Chennai Property & Real Estate Market 2008

India is witnessing a rapid growth in real estate industry that’s leveraged in all parts of the country – be it Chennai, Hyderabad, Bangalore or Cochin real estate, the property prices are touching unforeseen heights.Chennai real estate has massive demand in all real estate development areas like commercial, residential and retail. Chennai real estate is developing as strong real estate market in India. The market demand for both residential apartments and individual houses is on the rise Chennai property & Real Estate prices differ depending upon the parameters such as location, type of building construction, accessibility, amenities and other services . SEZ’s are the major growth drivers of Chennai’s property market. Chennai real estate market is witnessing an upward trend in terms of values.

Real growth drivers

There is a huge demand for Chennai property market is due to the following factors:

· It is well connected to its satellite cities and other parts of the country

· It is well equipped with high-tech communication channels like high –speed internet connectivity and digital telephone networks

· The city is home to many prestigious educational institutions and

· The city is home to a lot of advanced medical and healthcare facilities

· IT/ITES and SEZ’s growth

· Rising incomes from the IT/ITES sector

· Flexible home loan options

· NRI’s who are returning to Chennai for better opportunities

Residential Real Estate
After undergoing recession for the last few months, Chennai residential property market is moving towards recovery path. The demand for residential apartments and individual houses are the hottest one in Chennai property market. The most expensive areas for Chennai apartments are: Besant Nagar, RA Puram, Mylapore, Egmore, Adyar and Annamalaipuram.

Commercial Real Estate
Chennai real estate market is witnessing an unparalleled growth in the commercial sector. There is a large number of commercial projects are under construction. This is due to the IT companies demand for commercial space in Chennai property market.

There is always a continuous upward trend in commercial property values because demand for commercial activities surpasses its supply and expected to increase in future as well. The preferred business areas in Chennai property market are: Cathedral Road, Lloyds Road, Guindy, Ambattur, Nungambakkam, Tharamani, Old Mahabalipuram Road, and Anna Salai.

Chennai real estate market is exploring alternate avenues in commercial sector to attract companies from different industry verticals. Thus, the offerings are customized in design to suit the specific needs of the industrial sectors. There is availability of different grades for office space like

· Grade - A: Catering to the needs of multinational IT and ITES firms

· Grade - B and C: Catering to local and domestic companies

Future Perspective

Chennai property market has seen an upward trend in pricing almost by 200% in the last two years but it’s witnessing a downward trend. Even office rentals are also seen a 15% drop. Real estate experts say there has been a 90% drop in demand for residential projects since the start of the year (2008) but it is for short term only. Otherwise, Chennai real estate market seems to be vibrant in nature forever.

The investors who have invested in Chennai properties in turn generate sizeable returns which seem to be a good design. Chennai property market is offering the buyers, investors and NRI’s the space what they want, who are showing great interest in the city.