“Chennai is very conservative city and the growth is gradual. Even during the last recession the property price was stable in Chennai city, which made most of the top builders, look at the city as their investment destination. Because of the price stability and appreciation, the demand is consistently growing and so as the sales,” says N Mathavan, one of the directors of, Kanya Homes Private Limited.
“The property prices in Chennai are comparatively cheap though the input cost is increased considerably due to increase in cost of materials and labour. The builders are absorbing the cost due to heavy competition,” says Mathavan.
“But the trend will not continue for a long time and the increase in price of materials and labour will impact the cost of under construction projects which will be felt during the next quarter or after March 2014,” he adds.
So how much price appreciation experts are expecting in coming one year and how? “After political stability the prices are expected to go up to 10-15 per cent mainly because of high land prices and construction cost,” says Kishorkumar Gokaldas, chairman and managing director of KG Developers and Promoters.
“This appreciation is cumulative every year based on demand and supply in the coming years if the economy proves. The employment in IT, car, automobiles and other manufacturing industries bringing surplus money and those working in these industries can invest in properties,” Gokaldas adds
“Most of the area, which is with the Chennai Corporation will be benefitted because of infrastructure development like road, underground drainage and piped water supply and this will increase the cost of the land. Also the ongoing Chennai Metro project will also contribute significantly for the appreciation. Proposed Elevated corridor, along OMR, monorail projects are major contributors for another round of appreciation in the near future,” says Mathavan.
Source: Magicbricks.com Bureau