South Indian real estate market is a highly price sensitive market with most of the buyers primarily focusing on the affordability aspect. With more and more companies establishing themselves in Chennai, it is fast becoming the ideal destination for working professionals.
Chennai’s real estate market is booming right now, however, there is a catch. As per a recent report by Knight Frank India, only the southern and the western parts of the city are witnessing rapid expansion. The report also stated Pallikaranai and Medavakkam are considered as the top destinations for potential residential investment.
But what is driving the buyers towards purchasing properties in South Chennai? As a prospective buyer, you might be contemplating your next big real estate investment. So, let’s look at a few of the reasons why South Chennai is becoming a real estate hotspot.
#1. All-around access
Despite being located far away from the city, most of the regions in South Chennai are well connected. This ease of connectivity is one of the main reasons why properties in Chennai get appreciated over time. The beautifully carved six-lane Old Mahabalipuram Road (OMR) connects places such as Sholinganallur and Siruseri to the rest of the city. OMR’s superb connectivity is one of the main reasons, buyers are thronging towards South Chennai, it has an extensive bus network, making daily commute much easier. Not to forget the train network that runs through these suburb areas, reducing your travel time drastically.
#2. A plethora of job opportunities
Chennai’s rapid rise is partly attributed to the presence of IT/ITE companies. With attractive packages, many working-professionals prefer to reside near their offices as it will cut down their travel time and also save them from unnecessary travel expenses. This has created a demand for residential complexes and developers have quickly jumped into the bandwagon. This is a good sign, as the influx of investments is prompting the Government to develop these areas and improve the infrastructure around these places.
#3. Affordable and readily available apartments
Since there is a huge demand for residential properties in southern Chennai, builders and reputed developers are offering their projects at affordable rates. This is mainly done due to the healthy competition between the builders. Land rates in South Chennai are much lower than the main areas of the city. As a buyer, you can go for a much bigger apartment or villa at a very affordable price. Apartments and residential complexes in the region are loaded with a lot of luxury amenities which many apartments in cities lack. The affordability factor is attracting a lot of investors as they are aware these regions will yield high returns on their investment in the future. Apartments in Thiruvanmiyur are very reasonable compared to other regions.
#4. Shifting demographics
Due to the increase in job opportunities, many people are migrating towards Chennai. The demographics of South Chennai predominantly comprises of migrant people from different parts of India. This has caused a steady demand for real estate properties in this region. One of the reasons the migrant population is preferring to settle down in this particular region is its vicinity to the IT/ITEs companies. Many prospective buyers are going for new properties in Thiruvanmiyur.
#5. Intriguing infrastructure development
The expansion of regions around Chennai is supported by massive infrastructure development in areas around East Coast Road (ECR) and Old Mahabalipuram Road (OMR). Massive development is evident with major projects such as the Chennai-Bengaluru industrial corridor and the phase-II metro which will evidently improve the connectivity and accessibility to various regions around the city. With improved connectivity, Chennai’s real estate industry has certainly picked up the pace.
#6. Ever-improving economic base
Earlier, Chennai was popularly known as the Detroit of India as the automobile segment was the dominant industry. Nevertheless, this has changed drastically over the past few years. Chennai right now is anchored by a diverse range of industries such as hardware, manufacturing, healthcare and financial service industries. The software segment, in particular, has expanded tremendously over the past few years and is not showing any signs of slowing down. With a ton of opportunities available, Chennai’s economy is ever-improving.
#7. A smart choice for long term investment
The development boom towards the Southern tip of Chennai has encouraged people from other parts to work in the companies situated here. Even if you aren’t looking for immediate occupation, there is enough scope for long-term investments. If you are investing in South Chennai, you will not have any shortage of tenants. There are several new flats in Thiruvanmiyur, Chennai ready for occupation. Hence, you are guaranteed to get enough returns on your potential investments.
#8. Constantly expanding zones
Even though Chennai is restricted towards one side of Bay of Bengal, the city is getting developed on all the other sides. The city is predicted to grow from the current 1,190 sq.kms to 8, 880 sq.kms in the future. Well, this implies that the peripheral areas in Chennai will soon become part of the main city. Hence, it is guaranteed to give you major returns once these regions are absorbed into the metropolitan areas.
Investing in properties in Southern Chennai is one of the best investment decisions you will ever make. There are a number of reputed builders located in this region which will help you in deciding your next big investment plan. So, choose wisely.