News & Views on Indian Real Estate

Wednesday, January 09, 2008

Chennai- the real estate boom

Chennai the fourth largest metropolitan city in India is a major trade centre, well linked by road, rail and air to important cities besides being a seaport. Dubbed once as a sleepy and slow-paced city for long, it is today abuzz with activity in business, industry, entertainment and leisure.

Big names like Ford, Hyundai, Hindustan Motors, TVS, Ashok Leyland, MRF, etc.opted for the city. Recently, BMW has opted for the city to set up a car assembly plant at the Mahindra City and Hyundai has decided to put up a second plant near its existing facility on the outskirts of the city.

Leather, biotechnology, floriculture, horticulture and construction industry are the potential growth areas in the state in future with IT industry.
Chennai has traditionally been the hub of economic, geographic and political activities of south India. Its economy is well balanced with the info-tech , entertainment, industrial and other service establishments playing equal role in city's growth. Unlike other metros, there was no significant steep rise and fall of the real estate market in the post liberalization era in Chennai. This was due to the fact, that not many multinational companies had chosen Chennai to start their operations. It can be attributed to the large floating stock available in the market during this period.

Chennai has several inherent advantages for real estate development, availability of skilled manpower, better infrastructure and cosmopolitan outlook. The all-round development has excited many national & international real estate developers to enter the Chennai property sector.There has been upsurge in demand for residential apartments and property. The spillover effect is felt in suburbs as well with developers focusin more areas for residential property development. Chennai is rapidly growing towards the southern and western quadrants, with high demands of residential apartments in Abhiramapuram, Adyar, Boat Club Road, Kalakshetra colony, MRC nagar, Nungambakkam, Valmiki nagar, Velachery, Old Mahabali Puram. Properties offering world class lifestyle amenities are mushrooming across the city.

Chennai will soon have its first integrated and large-scale community at Old Mahabalipuram Road (OMR). The Chennai project will be developed under a new brand name - Hiranandani Upscale.
A 110 acre-premium project that is expected to redefine the concept of urban living. Upscale offers 2-4 BHK apartments housed in 6 Stilt+28 storied towers.