Chennai has been named one of the top locations for luxurious real estate investment. The property price is expected to increase from time to time, making it one of the most desirable investment locations. The huge FDI investments have been the main reason for Chennai’s real estate market, making it desirable for the international investor community. Another major factor contributing to the boosting of the livable quotient of Chennai is that it has great connectivity, several infrastructural developments that are coming up, and efficient civic bodies.
The real estate study by Candy GPS called Chennai to be one of the world’s top real estate destinations. Areas such as Madipakkam, Tambaram, Ponmar, Maraim, Alainagar, Sriperumpudur corridor have investment potential not only for residential real estate but also for commercial development have land banks. This article deals with some of the top reasons as to why you should invest in Chennai.
Developments in Chennai
Chennai is one of the prominent players in IT development and manufacturing activities in India. Most of these companies are located in areas such as Oragadam, Sriperumbudur, and OMR. It is interesting to note that Oragadam alone holds around 100 companies that provide about three lakh jobs. In addition to that, the Oragadam financial city will create approximately 30,000 jobs additionally. Apart from the main city, the outskirts also offer employment opportunities as it is dotted with SEZs for electronics and automobile manufacturing. The development of commercial players in the outskirts has further led to the government planning several infrastructure developments in these areas. The rapid development in Chennai has further led to the development of schools, healthcare, colleges, etc. Most of these areas have also become self-sufficient as they have now come to lack nothing.
Chennai is a rampant city, and the distance to the city center from the main city may seem very far. However, the city is very well connected, making it one of the best localities for investment. The improved connectivity makes the city center desirable. The properties in the outskirts as the appreciation value of the properties in these areas will also rise further with the further development and improvement of connectivity. An example of Chennai’s excellent connectivity also includes the connectivity provided by Old Mahabalipuram Road (OMR), a six-lane road that connects the city to places such as Sholinganallur.
The undefeatable connectivity offered by OMR is one of the main reasons for the increase in investments, making it one of the best locations to own your home. Chennai also offers better connectivity in public transport, as the extensive bus network makes services frequently available, making travel more straightforward and more accessible. The city is also connected to its suburban areas by trains which have also helped reduce travel time. In addition to all these, the proposed Greenfield airport in the outskirts of Chennai is expected to make connectivity even more straightforward and a lot more accessible. Several infrastructure projects such as Chennai Metro Rail, Chennai Mass Rapid Transit System, underground drainage, bus terminus, interlinking of CMRL, MTRS & sub-urban rail network, and outer ring roads, which are at different stages of construction and planning, will impact the citizens and the property market.
Affordability As a Factor
It is an indisputable fact that Chennai is a market offering the best properties at the best rates. Chennai also has a differentiation in the property’s value based on its location in the main city’s outskirts. You may be able to find a property in the outskirts for a lesser price than the city center. You can also find larger apartments and villas with several luxurious amenities for an affordable price. The cost and the quality of the product provided is some of the main reasons for the increase in investments in the outskirts of Chennai. Although the property is in the outskirts, Chennai also has great connectivity, making it convenient for homebuyers. The lower cost of investment in such properties can earn you more return in the future as well.
The economic and commercial development in Chennai brought in several people from different parts of the country for employment. If you invest in areas such as Oragadam, ECR, or OMR, you may also have renal advantages as these areas are never short of tenants. The fact that it is proximate to areas such as Sholinganallur (over 6km), Thoraipakkam (around 1km), Velacherry (over 9km), and Elcot SEZs (8km) has further led to the increase in investment in OMR. Employees also find apartments closer to their workplace to save on transportation costs. Thus, it is implied that, by investing in nearby localities, you will be able to find tenants easily as there is an assured and steady supply of tenants.
In comparison to the growth in population, Chennai is growing at a slower pace. The Housing and Urban Development Minister of Tamil Nadu has stated that the city is growing faster as the development scales from 1,189 sq. km to 8,878 sq. km. This implies that the outskirts of Chennai will no longer be technically outskirts as the property investment in the outskirts today is expected to bring in significant returns as these areas become a part of the main city.
Chennai is one of the top centers 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 Tamilnadu 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:
Despite the pandemic, the demand for residential property has not shown severe damage. People have realized the importance of residential property as ‘work from home is the new normal. The property’s price is expected to rise by 3% in the main real estate market. However, the price increase will be a gradual process.
The year 2021 is expected to be a good year with increased demand for residential properties. Despite the pandemic’s untimely misfortune, the real estate market is expecting to improve the demand and supply. There is an expected increase of 3% than the previous year, and thus there will be a market boom even though the progress is slow.
The property price will rise in the year 2022 compared to the development in the year 2021 as vaccines are being made available, and everything is expected to get better by the end of 2021.
The pandemic and lockdown have resulted in the ‘work from the home trend. Thus there is an increase in demand for residential property, and hence it is the best time to invest in residential property as it has turned out to be a necessity at present.
If you are in areas such as Oragadam, ECR, or OMR, you may also have renal advantages as these areas are never short of tenants. The fact that it is proximate to areas such as Sholinganallur (over 6km), Thoraipakkam (around 1km), Velacherry (over 9km), and Elcot SEZs (8km) has further led to the increase in investment in OMR.