A Home in Chennai Position
Taking a home loan at this time is easy. But to find a proper
home at the right price is difficult in this boom market. In
Chennai home loan activity is on peak and it is difficult to
take a decision without knowing owner financing the exact position
in the market at the present time.
Real estate market in Chennai is growing very rapidly. Govt.
has also allowed 100 % foreign direct investment in this sector
and many foreign construction companies like Morgan Stanley
, RIRIC company etc. have started investing here. Real estate
market owner financing in Chennai
focuses on two major areas retail (or Official) and residential.
In both sectors there is a marked growth and it is expected
that it will rise still further.
Chennai traditionally has been a cloth center. Vasco-da-Gama
and the British all concentrated in getting fine cloth from
here. In fact the city grew only for this .This is not a very
ancient city like other cities in India. The latest development
is in the IT sector.
Growing economy in segments like IT, e-commerce and others have
resulted in increasing the buying power of common man and naturally
the first thing to buy is always a home. People with smaller
homes are going for bigger homes or a second home and thus more
and more colonies are being developed. People go for home
loans and new incentives are being given every day. The biggest
incentive is the tax rebate offered on the installment-payments.
In Chennai commercial space has a bit of a crunch as there is
a shortage of quality space in the city. Though it is estimated
that 11.3 lakh Sq. feet of office space has been added recently
yet this is far less as compared to other cities like Delhi
etc. IT corridor is being developed on old Mahabalipuram road
and companies like Satyam, EDS, Ford IT division etc. are located
this side. It is expected to develop 25 lakh Sq. feet area.
Velachery and Mount Poonamallee Roads are the other areas being
developed commercially. Ambattur an industrial estate will also
develop apx. 6 lakh sq. feet. Of land commercially. Commercial
office space and quality buildings are coming up fast in south
campus like Guindy, Mahaballipuram Road, Taramani etc.
On the residential side there is a strong demand of budget segments
in Valechary, Mogappair,
Gouriwakkam, Moffusil bus stand and Koyambedu as these places
are close to the emerging work centers. The normal cost is Rs.900
to 1000 per Sq.feet.
Mid end segments are coming up in areas like T.Nagar,Anna nagar,
Adayar, Besant Nagar. Normal cost is Rs. 2000 to 2500 per Sq.
Premium locations comprise of R.A.Puram,boat club and Rose Garden
where high end luxury apartments are coming up with facilities
like swimming pool, club etc. However independent banglows are
very few and thus very few transactions take place on this side.
The normal cost is Rs.2800 to 3599 per Sq. feet.
To see the landscape of Chennai, the mansions with big gardens
do exist but mostly sky scrappers and the flat system is emerging
everywhere. BPOs have set up their hi-tech infrastructure here
and hence there is a wild rush of technical students and workers
to make their career owner financing
over here. People who have their children working in foreign
are able to rent the extra accommodation to the new entrants.
The general rate is Rs.70 to 90 per Sq. foot in the high profile
areas. City is fast growing and the outskirts are fast merging
with the main city. All this has made the investment in the
real estate very attractive over here.
In last eight years the prices in the residential market shot
up by 8 to 15 %. Demand for the homes in the price range of
8 to 20 Lakhs has shot up and due to this more and more housing
complexes are coming up selling the flats of this range. But
on the whole the prices here are lower than the prices for the
same size flats in Delhi and Bombay. They are even lesser than
prices in Bangalore. Due to this many companies, domestic and
multinational, have been attracted to this city.
future trend seems to be quite bright though the prices will
level off. The rentals may increase by 8 to 10 % in near future
as more and more MNCs are shifting here.
days the investments in Banks is not as popular as the interest
rates have gone very much down. The stock market also keeps
on wavering and the mutual funds give very less return. Hence
the housing sector remains the most popular investment. Chennai
is well connected hence is very popular with the NRIs also.
They also like to invest in the housing sector which further
booms this market.
Deciding a house before loan
Home loans are relatively easy to get these days as the banks
and financial institutions wish to tap this source to the maximum.
In general people go for mortgage loan after paying some down
payment. All that side is easier than deciding which house to
buy .The decision has to be taken taking all the precautions
.As has been seen the housing activity is very much on in certain
parts of the city. First step should be to have an idea about
the price and facilities being offered. There are some good
sites which give all the relevant information. The experts name
the following few:
1 real-estate chennai.com
Apart from this also many are available on the net. Apart from
knowing all the details following points must be considered:
Buying a flat
1. Check whether the approved plan is demonstrated on site
Check whether the flat is made to plan
3. Verify whether all the undivided share of land is transferred
to your name
4. Check whether the completion certificate has been obtained
5. Check the details at CMDA
Buying a plot
1. Check whether the seller has a right over building
2. Check whether the plan has been approved by CMDA and local
3. Check whether the roads etc. have been given to the society
and are maintained by them
4. Check whether the plan is to the rule
5. Check whether the documents etc are all attached
Avoid unauthorized colonies.
In this boom period of housing construction in Chennai procuring
a home is easy. But with so much activity it becomes very difficult
to separate well from the bad real estate agents. Hence it is
worthwhile owner financing
to do some home work on the net at home before approaching an
agent and even after that, careful checks should be made on
the property and also on the loan terms. Housing loan is a big
loan and should be taken very carefully.
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