Trends in Chennai Real Estate: Big and Affordable Flats, Newer Micro-markets
Chennai's real estate market has been growing for the past few years, providing handsome returns to developers and investors. The rapid expansion of the city, coupled with its industrial growth, has led to an increase in home demand, both in luxury and affordable home segments.
A look at some of the trends in Chennai real estate:
Small is in
Unlike most other cities, affordable homes in Chennai mean smaller units. While affordable homes in Bengaluru have an average size of 1,070 sq ft and 1,025 sq ft in Noida, these spread over only 920 sq ft in Chennai. Affordable homes in Pune have an average size of 794 sq ft.
The growth areas
A number of micro-markets in Chennai are fast developing as affordable housing hubs. Avadi, Kelambakkam, Mevalurkuppam are among areas that have seen the launch of around a 1,000 affordable units in recent times.
Other affordable neighbourhoods include Perumbakkam, Oragadam, Perungalathur, Poonamallee, Pallavaram, Ambattur and Guduvancheri. Areas such as Ambattur and Orgadam are close to the city's auto and garment manufacturing units. While this will increase the demand, it will also ensure that there is steady rental and purchase demand for affordable units in the future.
According to a PropTiger Data Labs report, neighbourhoods such as Vandalur, Perungalathur, Avadi and Poonamalee (which are closer to the Outer Ring Road and Orgadam, Sriperumbudur, Singaperumal Koil, Chengalpattu, and Thiruporur) will see large demand in the affordable segment.
This segment will attract investors, too, as these micro-markets have scope for rental revenue earning and capital value appreciation.
Future growth
Apart from housing a growing IT sector, Chennai is also a popular in automobile and other ancillary part manufacturing hub. The city is expected to profit hugely from the Centre's Make in India campaign.
The government has already announced two industrial corridors here: the -Ranipet strial Corridor and the - strial Corridor. While the Sriperambadur area is also being developed as a warehouses, bus terminals and drainage systems' hub, there are plans for a Finance city. All this is aimed at generating more employment, which in turn would push demand for housing, especially in the affordable category. The demand for this category is going to sustain for the next five to ten years, according to PropTiger.com.
Major affordable-housing projects in Chennai: