Chennai Property Markets on the Rise
The city of Chennai is considered to be amongst the most prominent of industrial hubs in the country. It is the largest urban agglomeration in the southern parts of the country. It has been home to the manufacturing of the automobile sector and hence has aptly been called the ‘Detroit of India’. It is also a major centre for manufacturing and other IT related businesses. Several new industries have evolved in Chennai in the past few years. All of them have contributed to the growth of the real estate in Chennai. The demand for housing in Chennai has always been high but the sales had been curbed for the past few years. Therefore the overall growth of the property business in the city has now witnessed a new rise. The property business has become one of the most promising new businesses in the city and now the demand is expected to continue growing for many years to come. Therefore anyone planning to invest in housing in Chennai should consider an investment now.
What has led to the growth of property in Chennai?
There are a number of factors responsible for the growth of property in Chennai but the most prominent among them is the economic drivers of Chennai. The city- as mentioned earlier- is the hub of manufacturing of automobile business. It is also a major centre of manufacturing of hardware. Business process outsourcing has also marked its presence in the city overtime. The overall growth of the property business in the city has been the end result fo all these industries thriving in the Chennai region.
But in the last four or five years, the city witnessed a drop in the sales and the property business stumbled. This drop in sales was the result of the high interest rates for home loans. The nation as a whole was suffering from high inflation and the RBI had no other option but to increase the lending rates. The rise in these lending rates is what led to the rise in the interest rates of home loans. As a result of the high interest home loans, the buyers refused to opt for properties. The sales in the city dipped as a result. Also the economic growth was slow and the industrial output of the city was less as well. With the lack of high revenues, there were not a lot of buyers to invest in flats for sale in Chennai.
The new demand of housing
The builders therefore adopted a new scheme to help the growth of property business in Chennai. They decided to actually start to work in favour of the consumers so that the property sales would increase. As a result, the demand for housing in Chennai turned out to be of two distinct flavours. There was a large segment of buyers who were interested in affordable housing. There was another segment that wanted luxury properties. Soon enough the builders started to offer the same and the property sales continued to tick in Chennai. Now that the overall economic conditions have improved, the same trends of development have continued. The market has become pro-consumer and there is a high demand for flats for sale in Chennai.