Booming news for buyers - Price drop of properties in South Chennai

For people living in South Chennai who are looking for investing in real estate this is the prime time. With the recent drop in prices the cost of real estate has really climbed down making it the opportune moment for people who want to invest in the market. The government’s new policies have made buying property a lot easier. Now you will not have to go through all the complicated paper work but you can get the process started and get your dream apartment in a seamless process.

Why you should invest in real estate

The city is still growing and most of the development is happening on the south section of the city. The major education institutions are located in the close vicinity and this makes south Chennai one of the best places to live in. In terms of living standards, the city ranks as one of the top cities of the country. The city has been going through a sharp rise in property market for the last decades. This is the first time that the place has seen such drastic drop in property market. This is mainly due to the new policies of the state government. A lot of new housing complexes are coming up in the recent months and that has also helped in pushing the price down because of the competitions. You can get the best deal if you by an apartment in one of these housing complexes because they come with all the modern amenities and luxuries. Due to the increase in the competition the developers are selling the apartments and other similar property at a much lower rates than normal. You will be able to get a flat with all the luxuries like swimming pool, gym and other similar facilities and it will be perfectly within your budget. Depending on how much you are willing to shell out, you can also get studio apartments and low budget apartments.

Things to look out for

When you are going to invest in some real estate in and around South Chennai you will have to be careful in some areas. You will have to find out how well connected the place is. There are many different modes of transportations that are available in the city and the metro link is one of the major mode of transport. So places in around the metro stations are priced much higher than the rest of the places but even the price drop has affected the price of these regions so you will be able to get a place without much hassle.

You will also have to talk with the previous owner if you are buying a secondhand property in chennai and find out if there are any kind of problems associated with the infrastructure. For buying a brand new apartment you will have to talk with the developer and find out all about the facilities that are available. Depending on the location you can get a very good deal if you decide to purchase now.

South Chennai Sees Maximum Residential Building Projects This Year

Where there is demand, there is development. With a huge demand for residential areas in Chennai, places throughout the city have been sited with new projects. Among all the favored locations, the areas in the southern part of Chennai are seeing tremendous development. Localities such as Medavakkam and Pallikaranai are in the top of the list of targeted places.

The executive vice president and zonal head of DLF Home Developers Ltd, Mr. K. K. Raman shares his views about the development in south Chennai. He says," If you see the center of activities, south Chennai hogs all the limelight today. This will continue to do so, as the scope for growth in the region is immense." He also added, "Just 10 years back, Tambaram was considered as the end of Chennai but now thanks to the extensive transport facilities and numerous educational institutions, the region is one of the busiest areas of the city. With the introduction of metro, the real estate scene of South Chennai will undergo rapid evolution."

In the current year, about 60% of the residential constructions have taken place in south Chennai while the remaining was split between north and west. The Grand Southern Trunk (GST) Road and Old Mahabalipuram Road (OMR) have seen the maximum growth in the current year. Huge construction companies such as Akshaya and Purvankara launched their new projects in Pallavaram, Perumbakkam and Kelambakkam. With the city’s limit being extended farther, vicinities in south are more concentrated than the heart of the city. Just as the central and north parts are being crowded, it is only natural that the residential growth will be concentrated on the less dense southern parts of Chennai.

The growth of IT companies and industries is one of the prime reasons for this rapid and steady advancement. Blooming companies in Velachery, Madipakkam and other areas encouraged working professionals to settle down nearby. Entertainment and recreational amenities such as malls, theaters, clubs and resorts located nearby, allow families to spend time together on weekends. Presence of renowned hospitals, restaurants, banks and other essentials are added advantage. Furthermore, availability of excellent schools and colleges nearby make these areas suitable for families. Rich cultural activities with presence of famous temples, churches and mosques also make a strong case.

Excellent connectivity via roadways and railways provide an easy and smooth connection with the city’s interior. High frequency of buses, trains and recently added metro trains allow you to navigate through places with great ease. Peaceful environment and friendly neighborhood make them the much preferred localities real estate in Chennai.

Affordability even with high facilities in par with main city makes south Chennai a favorite among everyone. With the price value remaining reasonable, real estate companies are launching multiple projects targeting middle class people. Projects ranging from 25 lakhs to 1 crore will be perfect for families of any financial background.

To sum it all, with the future of industrial and domestic development concentrating on the southern part of Chennai, these areas will be experiencing exponential growth in residences.

What is ready reckoner rate?

When you decide on buying a property, the next thing you have to do is to improve your knowledge on all real estate trends and real estate market.
It is also necessary for potential buyers in real estate to know and understand various terms and words used in the Chennai real estate. While there are a lot of terms used, ready reckoner rates is something that every buyers should know about. Ready reckoner rates are prices that are regulated and published by the respective state government on residential property, land or commercial property. Every state government revises these rates on an annual basis. Only based on these rates any property buyer will have to pay stamp duty for his purchase. These rates differ from each and every locality.

How do ready reckoner rates affect real estate prices?
Ready reckoner rate is the primary factor that brings in a big change in the real estate prices of any location.  Though these rates are set by the state government, the builders have freedom to charge premium above this ready reckoner rates. But builders are not allowed to sell the property less than the ready reckoner rates. The difference between the selling price and the ready reckoner rates will be a black money transaction.

