Is Real Estate Down In Chennai?

Hi,

Firstly, let me introduce myself. I have a considerable amount of experience as a real estate investor. I have been investing since 2012. My friends in Chennai asked me, "Is real estate down in Chennai?" To this query, I respond that real estate prices might have marginally decreased, due to an oversupply and an overhanging large stockpile. However, recently the Knight Frank India Affordability Index was released. According to the report, Chennai continues to have one of India's most affordable housing markets, coming in at number eight.

Chennai is second to Pune in terms of affordability of housing in India, but Ahmedabad tops the list. However, it is the most popular city in South India. Since H2 2020, the residential market in Chennai has been progressively recovering. Sales progress increased to 6,951 units sold in H1 2022, a 21% YoY rise. Hence, this eradicates the question of will real estate prices go down in Chennai. 

An Anarock Property Consultants report from a few years back listed the top ten investment locations in India, including Malad (Mumbai), Kharghar (Navi Mumbai), Ghodbunder Road and Pokhran Road (both in Thane), Hinjewadi and Kharadi (both in Pune), Sarjapur Road, Varthur, Kanakapura Road (all in Bengaluru), and Gachibowli (in Hyderabad). Chennai was surprisingly absent from the list, and there are numerous explanations behind this real estate down in Chennai. 

The main cause is the city's general industrial slump, from which it was not possible to fully recover. Buyers were on the fence due to the 2015 floods, hurricane Vardah, and the ongoing political unpredictability. Market repercussions from recent policy changes like the demonetisation drive, RERA, and GST are still being felt.

These aren't the only causes of the real estate in Chennai downfall. The city has experienced relatively little job growth, which, when combined with a lack of capital investments, has also contributed to the decline. Growth in the infrastructure has likewise been gradual. All initiatives, whether they involved building a new airport, metro rail system, water, and sewage infrastructure, or new roads, were slowed down or put on hold.

However, a recovery mode has been switched on in Chennai. Manufacturing in the city is particularly thriving in the auto sector. As a result, it acts as a centre for logistics and information technology, and its widely dispersed and upgraded infrastructure offers tens of thousands of jobs, aiming to make it the best option. The majority of residential houses in Chennai come with the amenities and services typically seen in high-end residences, such as extra outdoor space, swimming pools, etc. Usually, these cost between 60 lakh to 1.2 crores. On the other hand, upmarket properties might cost anything from 1.2 and 5 crores. The market for extremely opulent homes has started to heat up. Above all, the Chennai housing market is primarily a consumer market.

I would like to conclude here about  "Is real estate down in Chennai?" I hope this helps:)

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