20/09/2013
Real Estate Growth :
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Recent Survey : Data for the past few years show that real estate has been a rewarding asset class. For example, in 2011, one of the worst years for equities when the Sensex fell nearly 25%, prices of homes in most Indian cities remained firm despite the overall economic uncertainty, both in global and domestic markets.
During the year, prices in nine out of 15 cities covered by the National Housing Bank's residential index, called Residex , rose, except in Ahmedabad, where prices remained flat. In comparison, if you had invested in real estate stocks, the value of your investment would have fallen by nearly 50% between December 2010 and December 2011.
Even if one considers the period from end-2008 till March 2012, which saw a widespread slump in equity and property markets worldwide due to the global financial crisis, real estate in India gave positive returns in most instances. As many as 11 out of 15 Residex cities gave positive returns during the period, the only exceptions being Hyderabad, Jaipur, Kochi and Bengaluru.
Commodities such as gold and silver, however, were the other winners, beating real estate.
Chennai circle:
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Chennai is the fourth most populous metropolitan area and the fifth
most populous city in India, with the urban agglomeration having an
estimated population over 1.4 million people.
Chennai’s economy has a broad industrial base in the automobile,
computer, technology, hardware manufacturing, financial services
and healthcare industries. Known as the Detroit of Asia, it accounts
for over 60% of the country’s automobile exports. The city is India’s
second largest exporter of software, information technology (IT) and
information-technology-enabled services (ITES), next to Bangalore.
As the Entertainment Capital of the South, it is also home to the
large South Indian Tamil film industry. The State Government of
Tamil Nadu, after successfully establishing IT and Industrial Parks, is
in the process of setting up Financial City and Media Entertainment
Park, with an investment of over USD5 billion.
Chennai’s economic development has been closely tied to its port and
transport infrastructure. The city is served by two major ports namely
Chennai Port (one of the largest artificial ports) and Ennore Port. The
Chennai port is India’s second busiest container hub after Mumbai.
A rapidly growing population has increased the strain on Chennai’s ransport.
A comprehensive rail network system is the next thing
in the State Government’s ambitious plan to provide a diversified
transport system for the city. The Government plans to have a
300-km monorail in a phased manner. Thus, Chennai will have the
distinction of having four rail-network systems - the Chennai sub
urban railways consisting of the electrical multiple units (covering a
distance of
286 Kms) and the mass rapid-transit system (covering a
distance of
25 Kms) , the other two being the metro rail (covering 45
Kms in Phase-I) and, in future, monorail.
With four major National Highways radiating outward from Chennai,
the city is also served by the three major ring roads that are being
developed. Similar to the MRTS rail system, a BRTS (Bus Rapid
Transit System) is planned which will cover a distance of 70 Kms
of Circular Corridor. An extension of the BRTS is the Chennai High
Speed Circular Transportation Corridors (HSCTC) which is planned
in select corridors, forming an elevated
2-tier system. At a distant
future of completion is the proposed Chennai Elevated Expressways
(CEE), a Road Network Development Scheme of the Second
Master Plan by CMDA for the Chennai city. With the above proposed
Chennai is expected to have four road-networks by year
2020.
Trends in Residential Space in Chennai :
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Residential Market in Chennai Dominated
By Mid-End and Value Housing Segments ---
While Chennai city is home for Mid-to-High end
projects, with geographic expansion of the city’s
suburbs and increasing IT/ITES population across
varied income levels resulted in opportunities in mid-
end and value housing projects. However, residential
supply in Chennai is skewed towards value and
mid-end housing as the high-end projects have a
relatively lesser representation at a city level. The
premium pockets of Central Chennai and Off-Central
Chennai predominantly comprise of high-end offerings
as compared to the suburbs of Chennai that offers a
good combination of high, mid and value residential
projects. The representation of value housing projects
is notable in all the four suburbs of Chennai, which are
viewed as opportunity from both an investor as well as
end-user perspective.
However, as new projects are getting launched at
higher prices, the share of value housing segment in
new launches is reducing and has declined from 97%
in 2009 to 54% in 2011.
If you know more details :http://www.skylinesipc.com/en/uploads/Chennai_Real_Estate_Sector_Analysis.pdf