Chennai Properties Continue to Maintain Traction in 2014

The city of Chennai managed to give up-to-the-mark performance last year and if the trade pundits are to be believed, the city is expected to fair well this year too. Presence of excellent infrastructure, upcoming metro project, and stronghold over software sector have been the boosting factors for city's property market. Chennai Metro which is suppose to be developed in two phases has placed a positive impact over property rates that have already witnessed a rise of about 10% in the nearby localities.

The upward trend for Chennai properties has been observed in and around areas like GST Road, Porur, and Sriperumbudur. Across these, the total number of inquiries went all the way up. Conversation rates in these localities also witnessed a significant improvement. On the other hand, places like Oragadam and Old Madras Road(OMR) have not seen any major change in number of transactions. The realty market of the city is largely end-user driven, still, there was a good increase in the number of short-term investments in 2013.

In Central Chennai demand for residential spaces outstripped supply. In Central Chennai particularly, the demand market has performed well. Still, there are localities like GST, Oragadam, and OMR where the number of unused inventories is quiet high on account of lack of demand. The overall transactions for flats for sale in Chennai improved last year. 

In South Chennai, traction has been observed in some parts like Thoraipakkam, Perungudi, and Perumbakkam. Over Perumbakkam, a number of mid and high-end realty projects have been launched. Velachery, an area with a strategic location and super-connectivity, has seen price appreciation in last several months. With the construction of several integrated projects , Semnnachery has performed quiet well. Siruseri too has seen a plethora of mid and small segment housing projects going on; the presence of Asia's largest IT Park has awarded it with the commercial and corporate importance. East Coast Road(ECR) is dotted with a number of luxury projects and is witness to a high demand for high-end bungalows.

Makaan.com, is one among the top real estate site which lists all type residential properties in Chennai across variable price range.

Real Estate Chennai Witnesses Gravitating Prices

While the entire Indian economy is handcuffed in the chains of inflation, and when the realty market is is pushing back the buyers instead of pulling them in, Chennai is also not left out. This year has seen the city's property market go besotted under the influence of rapidly increasing prices, inflation, and the financial crisis. The result is all before us. The demand for the residential properties has all sinked and sagged. Like other metros, the number of inventories lying vacant is in thousands. Add to it, the high interest rates that have marred the interest of a buyer into making a purchase.

Chennai real estate, in light of the above scenario, is facing a bad phase. Under the combined influence of all the above factors, the prices have now started stumbling. Just as a bubble bursts on getting overfilled, the rates too have started slumping down, though in bits and parts. About 3% fall in prices has been witnessed in the prices of all type of residential houses. The peripheral regions, i.e. ORR(Outer Ring Road), built to meet the growing demand for property, had seen the rates gone almost triples in previous months. But there too, a fall of 30-40% has been seen. The developers, however, have started weaving false stories to bamboozle their buyers. They are not willing to recognize that the rates have indeed fallen, and it is high time that bubble should burst.

ORR, a transport corridor, built to provide connectivity among NH 45, NH 4, NH 205, and NH 5, has seen a hike in demand for flats for sale in Chennai. This 62 km road is intended to offer better internetwork in localities lying around like Vandalur, Nemilicherry, GWT Road, Nazarathpeth, Minjur, Mudichur, and others. As the prices have rolled down, the demand at ORR and other peripheral localities is faring better than in other parts of the city.

Localities where prices have appreciated in the current quarter include Adyar, Ambathur, Chromepet, GST Road, Korathur, Kelabakkam, Madambakkam, Pallavaram. Porur, Seliyur, Siuseri, Perumbakkam, and Mogappair. On the other hand, the drop down has been witnessed at Navalur, Pallikaranai, Oragadam, Thoraipakkam, RA Puram, and Guduvancheri, giving the end-users an opportunity to make a buy. The time is also ripe for negotiating as developers are trying their hands to get rid o the vacant inventories. They have also come up with cash discount schemes and freebie offers for apartments on sale; one of their many marketing strategies.

Makaan.com, the real estate portal based in India, lets a user buy, sell, or rent properties across different cities. The site lets you get informed about the ongoing price trends for Chennai real estate and other cities in India.

The Current Price Trends in North and South Chennai Property

The prices of Chennai real estate in South region is facing a mismatch between demand and supply, the reason being high appreciation of prices here. As a result, a huge pile-up of inventories is giving the developers sleepless nights. But the situation is not that bad in the North part; the demand and supply are still in sync in this region.

Though North has also witnessed the appreciation of prices in the current quarter, there is an active demand for flats for sale in Chennai. This has made a cover for the present set of inventories. A boost in real estate has also been witnessed in peripheral regions of the city. The prices in localities like Anna Nagar, Mogappair, Kolathur, Ayanambakkam, and Korttur have escalated too much. A 2 BHK flat in Anna Nagar or Mogappair can cost a buyer up to crores, though the less pricey options are also available. In localities like Thirumullaivoyal, Thiruvika Nagar, Ambattur, Villivakkam, Thiruvakkadu, Madhavaram, Avadi, and Ayyapakkam, a two-room apartment can be bought in the range 20-60 lacs.

