Great Demand For Developed Plots In Chennai

Chennai’s growth corridors and the resultant infrastructure development have pushed the land prices to a new high. There’s a spurt in demand for developed plots in the peripheral and suburban areas. Investors prefer developed plots in medium to long-term so that it’ll serve as a hedge against inflation. Increase in demand, land prices in plotted development projects are high by 12% in the last one year alone in specific areas like Sunguvarchathiram-Wallajahabad Road, Trivellore, Sriperumbudur and Singaperumal Koil. Improvement in connectivity levels and proximity to both rail and bus transport, there has been a sudden force in the number of plotted development projects mushrooming in peripheral and suburban areas. Some are sold as plots others are keen to undertake housing development especially when it is developed on a larger area. According to land developers those who looking for a 5 years horizon investment period they should have invest in areas within 50 km radius of the Chennai city and those looking at a minimum investments period of 7-10 years can opt for 100 km radius. It’s only the substantial return on investment which can be derived as connectivity levels and infrastructure development take time and play key roles in deriving the maximum yield for investors. Estimate of 10 private limited companies are developing land development projects with range of amenities like landscaped, 24*7 maintenance services and clubhouse and many more. Residential plot loans are available from few institutions but a higher lending rate and the quantum of loan are restricted to a guideline value of the property in Chennai which is less than the market value. Increasing the upfront margin of money for investors seeking plot loans. Majority of housing finance institutions insist on construction within the prescribed period and investors may not benefit much out of plot loans if the intention is just to make medium to long-term gain. Residential Property of Chennai having the ground realities for investors before plunging into plotted development projects. Chennai has witnessed steady growth in residential property market in past few years with the economy springing back to action and also residential real estate market too has recovered strongly. The growth of Chennai’s residential market may be attributed bit fact is that it primarily end-user driven. Investor participation is long in nature thereby justifying a speculative market scenario. The demand of residential property was more evident in the mid-end category, primarily towards the peripheral locations of the city where majority of the affordable projects are located. Chennai market is primarily self-sustained and is not much affected by the upheavals in the global markets.