Property Prices Soar in Chennai

December 29, 2006	(3 votes, average: 3.67 out of 5)  Loading ...
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Soaring prices of property in Chennai has forced property developers there to scout the city outskirts for new business prospects. The demand for dwelling units is shooting up as if there is no tomorrow. According to property surveys, Chennai will require at least 50,000 new homes by 2020.

With such a strong demand for houses, there is a stiff competition in the market which has spurred significant price and rent increases. Non residential activity is also at its best with demand for commercial and retail properties seeing appreciation. A square foot of space in the city’s upscale Pose Garden apartment now costs Rs.14, 500.

A multitude of multinational companies have spread their wings to Sriperumbudur, the place strategically placed on the Chennai –Bangalore highway. Also, many other giant conglomerates are planning to set their establishments in the fast flourishing Chennai. The list includes Rs.220 billion Alliance Group that is all set to develop a 300-villa project west of Chennai. The apartments in this villa will cost in between Rs.6 million – Rs.50 million.

Vishranti Homes’ is believed to be the costliest of all residences with a 4,200 sq ft home costing about Rs.60 million. Real estate market in India is currently valued at $12 billion and its annual growth rate is turned out to be 30 per cent. Property market of South cities is flourishing as no other. Tamil Nadu real estate has attracted an investment of worth Rs.30 billion. The potential of property sector expansion here is high, says Manoj Namburu, managing director of the Alliance group.

Most realtors in Chennai run their real estate business on small scale. The Vijay Shanthi group, recently offered only 15 apartments, each costing Rs. 40.25 million. Likewise, the Fern, close to Siruseri located in south Chennai, has developed 48 villas on seven acres of land.

Staying in step with the booming mall culture, Chennai also features some of the best malls such as Shoppers Stop, Spencer Plaza, Lifestyle, Westside, Landmark, Globus. All these listed shopping arcades are planning to expand their horizons.

News Published Under:   Real Estate India, Chennai, Real Estate Developers |

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