Chennai Real Estate 2010 - Latest trends

Chennai, a city in Tamil Nadu on the Bay of Bengal; formerly known as Madras is among the most beautiful of cities in India with its inspiring intellectual inheritance and shrine architecture. Situated in a region with many rivers and brooks and with a healthy population of 6.9 million, Chennai is distantly situated from the national capital Delhi and has been an important and one of the four metropolitan cities since the historical times. Chennai is the fifth most populous city in India and fourth most populous metropolitan. With the materialisation of Multi National Companies in India, Chennai’s economy today has broad base in car, computer, technology, hardware manufacturing, and healthcare industries. The city is in fact India’s second largest exporter of software and has caused an increasing first choice of the city as a big business centre by most important international companies, who have invested immensely in the financial system. The Chennai property market has seen an escalation of almost 200 percent in the last few years but with the global slump in the real estate industry, Chennai real estate has slowed down. The residential real estate prices in Chennai have grown by leaps and bounds making it difficult for buyers to purchase a home in the city. People are awaiting the market to stabilise further despite recent corrections. This has caused a 90% drop in demand for residential projects since the start of the year. The commercial sector is not being spared either having seen a 15% drop according to media reports. The IT MNC’s largely drive the demand for Chennai properties but due to the current recession, many companies have postponed their expansion plans. Experts however predict that the market will bounce back. Besides global inflation, the home loan rates have been steadily increasing, coupled by increasing input costs which have resulted in slump property transactions in Chennai. Quite notably, Old Mahabalipuram Road, the most blistering real estate destination in Chennai is also experiencing a downfall blaming the effect on lack of infrastructure facilities and real estate agents admit that there have been only a few transactions in the areas for quite some time. A few of the eminent developers in India have shown their interest in increasing real estate in Chennai while property builders at the moment are constructing properties of the highest standards to pick up on the current slump.