Chennai, affectionately called The Detroit of India is one of the bustling cities in India. As the fourth largest city in the country, Chennai is witnessing incredible growth. It is expected to go ever higher in the years to come. With its booming IT growth, it is attracting huge mass from all parts of the country. Which will result in increased real estate growth.

Strong Economic Growth and Investment Potential

Chennai’s economy is at the highest pace. The city’s GDP has increased by around 8% in recent days. With booming sectors like healthcare, IT, and finance, it has secured its spot as the powerhouse of economic activities. But, how does it help real estate? Increased opportunities result in increased manpower, and increased manpower will result in increased demand for commercial and residential plots.

 

Chennai is expected to reach new highs with the arrival of Chennai Metro Rail and Chennai Peripheral Road to mention a few. These improved connectivities will open up new investment avenues.

 

For example, The property value around has skyrocketed in recent years because of IT companies like Tidel Park and DLF Cyber City on the OMR front. It resulted in increased property value in the surrounding areas. Especially, in Urapakkam and Perumbakkam house owners have made a significant amount with high-income yields.

Affordable Property Prices and Connectivity

According to a study conducted by the World Economic Forum, the GDP of the city has increased by 8% between the years 2016-2017 and 2022-2023 and is expected to grow even more in the upcoming years. Key sectors like healthcare, IT, ITES, and finance have contributed to the significant growth.

 

Housing and commercial space demand

• Chennia’s urban population has increased by 154% resulting in increased demand for housing. Rising job opportunities attract lots of young professionals to the city. This creates demand for modern apartments and amenities.

 

• Compared to the growing cities in India, Chennai has a competitive edge in terms of the affordability of properties. The average apartment price in Mumbai ranges from Rs.14,000 to Rs. 15000, In Bengaluru it ranges from Rs.7500 to Rs. 8200, In Delhi it ranges from Rs.7800 to Rs.8500. Whereas, it costs Rs. 6300 to 7000 per. Sq. ft.

 

• The entry price of 1BHK apartments in various cities is as follows:
  • Chennai is Rs. 30 to 35 lakhs,
  • Mumbai – Rs. 70 to 85 lakhs
  • Bengaluru – Rs. 45 to 45 lakhs
  • Delhi – Rs. 40 to 45 lakhs,

 

• This means Chennai is more affordable compared to other major cities in India. This is the best opportunity for investors to invest in real estate.

 

Low entry and high Return on Investment (ROI)

 

• Let us assume you invest Rs.30 lakhs in an apartment in Chennai, in ten years the price will appreciate by 10%, and by the end of the tenth year you will have three lakhs as a return on investment.

 

• The real estate market comes with a wide range of investment ideas for you to invest in, such as affordable apartments, luxury apartments and villas, Independent houses and plots, and gated communities. There is a property for everyone’s budget.

 

Emerging High-ROI Areas

Here are some emerging spots in Chennai for you to invest in:

 

1. OMR and ECR with their IT development are expected to reach new heights in the years to come.

 

2. Central Chennai is undoubtedly the best investment you can make. Accessibility to all the places of the city with ease and redevelopment projects increases the value.

 

3. It is a wise option to invest in tier-two suburbs like Chengalpattu and Sriperambudur as they are in the budding stage.

 

Take a look at some affordable and luxury apartment projects situated in the emerging places of the city. They can be the best investment you can make.

 

Excellent Infrastructure and Connectivity

• Chennai is undergoing huge and excellent transportation and connectivity. In terms of connectivity, Chennai is well-connected with all parts of the city.

 

• The airport is the hub for domestic and international transportation, attracting business and tourists.

 

• In terms of leading a healthy and comfortable living, reliable water supply, effective and efficient waste management, and stable power grids ensure well-being.

 

• Talking of entertainment and social amenities, Chennai has recreational spots like beaches, malls, movie theaters, educational institutions, and healthcare facilities.

 

Investing in the Future

It is wise to make any investment focused on the future. The best futuristic investment plan would be to invest in the following places:

 

• New lines are planned to enhance connectivity throughout the city and the nearby suburbs. Investing in the places around the Metro Rail Expansion areas can be the best investment one can make.

