The real estate industry in Chennai, one of the most vibrant and quickly expanding in India, has seen a number of noteworthy trends and advancements in recent years. Demand for residential buildings and office spaces have been significantly influenced by the city’s thriving IT sector, home to numerous global firms and technology parks.
Moreover, Chennai’s infrastructure improvements, such as expanding metro rail services and developing new road networks, have further enhanced connectivity and accessibility within the city.
Chennai offers various real estate alternatives, including gated communities, luxury complexes, high-rise flats, and independent homes and villas that may be purchased at multiple price points.
Chennai’s real estate sector continues to thrive with bright potential for future growth thanks to strong demand from end users and investors alike and proactive government policies fostering real estate growth.
Understanding real estate market trends is crucial for professionals in the industry. By keeping abreast of these trends, professionals can make informed decisions regarding investment, development, and sales strategies.
The real estate market is intricate and dynamic, impacted by various variables, including demographics, interest rates, and governmental regulations. Professionals knowledgeable about these patterns can spot opportunities for expansion and reduce potential threats.
Furthermore, understanding market trends lends credibility to oneself in the eyes of clients who seek the advice of professionals when making crucial financial decisions. Therefore, being constantly educated about real estate market trends is necessary and critical.
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Current State of Chennai Real Estate
In 2023, the real estate market all over India is expected to experience significant growth and transformation. Several factors contribute to this positive outlook, including increased investment opportunities, urbanisation trends, and government initiatives.
Implementing the Real Estate (Regulation and Development) Act (RERA) has improved transparency and accountability in the sector, boosting buyer confidence. Furthermore, technological advancements have facilitated online property transactions and simplified documentation processes, attracting more investors.
In the first half of 2023, the residential market in Chennai experienced a 3% year-over-year rise. According to Knight Frank India’s most recent report, India Real Estate: H1 2023 (January to June 2023), the city sold 7,150 housing units during the first half of 2023 compared to 6,951 housing units sold in H1 2022.
The Chennai office market experienced an all-time high in office leasing volumes during H1 2023, according to information given by Knight Frank. Office transaction volumes grew by an astounding 107% year over year to reach 4.5 million square feet, led by solid leasing momentum by multinationals in the first half of 2023.
Property Rates in Chennai
Chennai is renowned for its varied residential neighbourhoods, each with distinct qualities and cost structures. Due to variables including location, amenities, infrastructure development, and demand-supply dynamics, the average property rates in various areas of Chennai vary greatly.
Affluent neighbourhoods like Anna Nagar, Adyar, and Besant Nagar fetch higher property prices because of their advantageous positions, closeness to commercial centres, well-respected educational institutions, and upmarket retail establishments. Conversely, places like Tambaram and Pallikaranai offer reasonably priced home options without sacrificing the most fundamental conveniences. Due to their proximity to IT parks and greater connection via road networks, the newly developed suburbs of OMR (Old Mahabalipuram Road) and Perungalathur have also seen increased property prices.
This year also witnessedwitnessed the emergence of numerous micro-markets, which experienced an increase in value as well as a growth in homebuyers’ interest. The micro-markets in Chennai that expanded in 2023 are listed below:
- Kolathur – 9% increase
- Adambakkam – 8% increase
- Porur – 6% increase
- Choolaimedu – 7% increase
- Pallikaranai – 6% increase
The micro-markets in the city that have had good growth are all primarily residential neighbourhoods, as you may have already noticed.
Government Land Rates in Chennai
In Chennai, Tamil Nadu, the ready reckoner rate, also known as the circle rate, is called the Guideline Value. The Stamps and Registration Department of any state determines the guideline value. Understanding the current guideline value will assist prospective homebuyers in estimating the eventual cost of the real estate involved. The circle rates also aid in determining the stamp duty assessed when the property is registered at the sub-registrar’s office. However, the Revenue Department of the Tamil Nadu government may alter the recommended values. Therefore, knowing the most recent circle rates before engaging in any transactions is essential.
The guideline value is crucial because it establishes the lowest price at which real estate can be purchased or sold. As a result, when you sell your property, you will receive a minimum assured value. One of the primary ways the state makes money is through guidelines. A more extensive revenue collection is the outcome of more registrations. A property or location developed well has a more excellent guideline value than one that needs to be addressed.
The guideline value determines the registration value. Even if you purchase a property for less than its sale price, you must still register that amount as the guideline value. When a property is purchased for more money than the guidance value, the registration is done using the market value. Additionally, it helps keep property from being overvalued or undervalued.
How can I determine a property’s Guideline Value in Chennai?
The following equation can be used to determine a property’s minimum or guideline value in Chennai:
A property’s value = Guideline value in Rs/sq m X built-up area in sq m
For example, If the guideline value is Rs 8000/sq m and the built-up area is 500 sq m, then the property’s value will be Rs 8000 x 500 = Rs 40,00,000
How can I check the Guideline Value in Chennai?
Use the steps below to discover the Chennai guideline value online:
- Visit the Registration Department’s official website under the Tamil Nadu government.
