The real estate market of Chennai has witnessed unprecedented growth in recent times. It has been developing fast than ever with property prices reaching sky rocketing figures. Chennai property market has displayed an unmatched potential to attract huge investments from Tamil Nadu as well as outsiders. There is also a huge participation of Non Resident Indians in the real estate segment in Chennai.

It is mainly the end-user segment that drives the real estate market of Chennai. However, the scenario is changing fast. Investors have equally started taking interest in the markets and developers have also started projecting their properties as investment tools.

The foray of the several financial giants in the local market of Chennai, like the Government Investment Corporation of Singapore, has resulted in rise in real estate values all across the city.

Many big Housing Companies are coming up with beautiful and innovative buildings, villas, duplexes in Chennai thus augmenting the housing opportunities in Chennai and adjoining areas of Velacherry, Valasaravkkam, K. K Nagar etc. Besides the growing demand of Chennai Properties, there has also been a surge in the sale of ready constructed houses and affordable flats. People are betting heavily in Chennai’s real estate market owing to appreciation in property prices in the city. Thus, the trend of second or third homes is very evident in the Real Estate market of Chennai. The local property market has emerged as a safe haven for real estate investments and capital gains, and is found to be more lucrative than any other segment.

In the past few years, Chennai has successfully walked towards a cosmopolitan outlook. Of all the metros in India, commercially, Chennai possesses distinct advantages that the other cities do not.

There is also a good supply of real estate in Chennai as compared to the already saturated markets of Mumbai and Delhi. The growth of the IT industry in the city is led by the abundance of good talent in the city.

In Chennai, the Old Mahabalipuram Road (OMR) is attracting a lot of real estate activity. On the anvil are big residential townships backed by foreign investors for some of the projects. As it is an upcoming area, there has been realty development to cater to the increasing need of school, markets etc. These places have a good water supply and are unpolluted t\and therefore give the advantage of peaceful and healthy living in an urban metro city.

East Coast Road, with its serene environment and scenic beauty has adopted a new avatar as one of the most lucrative residential destinations in Chennai. There is a plethora of new residential projects coming up in that part of the city. Government is taking definitive steps towards reducing the movement of transportation in that area.

The more established places in the city with good infrastructure include places like T. Nagar, Mylapore, Abhiramapuram, Adayar as these places are in close proximity to schools, hospitals and industrial areas.

There have been continuous efforts to improve the infrastructure in Chennai. Some problems that plague the city include the cleanliness, transportation, potable water which if solved will make Chennai a more happening destination.

The city’s real estate has experienced a complete turnaround in its real estate, of late. The combined initiatives of the Government of Tamil Nadu and the Union Government have paid well in terms of approval of projects related to the improvement of infrastructure in the city.

After going through a period of correction for the past 6-months, Chennai property market has finally stabilized, however the demand curve is still observed to be moving horizontally. According to industry reports, the city absorbed only 13 per cent of the total supply of the residential space in the past quarter.

As per various sources, Chennai real estate received fresh additions of 3.4 million sq. ft of housing in the past quarter although a meager 0.47 million sq. ft of space was absorbed.

It's a consumer's market. It is expected that Chennai Real Estate will add as many as 25,000 apartments in the next 12-24 months, from more than a dozen of townships alone and construction of standalone apartment buildings will further accumulate over the total additions.

In such a situation, the supply side would definitely outstrip demand curve and of course, property sellers and developers have to downscale their margin expectations, analyze market experts.