The present real estate situation in Chennai is characterized by skyrocketing real estate prices. It is estimated that this increase amounted to 8-15 % over the past few years and the situation is likely continue. A number of factors have contributed to this development. The deciding factor that gave rise to this condition is the emerging BPO and ITES companies that are mushrooming all around the famous city. These are causing rental values to go through the roof. An atmosphere favoring rapid industrialization is also playing its part in the promotion of this state of affairs.
When a 28,000 sq ft property was sold at the staggering rate of Rs 14,830 per sq ft at the posh Boat Club Road in Chennai in December 2005, little did the investors know that this property deal would send property rates soaring in the city. While most real estate developers would like to think that the realty boom, and huge investment in the real estate sector has seen world class infrastructure spring up in cosmopolitan cities like Mumbai, the financial capital of the country, Delhi- the political capital of the country and Bangalore, the IT hub of India, this is not strictly true. Experts opine that Chennai is not left behind in the race. The real estate boom has caught up not only with the major cities in the country, but relatively small towns like Chandigarh, Hyderabad, and Pune are also tracing sky scrapers. In January 2008, Chennai-based Sabari Foundations declared that they are to develop 308 apartments on a 10-acre site near the Sipcot Industrial complex at Siruseri. The estimated project cost is to the tune of Rs 180 crore.
For the past few years, mostly since the IT boom and lot of NRI’s pumping money into real estate in India, prices, especially in the major cities, have skyrocketed. Chennai is no exception. Chennai, located in South India, where most of the IT companies started booming, witnessed a very high appreciation in property prices over the last few years. Flats are being priced at around 4500 per sft in areas like Egmore.
