People in Chennai prefer ready-to-move-in apartments, says Suresh V S, Managing Director, Real Value Promoters Pvt. Ltd.
THERE IS AN INCREASING DEMAND FOR LUXURY APARTMENTS IN CHENNAI. THE FESTIVAL SEASON WILL SEE PEOPLE BUYING PROPERTY IN PERIPHERAL AREAS LIKE VELACHERY SAYS SURESH V S, MANAGING DIRECTOR, REAL VALUE PROMOTERS PVT LTD.
Chennai is becoming a hub for luxury houses as many projects are coming up in the city. What has led to the development of such a trend in the city?
Luxury apartments offer residents with more sophistication, opulence and higher security facilities within city limits. Even earlier, Chennai offered luxury options. But, over a period of time, demands have increased. There are more resources available today, thus more choices for people to select from. In Chennai, most of the luxury apartments are coming up in areas like Abhiramapuram, Adyar and Nungambakkam which house such apartments. These are being absorbed by 60 percent of Chennaiites and 40 percent of non-resident Indians. The NRI segment prefers living in the heart of the city than the suburbs and are thus attracted by these Projects.
How do you see the Outer Ring Road (ORR) project effecting residential development?
There are specific areas such as the stretch between Maduravoyal to Porur, which have been completed and the development has also started. Areas south of Maduravoyal are yet to be developed. The localities have scope for growth and in time, we shall see how the localities will turn out to be. However, the areas extending from the east of Maduravoyal fall under the harbor zone where residential development is unlikely to happen.
The Oragadam manufacturing belt is witnessing many new factories setting up base there. What kind of development do you see along this stretch and why?
Industries have just stepped in and people are slowly moving towards Oragadam due to their work. However, the kind of development one sees in OMR and ECR will not be possible in Oragadam yet as the market here is different. The IT Park in OMR leads to higher income group individuals that earn anything between Rs.50,000 to Rs.60,000. However, the employees in Oragadam earn between Rs.12,000 and Rs20,000. Thus the budget segment here ranges up to Rs. 20 lakhs. The demand for residences here is rising and there is scope for planned development as more blue-collar jobs are being created.
Since the festival season has begun, do you see the market picking up pace?
Yes, Diwali is nearing and this festival season will definitely attract customers in certain segments. Absorption will be seen mostly within the city’s peripheral areas as these places are still doing well. Areas like Velachery are favourable now. OMR has many under-construction projects and as soon as they are completed, people will begin to buy these houses. People in Chennai prefer ready-to-move-in apartment options today.
What is the real estate scenario in the city at present?
Chennai’s present property market condition is slow, like the other metros in the country. The slug has been there from the past two years. Due to the slowdown in other sectors (IT, industrial, or any sector that affects income), the property sector has also been affected. Will this condition change is a million dollar question now. However, amidst this condition, the city’s mid segment is doing well. With the year coming to an end and the reduction in the interest rates announced by the RBI, January 2016 is expected to improve the market situation.
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