The real estate sector is Chennai has never really seen the bad days witnessed in the northern markets of the country. The economic slowdown and high inflation did have an effect on the market, but not to the extent that it slumped. The city is considered to be one of the most liveable cities in the country and the real estate here is driven primarily by end users rather than investors. This fact has actually proved to be very beneficial to the realty sector of the city. Since the market is primarily driven by end users, this market is relatively free from speculation which has kept it relatively stable.
Pockets of growth have been found in northern and western parts of the city. The more well established micro markets in the city which are located in the southern part of Chennai are either saturated or nearing saturation. The number of properties which are available here are also very limited and can be bought by only the affluent folks. The situation is the exact opposite in the northern and western parts of the city were the property rates are much more affordable and there is decent availability of land as well.
Porur is a micro market which is located in the western part of the city. The area is considered to be one of the most sought after real estate destinations in the city. Multiple factors have worked in the favour of this micro market. The area enjoys great connectivity with the rest of the city. Some of the major roads in Chennai are either passing through this locality or are located in close proximity to it. Major connectors such as the Chennai Bypass Road, the Arcot Road, and National Highway 4 pass through here. The Poonamalle High Road is located in close proximity to the micro market. Apartments in Chennai which are located here tend to be popular among buyers because of the connectivity factor.
The going rate for apartments in Chennai which are located here are priced at INR 4500 per square feet on average. An individual house for sale in Porur is priced at INR 5200 per square feet on average. There is maximum demand for 2 BHKs in this locality. The unit size which is most preferred here falls between 700 and 1200 square feet. This shows that small to medium sized flats are catching the buyers’ attention as far as this micro market is concerned. The most preferred budget range for flats here falls between INR 30 to 50 lakhs.
Another reason why a property such as a plot or an individual house for sale in chennai is popular is because of the presence of the Information Technology sector here. There are about three IT parks in this micro market which house many well-known companies. The presence of the Ramchandra Medical College has led to the increase in demand for rental properties here. Areas which surround this micro market have also enjoyed real estate appreciation.
Positivity seems to be the key word which has permeated into minds of those who are working in the realty industry in Hyderabad. They feel that 2015 is the year that good things will happen to the market here. The market for properties her which was once vibrant had slumped to the lowest ever in its history.
The political unrest which plagued the state of Andhra Pradesh affected the city of Hyderabad in more ways than one. The property market was the hardest hit with many micro markets which were previously doing well showing a dismal decline in prices. But with the bifurcation of the state and the city being named the joint capital of the two states, the economy of Hyderabad was expected to recovery along with the real estate sector.
But this was not the case in the 2014. Sales remained low with a large pile of inventory which was far from being sold. The prices for properties such as plots and apartments for sale in Hyderabad have really not recovered at all. Prices here remain have remained very affordable through 2014. In that year, the fact that buyers were willing to spend less than INR 2000 per square feet on average on properties here shows that the market has remained slow. Apartments for sale in Hyderabad which were priced between INR 20 to 30 lakhs were the top choices for buyers looking for properties. In fact most of the flats which are being sold in this city fall between the INR 10 to 40 lakhs range which is a very affordable range indeed.
But in 2015, Hyderabad real estate is expected to recover. This could happen as early as in the first quarter of this year. The atmosphere here has become conducive for this kind of recovery. The state government of Telangana has gone into over drive to ensure that the city gets good infrastructure. The focus has been on developing the outskirts of the city. As a result micro markets which surround these areas are picking up real estate traction among buyers and developers.
Areas which are dominated by the Information Technology are the ones which have found favour among buyers. There was a point when there was no stopping the IT story of this city but things did not go as planned. Now that the political dust has settled and the economy is looking up, the city which was once the darling of this sector is back in business. This will only be good news for the city as this kind of movement bring in good cheer to the realty industry.
Since Hyderabad real estate is heading into recovery mode, now might be the right time to invest here. The prices are still pretty low here currently. But once the prices start to recover the market will not be as affordable as it is now. So if one can invest wisely now then he will be able to reap the rewards in the months to follow.
Investing in the real estate market in Chennai has always been a safe bet. The realty sector here remains fairly untouched by speculation which is very rife in the northern markets of the Delhi National Capital Region or even Mumbai. The real estate slowdown which plagued the entire country did not give the city a skip though the market here was shielded to a certain extent from its impact.
The areas of growth are located in the northern part of the city and along the Grand Southern Trunk Road. With the saturation of the markets in the southern and central parts of the city the focus is moving towards other parts of Chennai.
The markets along the GST Road have been making real estate waves for some time now. The GST Road is an arterial road which is well connected to most parts of Chennai. The area has emerged as the manufacturing hub of the city and has a fair smattering of Special Economic Zones as well. Some of the markets which fall along this stretch are: Guindy, Alandur, Meenambakkam, Tirusulam, Pallavaram, Chromepet, Tambaram, Perungalathur, Vandalur, Urapakkam, Guduvancheri, Potheri and Kattangulathur. Areas such as Vandalur, Guduvancheri and Kattangulathur are quickly catching the fancy of buyers.
