Battered by the pandemic after being in the dumps for a few years, one market which has seen the biggest resurgence is Chennai’s realty market – a force multiplier to add to the State’s rapidly growing economy. The Tamil Nadu capital, also known as Detroit of India, is moving fast on its path to resilience and growth while adapting to the new normal in the aftermath of the COVID 19.
To begin with the two biggest realities that have emerged for real estate investors across the nation, in the past two years of pandemic are, first, real estate is real, and it’s always a good idea to put your money in real assets. Also, it’s always a good time to invest in real estate. India’s residential real estate market has emerged as a hot seller’s real estate market, with annual price growth reaching record highs.
As one of the foremost metropolitan cities in the country today, Chennai is a desired investment destination by investors nationally and internationally. The city witnessed a cumulative FDI investment of $ 29.4 billion since the year 2000 and has transformed itself from traditionally being just a port city to becoming a hub of the manufacturing and services sector in the past two decades. The steady growth of Chennai’s economy has sparked the growth of investment in its real estate as well, which has been further aided and enhanced by government development plans and policies benefiting the sector.
Today the city offers a perfect mix of a cosmopolitan lifestyle, modernity and colonial charm, complimented with great infrastructures like well-developed roads, expressways, metro projects, and monorail corridors and a conducive ecosystem for businesses to thrive and grow. Also, vacation is what many of today’s home buyers are looking for, at least following two years of COVID 19. That strong demand is starting to turn popular getaway destinations into some of the most competitive housing markets in the country. As a beach city and with proximity to some of the most popular holiday destinations, Chennai is a preferred investment destination for future home buyers.
Chennai comprises a proportionate amalgamation of modern lifestyle and a cultural base that directly reflects in a spectrum of residential options, catering to the city’s increasing demands. Owing to these promising growth factors and catering to the needs of a variety of buyers and investors, cutting across segments, the city is regaining its position among the top real estate destinations in the country.
As per a recent report, government revenue of Rs 9,854 crores was recorded vide property registration in the past nine months, and is likely to touch Rs 15,000 crores by the end of March this year. The residential housing sector is experiencing a revival matching the demand and sale on par with pre- COVID levels in the city and its suburbs. The report indicates that in 2021, 12,783 housing units were launched, and 7900 housing units were sold between April and December. A testament to this resurgence is the pivoting focus of the biggest names in the industry and national level players looking at the city to add to their long-term business ambitions.
This revival can also be credited to all-time low-interest rates and buyer-friendly policies, which provided a fillip to residential real estate around the metro major. Market trends also indicate that plots are favoured in the southern region over ready-to-move-in apartments. The Chennai realty market is the one to look up to due to its exemplary performance under stressed conditions. If the present is anything to go by, the future looks even brighter. Also, for investors at this time, there’s an opportunity for greater and more consistent returns in real estate compared to other asset classes.
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This article was first published by Karan Kumar in 99Acres on 11 February, 2022