Introduction

Post liberalization India has picked up its pace as the second fastest growing economy next to China. The boom in the service sector has taken the country to another level of development. Today this country talks about 8-lane national highways, metros, software exports and steel buildings! More and more people, specially the salaried middle class, have prospered with increasing purchasing power, luxury goods, consumer durables and hi-tech gadgets and a flourishing property. Today the country is calling forth thousands of NRIs who want to invest here in India¡¦s real estate.

In this light let¡¦s take a look at down south in India. First things first, what has made Chennai real estate news a hot destination as far as real estate investment in is concerned

1. Chennai has transformed its image from an orthodox closed community to an open market bursting with business and commercial industries, corporates, MNCs, IT parks, shopping malls etc.
2. Chennai can boast of developing the first organized retail scene in India. Take the case of RPG Spencer¡¦s breakthrough stores like Food World, Music World etc. and also other major players which have existed in the city for quite some time like Nilgiris, Vitan, Saravan Bhawan, Nalli¡¦s etc.
3. Chennai can be proud of providing a talent pool of software professionals and serves as another major gateway for IT and ITES industries.
4. The state Government needs a pat on the back for making this city investment friendly. This is one of the many reasons why we get to see major global companies setting up their plush offices in this city. Open changes in the FDI policies, infrastructural facilities, easy communication etc. have welcomed some of the big real estate players from outside India.
5. Chennai today is one prime destination for most of the automobile manufacturers from abroad. Some of the names include Hyundai, Ford, BMW and the latest buzz is that Volkswagen has plans to set up its operations here in this city. With already existence of local big manufacturers like Ashok Leyland, TVS, Hindustan Motors, MRF and availability of cheap labor Chennai is carving a niche to become ¡¥Detroit of South Asia¡¨!
6. The city has transformed its image from a hard core orthodox outlook to a cosmopolitan city. The city also hosts some of the top schools and colleges in the country.
7. City¡¦s state transport facilities and connectivity, existence of some of the big hospitals having world class medical facilities and renowned doctors etc. make living in the city easy and convenient.

Chennai high-rises

With more and more cluster of offices in this coastal city, high rises and skyscrapers are

becoming a popular feature in the concrete architecture of the city. To name a few there are Capitale of 46 m height, Raintree Place, 10 Downing, Narayanas Arihant Ocean Tower, Sapna Trade Center, Sterling Tower, and Ramco Building etc. There are about 9 those under construction and about 8 proposed which would come up I future among the high rises.

Chennai residential property

The million dollar dream to own a house in thirties has become a living reality today. In this regards Chennai is also fast catching up and the real estate boom in Chennai has seen almost a 100% growth. An average growth rate of 35% in residential sector accounts for the price rises and rental increases in and around the city. Take for example Old Mahabalipuram Road where cluster of IT and BPO companies have given rise to escalation in prices in the residential properties in this area.

Price escalation

According to Chesterton Meghranj, Chennai real estate news property consultant, the real estate prices have doubled in Chennai in every 5 out of 12 cases. The areas in focus in this regards would be Tambaram (near to airport), Velachery, Nilankaraj, Tiruvanmiyur, Valmiki nagar and Mogappair. This trend has emerged over the last 5 years (price rise by 72%) since Chennai started becoming a major IT gateway of India.

Commercial real estate trends

„X There has been a mad rush for IT majors like TCS, Infosys, Wipro and global IT majors like Cognizant, Covansys, Ford Information Technology, Xansa, Verizon etc. to cluster on the Mahabalipuram road. The expansion plans have also included huge campus facilities. Thanks to low prices compared to other metros like Mumbai, Delhi and Kolkata, superb infrastructural facilities like power back up etc. and open economic policies of the Govt.
„X The shopping malls also add to the credit of the real estate investment. The recent projects that are coming up include prime traffic areas like Nelson Manickam Road and R K Salai.
„X One of the major warehouse and factory area in Chennai real estate news has been Guindy. If you have traveled in the past in this area you would observe the shift in architecture of this area. The factories and warehouses are said to replace glass and concrete towers. The landscape also highlights construction of the upcoming high rises in the area.
„X The boom has also given a major impetus to the allied industries like insurance, finance, telecom and banks.

Conclusion

India with its fastest growing real estate market comes as no surprise when we hear Chennai has to offer 1.9 million sq. ft. of office space. Chennai¡¦s major knowledge driven manpower has been a pull for the global companies to venture in the Indian market. The future sure looks bright for Chennai with the availability of large land parcels for the MNCs like Nokia, Flextronics and BMW! Over the next 12 months leading developers from North India like DLF, Hiranandani and K.Raheja would be launching IT parks in Chennai. The rising demand for 4-5 million sq. ft. office space will definitely take Chennai real estate news ahead in the IT expressway. The growing demand for retail and commercial projects definitely places Chennai as an emerging leader in the real estate market in India.