Why you should not write off real estate in Chennai

Real estate in Chennai is witnessing a slump at the moment. 2016 has not been the year of this metro. The capital city of Tamil Nadu is considered to be the fourth most populous metro in the country right after Bangalore. While realty is Bangalore is not doing too badly these days, Chennai has been dropping behind its neighbour for the past few years. Is the beginning of the end for real estate here? Should be writing this city off completely? Let’s have a look at what’s happening in the city to get some answers.

To answer the first question, this is definitely not the beginning of the end. Yes there is a slowdown being witnessed by the market as a whole. But in certain parts, the city is doing quite well. The problem with the city presently is that it is becoming too expensive. The middle class which makes up for a fair chunk of the population is not willing to fork up the kind of money which is needed to buy properties in the city presently. Affordability is one of the main drivers for real estate growth. When this goes missing, the unsold inventory tends to go up. But the equation might change when a price correction comes about. Many industry insiders are of the opinion that a price correction is due for the city soon.

Another reason for the slowdown this year is the fact that the city has witnessed one of the worst natural disasters to hit it in over a century. The city saw unprecedented rains during December 2016. This showed that the city was not prepared to tackle such a problem. Its infrastructure is not what it is supposed be and this has terrified some of the potential buyers from coming into the market.

Though properties in Chennai are at not their most affordable right now, this should not stop people from investing in this market. Apartments in Chennai which are located in some of its more affordable markets are still worth buying. The central zone and some of the micro markets in the southern micro market are quite expensive. Ignore them if you cannot afford them. But there are options for affordable properties in Chennai. The northern, western and southern zones are littered with affordable options.

If you are looking for apartments in Chennai which will give you good value for the money you spend, then head to the southern part of the city. Though most of the micro markets here are saturated, there are some pockets which are still worth looking into. The Old Mahabalipuram Road and the Grand Southern Trunk Road are located here. They both are a mix of commercial and residential real estate options. They are also a mix of saturated and upcoming markets. So if you do your research properly, you might be able to get a good deal. Look at areas such as Guduvanchery, Mudichur, Padur etc to find a home which will be reasonable on your pocket.