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Anoushka Chopra | 01 Feb 2022

Factors Influencing the Growth of Real Estate Sector in Chennai

Factors Influencing the Growth of Real Estate Sector in Chennai

Chennai is hands down one of those cities in India that has been undergoing both massive and significant changes in the last few years. The real estate market in Chennai has seen some rapid developments in all areas, especially the housing sector. You can consider Chennai one of those cities that has transformed its real estate industry into one that is stable and extremely profitable. 

The city has had a long history of fluctuations and unpredictable losses in the real estate market. However, Chennai has now made a comeback and is one of the rare cities that are ideal for investing in the real estate sector.

Chennai has become a real estate hot spot for both buyers and sellers. The industry in Chennai experienced a fast recovery and revival in 2017. More and more people have started to demand both residential and commercial property in the city. As more people take part in the real estate sector, they soon realize that Chennai is mostly known for its affordable housing and unique presence of amenities. 

Words are never enough to explain how a city may have grown in a specific industry. Sometimes, it is important to discuss instances and growth milestones that will better help you invest both your trust and money in the city! Over the last few years, here are a few positive changes that Chennai has gone through - 

How has Chennai evolved over the past few years?

  • Due to the new government plans and policies, affordable homes loans have successfully increased in all parts of Chennai.

  • South Chennai has become the most preferred choice for housing over the past few years, due to the sole reason that it is no less than an employment hub - IT enterprises, manufacturing units, textiles, chemicals, and petrochemicals are the leading industries that have been generating employment. 

  • All credit for a nearly 40% increase in the purchase of apartments goes to the western and southern sides of Chennai.

  • 2017 and 2018 can be considered as years when Chennai went through massive changes in the real estate industry and is now reaping its benefits in 2021 and 2022. 

  • While it was just affordable housing that was given attention in Chennai a few years back, there is also an increasing demand for luxury flats and properties now. 

Why do we buyers always get on the net and research about the best cities that are suitable for real estate investment? This is because it is a known fact that not all cities can succeed in real estate growth. The process is tedious, time-consuming, and requires immense effort. However, now that Chennai has been listed as one of these rare cities, it is time we understand the factors that have contributed to the real estate growth of this city. 

What factors contribute to the growth of real estate in Chennai? 

Standard of Living 

Is this not a top priority for all of us buyers who are currently on a hunt to find our dream home? Whether we want to live in rentals or buy a luxury home, the one thing common amongst each buyer is the goal of having a quality standard of life. Chennai helps you achieve this goal. Did you know that Chennai has been given a rating of 9, out of 10 best cosmopolitan cities to live in, in 2022? 

Be it the easy to access clean beaches or ample historic temples and museums to choose from, the city goes way and beyond to ensure a minimum standard of living for all its residents. 

Infrastructure 

In most cities, while some areas are top-notch in terms of quality infrastructure, others are simply just lacking and behind. The good part about Chennai is that it has a well-maintained infrastructure in all parts of the city. Moreover, every year the state launches a variety of new industrial and infrastructural projects that make sure the changing needs and requirements of both buyers and sellers are met. 

To name some, these new infrastructural projects include Chennai Second International Airport, Chennai Metro Rail, Satellite Bus Terminal in Madhavaram, Porur Flyover, 6-Lane Vandalur Flyover, and much more.

Safety 

Who would not prefer to reside in a city where their friends and family are safe at all times? Unfortunately, this ends up being just a dream for many. The reason for this is the alarming crime rates all across India. You will be relieved to know that Chennai is considered one of the safest cities in India according to various surveys and tests conducted by the trusted Quality of Living City Ranking Department. As more and more people desire to shift to metropolitan cities, they hesitate because of the prevailing conditions around the safety of women. Chennai has been primarily labeled safe for women and has a minimal number of cases concerning their safety. 

History 

Chennai is known for its rich cultural history and heritage. Chennai is especially a hub for art and music lovers. The majority of artists have been known to relocate to Chennai to stay connected with their love of music, art, and dance. 

Transportation 

All kinds of modern and technological transportations are available and well functioning in Chennai. The routes are so well organized that every area of the city is well connected to one another. Good connectivity through transportation and well-established infrastructure go hand in hand. Be it the taxis, buses, metros, personal vehicles, or rickshaws - the whole city is incredibly connected to all major areas and has easy access to necessities. 

Healthcare Sector

The Healthcare Sector in Chennai is well known and is fully functioning with hospitals and clinics in every nook and corner. There is the presence of high-end medical facilities and the provisions of instant treatment during emergencies. Some doctors specialize in various treatments. The best part is that while Chennai does have some of the most renowned expensive hospitals, it also has provisions for people who cannot afford luxury medical treatment. People from all across the globe sometimes travel to the city for the sole purpose of getting a second professional opinion on their medical issues. 

The healthcare sector is also responsible for generating a lot of jobs in the city. 

Employment Opportunities 

Employment generation is another reason why people are migrating to Chennai and the real estate sector is booming. In fact every year, large groups of people are recorded to have moved to Chennai for good. Reports state that Chennai is the second largest employment producer all around India. Statistically, a minimum of 35,000 jobs are provided to people of all age groups every year. 

If you are still reading this article, there must be a reason why you are so inquisitive to know about Chennai and the condition of its real estate market. Now that you know what makes Chennai popular for its housing, will you consider buying a property in the city? Whether you are intrigued or just want to keep reading to stay informed, we have compiled a list of the latest trends in the real estate market in Chennai. 

As years pass, the real estate industry in any city undergoes a lot of changes. The same is the case with Chennai. These trends are currently popular and are being liked by a lot of developers and buyers.

What are the latest trends and predictions in Chennai Real Estate?

  • Ready-to-move-in properties have gained a lot of attention over the last few years and can now be considered as one of the most wanted.

  • The most preferred kind of property is the apartments in the entire Chennai city. 

  • The more preferred region in the city is South Chennai. It is the southern part of the city where purchases of properties have taken place in the last few years. 

  • West Chennai was slightly slow to develop but has now gone through a lot of developments and transformations in real estate.

  • If you think from the point of view of a young buyer, it is the affordability and variety of amenities that have been their top priority in finalizing a home. 

  • Premium properties in Chennai are high in demand 

  • While there has been a decrease in the overall purchases of multi-stories apartments, Chennai is still considered one of those cities where this kind of property is the most sought after. 

  • The rapid development and heavy profits in the residential property sector are primarily due to the various infrastructural projects that have been launched by the government. These include the Smart City Plan, City Appeal Enhancement, Chennai -Bengaluru Industrial Corridor Project, and an attempt to improve the connectivity of the city. 

We all know the COVID Pandemic has bought about a variety of changes in every sector and industry. While the real estate industry did suffer a setback during the first few months of the pandemic and the restrictions that came with it, it has now majorly recovered and is predicted to be fully recovered in the next few years. Even though the tastes and preferences of buyers have undergone some changes in the last few months, the demand and need for housing have stayed the same. 

Chennai is not the only city that has experienced stagnant growth in real estate. There are a number of other cities that are considered to be the best for real estate investment in 2022. Do not just limit yourself to one city, but make sure you do make Chennai a part of your list. This city is expected to grow multi fold primarily because of its affordable housing, the flexibility of developers, price negotiation, and increased demand for residential, commercial, and industrial properties. 

In a nutshell, if you do decide to buy a property in Chennai, you will surely have ample options and price ranges to explore and choose from! 

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