The upswing in the service sector of Chennai is impacting the quality if life, infrastructural facilities and real estate market of the city. The growing IT/ITES sector is good news for Chennai's property market.
The property prices (for commercial spaces) in Chennai are very reasonable as compared to Bangalore. Also, the city offers good infrastructural facilities and healthy business environment. These factors are prompting IT companies, MNCs and other big corporate houses to choose Chennai over Bangalore. International companies are keen on opening their facilities, campuses or branch offices in the city. This trigger in the demand of commercial and retail property is ultimately reflected on the residential segment as well. Professionals, who flock to Chennai because of employment, ultimately look for affordable houses. Hence, the demand for individual houses, plots, guest houses, serviced apartments, paying guest and all such facilities goes up.
Property brokers too have noticed this trend. A broker source informs that the cost of residential property in Chennai has doubled in the last three years. €Areas like the Boat Club Road have witnessed a four fold increase in residential values in last couple of years,€ adds the source. Areas which are near to the IT corridors have registered 100-150% growth in residential real estate values such as Adyar, old Mahaballipuram, Ambattur and Kotturpuram.
Property developers, too, have sensed this phenomenal potential in Chennai Real Estate. New residential projects are priced at 2,500 " 4,500 Rs/ sq ft for the apartment ranging from 1,200-1,500 sq ft. To make the most of this situation, some developers have even increased the launch prices of their upcoming projects. In some cases, this price rise is as steep as 20-25%.
Chennai's residential real estate is poised for further growth. The commercial and retail infrastructures are also being braced up to cater to the new demand.
The property prices (for commercial spaces) in Chennai are very reasonable as compared to Bangalore. Also, the city offers good infrastructural facilities and healthy business environment. These factors are prompting IT companies, MNCs and other big corporate houses to choose Chennai over Bangalore. International companies are keen on opening their facilities, campuses or branch offices in the city. This trigger in the demand of commercial and retail property is ultimately reflected on the residential segment as well. Professionals, who flock to Chennai because of employment, ultimately look for affordable houses. Hence, the demand for individual houses, plots, guest houses, serviced apartments, paying guest and all such facilities goes up.
Property brokers too have noticed this trend. A broker source informs that the cost of residential property in Chennai has doubled in the last three years. €Areas like the Boat Club Road have witnessed a four fold increase in residential values in last couple of years,€ adds the source. Areas which are near to the IT corridors have registered 100-150% growth in residential real estate values such as Adyar, old Mahaballipuram, Ambattur and Kotturpuram.
Property developers, too, have sensed this phenomenal potential in Chennai Real Estate. New residential projects are priced at 2,500 " 4,500 Rs/ sq ft for the apartment ranging from 1,200-1,500 sq ft. To make the most of this situation, some developers have even increased the launch prices of their upcoming projects. In some cases, this price rise is as steep as 20-25%.
Chennai's residential real estate is poised for further growth. The commercial and retail infrastructures are also being braced up to cater to the new demand.
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