Union Budget has boosted Chennai Real Estate

Better days have come for Chennaities after the Union Budget has enhanced the initiative that has been pending over a long period. Some of the major measures including industrial corridor, affordable housing, REITs and easing of rules for FDI eligibility contribute to the metropolitan’s turnaround in the development of real estate.

Affordable housing

According to the housing consultants, reasonably priced homes are a big boost to today’s market and availability of housing boost the housing stock and contribute to the entire settings. Affordable homes are lined up at Amarprakash along with exclusive facilities, proper connectivity, better livability index etc, stated Amarprakash customer feedback. The establishment of world class centers across the nation through PPC model has improved the hospitality segment of the metro which has hit recently by economy slowdown. Furthermore, electronic visa services have also been introduced at 9 international airport to donate to the development of hospitality segment.

Infrastructure

A significant development along the industrial corridors of Chennai has triggered the growth of suburban and peripheral locations of the city. This cheers people to shift to these localities. However, this completely depends on the state government and their initiatives taken to enhance the social infrastructure of the metro. Chennai being the Detroit of South Asia has received support for the development of industries based on auto mobiles. At present, the warehousing segment in the city has gained a boost from the government.

Taxation, home loan and FDI

On the retail segment, the interest limit has been increased to about Rs.2 lacs. This will encourage the property aspirers to invest in the housing units under section 80C. Further, FDI norms have been eased which will cheer the investment over smaller properties. The REITs came as a bonanza for the retail investors since many big commercial complexes which provide better rentals are bundled, said the presidents of CREDAI. Recently, the Section 80IA was redesigned which will benefit the builders since it acts as an ideal move for the entire segment on the whole, said a consultant acting in the panel of ADB and World Bank. Kancheepuram, Chennai’s suburb will be recognized as a tourist destination and it further enhance the property cost in the surrounding areas. Most people felt that proper access to cheaper long term loans will escape the property market. Certain factors such as digitization of land records, standardization of document, appointment of ombudsman etc are contributing to the growth of the entire segment.

GST Road-The Next Growth Hub in Chennai

GST Road in Chennai has become the next growing corridor which has gained the attention of many property developers and made them to construct residential projects. Over last few years, establishment of many manufacturing and IT companies were took place. Reputed Amarprakash builders understood this scenario very well and started launching their projects in and around this stretch. This resulted in good Amarprakash Royal castle review since the clients are able to save much of their time in travelling. Many developers took their eyesight slowly from OMR and started focusing on GST Road.

GST Road witnessed better residential developments over last quarter. Real estate along the stretch is noticing positivity since there has been an increase in the industrial and manufacturing activities in and around GST Road. This factor drives the property market of the stretch. GST Road is not a small stretch, it totally covers 492 Kms starting exactly from Kathipara in Guindy and extending till Theni so, several locations fall under this stretch such as Tambaram, Pallavaram, Guindy, Chrompet and lots more. Due to the development of this busy stretch, all the above mentioned areas also see better growth.

In addition, the GST Road is directly linking Sriperumbudhur, one of the major IT, industrial and manufacturing corridors in Chennai. As compared to the growth of Tambaram, Chrompet etc, Sriperumbudhur is also growing in the real estate field. This let many builders to enter and launch their projects. This further reinforces the growth of GST Road via OMR (Old Mahabalipuram Road). It not only strengthens the development but also equalize the supply and demand of properties in this stretch. People who are employed in jobs here are coming forward and enquire largely about these properties. Along with this, people who are seeking homes at the budget of Rs.45 lakh are also looking for properties here.

Following the low price, the supply of homes has been rising along GST Road. In the last quarter, the area noted many new launches and this trend are expected to go on for the coming months. When looking which and all the localities to have new launches are? Urapakkam, Chrompet, Guduvadhery, Singaperumal Koil, Pallavaram, Tambaram etc are the areas to have new projects. For instance, we can see 3-4 new projects in Urapakkam and Tambaram and it would be ready for handover by 2017. These projects are designed to have 2 bedrooms and 3 bedroom apartments.

Infrastructure Development in Chennai sees 75% rise in New Projects

In present condition, we can see some infrastructural work going on in all areas of Chennai. Currently, Outer Ring Road phase-1 is completed and the government started up the work of phase-2. Similarly, development is going in full stretch in all parts of the city. Along with infrastructure growth, prices will also increase. For instance, if we consider Amarprakash properties, initially when the project was launched, it cost around Rs.4200 but now with ORR opening, the price started to increase higher and higher and touched Rs.4700 currently. The customers are enjoying 10% appreciation within 2 years stating Amarprakash as good company for the question ‘ is Amarprakash a good builder ’.

Further, we can consider other projects happening in the city. On January 2013, the government has taken the project for widening the phase-2 of Oragadam Industrial Corridor to 12 Km. As per the expectation, the project has been completed below few months. The project has been completed within the estimated cost of rs.98 crore. 6 landing work from Oragadam to Sriperumbudur along with connecting Chennai Port has been designed and developed which will provide proper connectivity to Bangalore Highway. The sources given by the officials of Tamil Nadu Road Infrastructure Development Corporation said that the service lanes are 2 lane width since the road has lots and lots of industries and manufacturing companies. For example, many trucks and heavy vehicles will be taking that road so more space is needed to turn so 2 lane service road is most needed, said the official.

Also, this stretch comes within the 24 Km long phase-2 of Singaperumal Koil to Sriperumbudur and is widened into 6 lanes because of heavy traffic. When we look into other roads in the stretch, all the other roads are of 4 lanes. This is the only road in this corridor to have been developed into 6 lane, the official said. Improvement in employment strength in the IT sector is the reason for this road widening project since traffic started increasing during peak hours. This stops people in reaching their work station on time and increasing their pressure. Due to this, the residential activity in this area is slowing facing reduced sales. As a measure the government came with a design for expanding the road in order to ease the traffic. Along with this, the government also concentrated on factors like developing office space, improving market sentiments, development of metro network, malls etc.