What can Investors look for in the Real Estate market in Chennai today and tomorrow?

Real estate of Chennai has been observing continuous and rapid growth in the last two decades. And the forecast with the new residential projects in Chennai is also big. There are different factors that contribute to this kind of upsurge. Demographic attributes represent one of the segments that are responsible for the colossal change the city has been witnessing. Demographic factors include age, occupation and income of Chennai residents that trigger the development of real estate in the city. A few decades ago, when Chennai was not characterized by new age industries had a different community of people compared to the ones now. Traditional occupations are replaced by the more contemporary kinds. Salaries have grown larger and so is the residents’ purchasing power. With an overall increase on several factors, it is only but natural for lifestyle changes to become larger than life.

New residential projects in Chennai have undergone a transformation from small independent homes to large green buildings, integrated townships, luxury apartments and opulent villas much like other metropolitan cities of the country and other parts of the world. So, what caused such a mammoth change?

• Chennai has nurtured a strong economic base with several industries becoming a part of its economy. Financial services, automobile and hardware manufacturing and Information Technology have grown in large proportions thereby making Chennai one of the most sought after cities for industrial growth. The realty sector is fuelled by large scale industrial development.

• Business Process Outsourcing (BPO) is another industry that has contributed to the boom of diverse sectors in Chennai; the real estate market included. Real estate boom in Chennai has developed primarily because of the working population in the BPO and software services industries that have big employment rates and handsome salaries.

• Purchasing power is a direct result of good salaries. The working population today can afford a lot more luxury and hence luxury apartments and villas are meeting high demand today. Both residents of the city and the migrant population have developed interests in Chennai’s real estate market.

• Consumerism is growing rapidly into a big culture in the city. This kind of development in retailing is because the purchasing power of people has increased and thereby accounting for better lifestyle and seeking better options and choices. The hospitality sector is also growing dramatically with several up-market international hotels choosing Chennai as their next destination.

New residential projects in Chennai today have innumerable reasons to grow.