Some of the more established markets in this stretch are Tambaram, Guindy, Chromepet and Pallavaram. Pallavaram is located at about 17 km from city and is a part of the Kanchipuram district. The area has been in existence for Paleolithic Age and is a place of historically significance.
In modern times, the real estate of this micro market has been in demand. The going rate presently for apartments for sale in Pallavaram has been averaging at INR 4900 per square feet. This price bracket puts properties located in this micro market in the affordable range. The asking price for apartments for sale in Pallavaram shot up to INR 7000 per square feet on average in the third quarter of 2013. But since then the prices have fallen and have been ranging between INR 4500 and 4900 per square feet on average in the following quarters.
The area is not only well connected to the micro markets along the GST Road, it is also well connected to the micro markets along the Old Mahabalipuram Road. This fact has contributed to the rise of real estate demand in this area as the OMR belt houses some of the most important Information Technology and Information Technology Enabled Services companies. This is one of the reasons why properties such as plots for sale in Pallavaram are popular among property seekers.
There is maximum demand for small sized 2 BHK flats in this area. The budget range which most buyers seem to want to spend here falls between INR 30 to 40 lakhs. There is some presence of social infrastructure here. The area though not without its fair share of problems is predicted to do well once some infrastructural changes which are planned here taken shape. Hence investing in properties such as flats and apartments for sale in chennai might just fetch higher returns in the future.
Sulabha is a real estate expert and consultant from NCR. She deals with analyzing trends in the market of residential apartments in noida and commercial properties in Greater Noida
Chennai has somehow turned out to be a pricey real estate market over the years. Luxury segment and mid segment home are mostly out of reach by many. The market for luxury and mid segment apartments in Chennai has been very slow. And sky high pricing has created a gap between the demand and supply here. Buying an independent house in Chennai is definitely out of bounds for many, and a very restrictive percentage of the population can invest in residential properties of this kind. Things seem very slow in these two sectors, but Chennaiites have more to look forward to. Affordable housing sector might just be the next big thing that would revive the real estate market in the city.
Suburban Chennai is what will see the most real estate activity in the next few years. Builders have already started looking for large parcels of land in the outskirts to build affordable housing projects in the city’s suburbs. There has been an increasing demand for smaller housing units of under INR 20 lakh. However builders over the years have failed to cater to the needs to this demand generated. High cost of construction and even higher land prices in the city has compelled the builders to charge much higher for apartments in Chennai suburbs in comparison to its counterpart like Bangalore or Hyderabad.
The concept of affordable housing across the country is flawed in many ways. For example, affordable price band in different cities mean different things. This is because housing is affected my several factors like land prices, cost of construction etc. Land prices in different cities vary to a large extend. Affordable or low cost homes in Mumbai and its suburbs will be nothing less than INR 40 lakhs. Similarly, you can buy low cost homes in cities like Hyderabad for as less as INR 25 to 35 lakhs. This creates a lot of disparity and takers of these projects suffer on the financial end of it. In Chennai the concept is catching up and we are yet to see where it goes. This segment has been much ignored by builders is now all set to see a revival. “Identifying developable land at the right price in the right place is the key to success of a budget housing project,” said a builder from Chennai. “All developers doing big projects in the suburbs are stuck owing to poor sales and they are looking at alternatives to sustain the business”, said Rajesh Babu, of Recs Group, a Chennai-based realty firm.
“Going by the experience of developers who promote budget housing projects, they are by and large cash-surplus projects as long as the promoter sticks to medium sized developments in the range of 2-3 acres.You can raise funds from the market (customers) and do projects. As long as the budget housing segment is treated as a separate entity and the money collected for it is used for the same project, it will work. But if the money is diverted to service bad loans or to complete other stuck projects, then things will miserably go wrong,” said Sarita Hunt, MD- Jones Lang LaSalle.
The questions plagues many investors and individuals today, whether they should invest in Noida or Greater Noida is a better realty choice in this matter. We put together some valid arguments so that you can access and analyse the best suited option for you as an investor.
• "Greater Noida was designed as an integrated township, but industrial land, particularly in Greater Noida West, has been diverted to residential projects. Attracting industry is hard, while cutting plots for builders is easy and lucrative. In the five years, GNIDA has allotted 400 industrial sites of which small scale units 50 have started work. But a majority are micro enterprises employing between 20 and 50 workers each.” Says a GNIDA official to the Business Standard. Noida also started off in a similar fashion, however it is much more developed and evolved market as of now.
