What is Budding in Chennai Real Estate?
During the initial half of 2023, the real estate landscape in Chennai bore witness to a substantial surge in growth across several coveted localities. These regions of note include:
North Chennai: Distinguished by its advantageous proximity to the city, robust rail and road connectivity, and alluring price points, North Chennai has established itself as a prime destination for prospective homebuyers. Its enduring appeal rests upon a blend of affordability and accessibility.
Gudavancheri: Located a mere ten-minute drive from Tambaram, Gudavancheri garnered acclaim among homebuyers, especially those employed in the southern and eastern sectors of Chennai. Its allure lies in excellent road and rail connectivity, encompassing suburban, metro, and MRTS options, rendering it an attractive prospect for middle-class first-time property buyers.
Porur: As the construction of the metro system surged forth, Porur emerged as a rapidly burgeoning locale. The impending metro connectivity factor decisively contributed to the upward trajectory of property prices in this area.
East Coast Road (ECR) and Old Mahabalipuram Road (OMR): ECR and OMR continued to hold sway as favored destinations for those in pursuit of individual villas and plots. The presence of essential amenities against the backdrop of scenic environs only bolstered their desirability.
Parandur: The Greenfield International Airport undertaking in Parandur has drawn the attention of developers, sparking anticipation of forthcoming announcements concerning plots and apartments in the latter half of 2023.
Infrastructure Transformations: Shaping the Urban Canvas
Chennai's infrastructure underwent a significant transformation during the initial months of 2023, poised to redefine the real estate panorama. The ongoing metro construction exerted a palpable influence on regions like Porur, Madhavaram, and OMR. Furthermore, the proposed elevation of the Floor Space Index (FSI) to 6.5 in select locations will usher in an era of multi-storied constructions, particularly along the Outer Ring Road (ORR) and specific pockets of Anna Salai. This endeavor will culminate in Chennai's vertical expansion, with skyscrapers soaring to heights of up to 100 floors. To provide context, the current FSI in Chennai stands at 2.5 for non-high-rise buildings (NHRB) and 3.25 for high-rise buildings (HRB).
In Retrospect: An Overview of H1 2023
The Chennai real estate sector exhibited unwavering resilience and growth, even in the face of formidable challenges. Developers adeptly cleared their unsold inventory, concurrently announcing fresh projects. The demand for properties boasting advantageous locations, quality craftsmanship, and appealing pricing structures remained robust. Nevertheless, several key price trends significantly influenced the real estate landscape in 2023:
1. Government Policy Revisions: Recent pronouncements by the State government, encompassing heightened registration charges and guideline values, exerted a palpable impact on property prices. Homebuyers found themselves grappling with additional financial burdens arising from these policy adjustments. It is incumbent upon the State government to contemplate a reduction in guideline values and a potential rollback of the elevated registration costs.
2. Unit Size Preferences: The inaugural half of 2023 bore witness to a discernible inclination among homebuyers toward more spacious abodes. Factors such as remote work arrangements and the imperative for increased living space steered purchasers toward larger properties, including 2.5-BHK, three-BHK, 3.5-BHK, and four-BHK units.
3. Amenities: The prevailing trend underscores the preference among homebuyers for pragmatic amenities, including fitness centers, jogging tracks, amphitheaters, and play areas, while displaying a growing reluctance to bear the costs associated with amenities characterized by limited utilization, such as squash courts and swimming pools. A financial comfort threshold for maintenance charges ranging from Rs 1.5 to Rs 2.5 per square foot has crystallized among homebuyers.
Anticipations and Counsel for Prospective Homebuyers
As we look forward to the remainder of 2023, the real estate industry is poised to maintain its robust performance, with developers steering their focus toward projects that harmonize location, pricing, and quality benchmarks. Prospective homebuyers are well-advised to conduct meticulous due diligence concerning developer credentials, geographical location, and construction standards before embarking on a property acquisition.Furthermore, developers are fervently beseeching the government to explore avenues for granting input credits to alleviate the five percent GST burden. Concurrently, a revaluation of the escalated registration charges and guideline values is urged in order to redound to the benefit of homebuyers. Many developers have successfully liquidated their unsold inventories, with numerous new projects on the horizon. There exists a palpable air of excitement surrounding these ventures, which faithfully adhere to the trifecta of location, pricing, and quality standards. A recent illustrative example features a leading developer who managed to vend 118 units within a mere two-day span.
In summation, Chennai's real estate market stands on the precipice of a promising future, brimming with positive developments slated for the forthcoming months. Prospective homebuyers should remain vigilant, seizing opportune moments while keeping a watchful eye on governmental policy shifts that might impact their decisions. With judicious planning and discernment, the dream of owning a home in Chennai can undoubtedly materialize for the aspirational buyer.