Chennai is acknowledged as an English speaking work zone and qualifies as a traditional BFSI (Banking Financial Services and Insurance) domain and has tremendous strengths as a city which gives importance to quality health care and education system. This is had brought global recognition to this city and Chennai is now among the top 12 cities that attract real estate investment due to these factors.
Savills World Research and Deutsche Asset & Wealth Management say that Chennai is one amongst the 12 cities in the world that shows potential for high real estate investment yields. The Investment prices are lesser these cities are more attractive and developing economies such as Jakarta and Chennai, have a high number of ultra-high-net-worth residents, it said.
Portfolio management experts at Ikia Consulting Services who has analyzed the potential for investments in Chennai say that the city offers opportunity for high capital growth on investments made. Real estate values which ride the fortune wheel in many cities is looking at contributing towards economic strength. The IRR (Internal Rate of Return) trend is 20% for residential projects and 10% for commercial projects in the city; while rental give a 5% returns.
Source – Times of India