• Greater Noida suddenly saw a rise of real estate activity between the years 2009 and 2011. There were a number of apartments for sale in Greater Noida that were presented to the market, but the new land acquisition act and the eventual increase in property prices have deterred the home buyers from investing here. According to a report by JLL India, there are over 200,000 apartments for sale in
Greater Noida, out of which only 40 % of inventory is sold. There has been delay in projects and there has been an issue with local builders delivering projects very late as compared to the actual date of handover. This has brought the real estate market here to a halt. But Noida however is a much more evolved market. Prices have seen fluctuation, but it hasn’t been unambiguous. Certain localities command a higher price than others and there is a clear cut distinction. The stability in the Noida market is what makes it a better investment choice
• Properties in Noida are a good investment choice for low risk investors, Greater Noida poses much higher risk and a gestation period as compared to Greater Noida.
• If you are looking to invest in plots then Greater Noida is a better investment option for you. Noida has limited land availability and that has resulted in rapid increase in prices. However if you are looking to invest in apartments Noida is definitely a better bet. Project are delivered on time and there is stability in price of properties in Noida.
• Looking to invest in commercial real estate? Pick Noida and not Greater Noida. As of today, there is almost 70 percent of unoccupied office space area is Greater Noida and individual investors have suffered losses because of this. They paid a premium price to acquire this land, however it hasn’t reaped any substantial benefits.
• These are a few points you can consider if you are looking to invest in any of these areas. However the market and its evolution is natural and Greater Noida will evolve sooner or later. But the gestation period is long. And the ones with deep pockets can actually afford this long gestation period. However you investment in Noida is safe for now and rental market is also stable.
Perungalathur
A property in Chennai such as an individual house located in this micro market can cost about INR 4400 per square feet on average. About a year ago the going rate for this property type stood at INR 5900 per square feet on average. This is a drop of about 25% over the last year.
The going rate for apartments here between April and June 2014 stood at INR 4100 per square on average. This was a drop of about 1% when compared to the previous quarter when the prices stood at INR 4200 per square feet on average. In the 2nd quarter of the year 2013 the asking price for apartments here stood at INR 3900 per square feet on average which was a drop of about 4% when compared to the previous quarter. In the third quarter the prices went up by about 2% and stood at INR 4000 per square feet on average.
Guduvanchery
A property in Chennai such as an individual house located in this micro market can cost about INR 4400 per square feet on average. About a year ago the going rate for this property type stood at INR 4600 per square feet on average. This is a drop of about 5% over the last year.
If you are looking for property in Chennai then Guduvanchery is one of the best places to begin at for affordable ones. The going rate for apartments here between April and June 2014 stood at INR 3200 per square on average. This was a drop of about 7% when compared to the previous quarter when the prices stood at INR 3500 per square feet on average. In the 2nd quarter of the year 2013 the asking price for apartments here stood at INR 3600 per square feet on average which was an increase of about 10% when compared to the previous quarter. In the third quarter the prices took a dip of about 13% and stood at INR 3100 per square feet on average.
Vandalur
A property in Chennai such as an individual house located in this micro market can cost about INR 3600 per square feet on average. About a year ago the going rate for this property type stood at INR 5900 per square feet on average. This is a drop of about 39% over the last year.
The going rate for apartments in chennai here between April and June 2014 stood at INR 4000 per square on average. This was a drop of about 6% when compared to the previous quarter when the prices stood at INR 4200 per square feet on average. In the 2nd quarter of the year 2013 the asking price for apartments here stood at INR 4000 per square feet on average which was an increase of about 8% when compared to the previous quarter. In the third quarter the prices went up by about 12% and stood at INR 4500 per square feet on average. Looking at the price trends in this micro market, Vandalur is also another place that should be on your radar if you are looking to buy flats to buy in Chennai.
Indirapuram is a locality situated in Delhi National Capital Region’s Ghaziabad city. It is considered to be one of the fast developing and posh localities in this region and Properties in Indirapuram are in demand these days. Its location and connectivity are the key selling points for this locality.
Indirapuram is strategically placed on the National Highway 24. The Indira Gandhi International Airport is at a distance of 32 kms from this locality through the NH 24. Through the NH 24 it is well connected to Delhi and even Noida. Since it is located close to these cities, it is a market which is preferred by those who are working out of these cities.
Indirapuram also has metro connectivity through a station in Vaishali. The locality is also set to get its own metro station. The Uttar Pradesh government has approved a metro line from Noida City Centre to Electronic City flats in Noida. Increased connectivity leads to an increase in property rates. The metro connectivity which this locality is set to recieve will definitely serve to increase rates of properties in Indirapuram. Taking just the connectivity offered by this locality into consideration it is not hard to see why apartments for sale in Indirapuram are much sought after.
Indirapuram is not lacking social infrastructure either. The locality possesses sound social infrastructure in terms of quality educational institutions and healthcare facilities. Your entertainment needs also are taken care of as there are plenty of malls present here.
The going rate for properties such as apartments for sale in Indirapuram is INR 5700 per sq ft on average. Once the metro connectivity hits this micro market property rates here will increase by 20 to 30% overtime.
Indirapuram has properties for every segment. Riding on the back good connectivity, location and improvements in infrastructure the only place properties in Indirapuram can go is upwards.
