The Rise And Fall Of Property Rates In Various Localities Of Chennai

The ones looking for an affordable home in Chennai would be glad to know that the value of property in the affluent T Nagar area of Chennai has dropped by 7 percent which makes it much affordable. However a drop in the rates does not mean its sheen has been lost somewhere. Currently the square feet rate of property in T Nagar is Rs 10,500. Even though the property prices are dwindling in areas such as T Nagar, the prestige of the area is still intact.

 Price of Property

For a 1BHK flat in this area, you would have to pay around Rs 44 lakhs for a flat that measure 580 square feet. For 2BHK units, you would have to pay between Rs 49 lakhs and Rs 1 crore here, for apartments which are sized between 650 square feet and 1300 square feet. For bigger flats, you would have to pay up between Rs 2 crores and Rs 6 crores. The size of these apartments is around 3200 square feet. House for rent in Chennai too, the rates have fallen.  For residential houses, the rates begin from Rs 50 lakhs and they can go up to Rs 6 crores almost. Most of these accommodations are semi furnished.

In terms of investment perspective, higher is the investment made, more is the return. You can earn almost Rs 1 lakh in rent in a month from a 3BHK unit. For 2BHK unit, the rent that you may earn is around Rs 80,000 per month. Even though 1 BHK units are few, they can bring in almost Rs 22,000 in a month. The rate of capital keeps reducing every year although investors stand to benefit. When thought from the middle term perspective, people’s disposable income shall not fall and hence appreciation of price is certain. Moreover, being centrally located, it commands more rent than what it should.

Amenities

T Nagar is a commercial place in the city and is comparable to Connaught Place in Delhi and Linking Road in Mumbai. The strategic location is enjoyed by the residents because of the closeness to work places, open spaces such as Somasundaram Corporation grounds and Pannagal Park and educational institutes along with scope of returns on investment. For commercial space for rent in Chennai and residential properties, T Nagar is ideal.

Because of the possibility of appreciation, the area has caught the attention of many locals and NRIs who would want to invest in the area. Because of the high yields on rent, the investment made would not go down the drain. For those looking to invest for the next 5 years, the returns could be as much as 3 times the amount invested. There can be a leap of almost 70 percent in the next five years. The area is very busy and houses the Usman Road famous as Dubai of Chennai. The area has a number of jewellery stores, finance and textile outlets which are crowd pullers.

Infrastructure

The Central Railway Station of Chennai is just 8 kilometres from here while the airport is around 12 kilometres away. The area has taxis, buses and autos plying in the area. Public transport connects various areas such as Kodambakkam, Mylapore, Parrys, Tambaram and Avadi. However, there are quite a few traffic snarls in the area because there is inadequate parking space available here. Also the road requires frequent repairs especially during the monsoons.

Major crimes such as burglary and theft are not there much because the area is a busy one. Also, you do not need to travel much to buy essential amenities because there are plenty of departmental stores and kirana shops.

Kodambakkam

Those who would want to rub shoulders with the movie stars of Kollywood could get a property on Kodambakkam which houses the Gemini, AVM, RedRock and Prasad film studios. Some of the localities that are here are Vadapalani, Trustpuram and Vishwanathpuram. Fans of AR Rahman would be glad to know that his AM Studio and Panchathaan Record Inn is located here.

Appreciation of Prices

For 2BHK apartments, the cost of an apartment is around Rs 55 lakhs and depending on the area it may increase to Rs 1.4 crores. The size of such an apartment is between 950 sq. ft and 1250 sq. ft.  For 3BHK apartments, the cost can increase to Rs 1 crore to Rs 2.5 crores for apartments measuring 1000 sq. ft. to 2000 sq. ft. Some of the apartments in Kodambakkam could take up two floors even.

Even though a number of multi-storeyed apartment buildings are on the rise, villas and independent lease house in Chennai are more popular here. Residential houses which are spacious enough can cost close to Rs 6 crores here. Residential plots too are much in demand.

If you would like to rent a 2BHK apartment in Chennai, you would have to pay around Rs 30000 in a month whereas for a 3BHK unit it comes to around Rs 50,000 in a month. The area is becoming cosmopolitan because people from Andhra Pradesh and Kerala area also buying apartments here along with Hindi speakers. There is a chance of increase in property values because a lot of people prefer to live in this locality. For an apartment that is priced between Rs 60 lakhs and Rs 80 lakhs, you can reap double benefits on it within 5 years only.

Infrastructure

There are very good infrastructure facilities in Kodambakkam. Those people looking for a peaceful locality which is prominent and accessible from other areas, Kodambakkam is the answer. It is close to the commercial areas of T Nagar and the area of Koyambedu. It has got everything that one would want for daily living such as schools, transport, recreational areas and colleges. It is a desirable neighbourhood because of the social and physical infrastructure on offer. Because many Kollywood stars will be living close to you, you can expect an assured capital increase.

