Chennai, known for its engineering and manufacturing establishments, IT/ITES companies and port-centric businesses, has a positive real estate market. A number of reasons support this positivity. Well-connecting roads, easy public transports, developing infrastructure and increasing number of job opportunities are some of the reasons that affect the market positively.Chennai, known for its engineering and manufacturing establishments, IT/ITES companies and port-centric businesses, has a positive real estate market. A number of reasons support this positivity. Well-connecting roads, easy public transports, developing infrastructure and increasing number of job opportunities are some of the reasons that affect the market positively.

In a recent report by the magazine Knight Frank, the real estate market is reported to have grown 3% every year since 2012.

In the latest report by Knight Frank Magazine, in the year 2018 alone, 2000 new housing projects were announced in Chennai. This is 20% higher than the 2017 year figures.

The TNCDR (Tamil Nadu Combined Development Regulation And Building) and Construction Rules 2018 have not been clarified yet.

After the state government has resolved various issues and released the TNCDR rules, additional construction plans are waiting to be released.

In 2018, most of the new construction plans are in South Chennai. Especially in the last 10 years, the regions of South Chennai have seen tremendous growth.

45% of the house construction plans announced in 2018 are priced at Rs. 45 lakhs. About 41% of middle-income group flats are priced at Rs. 40 lakh to Rs. 70 lakhs. 14% of construction is for deluxe apartments (cost over Rs. 70 lakh). The 4 regions of South Chennai are as follows.

Medavakkam

With the increasing value of the OMR (Old Mahabalipuram Road) area, buyers who prefer to make their residences near their offices choose Medakkam as the best option. Medavakkam is located on the Tambaram-Velachery main road. It also covers the junction road between the ECR (East Coast Road) and the Tambaram-Velachery Main Road.

Perumbakkam

The Perumbakkam region has also undergone tremendous change / growth over the last 4 years. Also, a large number of low-cost housing plans have been announced here. It is located in the middle of Sholinganallur, Semmancheri, Medavakkam, and Chittalapakkam. In the last 3 years, the price of Perumbakkam region has increased by 11%.

Vanagaram

Venangaram is located at the intersection between NH-2, NH-48, and Poonamallee High Road. As it is located 4 km away from the Coimbatore Metro Station, the area is experiencing rapid growth. Since it is near Anna Nagar, now most people prefer this place to Vangaram.

For the last 5 to 6 years, Chennai residential property market has been falling down is known. The latest information gathered was the Chennai’s residential property is now picking up. It is worthy to note that there has been 3 percent increase in the sales and 12 percent jump in the new launches in the year 2018.

In the year 2017, City of Chennai witnessed a sale of 15520 residential properties and in 2018 this increased to 15986. Ever since the slowdown started in 2012, this was the first increase. This was confirmed by the report of the property consultant Knight Frank. The sluggishness seen all over India due to crisis in non-banking financial companies have been responsible for squeezing the flow of credit to developers as well as the buyers. The important point is the sales figure for 2018 are about 72 percent lower than what it was recorded in the year 2012. When compared to 2017 the new launches in 2018 have gone up by more than 1000 units in the city of Chennai.

It is important to mention here that the sub Rs 50 lakh bracket accounted for the 67% of new branches. In the second half of the year, the southern and western Chennai had 48 percent of the new apartment launches. In the apartment launches, Mumbai city recorded the highest year-on-year increase of amazing 220 percent. Mumbai was followed by Pune with year-on-year increase of 157% and next was Hyderabad with 54%. There was 35 % increase in the launches in NCR and 22% increase in Bengaluru. The point is with regard to the sales Bengaluru recorded 27 % increase followed by Hyderabad with 9%, NCT 8%, Chennai city and Mumbai 3 percent each.

Chennai branch director of Knight Frank, Kanchana Krishnan expressed her thoughts and spoke about how the sales are concentrated in 2 categories namely 30 to 50 lakh segment type and ready-to-move in segment type. She threw light on the fact that the former type was of high demand due to affordability and the latter is picking up slowly. She pointed out that the developers are waiting for the new development regulations to be out.