is well-connected to the rest of the city through a network of roads and public transport. The demand for properties in Adyar is high, and investing in Adyar can fetch good returns in the long run.
    4. Guindy – Guindy, a bustling neighborhood in the center of Chennai, is well connected to the airport, the train station, and other important parts of the city. Some of the top healthcare facilities, IT parks, and educational institutions are located there as well. The region’s real estate prices have significantly increased in recent years, making it a prime location for investment.
    5. Sholinganallur – Sholinganallur, located on the IT corridor of OMR, is a fast-growing residential area in Chennai. Some of the top IT companies are located in the area, which is well connected to the rest of the city. The demand for real estate in Sholinganallur has grown as a result of the area’s well-developed social infrastructure, which includes schools, hospitals, and shopping centers.

    Commercial Property Investment in Chennai

    The government has taken several initiatives to promote industrial and commercial advancements in the country. The government has also improved the transparency in the real estate transactions by introducing the Real Estate Regulatory Authority (RERA). The introduction of the Act has led to the increase in Foreign Direct Investments (FDI) in India for the commercial real estate sector.

    Some of the common factors contributing towards the development of commercial real estate in India include development made in the IT sectors-ITES, retail, consulting, e-commerce, and industries.

    Best options for commercial real estate investments

    Some of the common commercial real estate investment options available in Chennai include investments made in office spaces, economy spaces, malls/showrooms, retail, warehouses, lands or Farm Lands, etc. Flexi spaces, Hub and space model and hybrid model, has also been recognized as the most looked for properties in 2021 due the pandemic conditions.

    Residential Property Investment in Chennai

    Tamilnadu and its capital city is known for its rich cultural, economical, and educational developments. It has also been recognized as one of the safest cities in India to reside in. Chennai has been recorded as the third-largest expatriate population in the country after cities like Mumbai and Delhi. The demand for residential properties in Chennai rooted from the fact that it is a fast growing city and its infrastructure developments, widespread IT parks, educational institutions, automobile industry, healthcare facilities, etc. have been successful in attracting buyers to invest in residential property.

    The growth factors affecting the residential real estate set up includes its mixed economic base, constant development in infrastructure and connectivity, etc. The various developments in Chennai has also resulted in the expansion of zones in Chennai. The increased number of commercial investments in the main city has also led to the increase in demands for residential properties in the adjacent localities owing to the facts that the main city properties are costlier than those in the outskirts. The residential real estate market in Chennai is also end-user driven.

    Best location for residential investments

    Some of the best location in Chennai to invest in residential real estate includes Anna Nagar, Tiruvallur, Pallavaram, Porur, Sholingur, OMR, Oragadam, Ambattur, Gundavancherry, Pallikarani, Korattur, etc.

    Industrial Property investment in Chennai

    The Industrial real estate sector can be defined as properties facilitating any industrial activities such as production, manufacturing, assembly, warehousing, research storage, and distribution. Investing in industrial real estate can prove to be beneficial as several retail giants and boutique retails are moving to online mediums to sell their products. Industrial investments can be made in the form of investments in warehouses, factories, Warehouse & Distribution Buildings, Industrial Land, Flex buildings, Factory Units, Refrigeration & Cold Storage, etc.

    Best place to invest for Industrial properties

    Chennai has been one of the most prominent industrial hubs. It hosts several industries such as automobiles, chemicals, petrochemicals, food processing, and electronic industries in abundance. It is also a prominent player in the IT sector and homes several IT parks and companies. The development in Chennai’s manufacturing and automobile industries has positively impacted demand for the industrial properties. Some of the best locations for investing in industrial properties includes Guduvanchery, Ambattur, Avadi, Tiruvallar, Great Southern Trunk (GST Road), OMR, Poonamallee, Sriperumbudur-Oragadam cluster and Periyapalayam cluster.

    Top reasons to invest in Chennai

    Chennai is a prominent market for the real estate sector. It has also been recognized as the global market for residential and commercial properties. Chennai saw the maximum investments in its luxurious property segment. It also attracts large investments in the form of FDI. In other words, Chennai is one of the most sought out locations by NRIs for investing in real estate. Some of the reasons why you should invest in Chennai include:

    1. Scale of development
    2. Connectivity and infrastructure
    3. Affordability, lifestyle and entertainment facilities offered in Chennai
    4. Smart investments
    5. Development and expansion beyond the main city

    Pros & Cons of investing in Chennai

    Investing process can be carried out efficiently only after evaluating the pros and cons attached to it. Real estate is no exception. Investing in Chennai has several advantages and limitations. Some of the major advantages of investing in Chennai includes:

    1. It is a hot location for commercial development and thus the value of the property will increase drastically in the future.
    2. Chennai, like Bangalore and Hyderabad, attracts several commercial giants to invest in them. This in turn increases the number of working professionals and this indirectly leads to the increasing demand for residential properties as well.
    3. Better and modern lifestyle. Chennai also offers recreational facilities and also offers stability.
    4. Infrastructure and connectivity are also an added advantage to Chennai’s residential and commercial market.

