Chennai Real Estate: Investors to come into Picture

A feature article by an Alumbo member, Apr 19, 2008         

Summary: It is largely the end-user segment that drives Chennai real estate market. However, the scenario is changing fast.

 
It is largely the end-user segment that drives Chennai real estate market. However, the scenario is changing fast. Investors have also started taking interest in the markets and developers have also started projecting their properties as investment tools.

The entry of the several financial giants in the local market of Chennai, like the Government Investment Corporation of Singapore, has resulted in rise in real estate values all across the city.

Establishment of IT companies, educational institutions and hospitals in the sub urban areas of the city have further opened the channels of investment.

The old Mahabalipuram which is known a IT corridor is also seeing a new face. This six-lane highway stretching 20 kms is home to many MNCs who are setting up operations here. Price of residential land in the Guindy and Ambattur are also escalating.

In the office space segment, areas such as Poes Garden, RA Puram and Harrington Road have witnessed a rise of 25-100 per cent in capital values, in the past three years.

The reason why Chennai is attracting all the attention of the domestic and international investors is lower operational cost, availability of land, skilled manpower and low cost of accommodation.

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Rental and capital values have also shown an upswing. Property builders have entered into joint ventures to launch mega-size projects. For instance, Chennai-based Sabari Foundation is developing a project, which will cost Rs 180 crore.

Pragnya, a private equity fund, is to launch a $150 million fund "Pragnya Fund 2" focussed on real estate and hospitality projects in South India.

The pace of real estate development in Chennai is quick and extensive and a number of realty majors both national and global are making their investment in the city to feed in the growing demand by IT professionals.

For more details on Chennai Real Estate, log on to magicbricks.com

George Gonigal provides you the best and latest information on Chennai Real Estate Developers, If you want to Buy Apartments in Chennai, he suggests you log on to magicbricks.com

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