India's real estate development is expected to grow at a pace of 30 per cent annually. This has a direct impact on the mega cities, especially the four metropolitans that provide real estate opportunities to grow manifold. Chennai real estate cannot be far behind.
There has been a huge demand for real estate in Chennai amongst the commercial and residential properties. In recent years, the city of Chennai has experienced a complete turnaround in its all-round infrastructure. The combined initiatives of the Government of Tamil Nadu and the Central Government are paying rich dividends in terms of approval of real estate projects related to infrastructural upgradations in Chennai.
Tata Realty and Infrastructure Ltd (TRIL) announced an agreement with Tamil Nadu Industrial Development Corporation (TIDCO) to jointly develop an IT special economic zone (SEZ). TRIL is a new enterprise of Tata Sons Ltd, the holding company of the Tata Group.
The SEZ will be implemented in two phases - the first phase of 2.30 million square feet will be ready by end-2009 and the remaining 1.70 million would be completed by 2011. TRIL has embarked on several projects for real estate and infrastructure development.
Located on a 25-acre plot in Taramani, the SEZ will include a five-star hotel or service apartments, an international convention centre and help generate direct employment for 40,000 people and indirect employment to another 15,000. Chennai real estate most certainly contributes in boosting economy of the state.
Not only Chennai Real Estate is developing rapidly along side the government of Tamil Nadu but also foreign developers are showing valuable interest in the Chennai real estate. For instance, the Lee Kim Tah Township development in Siruseri, near Chennai, reflects the success of Singapore companies who have forged successful partnerships with their Indian real estate counterparts.
George Gonigal provides you the best and latest information on Chennai Real Estate Builders, If you want to Houses for Sale in Bangalore, he suggests you log on to magicbricks.com
Showing posts with label chennai. Show all posts
Showing posts with label chennai. Show all posts
Wednesday, February 11, 2009
Friday, January 23, 2009
Chennai Real Estate - It's a Consumer's Market
Undergoing the period of correction for the past 6-months, Chennai real estate markets have finally started to stabilize, however the demand curve is still observed moving horizontally. As per industry reports, the city absorbed a meager 13 per cent of the total supply of the residential space in the past quarter.
Chennai real estate received fresh additions of 3.4 million sq. ft of housing in the past quarter although a meager 0.47 million sq. ft of space was absorbed, studies point out.
Now that the prime banks like SBI, HDFC and ICICI have cut the interest rates on home loans, the markets are likely to catch up and real estate developers expect good time ahead this winter season.
Impact on prices
According to the Chennai based professionals, capital values in the residential real estate in Chennai had reached staggering levels that in fact were termed as unrealistic by buyers.
But now prices are almost down by 20 per cent, says R Ajay of Tirupati Real Estates. "But you cannot actually gauge that whether price corrections are spiking demand or not. Most of the new projects in the property markets of Chennai are actually making an oversupply and there is no junction between the volume of demand and supply," he adds.
Meanwhile, the prices of residential units in the sub-urban areas have moderated at the levels of Rs 2,500-4,000 per sq. ft, after peaking at Rs 5,000-Rs 6,000. The basic notion behind development of sub-urbs is generally low price range and if this factor escalates, there is no point people will consider buying properties in sub-urbs, Professor Raghu Aiyar commented.
Also, the investors who were expecting instant returns of 25-30 per cent on their property investment in Chennai are at tenterhooks, as the markets have been gradually shedding off all the speculative tendencies.
Outlook
It's a consumer's market. Chennai Real Estate will add as many as 25,000 apartments in the next 12-24 months, from more than a dozen of townships alone and construction of standalone apartment buildings will further accumulate over the total additions.
In this scenario, the supply side would outstrip demand curve and of course, property sellers and developers have to downscale their margin expectations, say market analysts.
George Gonigal provides you the best and latest info on India Real Estate. If you want to Buy Apartment in Chennai George Gonigal suggests that you visit magicbricks.com.
Wednesday, January 21, 2009
Chennai Real Estate - Victim of Market Slump
Real estate in Chennai is on the verge of a crashing market, believes industry experts. Chennai property prices have seen an escalation of almost 200 per cent in the last few years. But with the global slump in the real estate industry, Chennai real estate has also slowed down.
Number of Chennai real estate developers has been able sold only a few of their properties in the last quarter. R Mohanty, real estate agent from Chennai states, "The residential real estate prices in Chennai have grown by leaps and bounds making it difficult for buyers to purchase a home in the city. The increased loan rates have now made it worse. Though the prices are witnessing correction people are awaiting the market to further stabilize."
Research reveals that there has been a 90 per cent drop in demand for residential projects since the start of the year.
Notably, Old Mahabalipuram Road, the hottest real estate destination in Chennai is also loosing pace. Cursing the fading effect of the place on lack of infrastructure facilities, Chennai real estate agents say there have been only a few transactions in the area for quite sometime.
The commercial sector is also witnessing a downfall. The Central Business District in Chennai has seen a 15 per cent drop, media reports.
