The stability and security involved in real estate investment have prompted people in metropolitan cities to increase their assets through property investment. The pandemic and post-pandemic period have also made people realize the worth of a home compared to other assets like gold or equities. As a result, cities with a solid social structure and vibrant economy have become the favorite residential option of both investors and users alike. There is a huge demand for apartments in Chennai due to the robust economy and a plethora of job opportunities.
From an investor’s perspective, the property rates are very much affordable in Chennai when compared with other metropolitan cities like Mumbai and Pune. Within a few years, the prices of commercial properties in the city are expected to rise, which attracts a lot of participants and developers to the field of real estate at present.
Let us now look at the significant benefits of investing in Chennai real estate.
SOCIO-ECONOMIC STABILITY AND CONNECTIVITY
Factors like health, education, accessibility, housing and medical care are determining parameters in the socio-economic development of a city. It is needless to say that the social infrastructure of Chennai is the best if we are to judge the stability of a city in terms of the parameters mentioned above. Chennai is popularly known as India’s health capital because of the affordable health services offered by hospitals both in the private sector as well as the public sector. The city also attracts a large number of medical tourists every year.
The socio-economic stability of a region is directly proportional to the quality of life in that place. Connectivity/accessibility is another factor that directly impacts the holistic growth of a city. Public transport services across the city ensure that one can even reach the city’s outskirts without any fuss. Chennai is the ideal residential point for people who prefer to travel as there is easy access to the airport, railway station and highways. Several expressway projects are also underway, which would further improve the existing conditions. Some other proposed projects include Greenfield airport and the Monorail project.
Since Chennai has become an important hub of electronic, automobile and IT industries, the properties’ rates are expected to rise by 8 to 12% by 2024. Even the city’s outskirts are home to several software companies, which opens several job opportunities for IT/Engineering graduates. Key players like TCS and HCL have sensed the changing consciousness of the times as they have established their hubs in industrial suburbs like Guindy, Oragadam and Ambattur.
The rise in investments in the suburbs has prompted the government to immediately improve these areas’ infrastructural conditions. Speedy development also led to the establishment of new colleges, schools and health clinics. Chennai got its nickname “The Detroit of India” due to such IT companies and Original Equipment Manufacturers. With these industries finding a firm foothold in Chennai, they open job opportunities in abundance for the youngsters. This means that the need for apartments in Chennai will also increase proportionally.
RETURN ON INVESTMENT (ROI) VALUE
ROI is a determining factor in any mode of investment. If a property does not have a reasonable value in return, investors would naturally hesitate to buy it. Fortunately, apartments in Chennai have remarkable selling value due to the developmental activities taking place in and around the city. With experienced companies coming to the fore in Chennai, investors and end-users can materialize their dream residential projects at an affordable price.
The selling price will certainly be higher than the original cost of investment. As per analysts’ report, city-based builders/developers have sold over 2750 properties between October 2020 and March 2021. There is a significant rise in the number when compared with the previous quarter (2100). It is also important to note that lockdown and the pandemic have not affected the real estate industry in Chennai since enterprising builders and developers offer special financial benefits and discounts to potential buyers.
Another critical fact to consider is that 69% of Tamil Nadu people belong to the working-age category, which denotes increased opportunities for those in the housing sector. That is why Tamil Nadu retained its foothold in the real estate sector even when major cities faced a setback during the pandemic and post-pandemic periods. Furthermore, Chennai offers a safe environment for its residents.
All of these factors make Chennai one of the best cities in India to settle in, and it is no wonder why apartments in Chennai are always in such demand.