    Despite all these advantages, some of the limitations of investing in Chennai includes its saturated golden old suburbs, its widespread area and the lack of choice.

    How to Invest in Real Estate in Chennai with Assetmonk

    Assetmonk is an online platform offering the best real estate assets for investment. Our properties are filtered after thorough due-diligence and stringent selection criteria. Real estate properties from the top cities of India- Chennai, Bangalore, Hyderabad are now accessible through a click of the button Assetmonk. Invest now and earn attractive IRR up to 21% along with fixed returns and capital appreciation from the high growth potential assets. Some of Assetmonk’s offering in Chennai includes Sparkle towers, Panama Blue towers, PCC Series I, and PCC Series II. Assetmonk also offers properties for short and long term investments.

    Frequently Asked Questions:

    Is it the right time to invest in real estate in Chennai?

    Yes, it is the right time to invest in Chennai as the real estate market is reviving back to the pre-pandemic times. The SEZ model introduced in Chennai is sought to increase the demand for commercial properties. The price reduction granted on the luxurious properties have significantly increased the demand for the properties belonging to this category.

    Is real estate a good investment in Chennai?

    Yes, real estate is a good investment option in Chennai. Chennai has been recognised as one of the top 10 cities in the world for real estate investments. Some of the factors contributing to this is its infrastructure, connectivity and commercial investments.

    Which is the best location for real estate investment in Chennai?

    Some of the best locations to invest in Chennai includes Thoraipakkam, Kelambakkam, East Coast Road, Sholinganallur, Chrompet, Ambattur, Guduvanchery, etc.

    Which area in Chennai is developing fast?

    Ambattur is the area in chennai which is developing at a faster pace. It is located in the north-west region and is a major hub for industrial and residential real estate investments.

    What is the most profitable real estate investment in Chennai?

    The profitability of real estate properties is determined based on the return earned by the investor. In Chennai, the return on investment is largely in commercial properties. However, if you are looking for a stable income, then rental properties are highly profitable.

    Where can I buy plots in Chennai?

    Some of the best locations to buy plots in Chennai includes Anna Nagar, Ambattur, Tiruvallur, Korattur, Avadi, etc.

    Which is the best place to buy a house in Chennai?

    Some of the best location in Chennai to invest in residential real estate includes Anna Nagar, Tiruvallur, Pallavaram, Porur, Sholingur, OMR, Oragadam, Ambattur, Gundavancherry, Pallikarani, Korattur, etc.

    Is it compulsory to register in RERA?

    The registration is mandatory for all under-construction projects and its builders, promoters and real estate agents. The registration is mandatory for any building which exceeds 500 sq. ft. or any apartment having more than eight floors.

    What are the rules of RERA?

    Some of the most important rules of RERA include the mandatory registration of projects, quarterly updates on the projects, sales agreement standardization, rule that the promoter can take no more than 10% as advance payment, etc.

    What is the procedure to register under RERA?

    You can register yourself and your project by visiting the TNRERA portal and clicking the registration tab. then you may select the ‘project’ or ‘agent’ option.

    What are the documents required for Rera agent registration?

    Documents showing his name and address, his company’s name and address, de particulars of the registration should also be mentioned such as the bye-laws, Form G, Photographs and a copy of the PAN card are some of the documents you need to produce for registering as RERA agent. You will be issued a Real estate agent license for a period of five years.

    Where do I start investing in Chennai real estate?

    Some of the best locations in Chennai, offering quick ROI includes Kalembakkam, Thoraipakkam, ECR, etc. The commercial growth is rapid and the demand for residential properties is increasing as the commercial sector is growing as more and more families migrate to these areas for better employment options.

    Which is the most posh area in Chennai?

    Boat Club, Poes Garden, ECR, Nungambakkam,Velachery, Adyar, Gopalapuram, Besant Nagar,etc. are some of the posh locations in Chennai.

    What are the advantages and disadvantages of investing in Chennai?

    Some of the common advantages of investing in Chennai includes its infrastructural developments, connectivity and access, commercial developments mainly in IT and automobile industries, etc. Chennai also hosts some of the top universities in India and students from all around India move to Chennai for educational purposes. This has further led to the increase in demand for real estate properties in Chennai. Some of the limitations of investing in Chennai includes its saturated golden old suburbs, its widespread area and the lack of choice.

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