Property prices in Chennai reach a new high

With the prices of reisdential property of Chennai consistently moving north, location specific homebuyers are keen to settle for resale units as well available in city areas. Homebuyers are seeing the proximity of educational institutions, hospitals and retail facilities and many more convince them to opt for resale properties. Those who looking for at investing in large units in the city areas are also keen to dispose of their existing city units and opt for new units. These compelling factors have virtually pushed the prices of apartments to a new high. Price mismatch between old and new units is narrowing down to just 20-25% now due to surge in demand for units, according to industry sources. Demand varies depending on the specific location and property developers have a long waiting list from location specific customers for booking their dream property in Chennai and when new residential projects are launched at city locations. In present time the news residential units are quoted with much higher price whereas the resale reisdential units are going in much lower price. So the demand for resale residential units particularly for middle class budget segment has been strong and growing – as felt by Managing Director of Bhoomi Realty Mr. H Balasubramanian. These apartments are coming up for resale are mostly located in a gated community developments and in proximity to a range of facilities which makes life a bit easier for Chennaites mainly to avoid commuting long distances. Resale units are in demand in particular areas like: T Nagar, Chrompet, Naganallur, Nolumbur, Anna Nagar, Adyar and Besant Nagar apart from suburban locations like Sholinganallur on the IT corridor. There is a growing demand for other areas as well but the demand hinges on competitive pricing. Housing Board flats with larger UDS are in big demand in areas like Besant Nagar and Kotturpuram as city land prices are soaring. The redevelopment trend gaining momentum people are keen to invest in resale units. The trend is likely to continue until infrastructure development improves in suburban and peripheral areas with the emergence of more educational, health and retail amenities and connectivity levels. Now Chennai is witnessing the steady growth in its residential market in past few years with the economy springing back to action, the residential real estate market too has recovered strongly. Demand has returned prices have increased substantially and a number of new residential projects have been launched in the market. Another important observation regarding the Chennai reisdential market is the demand for 3BHK apartments exceeding other unit configurations. Around 46% of the total number of units under construction belongs to the 3BHK category followed closely by 2BHK at 44%. While 1BHK and 4BHK apartments are lower in number, 5BHK apartments understandbly have a marginal presence in the number of units underway in the city.