Chennai realty recovered faster than any other market after slowdown

During the economic downturn of 2008, while the other neighbouring and glamorous property market of Bangalore and Hyderabad fell by 24-29 per cent, the Chennai market fell only 8.3 per cent.

If the National Housing Bank's property price index 'NHB Residex' is a fair indicator, property value in Chennai has doubled from the downturn price of 2008, best appreciation than any other part of the country

Anshuman Magazine, Chairman and Managing Director, CB Richard Ellis Asia, believes the real-estate activity in Chennai is significantly driven by end-users compared with other markets, and this is one reason why prices are not too volatile and are holding up well. Real estate in Chennai has been undergoing a shift in its trends recently. Chennai property prices have been on rise since long, especially the commercial property rates.

Unlike other metro cities land prices in suburbs are yet to reach the peak and the concept of satellite town yet to catch fancy even after Jayalalitha Government is keen to develop more satellite towns. In most parts of Old Mahabalipuram Road, GST Road and the Chennai-Bangalore Highway, realtors say, land transactions are very few. Surprisingly, many new residential projects were launched along these corridors over the past two years and even received good patronage from buyers. But that has not translated into an increase in land prices along these stretches, says Kevin William Albert, Associate Director of Jones Lang LaSalle.

"This indicates the potential of Chennai's suburbs to emerge as an attractive retail destination. Bigger residential catchments in the suburban areas combined with more reasonable rentals compared to those in the prime city are expected to act as key driving forces for retailers to increase their presence in the suburban precincts of Chennai in the long term," the JLLI report added.