Real Estate in India has been growing consistently every year. Real Estate is a major factor to our national economy and contributes almost 5% to our Gross Domestic Product. The main reason for the prosperity of real estate in India is due to the increasing urbanization and establishments of many Multi-National Companies. Indian Real Estate is indeed a flourishing field but it is Chennai which proves to be a stable real estate investment and also provides better returns. But why does this situation exist? What factors add up to make Chennai the real estate hub of India? We give you 20 important factors which makes real estate in Chennai a hot and happening investment!
1. Listed Among Top 12 Cities
Chennai is ranked in the list of top 12 cities in the world to invest in Real Estate in a report by Candy GPS. Transparent market, realistic prices and steady growth has made Chennai a must-invest place for real estate. Candy GPS also listed Chennai as the best destination in India for an overall investment!
2. Increasing Market Value
Market Value for Chennai real estate is increasing every day and the consistent increase clearly signifies that the real estate market is booming and would be a wise choice to invest in it. It is estimated that residential real estate market value is expected to raise 7-10% YoY (Year over Year)!
3. Lower Depreciation
For the past five years, property value has been rising steadily and considerably and there was not any phase of depreciation. Experts also claim that there would be no signs of depreciation even in the coming years making Chennai a hot spot for real estate investment.
4. Realistic Prices
When compared to other major cities in India such as Mumbai and Kolkata, property prices in Chennai are more affordable and worth the price. This is one of the compelling factors that drive the real estate business forward in Chennai!
5. RBI’s Mandate to Soften Interest Rates
The Reserve Bank of India issued a mandate earlier this year that all interest rates should be cut down by 0.25%. This mandate further increased the demand of housing and Chennai’s real estate started to flourish once again. If you are wondering about the right time to invest, this would be it.
6. Steady Increase of Property Value
The main factor which drives investors for investing in real estate is the huge capital appreciation that they would benefit from. Chennai’s property value is increasing steadily and surely, where investors are expected to get an increased value of their property some years down the road. From 2009 to 2012 alone, the market witnessed a capital appreciation of 150%. Capital Appreciation is expected to increase and investing now when the time and price is right would guarantee you better capital gains!
7. Consumers are end users
The consumers who invest in real estate in Chennai are mostly end users, who make up for 75% of users! There might be a lot of middlemen between a product and an end user but in Chennai, end users are predominant in buying properties, making this a major reason for the realistic real estate prices in Chennai. This situation has kept the price/sq. ft. stable and the property prices do not experience any unnatural spike.
8. Increase in the trend of Renting Homes
Chennai’s need for housing is at an all-time high as it is slowly becoming the melting pot of cultures. Most of the workers are not interested in buying properties since they are not sure as to how long they would be staying and so they rent houses. Renting houses would provide you monetary returns every month and would put your invested property in good use.
9. Better Returns for Investment
Steady increase of value, no sudden depreciation and no depression phase makes Chennai the perfect place for investing in real estate. Month after month, houses and lands are booked just for the sake of investing and this has bumped Chennai to the top of the list. A lot of demand for investment has created a suitable and growing real estate market. A considerable amount of these investors are NRI who grew up in Chennai!
10. High Employment Opportunities
Chennai has a high rate of employment mainly due to the establishment of many Multi-National Companies. Companies prefer Chennai because it is recognized as an official English-speaking work zone. A lot of employees are also recruited from various other cities which results in an increase of the number of the persons migrating to Chennai every year. This has led to the need of housing in Chennai which in turn increases the real estate value!
11. Manufacturing Hub
Chennai has become a manufacturing hub for automobile companies such as Ford, Nissan, Renault, Mitsubishi, Hindustan Motors etc. who have setup base. Chennai is the base for 30% of Automobile companies of India. This scenario has a huge influence on the real estate scene as well and real estate investors gain huge returns due to this!
12. Well Established Roadways and Public Transit System
Buyers are usually skeptical of investing in places that are isolated and where public transportation is not well established. But Chennai boasts of an excellent road way and of an efficient public transportation which includes buses and local trains. Since the entirety of Chennai is well connected, investors are provided with a lot of options.
13. Stable Property Prices
Property prices in Chennai has remained stable and steady since 2012 for more than 2 years which is quite extraordinary and investing at this exact time would guarantee fine capital appreciation. From May 2014 to April 2015, the price/ sq. ft. has remained stable between an average of 4800-5300 rupees at all areas of the city. There is no over-speculation of the real estate prices and so there is no artificial hike in the property prices.
14. IT Sector
The IT Sector has benefited Chennai’s real estate market in two ways: by creating employment opportunities, in turn increasing the need for housing. It has also increased the value of property near their office establishments making a lot of previously unexplored property site into hot real estate sites. This has contributed to the increase in real estate market growth in Chennai to a large extent. Sholinganallur, Oragadam and OMR have become a great place to invest due to the IT factor. IT professionals have also bought properties near their office further increasing the demand at these places. Buying a property near an IT establishment would automatically increase the market value of the property!
15. Options for all Budgets
Chennai real estate provides numerous options for consumers across various budgets. Gone are the days when only NRIs, IT Professionals and foreign nationals can invest in properties at Chennai. Investors are provided various options over various budgets making real estate investment in Chennai a lucrative choice. The area where the property is located and the configuration of the property greatly influences the property price!
16. Chennai Real Estate Has Not Witnessed Turbulence
Real estate growth in Chennai has been consistently growing positive with no major period of turbulence, showing solid investment. The scenario has remained positive from 2010 indicating that Chennai hasn’t experienced a significant depression phase!
17. Shopping and Recreational Centers
Shopping and recreational centers are aplenty in Chennai. Almost every street in every area would have some sort of shopping or recreational center. Food joints are also available in plenty. KFCs and McDonald’s are found at every nook and corner of the city. Places near malls and shopping centers have higher property rates and investing over here would multiply your capital value by a large percentage!
18. Education and Health Care Facilities
Chennai was ranked the best place for education in India by India Today and educational establishments are cropping up every day. If you are investing in properties and want your son or daughter to go to the best schools, invest at Chennai. Healthcare establishments at Chennai are also state of the art and advanced and can handle any emergencies. The educational and health care establishments are strong reasons for investors to invest real estate at Chennai.
19. Largely Unexplored
Most of the areas in Chennai aren’t thoroughly explored although there is a huge prospect for budding real estate projects. Areas such as Oragadam, Sithalapakkam, and Siruseri etc. are relatively unexplored but has an ample scope for real estate gains. Since Chennai will move to these areas in a short span of time, investing over here would increase your capital value definitely.
20. Chennai is Safe
The FSI or the Female Security Index for Chennai is on the higher side and much higher than the other metros in India. Chennai won the overall rankings for the best city according to India Today and was also ranked by it as the best city for education in India. Crimes against women are lower than the other metros in India, making it a safe bet for investors from other cities or countries!
Investing in real estate at Chennai is guaranteed to provide you better capital appreciation and the properties can be bought at affordable rates. If you are interested in investing in properties and want your money to be put into good use, and invest now as there is no better time than, now 😉
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