 

• The Peripheral Road Projects will make the congested areas less crowded, resulting in increased demand,

 

• Talks are going on regarding the inclusion of Chennai in the Smart City Mission. This plan includes futuristic and world-class infrastructure to make the city sustainable ecologically.

 

Tamil Nadu Budget 2024-25 and its Impact on the Real Estate Industry

The Tamil Nadu Budget 2024-25 discusses the real estate industry in seven major areas: infrastructure, job creation, social infrastructure, health, district export plans, financial framework of the state, and environmental sustainability. The details for the points of interest associated with real estate development are as follows:

 

• A world-class film city in Chennai
• Integrated textile complex at Chennai
• 1000 crore rupees for the development of North Chennai

 

These steps might spur economic activities and new jobs, respectively, creating new demand in residential and commercial real types as well in these localities. More so, the development of infrastructure projects such as new roads and metro lines can enhance connectivity making the areas developed and attractive.

 

It is to be noted that none of the above-discussed projects have been given any timeline detail or any funding for the matter.

 

Cultural Richness and Lifestyle Advantage

 

Chennai, apart from being an economic powerhouse, opens its gates to a vibrant tapestry of cultural richness and lifestyle advantages that tip the scale for any resident and investor to set base in this city. Well, looking more closely at what goes into making this city special.

 

There is no doubt that Chennai echoes the sound of experience, may it be the sounds of ancient temples like Kapaleeshwarar, Carnatic music concerts, and the architectural wonders in and around the city.

 

Modern Wonders: The city is home to art galleries and museums on one hand and IT hubs with crowds and activity on the other, making Chennai a beautiful blend of culture and urbanization.

 

 

Cost-Effective: It means the cost of living in comparison to other metros is quite lower, and one can live a comfortable life without needing to spend a fortune. Safe & Secure: Being an epitome of friendliness and camaraderie, Chennai nurtures a clean environment of camaraderie and safety amongst family and people.

 

Holistic Well-being

 

• IIT Madras and Anna University are institutions recognized all over the world that produce the future generation, therefore creating an intellectually alive setting.

 

• Having service access to top-notch hospitals such as Apollo and Fortis ensures quality attention to health; hence well-being becomes the least of your worries in the city.

 

• From beaches like the Marina to diverse entertainment options, Chennai offers a whole gamut of recreation choices for a balanced life.

 

• The cultural depth, affordability, and livability of Chennai make it a highly enriching living experience where the value goes beyond the mere returns in money.

 

• The strong roots of the city and initiatives from the government make it a place with long-term stability and can give appreciation to the real estate value.

 

TL;DR?

The economic growth of Chennai, the robust infrastructure, and the skilled labor present a case for a compelling investment destination. Diverse real estate property options with budgets aplenty, catering to one and all, while low entry points face-to-face in other major cities could translate into potentially higher ROI.

 

The city itself has a developed infrastructure, so transportation is easy, not to mention access to social amenities. It is a thriving job market that brings in talent across all sectors, resulting in exponential population growth and more pressure on housing and commercial space.

 

This, combined with constant development of infrastructures and government initiatives like the Smart City Mission, in particular, adds to the sustainability of one’s real estate investments for long-term gains. Beyond all of the above financial aspects, the real lifestyle proposition that Chennai carries with it is that it has an accumulated rich cultural heritage, affordability in living and that it is home to numerous health and education facilities.

 

Investing in Chennai promises more than just capital appreciation but opportunities to take the plunge, savor a very interesting community, and live a life of fulfillment. So check out the different investment options presented by Chennai and start opening your doors toward a prosperous and enriching future.

Want to make a real estate investment in Chennai?

 

Consider Isha Homes, we are one of the best builders in Chennai, securing the spot for more than twenty years in a row. We boast 24 successful projects and 2.5 million sq. ft. of land sold to 3500+ happy families. Our portfolio features a wide array of investment opportunities such as apartments, villas, and plots.

 

Our building projects are based on places that have potential growth in the future. Take a look at our ongoing and upcoming projects to pick your ones.

 

Still, have doubts? Give us a call.

 

Let us make it happen!