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.

Can Green Buildings Become Popular in India?

Mumbai-based Lodha Group announced a green building project at Kanjur Marg recently. With this, Lodha Group joins the bandwagon of other private property developers who are developing green buildings in India. Hiranandani Group, K Raheja Corp and RMZ Corp have already launched green construction at various part of the country.

Green buildings usually involve an incremental cost of 7-10 % over traditional buildings. This may become a hindrance for small developers who want to build energy efficient buildings.

Have your say – Do you think Indian developers can embrace green building concept, overlooking the financial burden? Share your opinion with us.

Tough times for Indian Real Estate Companies

Subsequent to the US sub-prime crisis, Indian real estate companies have shed almost 35 per cent of their market capitalization, reports say. Most of the listed real estate companies are currently valued at a rate 65-75 per cent less than the value they were holding prior to the meltdown in the US market.

Earlier, it had been said that the developing countries of Brazil, Russia, India and China won’t be affected much of US sub-prime crisis, however things have started turning sour just a few weeks down the line.

The story does not end here. The Indian Real Estate industry is likely to be in a much difficult phase with the recent hike in Cash Reserve Ratio (CRR)…

Beaches, Beaches and Beaches

Goa real estate market is all about beach side villas. According to property consultant Sunil Chheda of Fair Deal Properties,” The going rate for the sea side villas is anything between Rs 5-10,000/sq ft. these are typically built on a land area of 1-2 acres with a built up area of not less than 7,000 sq ft. It can be more or less depending upon customer’s taste and needs. They are build according to their personal style and preferences.”

However, not every beach can have sea side villas. The beach should have an even terrain and not a mountainous one. It should facilitate adventure sports and water sports activities and not a rough rocky terrain. These villas are especially found in North Goa. Please add on if you have some more information on the region..

Pune - the next big promising city in Indian real estate

Pune, the 'Tech city', is located in the western Indian state of Maharashtra. The city has a reputation for its several esteemed colleges and educational institutions. These days, investors and builders are heading towards this alluring city as it has much to offer in the real estate sector. The number of investments in Pune properties and the emerging new real estate developments has given a strong boost to city's economy and infrastructure development. The various attractive features have indeed put Pune real estate market on global business map. It offers a plethora of opportunities in the various industries like retail, IT, BPO, and hotel.

Pune education sector have proved to be the biggest pacemaker for boosting real estate market. This sector is also making rapid strides and has attributed to the foray of students coming in from all across the world. The city produces around 1, 50,000 graduates each year, encouraging the young generation to come forward and contribute to the economy's progress. Thereby, adding to the manpower and fuelling the mentioned real estate growth rate which is contributing a lot to the Pune real estate market and assisting it to come up as a global education destination.

Retail market space is the most preferred sector in the market. The city shares a big chunk of the $350 billion Indian retail market which is expected to grow at a rate of 13% per annum. Pune properties are marking the growth along with prospects, excellent connectivity and educational facilities. Whether it is the industries or education sector, both are nurturing and shaping up in a decent manner.

Pune is expected to observe a sharp escalation of around 500% in the service and industrial sectors. The actual potential lies in Pune residential property, shopping malls, education, and the hotel industry as these segments are rapidly flourishing. The city's infrastructure is developing at a remarkable rate and constructive changes have taken place in the last 5 years.

The city is planning for some very interesting upcoming real estate projects. There is a project 'Business Bay' which will be an exclusive residential-cum-commercial project. It will accommodate high end retail outlets, corporate offices, and the residential units. The upcoming new projects and developments are going to make Pune the next big destination in the real estate market. To find out more about this tech city and about its best locations to invest and much more, visit India's No.1 property site magicbricks.com.