Why is Chennai a Hub of Affordable Realty Market?
Chennai is one of the four major metropolitan cities which has had the most illustrious history from an economic and governance point of view. The city was established as a Presidency city under the British rule and from that point onwards, it remained an important commercial centre.
Skipping the evolution by century-by the turn of the 20th century-Chennai had become the “Detroit of the East”. The city became a major hub of automobile manufacturing as more and more prominent automobile companies established their manufacturing centres there. Many world class vehicles brands and automobile companies made it a favourite destination for other vehicle brands. Allied industries evolved and substantially increased the wealth of the city.
The Evolution of Real Estate In Chennai
It is interesting to know that the population of Chennai has not increased by as much as has been witnessed in almost all the other major cities of the country. There has been population influx in the city but surprisingly it has not been substantial in relation with other cities of the country. While the affluence of the city in general has increased, the population has not overrun the basic amenities available. Therefore sustainable development of the city has been possible. The stretch of the Outer Ring Road is the most promising region and the old city of Chennai is not ready yet for property development.
There are areas in the city which have now become the hub of financial services in Chennai- which is creating a parallel industry rendering the automobile sector as one of the options.
Current Realty Trends in Chennai
Land acquisition in the central areas of Chennai is extremely expensive. Hence the projects being developed in these areas are also expensive. There is not a lot of variety in terms of size available in these parts. Also the clearing of the inventory in these parts takes time. The situation however is different in the peripheral areas of the city. New and modern projects are being developed here.
But Chennai real estate was different a decade back. The city was known to be traditional and it was really difficult to imagine it with high-rises. Demand used to be high for independent houses of sale. People did not believe in the concept of apartment buildings.
But as more and more buyers demanded accommodations within the city, builders decided to offer apartments. The cityscape started to change and today the situation is that it is really difficult to find an individual house for sale in Chennai. The modern demands command an interest in apartments. A lot of this demand has been boosted by the expat community working in the Middle East. Companies like Tata investing in the city to create affordable housing has further enhanced the demand for apartments.
The city however has also found an alternative for independent homes instead of flats in Chennai. The expat community living in Europe and USA are driving this demand. These buyers have persuaded builders to create single floor apartments for them. Such apartments are being made available to suit their lifestyles in the developed countries. These luxuryt buildings cost much less in Chennai than they would in their respective host countries.
The need for social and family oriented society has also boosted the requirement for affordable housing in Chennai. Entrants like Tata housing have infused confidence amongst consumers.