2 decades ago, Chennai wasn’t a very popular choice among Real Estate Enthusiasts. Gradually things got better and people started considering the city for their constructions and their investments. This happened when the IT sectors were set up around a few localities in Chennai. And wherever there were IT hubs and corporate offices, the real estate face of that particular area flourished.
It’s 2019, and things have definitely been a notch on the brighter side compared to the past; 2020 also will see an uphill as well. And slowly, but surely, things have been improving by considering many factors that have been planned in Chennai in the coming year. Here is a list of the Real Estate trends Chennai has been seeing in 2020, extracted from the happenings in real estate in 2019.
The Metro (Railways) Life
For a real estate area to build, it needs some sort of leverage around it. An iron-clad reason to believe that this is an accessible area and there will be a strong demand for people to live in.
One such upcoming reason is the construction of Metro stations in every suburb in the city. Metro Trains and stations have already been built and running around many suburbs and that has done some major good to those areas. People find it easier to come in and the land rates rise significantly. With the connectivity of more areas being planned this might be the next big trend in the real estate industry. Development of areas that is easily accessible from any part of the town.
Gated Community Flats
Gated community flats in Chennai have seen a rise and they have been predicted to be the next big thing in the upcoming years. With only a few areas providing all the necessary amenities, the availability of land is less, and the suburbs are the ones that are receiving the highest momentum. Take, for instance, gated communities in OMR, the area is flourishing as a residential hub. OMR is dotted with apartments and many of them are gated communities.
Factors such as the infrastructure and connectivity have made flats in OMR filling soon. Therefore the focus has been shifted to the suburbs of OMR. areas such as Sholinganallur, Thoraipakkam, Medavakkam, Siruseri, Navallur, Kelambakkam are among others that would become the first stop for gated community apartments in Chennai.
Demand for rental properties
Q3 and Q4 of 2019 would see a huge drive in the rental market for residential properties. The closing of the financial year has changed the rates of the properties as well. Many people are looking to invest in their second home so that they could benefit from the increasing rental returns in the city. The demand for rental properties comes majorly from the migrants who come to Chennai for jobs and the student population. This concludes that the rental in the year 2020 would contribute to the growth of the sector.
With the new job schemes that would be announced by the new government, there will be more and more jobs in Chennai. there would be a substantial increase in both commercial and residential real estate for this reason. people would demand to live near the areas of their work. This is evidently seen where the IT crowd are buying homes in OMR. the same is predicted to happen in the coming years. Also, because of the cash-inflow people have started investing in real estate. This pattern would continue in the coming year as well.
EMIs & payments made easy
As of 1st April 2019, the GST on the under-construction apartments has been reduced from 12% to 5 % and the GST on affordable housing has reduced from 8 % to 1 %. there is no GST amount for ready-to-move-in apartments as of December 2018, if the completion certificate is produced. This change by the central government is likely to increase the sale of residential housing in Chennai. People are becoming more and more educated on various components of real estate. The promoters are also making it as easy as possible for people to buy. loan approvals don’t take as much time these days. And the down payment of residential housing is also decreasing by the day. these factors are huge motivators for buyers.
RERA was implemented in the year 2016, but it garnered the attention of people of Chennai only towards the 3rd quarter of 2018. Now that people are becoming aware of RERA, they are looking for builders with RERA registrations. This, in turn, brings a sense of duty among the builders and pushes them to deliver. With RERA in place, in the years to come Real estate would be viewed with trusted by the public. In 2020, almost all buyers in Chennai would be aware of RERA guidelines.