The economic slowdown of the real estate market in Chennai saw great aplomb last year. As per the report from Knight Frank India, 2019 was the year Chennai saw a sail through a 6% year of the rise in residential sales. The second half of the year, the sales increased by 8% for housing for the newly launched in South Chennai.
Affordable housing and ready-to-move homes in Chennai are the primary reasons that reflect the growth of the real estate market in Chennai. Not only residential properties but even commercial properties have also shown a higher growth of over 50% year of standing with over 5.2 million sq.ft in the last year.
With this data, it is clear that 2019 was the year of celebration for the Chennai real estate industry. So, what is the resilient growth of the market in 2020? Come let us have a look into it.
Increasing co-working spaces
In 2018, JLL stated that more than 13 million Indian would be working out by co-working spaces by 2020. Also, it is reported that the workspaces will be accounting for 20% of the total commercial spaces in the city. The revolution to co-working space has reflected on a larger scale, even in the tier-II cities like Coimbatore.
North Chennai to grow further
Chennai is one of the most preferred cities to make a property investment. The rapid growth of the industries and commercial activities has attracted many people to make an investment. When it comes to North Chennai, it has been a busy industrial area since the 16th century due to the area's proximity to ports.
North Chennai is centred around trade activities and maritime which has driven the real estate market. North Chennai has a great pace of industries like Manali Petrochemicals, Indian oil and many IT corporate houses, which gives great hope for the robust growth of the real estate market in Chennai.
Tenants turn up as homeowners
The turn of tenants to homeowners has increased by over 64% as per the 2020 survey. The confidence of buying a home has received a small boost due to the stagnant prices and reduced home loan rates. The GST rates were reduced for compact and affordable housing projects which have made many people buy flats and apartments in Chennai.
The real estate in Chennai is showing positive growth over the years, and it is expected to increase in 2020 also. The development of IT corridors and industrial areas has led to the rapid development of new projects and industries like hospitals, schools, colleges and civic facilities that attract many homebuyers to buy flats in Chennai.