The realty sector in Chennai is poised for growth, with investors looking forward to a stable government at the Centre and the industry betting on growth in jobs and, subsequently, increased investments.
During a discussion on imminent market changes in Chennai, a cross-section of people from the industry said, in 2014, they are hopeful of the real estate sector’s growth, similar to the peak growth period a few years ago.
“The best growth period in our industry was prior to 2011. There was a slump in 2011-12, but the subsequent years were much better,” said Sandeep Mehta of the Tamil Nadu chapter of Confederation of Real Estate Developers’ Associations of India (Credai), during a meeting on Wednesday.
With the government’s thrust on improving the quality of roads and other basic infrastructure in the far-flung suburbs, and the availability of good healthcare facilities and schools, double-income families are willing to move out of Chennai, said Kalpana Murthy, associate director of Cushman and Wakefield, a consultant.
With Chennai Metro Rail expected to be commissioned in a year’s time, the demand for houses, ranging from single-bedroom flats to high-end dwelling units, will continue to rise, especially in the suburbs, along the course of the Metro’s track, she said.
Builders also point to a shift in the concentration of office and residential spaces.
“Office spaces, which were earlier centred on Gemini and Nungambakkam, have now shifted to Saidapet and Guindy. Residential spaces, too, are now clustered along high-growth areas around software companies on Rajiv Gandhi Salai (IT corridor), Mount–Poonamallee Road and also GST Road between Perungalathur and Singaperumal Koil,” said Ajit Kumar Chordia, managing director, Khivraj Tech Park.
Sanjay Chugh, head, residential services, Jones Lang LaSalle, which organised the discussion along with CREDAI, said, in 2013, more than 33,000 new residential units (apartments and individual houses) were launched, and nearly 23,000 of them were sold. Chennai continues to be the most preferred city in South India for attracting investments as it is known for quality healthcare services, schools and colleges.
Isha Homes’ managing director Suresh Krishn said with the city providing jobs in IT, manufacturing and engineering sectors with attractive salaries, a number of young men and women are investing in realty from a young age.
The discussion, builders said, is a precursor to Fairpro — an annual property exhibition to begin on February 21.