The Realty Pull
Chennai is a crowd puller as far as homebuyers are concerned. After a prolonged stable period across the country, today buyers are actively researching for the right property. Many top builders in Chennai are gearing up with projects to pull in more clients as well.
Luxury has been the main criteria of attraction for people mainly looking forward to move into an area like AnnaNagar, which has many upcoming luxury projects. One of the reasons for the increase in demand for residential properties in Chennai can be the immigration of people from small cities like Madurai and Coimbatore to Chennai. According to a recent data, it is seen that most of the people who are moving to Chennai prefer to invest in South Chennai. Moreover, of the well settled outstation professionals, a good proportion prefer staying in Adyar, Nungambakkam, Anna Nagar and Kodambakkam as these areas have premium 2 or 3BHK units. The student population from nearby colleges also take up flats in and around Nungambakkam on sharing basis; this ensures that the rental is divided and that they do not compromise on lifestyle.
The rental market in premium localities is better than the capital market. Tenants do not hesitate to spend Rs 30,000-50,000 monthly if the amenities are good. These localities are close to the city, have easy accessibility to their workplaces and also reflect their aspirations. Re-development is also opening up stock in KK Nagar, Besant Nagar, Indira Nagar and Shastri Nagar. Close to 30 years back, the Tamil Nadu Housing Board had developed these areas which require renovation and repairs today. North Chennai also seems to be picking up with small investors. This helps them to enter the market with lower entry costs. Presently, there are only hopes of a revolutionary revival. However, at such a time it is usually the temporary residents who bring positivity. Therefore it helps to maintain a certain degree of momentum. In the long term, there is a possibility that some of these tenants also may settle in Chennai.