Tamil Nadu’s capital, Chennai, is a thriving metropolis with a deep cultural history, a diversified economy, and a burgeoning real estate market. Chennai has become one of the most sought-after real estate locations in India over the years, drawing investors from all over the nation and the world. Chennai presents a wealth of opportunities for real estate investors looking to make a profitable investment thanks to its advantageous location, first-rate infrastructure, strong economic growth, and welcoming investment environment.
Today, we’ll look at the key factors that can make real estate investing in Chennai a wise choice for both experienced and novice investors.
Developments in Chennai in 2023
The state of Tamil Nadu’s capital city, Chennai, is anticipated to significantly contribute to the state’s economic growth in the upcoming year. The Finance Minister’s declaration of consistent growth in the state’s gross domestic product (GSDP) is encouraging news for Chennai’s real estate market. The state’s economy is expected to keep expanding, which will probably lead to more employment opportunities and additional investment, which will increase demand for real estate properties. Property prices are anticipated to rise significantly as a result, making now an excellent time for investors to enter the market.
The proactive measures taken by the state government to attract business and create jobs are anticipated to benefit Chennai’s real estate market. The government’s initiatives for broad-based, sustainable growth are likely to foster an environment that is favourable for real estate development. Investors can anticipate a rise in demand for commercial and residential properties in Chennai due to the state’s steady economic growth. The city’s strong infrastructure, convenient location, and accessibility to skilled labour are anticipated to attract more investors, transforming it into a profitable investment location.
- During the visioning exercise carried out by the Chennai Metropolitan Development Authority (CMDA), residents of Chennai emphasised the need for improved civic infrastructure and better transport connectivity.
- Wider streets, parks, playgrounds, better public transportation, and high-quality civic infrastructure were among the requests made by the locals.
- Residents of Karapakkam asked for more skill training colleges in south Chennai and inquired about the status of planned flyovers on the OMR, the bus rapid transit system, cycle paths, and waterway transportation on Buckingham Canal.
- More connecting roads for ECR and OMR, metro rail for ECR, and revitalising the Buckingham Canal waterways were suggested by members of various resident welfare associations.
- Road extensions, flood mitigation strategies, increased sewage treatment plant capacity, restoring Otteri Nullah, an underpass at Basin Bridge, and appropriate stormwater drainage networks were among the demands of the residents in the various areas.
- The third master plan was requested by the residents of Alwarthirunagar to clearly define space for water bodies, parks, TNHB buildings, schools, and commercial establishments, among other things. They also stressed the necessity of enlarging Arcot Road, which is congested in many places.
- The Second Master Plan (2027-2046) Vision Document Public Consultation Meetings for the Chennai Metropolitan Area were held on Saturday by the CMDA. Thiru Vi Ka Nagar, Alwarthirunagar, Karapakkam, Royapettah, and Pallikaranai were the locations for the meetings.
Affordability As a Factor
It is undeniable that Chennai is a market with the best properties available at the best prices. In Chennai, the value of property differs depending on where it is situated on the periphery of the main city. A property in the suburbs might be less expensive than one in the city centre. Larger apartments and villas with a variety of opulent amenities are also available for a reasonable cost. One of the main causes of the rise in investments in Chennai’s outskirts is the cost and quality of the products offered. Despite the property’s location on the outskirts, Chennai has excellent connectivity, which is advantageous for homebuyers. The lower cost of investment in such properties can earn you a higher return in the future as well.
In recent years, Chennai has experienced rapid economic and commercial growth, drawing visitors from all over the nation in search of employment opportunities. Areas like Oragadam, ECR, OMR, Medavakkam, Velachery, Old Mahabalipuram Road, Arcot Road, Porur, Ambattur, Anna Nagar, and OMR IT Corridor are excellent choices if you’re thinking about investing in real estate because they have favourable rental characteristics. Due to their proximity to important locations like Sholinganallur (over 6km), Thoraipakkam (about 1km), Velacherry (over 9km), and Elcot SEZs (8km), these areas never run out of tenants.
To save money on transportation, workers prefer to live in apartments close to their places of employment, which makes it simpler for landlords to find tenants in nearby communities. As a result, these areas have a reliable and consistent supply of tenants. Due to the high demand for rental properties brought on by OMR’s proximity to IT hubs, there has been an increase in investment in the area. You can benefit from a high rental income and a consistent return on investment by investing in these areas.
The increase in the size of the Chennai Metropolitan Planning Area (CMPA) from 1,189 square kilometres to 5,904 square kilometres is a significant development that is likely to have profound effects on the social and economic climate of the area. The expanded CMPA is set to grow to be one of the biggest urban agglomerations in the nation with the addition of 1,225 villages from the Tiruvallur, Ranipet, Kanchipuram, and Chengalpattu districts. The relocation is anticipated to bring about fresh challenges for the administration in terms of controlling the growth and development of the expanded area, as well as new opportunities for investment, employment, and infrastructure development.
The expansion is expected to trigger a wave of real estate development in the region, as more people are likely to seek housing and commercial spaces in the expanded area. The OMR IT corridor and other high-growth areas being included in the expanded CMPA are likely to draw more domestic and foreign investment into the area. Additionally, the expansion is probably going to result in the development of new economic hubs, which could create jobs and promote economic expansion.
Chennai is one of the top centres for investment. It is not only a national market for real estate investments but also a global market. The development activities carried out in Chennai in terms of infrastructure and connectivity have made it desirable for commercial and residential investments. Due to the increase in the commercial development of Chennai, people from in and out of Tamil Nadu migrate to Chennai with the hope of better living conditions, employment opportunities, education facilities, etc.
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Frequently Asked Questions on Reasons to Invest in Chennai Real Estate:
The real estate market in Chennai is a booming industry that draws investors from all over the world because of its advantageous location, first-rate infrastructure, strong economic growth, and welcoming investment environment.
In 2023, Chennai is anticipated to make a significant economic contribution to Tamil Nadu, increasing demand for real estate. The state government’s proactive initiatives to attract investments and generate employment are also expected to have a positive impact on the real estate sector in Chennai.
With demands for more expansive roads, parks, and playgrounds as well as better public transportation and high-quality civic infrastructure, Chennai has been working to increase civic infrastructure and connectivity. The city has also been looking into options for waterway transportation on Buckingham Canal and cycle paths.
Yes, Chennai is a market that offers the best properties at the best prices, and properties there can be found outside the city centre for less money. Additionally, larger apartments and villas with a variety of opulent amenities are available for purchase by investors.
The proximity of these locations to important areas makes neighbourhoods like Oragadam, ECR, OMR, Medavakkam, Velachery, Old Mahabalipuram Road, Arcot Road, Porur, Ambattur, Anna Nagar, and OMR IT Corridor excellent investment opportunities.
Due to the guaranteed and consistent supply of tenants in neighbourhoods near important areas, investing in Chennai’s real estate market can provide a high rental income and a consistent return on investment.
The increase in the size of the Chennai Metropolitan Planning Area (CMPA) from 1,189 square kilometres to 5,904 square kilometres is a significant development that is likely to have profound effects on the social and economic climate of the area. With the inclusion of 1,225 villages from the districts of Tiruvallur, Ranipet, Kanchipuram, and Chengalpattu, the expanded CMPA is positioned to play a significant role in the economic development of Tamil Nadu.