Pros & Cons of Investing In Chennai

Chennai, the capital city of Tamilnadu is a city which is developing at a faster pace. So far there has been an immense transformation and the progressive rate is high. In the recent past, Chennai has been considered as a place for residence as it was outside the radar of general north-to-south migration. At present, the city is considered to be one of the best cities to live in as well as to invest in. The unprecedented modernization since 2000 has led to the improvement of infrastructure, connectivity, and support functions which led to the increase in the number of investments and improved the market condition in Chennai giving it a complete makeover.

Pros of investing in Chennai

Some of the pros of investing in Chennai include:

The hot destination 

Unlike markets such as Bangalore, Delhi, and Mumbai which are saturated, the Chennai market offers tremendous growth even now. The Chennai real estate market stretches from Puzhal in the north to Madurantakam in the south, and from Mylapore in the east to Arakkonam in the west. It is noteworthy that all these plots offer great real estate value to the investors. The real estate property offers capital appreciation and the rates of the property shoot up quickly. The investments made anywhere in Chennai and outside Chennai are a great investment as the city is undergoing immense development and the government is taking initiatives actively to improve connectivity such as construction of bridges, providing metro and rail facilities, etc.,  and infrastructure which attracts not only the local investors but also international investors. 

Business conditions 

Chennai has been a spot for investment just like Bangalore and Hyderabad. There has been an increase in the business activities in Chennai now than before. Chennai not only attracts people within Tamilnadu but also migrants coming in from different parts of India for employment and a better lifestyle. The population reports have shown an increase in the population of non-Chennaites today more than there were before 2000 and at present, it is home to both skilled and tertiary level workforce that has migrated from places as far as Bihar and Punjab. 

A great example of the business developments in Chennai includes the development in Sholinganallur whereby house owners enjoy the return on investment which has been unheard of before, by renting out their properties, to a large population of migrants. The migrant population of IT professionals has changed the economic landscape of Sholinganallur and has made it desirable for real estate investment. 

Better lifestyle

Chennai offers a better lifestyle and comfort to its citizens. Chennai offers residential property which is closer to the workplace and nearer to the school. Chennai also offers nightlife and other recreational activities for people in Chennai, making it furthermore desirable. The localities outside the main region also say an increase in the investment as the city has great and effective connectivity means. For example, OMR offers an excellent location, easy accessibility & travel means, luxury and kind of posh feeling, good rental income, etc. which has led to the increased demand for residential property in Chennai. Real estate price increase happens on a Y-Y basis in OMR which has a further added advantage. 

Stability 

South India, mainly Chennai has been recognized for its stability socially, economically, and even politically. This feature of the city has made setting up startup ventures easier for those looking to start up new ventures and also a business. The fact that Chennai has political stability has also helped in increasing the number of investments made by MNCs (Multinational Companies) which lead to large-scale investments. 

Cons of investing in chennai

Some of the limitations of investing includes: 

Saturated golden old suburbs

The upcoming suburban areas of Chennai may be offering everything required by an individual in terms of amenities and facilities, the older suburban may not be able to yield the investors much in terms of return on their investment even though they cost a lot. For example, a house in Teynampet costs a lot and may not be able to give you any necessary return or a big hike on resale as it would have reached close to the ceiling limit. 

The widespread area as a disadvantage

It is not worthy to invest in a property that is of no use or limited use. The stretch of the city is another added disadvantage to the investors and may result in situations wherein you have invested in a good locality but have to travel a long way to reach your office. Thus the ideal location for real estate investment is the property proximate to facilities like  schools, hospitals, transport connectivity, markets, etc.  Thus the widespread area of chennai is at a disadvantage as the affordable housing units are located in the outskirts of the main city.

The Lack of Choice

Chennai is a large city that has almost next to nil or fewer plots to offer because it is a widespread property. The main type of construction activities happening in Chennai include those involving the demolishing of existing standalone buildings, which comes at exorbitant prices. Other major construction activities are made for flats. Thus the major challenge faced by the investors is that there is an unavailability of the choice between plots and flats. Most of the builders develop flats that consist of just basic rooms and in case of lack of money, you may have to settle for a house that is rented. 

Bottom Line

Investment in Chennai is a great option as it is developing at a faster pace. It is a hot destination offering a better lifestyle and job prospects. Some of the localities in Chennai offer excellent scenic views due to its geographical advantages, easy accessibility and travel means due to the development in infrastructure and connectivity, luxury and kind of elite feeling, good rental income, etc. Chennai markets provide various investment options like commercial, residential real estate, that increases the flexibility in choosing the investments

Assetmonk is an investment platform offering properties that are safe to invest in and offering a high rate of returns. Assetmonk offers properties such as Sparkle towers which are located in a prime location of Kelambakkam. It is a mixed residential township that offers a few hundred residents in the previously constructed towers. It attracts large-scale investments due to its locational benefits as major IT parks are situated close to these towers. Assetmonk also offers projects such as Panama Blue towers, PCC Series I, and PCC Series II.