The Real Estate market value in Chennai is increasing consistently and the analysts predict that the increase in the market value will continue at the same rate for a few more years. The real estate market is estimated to grow at a rate of 7-10% YoY (Year over Year). With the current real estate scenario, large construction companies are investing in Chennai with the prospect of better returns and capital appreciation. Team Urban Tree lists out 5 common factors that compel construction companies to invest in real estate projects at Chennai.
1. Sub-Urban Areas are still unexplored!
Although housing demands are at an all-time high in Chennai, a significant percentage of the sub-urban areas at Chennai are still unexplored. Areas such as Sholinganallur, Oragadam, Siruseri, Sithalapakkam, Medavakkam and such are largely unexplored by major real estate companies as IT companies are set up near the sub-urban areas which have resulted in an increase of real estate market value at these locations. Construction companies have foreseen the potential and have started investing at these sub-urban areas which is sure to give them guaranteed capital appreciation.
2. Demand for housing is at an all-time high due to migration
New jobs and opportunities are cropping up in Chennai every single day and many people migrate to Chennai from other cities and even states. The real estate market is largely benefited by this since the migrating community will have a need for housing. Chennai is experiencing a high curve of demand for housing and this can prove to be a great leverage for construction companies investing in real estate projects at Chennai.
3. Commercial and Infrastructure developments
Chennai has witnessed tremendous growth in commercial and infrastructural establishments which has in turn directly influenced the real estate scenario. IT companies have set their bases at Chennai which has increased job opportunities to a large extent. Chennai has also grown as an automobile manufacturing hub with many giants such as Ford and Nissan setting up their manufacturing plants here. This has contributed greatly to the increase in real estate prices and lead to construction companies investing in projects near these establishments since this is proven to provide better returns.
4. There are buyers across various budgets brackets
Chennai’s real estate consumers are scattered across various budget categories and every budget will have numerous potential buyers. Real estate companies have realized it and started investing in projects across various budgets. Every family dreams of owning their own home. Hence it is a highly potential demand that builders can tap into as Chennai has diverse consumers over various budget brackets ranging from economy apartments to luxury apartments.
5. Real Estate Market in Chennai is a steady one!
Real estate market in Chennai is consistent and grows every year at a steady rate. It hasn’t experienced any major depression phase and real estate analysts are claiming that the rate of growth will continue for many more years without any major slump in the prices. This has made major construction companies invest in real estate projects because they know beyond a doubt that the market will not go down anytime soon.
Chennai’s real estate is prospering and now is the right time to invest in a property. If you are looking for a place to invest in, Urban Tree Properties is the place to go. Visit www.urbantreehomes.com for more details!