Chennai Market Expectations
On one side some Chennai builders seem to have hard time coping with the market and the lull which had moved the base of realty sector but on the other side many top builders in Chennai are still building both luxury and budget apartments in the city.
One might think what may be the driving factors for the builders to push the market. Mainly the builders have four aspects to look at regarding their demand margin.
The first point is giving affordable homes to the buyers. The builders plan to offer a variety of segments as there are many budget ranges for houses which differ from one area to another. One can find budget houses in areas like Velachery, Avadi, Porur etc and luxury houses in areas like T. Nagar, Nungambakkam, and Adyar etc. This does not mean that there are no luxury houses in Velachery but the main market in such suburban areas are budget homes and the builders are clear in this perspective.
Secondly, the metro has set in a lot of positive mood in the realty sector as the accessibility to many areas has increased which in turn has led to the appreciation of the property value in these places. People have a feeling that with the closeness to the metro, the residential property value in the area will also simultaneously increase which will push the demand.
There are many areas in Chennai where there are space limitations and re-development has become the final solution. The builders have taken this concept seriously and have started targeting spaces inside the city hub like Nungambakkam, R. A. Puram and Adyar etc. Aging infrastructure which hasn’t kept pace with urbanization herein has raised hopes for a redevelopment plan. A higher FSI and a detailed land pooling plan is the need of the hour.
The final strategy for builders to create a demand is the luxury factor. Nowadays people demand amenities and services which set their home apart from others and the builders strive to provide the same to their buyers. Luxury market has opened up much scope for the restabilising realty sector.