IT companies largely drive the demand for Chennai properties but due to the current market recession many companies have postponed their expansion plans. As a result supply of office space in the city has exceeded demand. Huge chunks of office space are lying unoccupied. Subsequently, Chennai real estate builders are now waiting to launch their projects.
Besides global recession, inflation, the rising home loan rates and increasing input costs have also resulted in slump in property transactions in Chennai. Realtors in Chennai are struggling to sell properties. Though price correction is taking place in Chennai Real Estate sector but realty experts predict that the market will bounce back.
George Gonigal provides you the best and latest information on Chennai Real Estate Builders, If you want to Rent Property in India, he suggests you log on to magicbricks.com
Number of Chennai real estate developers has been able sold only a few of their properties in the last quarter. R Mohanty, real estate agent from Chennai states, "The residential real estate prices in Chennai have grown by leaps and bounds making it difficult for buyers to purchase a home in the city. The increased loan rates have now made it worse. Though the prices are witnessing correction people are awaiting the market to further stabilize."
Research reveals that there has been a 90 per cent drop in demand for residential projects since the start of the year.
Notably, Old Mahabalipuram Road, the hottest real estate destination in Chennai is also loosing pace. Cursing the fading effect of the place on lack of infrastructure facilities, Chennai real estate agents say there have been only a few transactions in the area for quite sometime.
The commercial sector is also witnessing a downfall. The Central Business District in Chennai has seen a 15 per cent drop, media reports.
IT companies largely drive the demand for Chennai properties but due to the current market recession many companies have postponed their expansion plans. As a result supply of office space in the city has exceeded demand. Huge chunks of office space are lying unoccupied. Subsequently, Chennai real estate builders are now waiting to launch their projects.
Besides global recession, inflation, the rising home loan rates and increasing input costs have also resulted in slump in property transactions in Chennai. Realtors in Chennai are struggling to sell properties. Though price correction is taking place in Chennai Real Estate sector but realty experts predict that the market will bounce back.
George Gonigal provides you the best and latest information on Chennai Real Estate Builders, If you want to Rent Property in India, he suggests you log on to magicbricks.com
Monday, January 5, 2009
Chennai Real Estate - Victim of Market Slump
Real Estate in Chennai is on the verge of a crashing market, believes industry experts. Chennai property prices have seen an escalation of almost 200 per cent in the last few years. But with the global slump in the real estate industry Chennai real estate has also slowed down.
Number of Chennai real estate developers has been able sold only a few of their properties in the last quarter. R Mohanty, real estate agent from Chennai states, "The residential real estate prices in Chennai have grown by leaps and bounds making it difficult for buyers to purchase a home in the city. The increased loan rates have now made it worse. Though the prices are witnessing correction people are awaiting the market to further stabilize."
Research reveals that there has been a 90 per cent drop in demand for residential projects since the start of the year.
Notably, Old Mahabalipuram Road, the hottest real estate destination in Chennai is also loosing pace. Cursing the fading effect of the place on lack of infrastructure facilities, Chennai real estate agents say there have been only a few transactions in the area for quite sometime.
The commercial sector is also witnessing a downfall. The Central Business District in Chennai has seen a 15 per cent drop, media reports.
IT companies largely drive the demand for Chennai properties but due to the current market recession many companies have postponed their expansion plans. As a result supply of office space in the city has exceeded demand. Huge chunks of office space are lying unoccupied. Subsequently, Chennai real estate builders are now waiting to launch their projects.
Besides global recession, inflation, the rising home loan rates and increasing input costs have also resulted in slump in property transactions in Chennai. Realtors in Chennai are struggling to sell properties. Though price correction is taking place in Chennai Real Estate sector but realty experts predict that the market will bounce back.
Number of Chennai real estate developers has been able sold only a few of their properties in the last quarter. R Mohanty, real estate agent from Chennai states, "The residential real estate prices in Chennai have grown by leaps and bounds making it difficult for buyers to purchase a home in the city. The increased loan rates have now made it worse. Though the prices are witnessing correction people are awaiting the market to further stabilize."
Research reveals that there has been a 90 per cent drop in demand for residential projects since the start of the year.
Notably, Old Mahabalipuram Road, the hottest real estate destination in Chennai is also loosing pace. Cursing the fading effect of the place on lack of infrastructure facilities, Chennai real estate agents say there have been only a few transactions in the area for quite sometime.
The commercial sector is also witnessing a downfall. The Central Business District in Chennai has seen a 15 per cent drop, media reports.
IT companies largely drive the demand for Chennai properties but due to the current market recession many companies have postponed their expansion plans. As a result supply of office space in the city has exceeded demand. Huge chunks of office space are lying unoccupied. Subsequently, Chennai real estate builders are now waiting to launch their projects.
Besides global recession, inflation, the rising home loan rates and increasing input costs have also resulted in slump in property transactions in Chennai. Realtors in Chennai are struggling to sell properties. Though price correction is taking place in Chennai Real Estate sector but realty experts predict that the market will bounce back.
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