Why Chennai real estate is in growth mode in 2015?

There is an air of optimism surrounding the real estate situation of Chennai. Most experts are of the opinion that both the commercial and residential real estate segments in the city will get a good boost in 2015. The city has never seen a big slump realty wise but the market has been semi-dull for the past few years. The general economic down turn, high home loan rates and high cost of construction were some of the factors which were cited to be the cause of the small slowdown in the market.

Experts have made their predictions based on a few facts. They say that the economy is on the rebound. This will put money into the pockets of the common folk which will increase their spending power. Once that issue is sorted, most people immediately think about getting themselves their first or second home. Real estate is generally considered to be one of the top choices where people want to park their money. Another reason why there is increased optimize among those who are in the industry is the repo rate cuts by the Reserve Bank of India. This essentially means that those who are paying home loans can expect a cut in the EMI. Taking all these positive factors into account, some feel that the southern city stands to benefit immensely realty wise.

Most of those who are buying up Chennai residential projects are end users. This has ensured that Chennai property prices have not been wildly fluctuating because of speculation from investors. This trend has been seen in 2015 as well as vast majority of those looking for Chennai properties have been buying them for end use.

Buyers from the low and mid segments are hoping that the Chennai property prices will stabilize this year. In 2015 there have been a lot enquiries for properties which fall between the INR 20 to INR 30 lakhs range. This is followed by the INR 30 to INR 40 lakhs range. This shows that there is good demand for affordable properties here. North Chennai and the micro markets along the GST Road are considered to be quite affordable. There is also demand for properties in the luxury category. Properties which fall in the INR 1 to INR 2 crores range have also been generating interest among those who are looking for high end properties in the city. Areas such as Adyar, Beasant Nagar, Nungambakkam and RA Puram cater to those who are looking for such high priced properties.

The city’s suburbs are enjoying immense real estate resurgence. Once ignored and rejected, these areas are quickly becoming favourites among those who are looking for housing options on a budget. These areas are spread across the city and are well connected to the central business districts as well. Infrastructure projects are being planned with these localities in mind which has also given these localities a much needed boost. All in all things are looking up for the real estate sector in the city.

What the factors that are driving real estate in Mumbai

Mumbai is one of the most expensive real estate markets in the country. The city is the finance capital of the country and is known to be the maximum city. Many of the central business districts in the market are very expensive. Those who reside in these posh addresses are celebrities and businessmen with a lot of money at their disposal.
So what are those who are on a budget to do when it comes to looking for housing in the city? The answer is moving your property search to the suburban areas of the city. If one looks at the way most of the metros are expanding it is the peripheral and suburban areas which are gaining popularity. These micro markets might not be up there when it comes to infrastructure. But that is changing and changing at a fast pace.

Over all here is a look at what buyers have been look at when it comes to a property search in Mumbai so far in 2015. 1 BHK apartments are the most preferred apartment type here. This is followed 2 and 3 BHKs. Buyers are showing a marked preference for small sized new Mumbai property. This is because space is already very scarce in the city and buyers end up paying quite a bit for these spaces.  The most sought after apartment size falls between 501 to 750 square feet. This is followed by the less than 500 square feet range and the 751 to 1000 square feet. The takers for any residential apartments in Mumbai which is more than 2000 square feet are very few in number.
 
People are looking for affordable properties in this market. The budget range for which property search in Mumbai is happening at a great pace falls between INR 10 to 50 lakhs. There is some interest for properties which fall between the INR 1 to the above 5 crores range as well. Buyers are looking for properties which are priced above INR 10000 per square feet on average. This fact again proves how expensive it is to purchase a new Mumbai property.
One of the infrastructure projects which is set to drive the real estate sector of the city is the metro rail project. Line 1 between Versova–Andheri–Ghatkopar is operational. The impact of the metro on the localities in this Line is already quite visible. The prices for properties here has been steadily on the rise. There are three more lines in the pipeline. Experts suggest that property prices tend to appreciate by at 20 percent for localities which are within a 2 km radius from a metro station.
 
Some of the hot property destinations in the city as Vasai, Badlapur, Nala Sopara, and Kalyan. The one factor that is common across all these micro markets is that they are all affordable property destinations. They are also well connected to the main business districts of the city making them attractive to buyers who are on a budget.