How is the real estate market in Chennai ?

Chennai is regarded as one of the finest and most cosmopolitan cities in India to live in. Many people are considering moving there because it has seen significant infrastructure improvement in recent years. Because of its convenient proximity to beaches, rich culture, ancient temples, and expanding IT industry, Chennai has a compelling allure that draws visitors from all over the country as well as foreign nationals.

Chennai has always had a greater demand for housing due to its status as an industrial powerhouse and rapidly expanding metropolis. Talented young people from all across the nation have been drawn to the city recently because of its reputation as a center for the IT industry. Chennai is seeing an unparalleled demand for properties as a result. Chennai's residential market has seen a downturn during the COVID-19 outbreak, much like many other cities in the nation. But the residential market in the city is about to bounce back.

Experts and a number of real estate portals predict a steady increase in Chennai real estate prices. Considering Chennai's residential real estate market's potential, making an investment there is highly recommended. Your investment will pay off handsomely, with significant returns expected every year.

Now let's explore the factors that drive the real estate demand in Chennai

Thriving IT hub in Chennai

Bengaluru is the nation's largest IT hub, followed by Chennai. The city is well-known as the center of technology and startup businesses, and it is home to the biggest IT park in India. Chennai is home to several different software services and companies that possess development centers. Also, did you know that seven out of fifteen of India's top tech companies are based in Chennai? Yes, that's right!

Chennai has long been a center for industry. Chennai's economy is growing quickly now that the IT sector has taken off. The city is home to some of the largest IT parks in the nation, including TIDEL Park, DLF Cyber City, and Embassy Splendid Techzone.

Here is the list of Top IT Parks in Chennai. Read to know about them.

Infrastructure upgrades in Chennai

Although Chennai has always had excellent infrastructure, the city is about to experience a significant change in the years to come. Chennai is reviving its water bodies, town and municipality roadways, sanitation networks, and significant road projects in addition to its already existing metro network.

Every government that takes office in Chennai, according to some studies, declares a variety of infrastructure projects aimed at improving the city overall. The Chennai government of today has made several announcements aimed at fortifying and energizing the city's infrastructure.

Education

Chennai ranks among the highest literacy rate in India with about 81% which in turn is a key for socio-economic progress. There are various educational institutions offering quality education programs. Chennai is home to some reputed schools, colleges and research institutions such as IIT Madras, Stanley Medical College, Anna University, Central Leather Research Institute (CLRI), etc.

This robust educational infrastructure significantly impacts Chennai’s real estate market. The presence of these esteemed educational institutions generates a steady demand for housing, thereby increasing both rental and residential property demand. Given the large student population, there is a high demand for rental properties, particularly in areas close to these educational institutions. This demand escalates rental yields, making these areas lucrative for real estate investors. Localities with good schools and colleges often witness better infrastructure development, enhancing the overall attractiveness of the area and boosting property prices.

Healthcare

Chennai, known as the “Health Capital of India,” is renowned for its healthcare facilities. The city’s healthcare system significantly impacts its real estate market. The presence of healthcare professionals and medical tourists creates a high demand for rental and residential properties, especially near healthcare institutions. This demand boosts rental yields and property prices, making these areas attractive for real estate investors. Areas with good hospitals often see better infrastructure development, enhancing the locality’s appeal. Thus, healthcare in Chennai plays a significant role in shaping the city’s real estate market. Check out the Top Hospitals in Chennai and get to know more about the reason why it is the “Health Capital of India”.

Automobile industry

Chennai known as the “Detroit of India”, carries a significant reputation in the global automobile industry. The city is home to the Automotive Corridor, a specialized zone where numerous automobile factories are located. Among these, Oragadam stands out with its unique project dedicated to car testing and research. Chennai’s strategic advantage is further amplified by the presence of three major ports, facilitating smooth import and export of goods. In addition to commercial vehicles, the city also takes pride in a dedicated factory for manufacturing military vehicles. Overall, Chennai has established itself as a crucial hub in the world’s automobile industry.

Upcoming Metro & transportation

Linking the city's central area to Chennai Metro Rail's arrival in the city is a huge benefit. The city's traffic loads have decreased somewhat because of this top-notch Metro Rail. With this, we anticipate that the city will undergo a significant metamorphosis as the Metro Rail network expands to more and more locations, propelling Chennai's growth.

With completion anticipated by 2025, the second phase of the Chennai Metro Rail Project is now underway. Chennai residents can then take pleasure in a hassle-free and stress-free commute to work and back. Chennai's transport network, which includes metro networks, suburban railroads, and buses, is incredibly effective. When combined, these guarantee smooth connectivity throughout Chennai.

Booming Industries with employment

Chennai, being a major industrial center, has always provided plenty of job prospects. Chennai is currently fast becoming a desirable location for workers in the IT and related industries as a result of its rise to prominence as an IT powerhouse.

The automotive, SaaS service, medical tourism, hardware manufacturing, data centers, and fintech industries form the backbone of Chennai's economy. Its vibrant cultural history combined with its thriving economy has made it a genuinely global city that attracts visitors from all across India and the world.