Chennai has always been a city of extremes, be it climate or the fluctuation of prices. For instance, there was a lull period in the real estate market for a short period but again lately the realty sector has started booming. The property values have started seeing positive trend in the city specifically - the 3BHK and 2BHK flats in Chennai are much in demand.
At present, Central Chennai accounts for nearly 17 percent of total residential property. This clearly highlights that there has been a considerable increase in residential properties around this area in comparison to the past. The prices in T.Nagar and Nungambakkam have increased multi-fold in the last quarter. Projects in T.Nagar are mostly 2 and 3BHK units. The size is usually 700-1200 sq. ft. in the 2BHK category and 1200-1800 sq. ft. in the 3BHK category. On the other hand, Nungambakkam has more options in large housing format (3 and 4BHK) in sizes ranging between 1300-2800 sq. ft.
T.Nagar, Alwarpet and Nungambakkam are the most active rental markets in Central Chennai and offer maximum number of choices mainly in the 2 and 3BHK category. However, higher increase in capital values over rental values kept the rental returns intact between 2.0-2.17 per cent. This has led to a drop in gross rental returns in these areas by 0.20-0.50 per cent.Central Chennai primarily offers apartments and moreover has limited options in the independent houses category for the 2 and 3BHK configurations. T.Nagar offers maximum number of units on sale in sizes ranging 700-1400 sq. ft., whereas, Nungambakkam offers unit sizes of 1400-2000 sq. ft.
Central Chennai offers maximum number of choices in the budget of Rs 1 crore and above at 32 per cent. However, demand was well spread across budget ranges, starting from Rs. 40 Lakh. High land prices were the only deterrent for limited supply in the price bracket of Rs. 40 lakh to Rs 1 crore. Chennai real estate market trends show that even in a slow uptake in the residential segment, properties close to commercial hubs in the Central region continued to remain safe investments. Furthermore, proposed and existing infrastructure development such as metro network, MRTS, Chennai-Bangalore Industrial Corridor is expected to keep up the Chennai real estate market in the long run.
