The growth in commercial real estate is quite remarkable if we look at the overall country and most of it can be attributed to the increased economic activities across the nation over the years. Chennai has grown massively in terms of property rates and prices. The property prices now run in crores especially as far as the commercial real estate in Chennai goes.
As everyone knows that the Indian Economy is currently going through a slow phase and so is the story across the world; this has a bearing on the overall socio-economic condition and also the way real estate market behaves. The realty market saw stagnation in the last two quarters of 2012 and the buyers shied away from the market due to high property prices. But the beginning of 2013 saw the revival of the realty market and the buyers were back with a bang in the marketplace.
The last quarter has seen some of the best deals happening in the real estate sector and buyers have choices in terms of pricing, size, location and facilities for properties provided by builders. This has made the market viable for all kinds of buyers and investors and if we talks about the Chennai real estate scene, then the picture which emerges is quite interesting. Riding on high prices and a huge demand, the property rates in Chennai shot through the roof and realtors were amazed at the rise of prices; especially in the commercial real estate sector.
Commercial growth
The city of Chennai saw the inflow of numerous multinational companies and big national brands establish their offices in the city. The development brought with it huge amount of investment in the real estate sector and the growth which the city of Chennai witnessed remains iconic for the Southern States. The commercial real estate grew like never before and the percentage of growth was in double digits. This pushed the residential property rates as well in the city and the development was not restricted to posh areas only but spread to average and modest areas as well.
The suburbs of the city blossomed into IT and BPO hubs and witnessed the growth in the value of residential properties, which was real and perseverant.
Current Situation
The current real estate market situation is quite dynamic with each month brings new changes in the price patterns and growth levels. The investors and buyers are cautious a bit and want to be sure about the economic situation in the coming months and hence they are investing in dealings that are sure shot, safe and conventional favourites. Especially when it comes to commercial real estate, the location, connectivity, size etc. of the property matter the most.
Steady prices
As far as the commercial property is concerned, realty prices are now reaching a steady mark and staying there for some time. The assets are not getting expensive and but at the same time are not becoming low-cost as well. The rates have stabilised and the realtors are holding them there, as they expect a pick up soon.
Right time to buy
If you have accumulated money or have been holding money for some time for investment, this may be the right time to invest in Chennai. The property rates are not flying high and have evened out for the buyer which is a good opportunity for those looking for a decent deal. The same is true for both residential and commercial real estate, but the latter is more evened out and if invested today, it is likely to reap in more returns in next two quarters.
