The Neighbourhood Value
Tangible and intangible factors affect the value of many new flats in Chennai. There are many reasons as to why people might choose a property, location being a prime one. It has already been seen in many instances that location is a main determinant of the value of a property.
When looking for a home, we often take into account community considerations and we are willing to pay a premium, in addition to the normal per-square-foot rate in that part of town. This is very important in determining future property value as well. If this is a strong factor in the area and the stock of homes is limited, the appreciation may be disproportionately high.
There are certain things which add on the luxury tag to many luxury flats in Chennai, location i.e. neighbourhood value being the prime of them. Being part of an elite club by virtue of living in a particular residential area is another manifestation of the community value in real estate. It might be evidently seen that people might be willing to pay even a few lakhs more for residing in an area with a premium tag attached to it. Areas like Boat Club, T. Nagar, and Poes Garden are in demand despite the prices being very high. To most of us, the per-square-foot rates paid by the buyers for the sizes of these homes and apartments might seem completely irrational. However, for many of the buyers, the satisfaction derived from living in that area far outweighs the cost
People do consider the value of the neighbourhood to a great extent, be it a luxury restaurant in the area or a community temple, it sure does add value to the property. If there is a strong reason for people to be living in that area, besides general infrastructure and accessibility, a little premium paid today may translate into bigger gains in future.