Chennai a Promising Real Estate and Property Destination in South India

The Chennai Super Kings may be being suspended from IPL 2016, but when it comes to property rates in Chennai the real estate in Chennai seems to be undeterred racking up good growth and a pleasant rate of appreciation.

Over the past 3 years prices in the southern metropolis have appreciated by close to 7 percent and those prescient enough to have invested in real estate in Chennai a few years ago have been rewarded with a sizable appreciation in their real estate portfolio. 

What really makes Chennai stand out as an investment destination is the tremendous roaring energy in the city, and not just because global car manufacturing giant BMW recently rolled off its 50000^th car from its Chennai plant. Chennai is the largest city in South India and has some of the largest manufacturing plants in the country. It may not yet have caught up with Bangalore as an Information Technology hub, but Chennai in its own right has a growing Information Technology sector as well. With top notch physical infrastructure combined with world class colleges and universities, the city offers a great mix to propel it forward as an international business destination. 

All of the above has led Chennai to have a large and wealthy middle class with a disposable income higher than in many other parts of the country. The cities middle and upper middle classes continue to invest in real estate in Chennai leading to flourishing residential real estate market in Chennai.

Among the most attractive destination to buy real estate in Chennai is Thoraipakkam, a colleague who also happens to be my childhood friend mentioned that it may be the most attractive apartments in Chennai. Since I have known and trusted him for over 25 years, I tend to take his advice with great consideration.  

Thoraipakkam is a moderately expensive locality towards south Chennai with average price per square feet at slightly above 6,000 Rupees per square foot. Although this is well above the average property rates in Chennai which are close to 4,400 Rupees per square foot, Thoraipakkam is a really great place to live and raise a family my friend told me. There are many world class schools in the area such as The British International School and Gateway International School.

As rental income is far below the Chennai average of 42,000 Rupees per month, Thoraipakkam may be the perfect place if you are not keen to own real estate in Chennai and don’t mind paying an affordable rate of rent to live in the city. Thoraipakkam also has many great schools and malls nearby.  

If one is  keen to buy flats in Chennai, may consider Thandalam in West Chennai which is a suitable location. A recent project in this part of Chennai under construction by Amarprakash Developers offers 2 BHK flats in Chennai at an affordable price of only 18 Lakhs. With an EMI starting from a little less than 17,000 Rupees, buying a house here may be more affordable than owning car for the same period of time. 

As narrated by my friend, owing real estate in Chennai is well worth the money and according to him makes for a great long term investment. On my next visit to the city I intend to meet with a few acquaintances working with some of the top builders in Chennai in an attempt to glean more about this powerhouse of a city.