It's boom time for the real estate sector in Chennai as it is expected to witness a supply of approximately 12 million sq ft of office space in 2007. Of this nearly 10 million sq ft is expected to enter the market in the suburban and peripheral locations.

According to a latest Cushman and Wakefield report, the CBD locations of Anna Safai, Nungambakkam and R K Salai and Off CBD areas like T Nagar, Chetpet, and Egmore, are expected to witness approximately 2 million sq ft of IT and non-IT projects for the entire year.

It is estimated that approximately 9 million sq ft has been projected for IT for 2007.The peripheral locations along the IT Highway and OMR (Old Mahabalipuram Road) and the suburban locations of Guindy and Perungudi continue to be the most active IT destinations with demand keeping pace with supply.

On SEZ development, Chennai has three functioning IT specific SEZs spread across 1.5 million sq ft.In 2007, over 1 million sq ft of SEZ supply is expected to enter the market.

In addition, 31 SEZs have been planned in the city, though considering the stalemate on the issue, their availability is subject to approvals and notifications.

With supply expected to enter the market around the third quarter of 2007, some stabilisation of prices could be expected by the end of the year.

The next 2-3 months are expected to witness appreciation in major markets.
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  • Chennai a hotspot for Indian property investment

    The city that used to be known as Madras is as hot as the curry powder of that name when it comes to property investment, according to Dubai property company ETA Star.
    ETA is targeting the Tamil Nadu region, which includes Chennai, for a massive investment project, MENAFN Press reports.

    The company has hailed Chennai as one of the most favourable places for investors to go and as a result it is to begin work this year on building Jasmine Court, a 4.4 acre residential development consisting of apartments of varying sizes near to the airport.

    ETA Star's executive director Abid A Junaid told MENAFN: "We are very excited about Jasmine Court as we have already achieved major success with our two residential developments - Binny Crescent and The Gardens in nearby Bangalore. Chennai is a great place for property investment at the moment as it is the third largest commercial and industrial centre in India and it attracts a large number of professional residents and also many tourists who come to visit the numerous sporting venues in the city."

    The proximity of good infrastructure, economic importance and tourist attractions have often been cited as advantages for the property industry and it is here that buy-to-let investors may consider either letting to the growing professional class in India as the economic and commercial growth of the country continues, or entering the holiday home market.

    Chennai offers plenty of tourist attractions that may assist the buy-to-let holiday home market. The local tourist authority lists plenty of religious and other festivals for culture vultures to experience, plenty of temples to go with this, a wide range of tropical beaches lined with palm trees, plus plenty of entertainment and food.

    The potential of many places in India is not lost on wealthy developers in Asia. The Bangladesh Daily Star reports that developers, builders and architects are heavily involved in a plethora of major projects in Chennai and other major Indian cities.
    Optimism is riding high and if it is justified then India's booming cities could offer buy-to-let investors great opportunities in the years ahead.
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