The demand for rental apartments in this area is quite high. Because of the convenience offered by the area, most people pick it. A lot of people working in the OMR region prefer to stay here because of the transport services. Also, recreational areas and shopping centres are quite popular here. It keeps the rental market quite active here.

Real Estate Along The OMR

The OMR is a 50 kilometre long road connecting the town of Mahabalipuram with Adyar’sJunction of Madhya Kailash in Chennai. It can be divided into three segments like the Kelambakkam-Semmencherry, Shollinganallur-Madhya Kailash and Mahabalipuram-Kelambakkam.

The stretch along this road saw the development of an ITeS and IT corridor in the past decade in the city which has the second largest information technology exports in India. The expansion of an industry on such a scale makes way for expansion of other enterprises as well. The humongous workforce of the IT sector has stirred the realty sector of the area.

Development

Some of the micro markets which have developed much along this stretch are Karapakkam, Taramani, Thoraipakkam, Shollinganallur and Perungudi. Even though this stretch is the house of the IT parks, offices and IT SEZs in the city, it also houses numerous residential projects which have been started for catering primarily to the IT employees and their catchment numbers.

Quite a few residential complexes are undergoing various phases of construction even though there is a paucity of land parcels in this area. Some of the notable residential projects being carried out here are the Greens by India Bulls, Pebble Brook by Jain Housing and Residency by Embassy Group etc.

The road which is 200 feet in length connects Pallavaram with Thoraipakkam and it has a good number of land pockets where there are approximately1000 residential units in existence already. The road is the cynosure of all property development firms and social infrastructure such as malls, educational institutes and hospitals already available. Builders who have recently entered this micro market are Agni Estates, Mantri Developers, Ramanyam etc. The residential projects being thought of by these developers are prominent and luxury in nature.

The second stretch between Kelambakkam and Semmencherry has witnessed important growth in the residential accommodation sector over 5 to 6 years gone by. SIPCOT in Siruseri has almost 50,000 people working and forms an important catchment area. As large tracts of land are available here, builders have started constructing residential gated residential communities and projects of townships whose main focus are the IT workers in this area. Some of the big scale projects in this area are Ouranya Bay by True Value Homes, Upscale by Hiranandani and Swanlake by Puravankara.

The final stretch of OMR where builders have managed to procure large parcels of land at inexpensive rates have led to more affordable pricing house units compared to other sections of the city. A Japanese township worth Rs 3,500 crore is being built over 1,500 acres. The township project was agreed upon by the Guidance Bureau, TNIIFA and Japanese consortium consisting of the JGC Corp. and Mizuho Corp Bank. The township adds value to this area along with offering employment opportunities to roughly 2 lakh people.

Other notable townships in this area are PBEL City which has sports facilities integrated into it, Phoenix Hodu- The Village which has completely furnished flats and Divyashree-Prime Hub which has villas constructed along with development of plots. This has certainly increased the possibility of getting a lease house in Chennai. Moreover, many national and local developers have acquired large parcels of land for starting residential projects in the future. Some of the developers who hold significant land parcels in this stretch are Akshaya Homes, Marg, Hiranandani Developers and Vijayshanthi Developers.

The road connecting Vandallur and Kelambakkam has attractive residential projects for the purpose of investment in the long term. As the government of Tamil Nadu has thought of acquiring sixty six acres of land inVandallur for a suburban bus terminus, the area looks highly promising for the purpose of property investments.

When it comes to the OMR, many link roads have been developed that connect it to the NH45 also known as the GST Road which provides additional opportunities of development for the land parcels available in the area. As an elevated highway will be inaugurated shortly, the last bit of this micro market along this stretch looks very promising as an investment option in property. The spill over IT activity from Siruseri plus the affordable price of land in this stretch of the region are anticipated to lead realty development in an organized fashion in this area. Moreover, the extension of OMR between Mahabalipuram and Siruseri into a 6 lane expressway also has the possibility of amplifying organized realty activities in the future.

Low Demand 

Even though there is such a buzzing real estate sector here, OMR is losing its charm to house hunters in the recent period. Aside from the humdrum economic climate, the main reason for a drop in demand in this sub market is the rapid increase in property price of the area.

Think of it this way that through 2010-2014, the pricing points increased by almost 60 to 80 percent, particularly in the first 2 segments of the stretch. It clearly indicated why an area which was much in demand for its cost effectiveness is leaving the normal house hunters with cold feet.

Even spots like Medavakkom right off Shollinganallur and believed to be one of the 10 best property neighbourhoods in India, has become quite affordable for the general house buyer in the city in the past few years because of the rising price of property.

Moreover, the social infrastructure in the OMR stretch is yet to be in tandem with the prices of products being offered and this is another reason why the micro market has experienced stagnation. The truth is affordable property is now available along the bordering stretches of the OMR, much beyond Padur, located 35 to 40 kilometres from Adyar.

