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.
The ever-increasing workforce of these segments is predominantly young. They have cash to spare making them very consumerist. This is reflected in the emergence of shopping malls, supermarkets and the like which are situated in prime locations costing the earth. This workforce needs housing mostly in prestigious localities. Then there are those who look for budget flats. Even second hand flats fetch premium prices. With banks coming forward to offer easy home loans, even the common man can realize the dream of a house of his own. It is wiser to pay the monthly installments to the bank with the cash that goes down the drain as rent.
Many of the prestigious IT players have made their home in Chennai along with the Tier-1 companies. This is because the city is well known for its technical education centers. As a result, the companies are assured of a steady supply of qualified technical personnel.
The volatility of the stock market is diverting funds to the real estate sector which is getting more and more attractive days by day. Satellite townships springing all along the suburbs make such investments very much possible. The easy home loans provided by the banks enables even the common man to own a house of his own. Such development is evident down the Mahabalipuram Road with the consequent increase in land prices. The situation is the same in the major industrial estates of Guindy and Ambattur where a ground of land costs almost half-a-crore rupees.
The irony of the situation is that none of these are happening within the city limits. Most of the ongoing construction projects are located in the suburbs that are sparsely populated.
As more and more companies join the bandwagon with their attendant workforce, it is only safe to assume that the real estate sector is expanding by the hour making Chennai a sprawling metropolis with a unique skyline of its own.