At OMR(Old Mahabalipuram Road), a South Chennai property, has a lot to offer to buyers from all the segments. The buyers seeking a 2 BHK flat here can opt for anything lying between the broad price range of 15 lac-1 crore. Areas like Pallikaranai, Poonamallee, Porur, Kelampakkam, Kodambakkam, and Medvakkam have apartments with purchase value up to 60-70 lacs. The budget localities include Selaiyur, Ayapakkam, GST, Navalur, Maraimalai Nagar, Semmenchery, Perumbakkam, Guduvancheri, Sriperumbudur, Sembakkam, and Kovilambakkam. A 2 BHK flat at Maraimalai Nagar and GST can be purchased at around 13 lacs. For the seekers of 20-30 lacs range, two room flats are available in localities like Navalur,Semmenchery, Guduvancheri, Perumbakkam, Kattupakkam, Ayapakkam, Kovilambakkam, and Sriperumududur.

Makaan.com, the real estate website, lets you search flats for sale in Chennai and other Indian cities. The users can make use of the list-based and map-based search options to locate a property of their choice.

Chennai Properties Fallen Prey to Rising Inflation

No city in India has left untouched with the inflationary rates. And the real estate too has been struck hard by this boom in prices. Talk of Chennai real estate and they do are stomaching the pain. The residential properties are in exodus here, while the demand does not match up to them. What's the result? Lacs of houses are lying vacant right now. As the economy is bearing the brunt of the falling rupee, people are wavering in their decision to buy a property in the city. Until the inflation changes its demeanor and the prices fall back, at least to their previous values, there is little hope that the demand for properties in the city shall see any swelling.

As per a report from National Housing Bank, an overall decline of 2.3% in the rates of flats for sale in Chennai was recorded in Apr-Jun quarter of 2013. The sharpest decline has been witnessed in peripheral areas of the city: a slow-down by 30-40% clearly shows that inflation and oversupply have played a negative role in falling of rates. The overall sales have plummeted. Such a scenario has left enough scope for negotiation; buyers can they can make a purchase at cut-prices. As the market is hard for developers, they are coming with freebies and other discount offers.

 

Anna Nagar West, a region where demand mainly comes from the elite segment, has seen a decline of about 13% in price rate. At Kilpauk, where per sq. ft rate of a property is a whopping Rs. 11600/-, a depreciation of 3% has brought down the rates a bit. On the same lines, Medavakkam, Kovilambakkam, GST Road, and Thiruvanmiyur are some of the localities where Chennai properties have come down from their original values.

The above trends are not uniform. In spite of the fall in prices, there are still regions where apartments in Chennai have seen an appreciation. Take, for instance, Thoraipakkam: the property rates in this locality, have escalated by 7%. Same is the case with Kelambakkam, Navalur, Pallikaranai, Madipakkam, and Korattur: the real estate rates have increased between 5% and 9%. At other localities like Padur, Selaiyur, Velachery, Ambattur, Chromepet, Mogappair, and OMR too, the trends are on higher side.

Flats for Sale Showing Good Appreciation in Chennai Real Estate

Standing tall on the pedestal of IT and backed with good infrastructure, Chennai properties are faring well in market this year. The prices have got a considerable boost of about 20% over past 12 months. The scenario seems to be promising enough for the coming quarter too. One of the major factors that have contributed well to the rising demand is the development of Outer Ring Road(ORR). It is intended to connect Vandalur and Minjur and is projected to give real estate in Chennai a further step-up. Upon the completion of this 62-km long expressway, the city areas shall get interconnected to the remote villages too. Not only this, the city shall also be hooked up with other other cities like Kolkata and Bangalore.
The prices in the Chennai real estate located centrally carry a high price tag, if compared to the peripheral region. Choolaimedu, Kilpauk, Arumbakkkam, T. Nagar that form part of the Central Chennai, have 2 BHKs lying in 70 lacs-2 crore range. For middle-class and low budget buyers, apartments in Chennai in the north part present themselves as the best option. At Avadi, Ambattur, Thiruvallur, Thirumullaivoyal, and Thirumalla, you can expect 2 BHK apartments within 15-40 lacs. Anna Nagar and Kolathur in North Chennai, on the other hand, are costlier places if compared to the other areas. It is because of the tremendous progress at which these localities have made in terms of IT industry.
In most parts of the cities, the prices have escalated at a good pace. Both northern and central regions have seen a 15% appreciation in the first quarter of 2013. Towards South too, the rates have increased by about 16%. This is really a good scenario for long-term investors who can hope high returns for their money.
Depending upon the location, the price of a flat for sale in Chennai can vary considerably. The areas in south like Velachery, OMR, and Kelambakkam have high prices for flats, thanks to a plethora of IT companies and steady industrialization in these localities. The rate of a 2 BHK flat, occupying an average area of 1000 sq. ft., can cost you anywhere between 50 lacs and 1crore, though cheaper options are also available. Same is the case with Velachery and K.K. Nagar. You can look for cheaper apartments at GST Road, Tambaram, Thoraipakkam, and Padur.
Purchase, sell or rent properties over real estate website, Makaan.com. This property portal lists lacs of residential and commercial spaces from top-class developers, brokers, and owners. Individual rooms, independent houses, bungalows, villas, shops, and godowns in different locations and under different price tags are available for making a purchase.

