In distinction to what has been witnessed in several of the additional volatile cities over the previous years, Real Estate Chennai residential property market saw steady growth in terms of supply, costing and demand. Chennai's residential property market is preponderantly user driven, and this truth did plenty to sustain consistent absorption throughout 2012.
The absence of clear speculation has conjointly ensured that developer has move costing of homes in a stable and gradual manner. Unnatural spiking has thus been with success unbroken trapped. The expect interest rates to decrease over the course of 2013, and this may end in larger demand for residential property in Chennai in 2013.
Increased job security in Chennai has undoubtedly helped the market to keep up buoyancy and a positive outlook. Over the last twelve months, it became more and more evident that Real Estate Chennai market is considerably addicted to the ITES /IT sector. With working stability in this sector looking a lot higher currently than it did in 2010, demand for property in Chennai has currently reached a cushy and dependable growth direction from that developers are taking their market cues.
CONFIGURATIONS IN DEMAND
The preferred size for 3 BHK flats in Chennai has exaggerated from 1200-1300 sq. ft throughout the recession to 1400-1500 sq. ft in the revival section. The preference for 2BHK sizes has conjointly exaggerated from 850-950 sq. ft to regarding 1100-1200 sq. ft. Again, the most reason for this upgrade in preferences is raised budgets created attainable by improvement in the performance of the IT / ITES sector.
This is a welcome trend that is enabling architects, planners and developers to return up with higher quality housing units. Reasonable housing units still rule the roost in area where social infrastructure lags and capital values are thus lower.
As they expect overall demand for Residential Property in Chennai to extend once the interest rates stabilises from their current peak. There's a really healthy demand in both the first and secondary real estate Chennai markets, since offer is scarce in both owing to the severe lack of land in the city. The cost of the land has, in fact, surpassed the purchasing capability of developers and this has place pressure on their ability to return up with viable residential merchandise. Lack of supply and excessive rating are inflicting both the end users and capitalist segments to require a more in-depth check out suburbs with good infrastructure.
SUBURBAN DEMAND DRIVERS
1. Increased job security
2. Positive market sentiments
3. Attainable softening of interest rates
4. Unaffordable property rates in the central city Year 2011 saw residential property rating in Chennai moving up in a phased and rational manner, that helped in sustaining the momentum. As the costs rose by between 8 to 30% in numerous areas, however these rises happened in small compartments and in proportion to the particular sales specially locations and residential projects. The expect an identical trend to prevail in the year 2013.
Expected Cost Movement For 2013
1. City – 20%
2. NH – 5 to 8%
3. GST – 10 to 15%
4. OMR – 15 to 30 %
AREAS TO OBSERVE
1. Velachery
Velachery is seeing consistent growth, as a result of it's one amongst the few area that are seeing holistic and self-sufficient development. With malls and different social infrastructure rising, Velachery is unquestionably next in line for excellent appreciation in the real estate Chennai market. In fact, near-lying areas like Pallikarnai, Medavakkam, MMRD Road, Pallavaram-Thoriapakkam, the 200 FT. and Rajakilpakkam are already experiencing the positive fallout result of Velachery growth as a residential property destination. These areas are witnessing excellent absorption and capital appreciation. There's conjointly vital demand for residential property in Porur on the NH4 Corridor up to Urapakkam on the GST Road.
2. Madhya Kailas – Sholinagnallur
This stretch is witnessing a transparent supply-demand differ, With demand outstripping offer. With new employment being generated during this corridor and corresponding absorption of IT area, this space and its peripheries are witnessing extraordinarily healthy demand for real estate Chennai residential property. Its proximity to the city adds to the charm of this space, which can see excellent appreciation over the approaching years. Encouragingly (and in distinction to different parts of OMR) all completed projects here are absolutely occupied.
The absence of clear speculation has conjointly ensured that developer has move costing of homes in a stable and gradual manner. Unnatural spiking has thus been with success unbroken trapped. The expect interest rates to decrease over the course of 2013, and this may end in larger demand for residential property in Chennai in 2013.
Increased job security in Chennai has undoubtedly helped the market to keep up buoyancy and a positive outlook. Over the last twelve months, it became more and more evident that Real Estate Chennai market is considerably addicted to the ITES /IT sector. With working stability in this sector looking a lot higher currently than it did in 2010, demand for property in Chennai has currently reached a cushy and dependable growth direction from that developers are taking their market cues.
CONFIGURATIONS IN DEMAND
The preferred size for 3 BHK flats in Chennai has exaggerated from 1200-1300 sq. ft throughout the recession to 1400-1500 sq. ft in the revival section. The preference for 2BHK sizes has conjointly exaggerated from 850-950 sq. ft to regarding 1100-1200 sq. ft. Again, the most reason for this upgrade in preferences is raised budgets created attainable by improvement in the performance of the IT / ITES sector.
This is a welcome trend that is enabling architects, planners and developers to return up with higher quality housing units. Reasonable housing units still rule the roost in area where social infrastructure lags and capital values are thus lower.
As they expect overall demand for Residential Property in Chennai to extend once the interest rates stabilises from their current peak. There's a really healthy demand in both the first and secondary real estate Chennai markets, since offer is scarce in both owing to the severe lack of land in the city. The cost of the land has, in fact, surpassed the purchasing capability of developers and this has place pressure on their ability to return up with viable residential merchandise. Lack of supply and excessive rating are inflicting both the end users and capitalist segments to require a more in-depth check out suburbs with good infrastructure.
SUBURBAN DEMAND DRIVERS
1. Increased job security
2. Positive market sentiments
3. Attainable softening of interest rates
4. Unaffordable property rates in the central city Year 2011 saw residential property rating in Chennai moving up in a phased and rational manner, that helped in sustaining the momentum. As the costs rose by between 8 to 30% in numerous areas, however these rises happened in small compartments and in proportion to the particular sales specially locations and residential projects. The expect an identical trend to prevail in the year 2013.
Expected Cost Movement For 2013
1. City – 20%
2. NH – 5 to 8%
3. GST – 10 to 15%
4. OMR – 15 to 30 %
AREAS TO OBSERVE
1. Velachery
Velachery is seeing consistent growth, as a result of it's one amongst the few area that are seeing holistic and self-sufficient development. With malls and different social infrastructure rising, Velachery is unquestionably next in line for excellent appreciation in the real estate Chennai market. In fact, near-lying areas like Pallikarnai, Medavakkam, MMRD Road, Pallavaram-Thoriapakkam, the 200 FT. and Rajakilpakkam are already experiencing the positive fallout result of Velachery growth as a residential property destination. These areas are witnessing excellent absorption and capital appreciation. There's conjointly vital demand for residential property in Porur on the NH4 Corridor up to Urapakkam on the GST Road.
2. Madhya Kailas – Sholinagnallur
This stretch is witnessing a transparent supply-demand differ, With demand outstripping offer. With new employment being generated during this corridor and corresponding absorption of IT area, this space and its peripheries are witnessing extraordinarily healthy demand for real estate Chennai residential property. Its proximity to the city adds to the charm of this space, which can see excellent appreciation over the approaching years. Encouragingly (and in distinction to different parts of OMR) all completed projects here are absolutely occupied.
Source : http://blogs.siliconindia.com/vipinkumar/Business/Real-Estate-Chennai-likely-to-see-good-times-in-2012
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