Chennai, the capital of Tamil Nadu, is one of the biggest cultural, economic and educational centres in South India. Mercer’s Quality of Living Survey noted Chennai as the safest city in India and is exemplified by the fact that it has the third-largest expatriate population in the country.
Also justifiably called the ‘Detroit of India’, Chennai has over one-third of India’s automobile industry operating there. Chennai has grown significantly in the last few years. Education prospects and employment opportunities, along with a decent lifestyle, are the key drivers that attract people to the city.
With increasing population, the city’s real estate landscape has also grown by leaps & bounds and is now spread across various zones of Chennai. Whilst the real estate development paused momentarily due to massive floods of 2015, the fundamental demand drivers remain intact and the city is likely to continue on its growth trajectory in the future periods, reinforced by:
Diversified Economic Base
Chennai’s diversified economic base is anchored by the automobile, software services, hardware manufacturing, healthcare and financial services industries. This diverse economic base is ably supported by the Chennai port, which is the second largest in India and a key facilitator for import-export of goods. The presence of a vibrant economy creates ample job opportunities and leads to massive real estate development in the city.
Infrastructure
Chennai’s expansion across various regions was ably supported by the growth of physical infrastructure with major initiatives such as Outer Ring Road (ORR), Inner Ring Road (IRR), East Coast Road (ECR) and the development of MRTS.
The Government’s focus on infrastructure development is evident with major projects such as Chennai-Bengaluru Industrial Corridor, ORR Phase II, metro and monorail corridors being planned to improve connectivity and accessibility to various parts of the city. With improved connectivity, any region’s real estate development obviously picks up the pace.
Expanding Zones
Chennai is restricted only on one side by the Bay of Bengal whilst the city is free for development on all other sides. This provides a latent advantage for the widespread development of new zones and in-turn drives the real estate growth.
Chennai’s real estate market is largely end-user driven and as a result, there is minimal speculation. Whilst this results in a slow and steady growth, the fundamentals remain intact and the future growth potential of the city is undisturbed.
Reputed Developers Chennai’s real estate market has transformed from dominance of local players a few years ago to entry of large reputed developers such as House of Hiranandani, Godrej Properties, Purvankara, Mahindra Lifespaces, Pacifica, PBEL, etc. This truly demonstrates the city’s potential as large developers are expanding their portfolio in Chennai.
All these factors make luxury apartments in Chennai an attractive city to invest in – but, as is always the case, not all its regions are created equal when it comes to investment potential. Let us examine some of Chennai’s hottest real estate investment markets.
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