Chennai, the capital city of Tamil Nadu, is a preferred destination for investors and homebuyers alike. One of the fastest-growing areas in Chennai is the Old Mahabalipuram Road (OMR), also known as the “IT corridor.” In recent years, the Chennai real estate market has experienced significant fluctuations, which have left many wondering what the future holds. In this blog post, we take a closer look at how Chennai’s real estate market has performed in recent years, with a particular focus on OMR.
A Brief Overview of Chennai’s Real Estate Market Performance
In recent years, Chennai’s real estate market has been driven by a combination of factors including infrastructure development, low-interest rates, and government policies. Nevertheless, property prices in the city have fluctuated since 2017. According to a study by Knight Frank India, the city witnessed a 9% drop in new launches in 2019, compared to 2018. Still, the city’s overall housing sales grew by 18% over the same period. The drop in new launches is indicative of developers’ cautious stance in an uncertain economic climate. However, the rise in growth indicates that homebuyers are willing to invest in properties that offer better returns in the long run.
OMR’s Dominance in Chennai’s Real Estate Market
OMR is one of the most sought-after localities in Chennai in recent times. It has emerged as a hub for IT/ITES and other business ventures. The presence of several leading companies has made the region more attractive to potential homebuyers and investors. According to a report by Anarock Property Consultants, Flats in OMR have grown by approximately 76% in the past five years. While the price appreciation is essential, the locality’s even more significant benefit is that it offers high rental returns, making it a viable investment option.
Impact of COVID-19 Pandemic on Chennai’s Real Estate Market
Like all sectors, the real estate sector has also taken a hit due to the COVID-19 pandemic and the resultant economic slowdown. Notably, the pandemic has changed homebuyers’ preferences, as they now prefer larger homes with more open spaces. The pandemic has also accelerated the adoption of digital technologies and transformed the way the real estate sector operates. As physical property visits became impossible during the pandemic, an increasing number of developers and buyers switched to virtual site tours and online property transactions.
Factors That Affect the Real Estate Market Performance in Chennai
Several factors impact the Chennai real estate market’s performance, such as economic growth, infrastructure development, government policies, interest rates, population growth, and foreign investments. The government’s recent initiatives, such as the Smart City project, have boosted infrastructure development in Chennai, making it a more attractive investment destination. Additionally, the upward trend of the IT/ITES sector in Chennai is expected to continue, which will further push the OMR’s demand.
Conclusion
We hope this post has given you a better understanding of how Chennai’s real estate market has performed in recent years, with a focus on OMR. The Chennai real estate market is undoubtedly one of the most attractive to investors and homebuyers. Still, its performance depends on several economic and demographic factors, and investors need to conduct a thorough analysis before making any investment decisions. So, if you are interested in investing in Chennai’s real estate market, do your research, analyze the market trends, and work with experienced professionals to navigate the market’s complexities.
