South Chennai is a host to some of the most prominent landmarks of Chennai. There is a huge demand for residential real estate in the south Chennai area. There are a few beliefs about buying a residential property in South Chennai that contradict with the facts. Let us debunk a few misconceptions that might help you understand Chennai-real estate better and lead you to the bright side.
#1. Buying in prominent areas only is a good investment
Adayar, Guindy and OMR are some of the most saught after residential areas in South Chennai, the reason being the excellent infrastructure, the calm environment and great connectivity. But there is a huge misunderstanding that only the prominent areas would be beneficial for the end-user. Say for example, if you are looking to buy an apartment in Velachery, the square feet price is 10000 ₹. Medavakam is a suburb located between Velachery and Sholinganallur and the square feet price is 5700 ₹ approximately. It is only a few kilometres away from the main areas and shares the same location advantages. If you are a first time home buyer it is likely you would be opting for a home loan. It is wise to invest in a suburb that is likely to appreciate twice as much within a few years. The city is always expanding and the value of the real estate in top areas would become stagnant after a point. It is wise to invest in a suburb.
#2. Excess products; no sale
There has been an increase in demand for residential apartments soon after the entry of RERA and PMAY schemes. These schemes gave a sense of belief to the buyers. As there was an increase in demand, the supply had to increase. Many big and small real estate players started laying the foundations for residential apartments and villas, in different parts of the city. Developers saw a huge potential in the South Chennai suburbs and dotted them with budget and mid-range apartments ranging between 30 lakhs to 80 lakhs. There is a misconception that sale is less in these regions. “This is totally false”, says Anbumani a Channel partner in Shollinganallur. He continues to say, “I meet people every day who look for apartments in the Shollinganallur suburbs. There are a lot of sales happening; People who come for site visits get to know that there is a huge rise in community living here and so they want to buy. It has rapidly growing infrastructure and a number of schools and hospitals and this are pulling young families. I agree with the developers who predict that the sales in this area would continue growing”.
#3. Should purchase only ready- to- move- in apartments
Most people think that it is safe to buy a ready to move in apartment. This is because of the preconceived notion that the under-construction property would somehow delay in delivery. The truth is far from it. With RERA, it is a must for the developers to follow a certain timeline, because those who falter would have to pay a penalty to the buyer. Moreover, the quality of the delivered product and delay of any sorts, purely depend upon the reputation of the developer. The days of ‘anything-might-happen-in-real-estate’ are over. These days it is as organised and functional as any other sector. It all depends upon which developer you choose. Also, the GST is 5% for an under construction property and 12% on others.
#4. Real estate is costly in South Chennai
Another misconception about real estate in South Chennai is that it is very costly and unaffordable. This is not the case actually. Yes, there are some places that cost on the higher end. But, there are N-number of suburbs in South Chennai with growth potential. Most of the buyers in these areas are end users who are first time home buyers. It has apartments in all categories starting from 30 lakhs.
#5. South Chennai Suburbs do not appreciate
There is a myth that the South Chennai suburbs might not appreciate. This is not likely when we look at some facts. According to a study, Medavakkam, a growing South Chennai residential area is expected to appreciate twice as much within a year’s time.
Real estate is a complex domain. It has some of the most heavily used jargons that might be a tad bit confusing from a layman’s point of view. This complex nature has led to several misconceptions on the subject. With the advent of RERA, PMAY and tax subsidies the affordable housing sector has seen exponential growth. This has increased the number of builders with a number of projects. It is already confusing for buyers to recognise the perfect home. It is necessary to ignore preconceived ideas and look for facts.