Reports of a slowdown in the Chennai property market are not deterring investors. Property builders seem undeterred by these reports and continue with their planned construction.
Chennai real estate is driven by the end user. Recent real estate reports suggest investors don’t have much of a game in the Chennai real estate market. Currently, the real estate segment of the city is going through a moment of calm. The number of transactions has been reduced by 10-15% and the supply of residential and commercial spaces has also been significantly reduced. A recent report by Jones Lang LaSalle Meghraj (Chennai) reveals that 1.6 million square feet of commercial space in Chennai was absorbed between January and March 2008. This is marginally less than the demand for 2 million square feet of retail space. the quarter from January to March. 2007.
temporary phase
Chennai real estate brokers say it is a temporary phase. PBEL Property Development (India) Pvt Ltd has invested Rs 180 crore in Chennai to build a residential and commercial township. PBEL Property is a consortium of three property developers. PBEl will build a high-tech residential complex on a 42-acre site on Old Mahabalipuram Road.
Another property developer, Unitech, in association with SSI and Arihant Foundations, has launched an integrated township in Chennai. This township will be spread over 7.6 million square feet and will have residential, commercial and retail units. Emaar MGF has announced plans to invest $3 billion in 10 cities in South India. It plans to develop an area of more than 31 million square feet in key cities such as Chennai, Hyderabad, Tirupati, Coimbatore, Cochin, Mysore and Mangalore.
NRI interests
Mumbai-based Hiranandani Infrastructure and Real Estate Company recently completed construction of its residential project in southwest Chennai. Developers say this project, Hiranandani Palace Gardens, has sold out and has many buyers from the Gulf. Many of these buyers are investors who acquire properties in strategic locations and sell them when the property reaches the best purchase rates.
In general, the real estate market is not affected by the slowdown reports. The level of interest from property buyers, investors and builders remains unabated.