Even though social infrastructure available in this stretch is not as much as it should be available, house hunters do not have much choice except investing here. However, residential properties by the OMR shall continue to entice demand in future because of the large workforce of the IT sector that the area caters to. However, till the property prices come down, the area has lost a lot of its previous demand for becoming unaffordable to the regular house hunters in Chennai.

Next 30 Days To Be The Best Time To Buy Real Estate In India

Real estate seems to be the most flourishing business of the time. Real estate is the new shinning face in the business sector. The real estate market is at present one of the most lucrative business. The entire world is displaying such a trend at the present moment. India too is not away from this trend. With developments all over the country at such a rapid pace the real estate business is also on the rise keeping up with the pace. Cities are fast growing and running out of space even faster. Thus to keep up with the need of growing demand for place the outskirts are developing fast and steady. They are showing a positive growth and gradually spreading its wings over larger areas. A little back the real estate market was not as good as it is now. When it began showing its emerging self, a setback in the business was seen at some places soon after in India. However the market has regained its original valour. In the present scenario the market has shown a tremendous upheaval and the rising graph probably may keep showing its steady self for a long time to come.

Real estate market comes with good news for real estate realtors, business persons and real estate business aspirants.

According to maximum numbers of people from India believes that the next 30 days is the best time to buy real estate. The price for plots in Bhopal and other cities is still low and hence should be bought before there is an upsurge in the real estate market. About one in every six Indians, i.e. 57% people actually from India believes in this according to a survey. The coming thirty days or the following month brings promise for real estate people. As per the survey carried out it would be a really great time to buy real estate such as vacation property or a house. It is also the right time to have an investment property. Investing up on a property now can yield a good return in future. 

The survey had been carried out by Ipsos all over the world. Ipsos is a highly acclaimed global research company carrying out this new poll. Ipsos was founded in France in the year 1975. It is an independent company for market research and is managed and controlled by research professionals and specialists. Their initiative on real estate survey has brought out this extremely interesting result for India. This survey is conducted every month with 24 countries. This year it was conducted among 26 countries of the world taking 20,144 adults in it. They were among the age group of 18-24 years in Canada and US and in the age group of 16-24 years in other countries. In the survey it is found out that about 58 per cent of people with high levels of household incomes and 58 per cent with education agree that over the next 30 days India holds a good real estate buying market. The percentage of women agreeing with the hypothesis that the best real estate buying time is the coming 30 days is slightly greater than that of men. Fifty nine per cent women agree against 56 per cent men. The younger generation i.e. those under the age of 35 years too hold a strong belief on this hypothesis than the older generations i.e. those in the age group of 50-64 years. There are 60 per cent younger agreeable respondents against 40 per cent older respondents.

In this world wide survey it has been found out that the majority of the people of Russia which is 65 per cent of the respondents believe that the next 30 days is actually a very good time to buy real estate property. It is followed by India with 57 percent. The countries and percentage of people believing that the next month is ideal for real estate buying are Indonesia 55 percent, Ireland 51 percent, Great Britain 47 percent, Mexico 44 percent, Hungary 42 percent, Australia 42 percent, United States 41 percent, Germany 40 percent, Canada 39 percent, Italy 38 percent, Argentina 37 percent, South Africa 37 percent, Sweden 37 percent, Poland 35 percent and Spain 34 percent. For the rest the percentage is much less. They are Belgium 33 percent, Saudi Arabia 32 percent, Brazil 30 percent, Turkey 30 percent, Egypt 30 percent, France 29 percent, China 22 percent, South Korea 21 percent and Japan 12 percent. 

What is the reason behind so many people agreeing on the next few days to be the best real estate buying time in India?

The consumer sentiments had been extremely low in the last few years. It is estimated by specialists that the formation of a new stable government at the Centre has raised hopes. It is even observed that with the new government coming into power, days before the swearing in, the stock exchange has seen a rapid rise. This too affects the real estate market. Moreover there is supposed to be a hike in real estate price by the end of this year. Thus the next thirty days is good time to buy real estate. “The realtors reeling under large scale of debt are offering discounts to reduce their inventory levels taking advantage of the new found optimism in the market. The residential real estate market may see an uptick in the demand and increase in the number of transactions in the near future,” says Bhaskar Canagaradjou, Associate Director, Ipsos Business Consulting.

If it is the most favourable time to grab a real estate deal then there is no point in waiting for long. If one has a mind to buy a real estate it is the best time now to buy one in India. A big majority i.e., about 60% people in India feels that the next few days holds great prospect in real estate buying business in India. The coming thirty days is the best time to enter into such a deal. Not only in India but also in other parts of the world real estate market is showing a rise. As for India, the few days ahead bring promise of best buy. If opportunity knocks once it is the wisest to grab the opportunity. This is perhaps the most attractive and promising real estate news of the present time and the time to come. Therefore, if you want a house for sale in Trivandrum, start looking now!