Whenever the government rises these rates, then obviously the real estate prices will also increase. Also the fees and tax that the builders will have to pay to the government will also increase with ready reckoner rates. So builder will surely impose these rates on buyers thus resulting in increased selling rice of land and apartment for sale in Chennai.  Not just builders and sellers, these rates also affects people who already own a property in Chennai as the tax to pay to the Municipal Corporation also increases with these rates.

How to know the ready reckoner rates?
You can easily know the ready reckoner rates of any particular location through the ready reckoner site. You can also know this rate from the websites of registration and stamp duty department each state. This helps in maintaining a transparency in the real estate prices across the state and the country. You can also get the rates from office of the sub-registrar where the property in transaction has to be registered.

Ready reckoner rates and built-up area
Ready reckoner rates are always connected to built-up area and not with the super built-up area or the carpet area of the flat in Chennai. The highest revenue source of every state government is through the ready reckoner rates (stamp duty registration). The government has insisted all builders to sell the apartments in Chennai on basis of only the carpet area and not the super built-up area. But most of the builders sell their property only on basis of super built-up area. Even when some builders obey the government, they increase the per square feet area.

Always remember to know the ready reckoner rates of all area in Chennai if you are planning to buy an apartment for sale in Chennai. There are also online calculator to calculate the ready reckoner rate and stamp duty value of any property.

Why north Chennai is beckoning home buyers

Real estate in Chennai is on more of a solid ground than its other metropolitan counterparts with the exception of Bangalore. The realty sector here is sheltered to a certain degree from the vagaries that plague the other markets. The market is driven by end users rather than investors and this is one of the reasons why the market here has remained relatively stable if not profitable. This is not to say that there aren’t any pockets of profitable investments available in the city. They most certainly are there and these micro markets are mostly in the northern part of the city.

North Chennai was once considered to be a not so ideal option to live in. It was mostly made up of blue collar workers and their families. There was little to no infrastructure present here a few decades ago. This is true of both civic and social infrastructure. But things have rapidly started changing for this part of the city in the last decade or so. The boundaries of the city are expanding to accommodate the ever growing demand for housing and affordable housing at that. Hence the northern parts of the city have gained favour among builders and end users alike.

There is huge demand for apartments in Chennai which are located in the northern micro markets. The southern and central parts of Chennai which are well developed come with a price tag which is not affordable to the common man. There are new developments happening in these areas as land availability here is very minimal. Hence the micro markets present here don’t attract as much attention from property seekers.

North Chennai is a completely different story altogether. There are large parcels of land which are available for cheap rates. The infrastructure here though not on par with the well-established localities is improving at a rapid pace. The social fabric of the northern localities is also changing with malls, restaurants, theatres and ATMs coming up at a rapid pace here.
An infrastructure project which is sure to hike up the real estate value of a property for sale in Chennai located in this part of the city is the extension of the Chennai Metro Rail project to Thiruvottiyur. The central government has already given its nod for this extension. The extension will begin from Washermanpet to Thiruvottiyur and cover a distance of about 9 km.

This extension will be highly beneficial to those who are living in this part of the city. Any area which has good connectivity is bound to have real estate appreciation. Besides bring in this appreciation to the localities in the north, this extension will also ease the congestion being experienced here in the near future.

Apartments in Chennai which are located in areas such as Kolathur, Ambattur, Madhavaram, Perambur and Avadi have been appreciating at a steady pace over the past few years. One can easily pick up a individual house for sale in Chennai located in the northern localities for around INR 4000 per square feet on average.

Why flats in Guduvanchery are a hit among buyers!

The Grand Southern Trunk Road otherwise known as National Highway 45 is one of the major connectors present in the city of Chennai. Any micro market which has a prominent connector running through it witnesses brisk business in terms of real estate. Home buyers are very keen on connectivity and it one of the biggest factors that plays on their minds when they are making their property purchasing decisions. Hence localities which have national and state highways running through them are always on the top of a buyer’s property purchase wish list. 

This national highway stretches from Guindy all the way up to Theni. It is considered to be one of the busiest national highways in the southern part of the country. The GST Road is known to be the home to many upcoming affordable localities. The southern parts of the city have always been attracting the attention of the home buyers. But lately these areas have been losing their charm because of the huge price tags that properties here carry. The micro markets in the Old Mahabalipuram Road are heading towards saturation as well. This being the case, the GST is the answer for those who are looking to buy quality homes in Chennai at a decent rate. There is also the fact that there are plenty of land parcels that are available along this stretch which is not the case with southern parts of the city. The area is also an employment generator of sorts as it is known as the automotive and manufacturing hub of the city. 

Guduvanchery is a locality which is situated on the GST Road. It is one of the micro markets in Chennai real estate which has seen good traction among home buyers. It is surrounded by areas such as Urapakkam, Vandalur, Kattankulathur, Tambaram and Maraimalai Nagar. There is great demand for properties such as plots and flats in Guduvanchery. The going rate for apartments for sale in Guduvanchery stands at INR 3200 per square feet on average. The going rate for villas here stands at INR 4500 per square feet on average. The area is one of the most affordable real estate destinations in the city and is hence a hot property choice among buyers looking for homes in Chennai.

There are multiple infrastructure projects which are further strengthening the real estate scene of the micro market. There is the Outer Ring Road which connects Vandalur to Nazarathpet, the proposed monorail project from Vandalur to Velachery and the metro station near the Chennai International Airport which will all add to the appreciation of flats in Guduvanchery.