Chennai’s real estate market may be in for a boom
Chennai was a land of opportunities as far real estate is concerned. The prices were stable. There was not a sign of speculation which made it a safe market to invest in. The buyers here were end users and not prone to speculation which kept the market safe unlike bigger cities such as Delhi and Mumbai. But things are not the same now for the city.
Chennai has been caught up and swallowed by the slowdown that has taken over the entire country. A market can only be safe to an extent. It cannot remain isolated however much one wishes it does. The vagaries that plague the country in general will not leave a specific market untouched. This is what has occurred to many cities including the capital of the state of Tamil Nadu.
The city as such has not seen much in terms of development over the last few years. It has been stagnating on many fronts. Job creation which has been a plus for this city has not gone anywhere for it a while now. The Old Mahabalipuram Road which has been the hotbed for all Information Technology activity has been a dull market for some time now as far as realty is concerned. Not many new developments have come up here. A few years ago the scenario here was quite different. This micro market was booming in the early 2000s. Since the Information Technology sector here was booming, even rental homes in Chennai which were located here did well. The rental market in the surrounding areas of OMR such as Adyar, Velachery and such also did well. If you were looking for a 1 bhk house for rent in Chennai these areas were considered to prime markets for that requirement. But things have not been good here for some time now.
Not everything has been bad for the real estate industry. There are a couple of major developments happening for the city which could boost its real estate standing in the days to come. Chennai is set to become a smart city. This would take the real estate game of the city to the next level. Rental homes in Chennai would start commanding more money. Residential real estate in the city stands to gain a lot from Chennai receiving the smart city tag. The prices for apartments and villas will go up considerably. This in turn will hike the rental rates for properties such as 1 bhk house for rent in Chennai. This might a good time to pick up a second home for investment in key pockets around the city as the rental returns coming from these pockets is set to go up in the days to come.
The other project which will change the face of the city and how its residents travel is the Chennai Metro Rail project. Metro rail connectivity increases real estate prices. It can go up by 20 to 30 percent. So Chennai’s residential and rental markets stand to benefit.