Property News From Chennai

Chennai is emerging as a vibrant and healthy Real Estate Market across all Segments for South India.

Office Space Market: The last 2-3 years have seen considerable demand increase in the Chennai Office Space Market. A whopping 65% of the total Office Space demand originates from the IT/ITES industry, having grown almost 7 times since the year 2002. This trend is due to a search for alternative locations, better infrastructure, low attrition levels, and a large pool of qualified personnel. With an increase in the demand, the rental and the capital values have also recorded a marked increase of 8%-10% and 5%-15% respectively. At present, this commercial is chiefly concentrated around peripheral locations of Guindy, Anna Nagar, Ambattur, Adyar and IT Highway (Old Mahabalipuram Road) due to availability of land from the Government and private land owners. According to Official sources, around 80 IT parks have been given permission to set up in the last 12 months.

Residential Market: The continued upsurge in the IT/ITES industry in Chennai has resulted in an increased demand for residential space as well. Other contributory factors such as easy availability of housing loans, higher disposable incomes, high quality infrastructure, etc., have also caused an upsurge in demand for better living conditions with added amenities and quick absorption rate (almost 95%) within 6 months from the launch of a project. This demand remains unaffected although capital rates have increased by 30%-40% per annum. Areas around the Old Mahabalipuram road and Poonamalle High Road have seen considerable residential development.

Retail Space Market: Pioneering the Mall Culture in the country with the opening of Spencer Plaza in the early 90’s, Chennai, however, has not seen the emergence of many new malls. Organized Retail Marketing is now gaining focus as, at least 12 new high end malls are slated to open in Chennai in the next few years. The important highstreets of the city include locations such as Anna Salai, Nungambakkam, T Nagar, Pondy Bazaar and the Old Mahabalipuram Road. Other prominent retail locations are the suburban markets of Anna Nagar, R.K.Salai, Besant Nagar and Egmore.

Another trend observed in the retail scenario is the development of concentrated retail hubs within residential pockets. Most leading brands have retail outlets in these hubs to service the ready consumer base.

The entry of National level developers like Hiranandani from Mumbai and RMZ from Bangalore will also have a long term effect on the quality of supply in the Chennai Real Estate Market.