Chennai, the state capital of South Indian State Tamil Nadu, has been witnessing a large real estate demand. This can be seen as the rise of the prices of the real estate property in Chennai.
Chennai has been witnessing a constant growth in its real estate market over the last few years, even during the global economic slowdown or recession in the country. This global slowdown gave the residential market to a standby mode, but the market for residential property in Chennai was recovered earlier than it was expected to come out. The real estate market specially the residential market got recovered strongly and rapidly along with the Indian Economy.
The residential real estate demand in Chennai is slightly more towards the living purpose not for the investment purpose.Real estate Investments in Chennai are seen lesser in comparison to other metropolitan cities. And a stability is being witnessed in the market of the city.
But the demand for the real estate residential property is being witnessed more in the posh and busy business areas of the city. Some high demand was also seen in the affordable suburbs in the realty market of Chennai.
Even after these conditions, many real estate companies in the city have announced their high moral and high end residential projects. These residential project in the city were launched with a view that the market of real estate property in Chennai market is not affected by the fluctuations the global economic trends and markets.
Supply and Development :
According to a survey of United Nations, conducted in Chennai has a deficiency of approx 60,000 residences.In which, around 6,000 homes are of high income(Bungalows), 12,000 are of middle income (MIGs) group and 18,000 in the low income group(Economy Class).
The demand of the residences by Lower Income class is about 24000 numbers and there are about 68000 residences being developed by for the needs of MIGs and HIGs.
With the data given above, the demand for the LIG apartments may go up and the pressure will be on the real estate builders will be to lower the rate. But in today's scenario this is not very much possible because of the cost of the raw materials being used in the development is not as low as the demand is. The rate of the property, land, rew materials and other basic need of setting up an infrastructure is rising very fast. But the demand in chennai is still very stable. With the excess availability of upmarket residences in market, the demand for cheaper homes will rise. But nothing can be done in this regard from both the buyers end and the sellers end. They both have their monetary issues that one can not open its and one can not accept the lower price. So the market in Chennai will still be stable.
Demand of the real estate property in Chennai is back in action and a large number of residential project are being launched by many real estate developers from India and abroad as well.