Chennai Apartments for Sale: Look for the Latest Developments

The real estate scenario in the metropolitan Chennai is showing some interesting trends in 2013. The construction of new roads, buffer-zones, expressways is a clear indication that face of the city is going a change, and that the properties in Chennai is not standing static; it is, in fact, getting the boost from the developments taking place in terms of infrastructure. Let's see how the city's property is evolving this year:

Teynampet, one of the plush and expensive localities of Chennai, houses areas like Poes Road, Nungambakkam, T. Nagar, and Alwarpet. Buyers in these localities mostly come from high-income backgrounds. The presence of educational institutes and opulent hotels make it one of the most sought-after localities by the elite class. Another locality that is famous for its upscale infrastructure is Kodambakkam. The pivot to city's film industry, Kollywood, Kodambakkam offers plush neighborhoods like Porur and Koyambedu. The buyers on the look out for lavish apartments in Chennai can opt for Teynampet and Kodambakkam.

Market trends indicate that the flats for sale in Chennai has seen an enormous appreciation in several localities, Outer Ring Road(ORR) being one of them. As per data, real estate prices have seen a whopping appreciation of about 300% in ORR localities, over the last three years. Connecting roads like GST, GWT, CTH, and GNT, this transport corridor has resulted in the escalation of property prices in the localities covered under it. The rates have escalated in areas like Mannivakkam, Kundrathur, and Perungalathur. As and when the construction gets completed, the demand for residential houses at ORR is expected to increase appreciably.

In spite of these positive developments, real estate Chennai has also suffered a few setbacks lately. The Construction of a residential area that comprised creating 396 apartments at Poonamallee has been stalled, as per the order by Supreme Court. “If planning permission is granted, dwelling units would come up, which would definitely add to the population of the area”, says acting Chief Justice R.K.Agrawal. Another thing that is the cause of concern is the number of unsold inventories in the city. There are about 40,000 residential dwellings that have no buyers yet.

The construction of a 9 km Eastern Bypass Road to alleviate traffic congestion on GST and Treachery Road is going on in full swing. Once that comes to its completion, the commuters shall have the option to leave aside the Tammara road while traveling. Right now, the demolition of the already-built structures is going on. The residents shall have to wait and see how the things turn out to be.

Select properties, both residential and commercial over property website, Makaan.com. This premier real estate portal offers properties in all the major cities of India, and makes it easy for the users to buy,sell or rent, as per their requirements.

Property in Chennai: The Twin Localities Favorable for Investment

Conflagration caused by the hike in Chennai properties is attributed to it being a major IT hub, with boom in major projects in the coming years. And talk of the town are two of its localities where the interest in investment is scaling new heights. The maximum demand for property is going high in the localities, Medavakkam and Pallikaranai. The parts of South Chennai, both these places can be seen as the “next-big-things” on the map of real estate in India.

 The strategic location of Pallikarnai attributes the expected appreciation of prices a few yaers from now. It is well-connected to other important localities like OMR. By 2017, the prices are likely to see a rise of amazing 93%!! Though the last 12 months have seen a price rate that was relatively stable, the rate is expected to rise more. So, the buyers who are going to buy apartments in Chennai, this locality can be one of the best choices, among others. Here, the price per sq. feet in the month of July, 2013 stood at about 4382 per sq ft. ,which is a little below the price rate in the July last year: Rs. 4392 per sq ft.

 On the same lines, in Medavakkam, the property prices are expected to soar to double of the present rate in 5 years, thus making the locality a lucrative choice for theinvestors. Let's explore the price rate scenario here prevailing from the past one year. The figure of RS. 3704 per sq ft in July, 2012 got a sharp decline in August, with the rate of property being 2475 per sq ft. This continued till September, but after that, a staggering rise to 4451 per sq ft and the relative stability after that made Medavakkam a much sought after spot for investing in property in Chennai.

The southern and western parts of city are particularly favorable for flats for sale in Chennai. And their contribution to the real estate is the largest, as compared to other regions. The demand is maximum for 3 BHK units that contribute to about 40% of the total demand for the residential houses. The connectivity to monorail and Outer Ring Road has given the much-desired push to the real estate here. In the years to come, it is expected that the demand will come at par with the supply of the units, with more requirements coming for office space.

At Makaan.com, India's fastetest growing property website, you can search small and big properties available in the major cities around the country. Choose the one that suits your requirements and meets budget.