Comments on: Real Estate Slowdown in Chennai? http://internationalpropertyinvestment.com/real-estate-slowdown-in-chennai Property Investment around the World - Buying Investment Properties Thu, 18 Mar 2010 11:19:47 -0800 hourly 1 By: riathareja http://internationalpropertyinvestment.com/real-estate-slowdown-in-chennai#comment-3496 riathareja Thu, 10 Apr 2008 06:42:09 +0000 http://internationalpropertyinvestment.com/real-estate-slowdown-in-chennai#comment-3496 Over the last four years, the residential real estate market in Chennai has experienced a period of excess demand making it a seller’s mar ket. A number of people from other parts of the country have been attracted to Chennai due to the booming IT, BPO and other industries in the city. People are getting higher-paying jobs and can afford to buy bigger houses. Demand for housing has increased, vacancy rates fell and capital values have increased, disrupting the balance of supply and demand. However, it took time for the Chennai developers to recognise and respond to the increased housing demand, and even more time to plan, finance, approve and complete new projects.But, over the last quarter the residential market in Chennai has seen signs of stagnation. The key reason behind this slowdown has been higher prices and interest rates impacting affordability, and to a less extent excess supply in a few micro markets, rather than slow down of economy. Developers, who were selling their entire projects in a few days, are now taking months to sell their unsold stock. When compared to cities such as Delhi, Mumbai, Pune and Bangalore the completed stock of new apartments in Chennai is low. In the short term a number of developers will offer a variety of free offers (such as free car parks) and flexible financing options (such as interest waiver during construction period) so that they do not have to bring down the prices.For more view- realtydigest.blogspot.com <em>riathareja's last blog post..</em><a href='http://feeds.feedburner.com/~r/blogspot/ziph/~3/266917005/owing-house-distant-dream.html' rel="nofollow">Owing a House – A distant dream?</a> Over the last four years, the residential real estate market in Chennai has experienced a period of excess demand making it a seller’s mar ket. A number of people from other parts of the country have been attracted to Chennai due to the booming IT, BPO and other industries in the city. People are getting higher-paying jobs and can afford to buy bigger houses. Demand for housing has increased, vacancy rates fell and capital values have increased, disrupting the balance of supply and demand. However, it took time for the Chennai developers to recognise and respond to the increased housing demand, and even more time to plan, finance, approve and complete new projects.But, over the last quarter the residential market in Chennai has seen signs of stagnation. The key reason behind this slowdown has been higher prices and interest rates impacting affordability, and to a less extent excess supply in a few micro markets, rather than slow down of economy. Developers, who were selling their entire projects in a few days, are now taking months to sell their unsold stock. When compared to cities such as Delhi, Mumbai, Pune and Bangalore the completed stock of new apartments in Chennai is low. In the short term a number of developers will offer a variety of free offers (such as free car parks) and flexible financing options (such as interest waiver during construction period) so that they do not have to bring down the prices.For more view- realtydigest.blogspot.com

riathareja’s last blog post..Owing a House – A distant dream?

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