- Look for the section to obtain the guideline value or ready reckoner rate in a specific Chennai neighbourhood.
- To get the circle rate, choose the zone, registrar’s office, village, and street name.
Real Estate Chennai Prices
Over the past five years, there has been a dramatic increase in home prices and rental yields in seven major cities. Bengaluru and Hyderabad have had the most increases in home prices over the past five years, per Anarock Research statistics. In 2022, the seven cities of Delhi NCR, Kolkata, Mumbai Metropolitan Region (MMR), Pune, Hyderabad, Chennai, and Bengaluru had an average property price of Rs 6150 per square foot.
City-Wise Average Property Prices in 5 years
| City | 2018 | 2019 | 2020 | 2021 | 2022 |
| NCR | 4,546 | 4,569 | 4,580 | 4,781 | 5,025 |
| Kolkata | 4,415 | 4,378 | 4,385 | 4,512 | 4,700 |
| MMR | 10,497 | 10,595 | 10,610 | 11,092 | 11,875 |
| Pune | 5,455 | 5,495 | 5,510 | 5,733 | 6,000 |
| Hyderabad | 4,128 | 4,185 | 4,195 | 4,372 | 4,620 |
| Chennai | 4,920 | 4,931 | 4,935 | 5,070 | 5,315 |
| Bangalore | 4,894 | 4,961 | 4,975 | 5,217 | 5,570 |
| Total Avg. | 5,551 | 5,588 | 5,599 | 5,826 | 6,150 |
Source: Anarock Research
How is the Real Estate Market in Chennai?
The real estate market in Chennai has experienced encouraging growth, portending a bright future for investors and homebuyers.
Due to its varied economic foundation, Chennai’s real estate market has a great deal of room to grow, as evidenced by recent trends in home prices. This comes from the steady growth in real estate prices over the previous five years.
According to Anarock’s analysis, Chennai saw home sales of close to 11,820 units in 2019. Post-Covid-19 2022, there were over 16,100 house sales, a 36% increase in sales. The city saw total sales of roughly 5,040 units in Q2 2023.
Chennai Real Estate Market Analysis
There are numerous options for real estate investing in Chennai. Chennai has a lot to offer its citizens and investors, being the capital of Tamil Nadu and one of the most well-known cities in the southern region of India. Chennai is a popular travel destination due to its expansive urban coastline and automobile industry. Tidal Park, Asia’s largest IT park, is located in the city, making it a well-liked destination for IT industry workers.
When picking a locality for real estate investment, one should consider several elements, including the availability of water, sanitation, and municipal amenities. It’s a fantastic moment to invest in real estate because, according to recent reports, real estate prices in Chennai are predicted to climb by 5.5–6.5% and across India by over 7.5%. Buyers have an excellent chance because independent houses, apartments, and bungalows are growing in value swiftly.
Times Property quoted Srinivas Anikipatti, senior director of Knight Frank – Tamil Nadu and Kerala, saying, “The real estate sector in Chennai is expected to grow at a healthy pace in the next couple of years. The city is expected to see a further rise in property prices, with the demand for residential and commercial properties remaining strong. The demand for affordable housing is expected to rise in Chennai in the coming years.
The IT and ITES sector is a major employer in the city, requiring large office space; thus, it is also expected to boost the demand for commercial real estate in Chennai. The improvement in infrastructure in Chennai is expected to make the city more attractive to investors and homebuyers.”
Investment Opportunities in the Chennai Real Estate Market
An illustrious residential project has been successfully launched by SOBHA in Chennai. This project integrates sustainable and eco-friendly elements in addition to being aesthetically beautiful. In Chennai, SOBHA Arbour is a well-planned residential development. This property is one of the nation’s top real estate developers, promising a lifestyle like no other.
The development’s architecture and design are modern and relevant, meeting the desires of today’s generation. The project offers cutting-edge amenities such as a clubhouse, swimming pool, fitness facility, beautifully landscaped gardens, and a separate children’s play area. Additionally, residents may rest easy knowing that safety and security are top priorities thanks to 24-hour CCTV monitoring and skilled staff.
Due to its proximity to the rapidly expanding Poonamallee-Avadi High Road corridor, SOBHA Arbour has good access to key commercial hubs and social infrastructure, including schools, hospitals, shopping centres, and dining establishments.
This outstanding property illustrates the SOBHA brand’s commitment to quality building standards and offers a harmonious fusion of tranquil settings and modern lifestyle aspects, all within proximity to essential facilities, making it an excellent choice for picky purchasers.
Conclusion
If you want to get the best return on your investment in real estate, consider purchasing a home in Chennai, where growth is anticipated to accelerate further. Since many working people are eager to rent a house closer to their place of employment, you can also make beautiful rentals in the meantime.
On the other hand, if you buy a house, you have the luxury of doing so for a reasonable price and a larger property, which is a benefit that most other cities don’t offer. You might anticipate a solid capital gain over time as the city develops.
