What to Expect From Chennai Real Estate Markets

By: George Gonigal

Driven by strong demand from multinational companies, banking and financial sectors, commercial rental values in the Central Business District (CBD) of Chennai have increased in the past 12 months. Notably, the Chennai CBD comprises Nungambakkam, Salai, Anna Nagar and Adyar areas. According to city-based property brokers, most of the companies look for A Grade quality office space in Chennai and expect robust infrastructure around their office.

The real estate developers operating in Chennai commercial real estate space observe that Old Mahabalipuram and Guindy are among the most preferred commercial areas for IT/ITES companies. Most of the companies are coming to these regions and the real estate values are likely to take a ride over these trends. As per studies, rental values of commercial properties viz. offices and shops located at CBD region is reported to have the highest rental values at around Rs 45-55 per sq. ft. These rental values decreases off CBD region of about Rs 35-40 per sq. ft.

At present, commercial rental value in Chennai varies from Rs 30-55 per sq. ft, which is about 5-15 per cent higher as compared to last year.

Residential property

Chennai properties around the south-west part of the city are likely to enjoy a northward rally in the next couple of years. The business opportunities created by the modernization of airport would boost the property values in the areas around the facility.

According to the property experts, the areas of Guindy and Vela Chery would be among the most-benefited. Besides, the property prices in Chennai's Saidpet area are also likely to go up as the airport project would progress. As far as investment opportunities in are concerned, investors can delve for investing in properties around Inner Ring Road as it connects the central city localities like Kodambakkam and Mambalam with the airport, and is likely to reap rich dividends in the near future.

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