Reality trends in Chennai’s residential market & its comparison to Bangalore’s real estate market

by Maddy Rock Executive

Chennai and Bangalore are two of the most stable real estate markets of the country. This article talks about what makes them different from each other and how Chennai is going to be a better proposition for realtors in the coming years.

Chennai is still considered a conservative market, where people’s property preferences are driven by location above everything else. It presents a picture of a stable market, with absorption of residential units showing a greater resilience than other real estate hubs like Bangalore and Delhi/NCR. Moreover, Chennai’s city-centric locations have a higher capital as well as rental values as compared to its southern neighbour Bangalore. The reason is simple that the city has a limited supply of urban residential properties and the suburbs lack in perfect social infrastructure to support housing market. What is to be noted that, unlike Bangalore, the final decision of buyers in Chennai is not affected by specifications and amenities provided in the project but by the location of the project.

Community Living: Bangalore versus Chennai

An important aspect of Chennai’s real estate market is its distribution over the city, or putting it more accurately, its lack of uniform distribution over the city. On the other hand, Bangalore’s real estate is well distributed and has seen better community adoption than Chennai due to the presence of good social infrastructure. Major areas that account for more than 60 percent of residential supply in Bangalore are Bellary Road, Hosur Road and Whitefield. Besides, there is a lot of internal competition among the local real estate developers in Bangalore, which leads to more innovation and better customer service. Chennai is yet to see such kind of development and intense competition.

Emerging trends & upcoming projects in Chennai

That said, Chennai has already started witnessing a positive change. Southern Chennai is witnessing an unprecedented development, out of which Medavakkam stands apart. Due to its proximity to Chennai airport, availability of sweet ground water and accessibility to good educational institutes, people are flocking to this and adjacent areas. A 3 BHK flat in Medavakkam is one of the most in-demand commodities in the whole southern Chennai. Experts believe that the real estate is at an inflection point and the coming six months are going to see a lot of migration towards the suburbs. Real estate developers are preparing themselves for the same. There are a lot of big projects that are about to take off in the city. For example, Malles construction has launched a housing project in Perumbakkam named Malles Altius. The project will feature premium homes and promises a life of luxury. 78 beautiful and ultra-luxurious 2 & 3 BHK homes will be provided as a part of this project. Another residential project, named “Chennai Pattinam” is being developed and is in its first phase. The developers are Cee Dee Yes, pioneers of housing projects and model townships.

Such township projects can be considered a radical change over the previous projects that came up in the city. The plot coverage is minimal, which increases the green cover and also adds lung space within the project. This will enhance the concept of community living in the city. Earlier, developers were content developing a small project of 12-30 units with minimal amenities and open space. The game changers in the Chennai residential real estate market are going to be the availability of serene environment and proximity to necessary facilities like schools, club houses, health care centres, shopping centres and multiplexes.

Saurabh Tyagi is an expert author, with an experience of over 4 years in writing content for articles and blogs. He writes for 99acre.com the leading real estate portal and a one stop shop for property buying, selling, rental homes and commercial space.