Chennai has emerged as one of India’s favourite real estate markets and there’s quite an interesting story about how it all started. The Chennai region has a rich history, as it has been a major cultural, social and trade hub since 1st century CE. However, the city of Chennai, as we know it now, started to take shape only during the 17th century. Before this time, the area was just a small fishing village named ‘Madraspatnam’ along the Coromandel Coast. The foundations for the present day Chennai were laid by the East India Company after they built Fort St. George in 1644. This fort was the Company’s first major English establishment in the country. It became a major hub for trade and administration and the city of Chennai started taking shape around Fort St. George.
How Chennai evolved to one of India’s favourite real estate markets
In the post-independence era, Chennai emerged as one of the four metropolitan cities in India. Of recent, Chennai’s emergence as a leading real estate destination has been propelled by its booming economy. Chennai is home to a multitude of top national and international companies from sectors such as automobiles, IT and ITeS, electronics hardware, banking and finance, engineering procurement and construction, medical tourism, petrochemicals and textiles, and entertainment industry. These industries generate thousands of direct and indirect jobs, something that attracts people from all across the country. Naturally, these people need homes, shops, schools, colleges, hospitals and entertainment centres, which in turn have boosted Chennai’s real estate market.
There are many other factors that have contributed to Chennai emerging as one of India’s favourite real estate market. People prefer to live here because the city is culturally diverse and socially cosmopolitan. Chennai has been rated the safest city in India by Quality of Living Survey and a city worth living in long-term by the BBC. Chennai is home to more than 1 lakh expatriates (2016), which amounts to the third-largest expatriate population in the country. It is evidence that Chennai is a truly global city worth living. Chennai has also been chosen under the Smart Cities Mission to be developed as a Smart City.
Why you too should invest in Chennai
Investing in Chennai’s real estate is a wise and bankable option. There are many reasons for this, some of which are described below.
#1. Multiple options to suit your budget:
In Chennai, you will find multiple options for each category of properties such as affordable homes, apartments, row houses, villas, bungalows, luxury homes, etc. If you have a budget of around 30-50 lakh, you can invest in affordable homes or 1 or 2BHK apartments. If you have funds around Rs 1 crore or more, you can consider investing in row houses, villas, bungalows or luxury homes. It essentially means that when you are investing in Chennai’s real estate market, you can easily find the best property to fit your budget.
#2. Safe option:
Investing in Chennai’s real estate market is a relatively safe option, as compared to other investment avenues such as stocks, mutual funds, gold, forex trade, digital currency, etc. Real estate also witnesses periods of highs and lows, but it is largely profitable in the long term. Chennai has registered significant growth in the last two decades, but it is still to achieve its full potential. If you invest in Chennai’s real estate, your money will be safe and you can continue to get good returns over the next 5-10 years.
#3. Property price appreciation:
Chennai’s economy is currently in a high growth phase, which provides the assurance that property prices will continue to increase in the future. There may be some ups and downs, but overall, property prices will witness an upward trend in the next 5-10 years. Between 2000 and 2011, Chennai attracted FDI (Foreign direct investment) worth Rs 37,233Crores. In the last six years, from 2011 to 2017, FDI in Chennai zoomed to Rs 1.18 lakh crore. This is more than three times the FDI received between 2000 and 2011. In the future, more FDI is expected to make its way to Chennai, which will boost the city’s economy and its real estate sector.
#4. Rental yield:
If you are looking for a safe way to park your money and earn regular income on the same, you can buy a property in Chennai and rent it out. There’s been a consistent demand for rental homes in Chennai, driven by the large workforce that is employed at various industrial zones, SEZ and IT Parks in the city. You won’t face any major hassles in letting out your property, as you will be dealing with educated professionals. Rental yield in several areas of Chennai has witnessed a consistent upward trajectory, which is another good reason to invest in Chennai’s real estate.
#5. Easy to sell your property:
The property market in Chennai is not just huge, but it is also very fluid. A lot many people know about the potential of Chennai’s real estate market, which is why properties in the city keep changing hands. Moreover, there’s a significant migration of people, to and from Chennai, which is another reason for properties being bought and sold. When you want to sell your property in Chennai, rest assured that there won’t be any dearth of potential buyers. You will not have to wait for long to sell your property. Also, you shall be able to get the best price for your property in Chennai.
In the coming years, Chennai’s development will not just be quantitative; rather, it will be qualitative as well. A number of infrastructure development and city beautification projects have been announced such as monorail project, new metro routes, renovation of lakes and water bodies, widening of roads, upgrade of sewage and water supply lines, etc. Chennai is also being developed as a Smart City, which is expected to improve livability for its residents. With these initiatives, Chennai would improve its rankings as a world class city and attract more FDI and people. It would spur further real estate growth in the city and allow you to maximize returns on your property in Chennai.