The first half of 2015 has seen lesser launches in Chennai city, due to excess of inventory available and lesser demand. South Chennai however had the highest of inventory available (57.60%) and also had an absorption rate of 40%.
Adyar, Velachery, ECR, Sholinganallur, Perumbakkam and Medavakkam, are sought after residential and commercial spaces due to the good physical, social infrastructure and civic amenities. ECR, Velachery, OMR and Tambaram are attracting buyers as these are good destinations for long term investment.
The four lane stretch of 33.5 km on ECR between Akkarai and Mamallapuram will be completed by March 2016.
The ongoing construction of Phase II of the Outer Ring Road, linking the suburbs, and the proposed peripheral ring road project, are expected to improve the demand and capital values of the projects located in far-away suburbs, which are yet to be developed. Buyers are choosing to invest here because they are looking at the potential of the area after the Corporation limit is extended to Perumbakkam and Pallavaram.
Chennai’s development has always been along the transportation corridors, these are called ribbon developments. The project types vary depending on location, USP, connectivity and land value. About 30-40 per cent of buyers belong to the IT sector, followed by NRIs (25 per cent). Majority of the buyers fall under the middle and upper-middle group, with a monthly income between Rs. 50,000 and Rs. 1,00,000.
Source: The Hindu