New real estate trends in Chennai in 2012
Chennai is largely known for its conformist approach, which manifests noticeably on its residential property market trends to boot. Case in point, home buyers in Chennai have for ages been driven by location over and above most other factors. This had put unambiguous limits on the demand and potential for community living in the city. The Chennai market has been especially unstable in the last three quarters. The recent budget will have its impact on pricing due to the increase in the service taxes from 10.3% to 12%. The swell in excise duty across the product categories has led to an increase in the initial input cost, unswervingly influencing the selling price in the market.
The agreeable news, in the midst of the negative impact of the tax hike is that reasonable housing has found its standing, especially since the increase in the number of people choosing homes in the affordable segment and the National Housing Board on its part, concentrating on the consumer challenges by promoting the affordable housing segment. Home buyers are specifically gunning for units in the price range of Rs. 35-60 lakh - in locations which offer a satisfactory degree of social infrastructure. The NHB has fixed 5000 crore to promote affordable housing and consequently, all the Housing and Finance Corporations across the country has lowered the tax rates for homes that come under the affordable housing slot.
Until now, there has been no scope for the growth of large-sized township projects within the city. Chennaites had been showing a steadfast penchant towards living within the city limits because of the shortage of good schools, convenience stores, entertainment and restaurants outside of city confines. Developers had been overtly content to build projects of 12-30 units with limited or zero amenities, minor or no green cover and exceedingly constrained open spaces. In the impending future, Chennai will see a major change in this facet, with a string of township projects by developers of national stature in process and nearing completion. These township projects have token plot exposure, which overlays the way for large green cover and lung space contained by the project. This is a supplementary motivation to decide on community living, which was fundamentally unheard of until as late as 2006.
The latest game changers in the Chennai residential real estate space are liberal landscaping, tranquil environment, schools within the campus, huge club houses, health club facilities for both indoor and outdoor sports, multiplexes in the surrounding area, health care, restaurants and sizeable swimming pools.
Consequently, community living in the true sense of the words is ultimately going to surface in Chennai. We predict that once these mega projects are completely implemented, we will see a significant onward impetus in the notion of large, well-appointed residential communities in Chennai.
On the whole, Chennai's practically accurate assimilation of residential dwellings is anywhere between 28000-30000 per annum, with most of the engagement taking place in the OMR and near the IT corridor.