Real estate investment opportunities in Chennai 2021

The previous few years have shaped some best forms of investment potentials in Chennai for the home-buyers. Chennai is considered to be one of the top twelve real estate markets in the world and is also one of the safest real estate investment spots. The rapid growth of the IT sector and also the city’s thriving automobile industry further boost the real estate sector. Nowadays, the outskirts of the city have also become a leading real estate destination apart from the city main center. 

The pandemic has drastically affected real estate development in India. According to the reports provided by a leading real estate portal, around 900 units have been introduced in four and five months, however, the sales remain low due to the pandemic. The various localities in Chennai which saw increased project launches are Iyyappanthangal, Vandalur, Manivakkam, Avadi, and Thirumazhisai. The area of the projects ranges between 560 sq. ft. to 2,400 per sq. ft. The price of the property in Chennai during this phase is an average price of Rs 2,500 per sq. ft.

The investment in Chennai has been a time-honored matter and the trends of apartments have drawn buyers immensely in the last decade. The demand for apartments has also increased due to the pandemic and people prefer to invest in apartments as a part of their long-term investments. The growth of the real estate sector is highly dependent on factors such as IT belt, industrial growth, and quality healthcare institutions. 

Safe investments offering high return in Chennai

People engage in ‘work and earn’ activities all their lives. Thus it is always the priority of individuals to obtain the best out of the money they invest and real estate always ranks first as the appreciation of land and houses are excellent. The return on investment on any real estate property is also excellent. This has been proven through the rapid increase in real estate investment opportunities in Chennai, which is also one of the prominent real estate markets in the world. Some of the common areas in Chennai that are best in real estate investments include OMR, ECR, Urapakkam, Guduvancherry, etc. as there is a tremendous increase in the price of the property in these regions and their infrastructure has also been gaining new shape. 

The opening up of several higher education institutions has also led to an increase in the number of suburbs in regions such as Siruseri, Chemencherry, Kelambakkam, etc. Apart from it being an educational hub, the IT corridors and infrastructure development in these areas have also further aided in appreciating the land value in Chennai, making it a safe location to invest in. The average value of the property in these regions is about Rs. 4500 sq. ft. with an appreciation value of 20-25% every year.  In the year 2019-2020, the city recorded 5.2 million sq. ft. for office space lea-sing which also shows 50% growth on Year-on-Year launch and sales. The southern and western parts of Chennai have also accounted for nearly 60% in leasing for total office space and new supply addition during the year. 

Thus the lockdown imposed drawbacks in the year 2020 has been expected to be rectified in 2021 as several higher education platforms and offices are opening back. 

Best Investing Opportunities in the commercial real estate sector 

Some of the best investment opportunities offered by Chennai in the commercial real estate sector include:

• Office Space

Occupiers of office spaces are required to adapt to the current scenario and kept updated according to the recent trends in order to attract customers. They indulge in activities such as expansion and consolidation. Efforts have been taken by the builders in a different part of Chennai to diversify and modify the smaller officers in different localities similar to the hubs and spoke models. 

• Retail

The revenue-sharing model which was devised in the second as well as the third quarter of 2020 is not expected to last long. The flexibility offered in the payment may be rolled back over the next 3-6 months, depending on the market conditions. 

• Residential

Investing in residential buildings can also earn you a stable income in the form of rent. The rent and capital value have remained stable in the submarkets despite the pandemic. However, the renal value or the capital value has increased by the end of 2020 for properties in the ready-to-move-in properties and close-to-completion properties. 

• Industrial

several initiatives have been taken by the government in order to support and develop the industrial sector despite the pandemic and economic uncertainty. The government has proposed setting up industrial parks, industrial townships, and credit guarantee schemes to support the small-scale industries. 

Best investment plan for Middle-Class Citizens in India

One of the fastest-growing investment options in India is the real estate sector. The real estate sector has different prospects such as retail, housing, manufacturing, commercial, hospitality, and much more. Thus real estate property is one of the best investment decisions for the middle-class community of India as investing in commercial properties can earn them a good return while investing in the residential sector can earn them a stable income. The risk factor associated with the investment in real estate is also very low as the value is appreciated over time. Real estate has also been considered to be one of the best investment options as it offers high rates of return in the long run. 

Listed below are some of the benefits of investing in real estate:

• Investment is made in high tangible asset value. 
• It provides the investor with the portfolio which lowers his volatility and provides high returns on the investments made. 
• By anticipating for the right time and then selling the property, you can liquidizing your investment.

The investment options may vary from city to city as each city has different investment profiles. Cities such as Mumbai, Delhi NCR, Bangalore, Chennai, Ahmedabad, Pune, Hyderabad, etc. have also shown a healthy increase in property prices as these cities have people who migrate from other states for education, jobs, and business. 

Some of the key investment points include:

1. Estimate your affordability. You may do so by making an analysis of your earning power, savings, and also your creditworthiness. 
2. Identifying and preparing for a better home loan 
3. Considering and evaluating the property for investment
4. Seeking the assistance of a real estate broker or agent who can help you in identifying safe properties, good builders, etc. 
5. You may also look for properties in their project launch phase as you can get the property at a 20-30% profitable rate at this phase. It is also an important point of investment as during a project launch you can identify the actual value of the property, thus helps in taking over a property at its best rate. 
6. You may look for properties in the outskirts or smaller properties as the price associated to the same will be lower.  
7. You may also consider and evaluate the statutory price and other charges such as stamp duty, registration fee, brokerage, advocate fee, home loan processing fee, Tax Deducted at Source (TDS), Society Administration charges, etc. to identify the actual price of the property. 

Best investment options in Chennai

A strong mix of skills and a wide range of industries have promoted cross-pollination of work culture and has put Chennai on the global-list for real estate investment. One of the main factors that differentiate Chennai from Bangalore and Hyderabad is its inbound BFSI (banking financial services and insurance) business. The high-quality healthcare facilities have also driven the real estate market for Chennai. 

Chennai has turned to be a major location for residential development as it recorded an eightfold increase in its new launches by the end of 2020. The western suburbs, including Porur, Ambattur, and Padi, recorded an increase of 80% in new launches. The Chennai residential market is driven by affordable housing units and lower-mid segments. Towards the end of 2020, there was also an increase in demand for large and luxurious homes as well. 

There are several investment options available in Chennai, however, the luxury apartments top the investment spectrum. RERA has also played a vital role in enhancing the confidence of consumers in investing in luxurious properties. Since the modernization of the state takes place step by step, there has been an increase in real estate sales and launches. The buyers are also offered flexible payment plans while buying a property which has also made the transaction more friendly and smooth at the pocket for the buyers. In Chennai, there is also excellent transparency in the investment transaction. Chennai also offers apartments that provide an excellent return on investment and an excellent living standard, making it the best option for investment. 

Bottom Line

Chennai has been credited as one of the prominent markets for real estate in global lists. The main factor that increases the investment in Chennai is its commercial and residential market, which offers high-quality products. Several people have moved to Chennai as it offers better living conditions and better employment opportunities. 

Investing the Chennai real estate is profitable as you can earn high returns on your commercial property and a stable income by investing in residential property. The real estate investment in the year 2020 has been affect drastically by the pandemic and the lockdown induced. However, there has been an increase in demand for properties in affordable, lower-mid, and luxurious housing properties. 

As offices and educational institutions are slowly opening up, the demand for co-living spaces and other residential spaces is expected to increase.  Assetmonk is a smart real estate platform that offers investors properties in Hyderabad, Chennai, and Bangalore. Assetmonk also provides great assistance in identifying the best property according to your estimates. Assetmonk also offers both residential and commercial properties.