Chennai Real Estate - Victim of Market Slump
Real estate in Chennai is on the verge of a crashing market, believes
industry experts. Chennai property prices have seen an escalation of
almost 200 per cent in the last few years. But with the global slump in
the real estate industry Chennai real estate has also slowed down.
Number of Chennai real estate developers has been able sold only a few of
their properties in the last quarter. R Mohanty, real estate agent from
Chennai states, "The residential real estate prices in Chennai have grown
by leaps and bounds making it difficult for buyers to purchase a home in
the city. The increased loan rates have now made it worse. Though the
prices are witnessing correction people are awaiting the market to
Research reveals that there has been a 90 per cent drop in demand for
residential projects since the start of the year.
Notably, Old Mahabalipuram Road, the hottest real estate destination in
Chennai is also loosing pace. Cursing the fading effect of the place on
lack of infrastructure facilities, Chennai real estate agents say there
have been only a few transactions in the area for quite sometime.
The commercial sector is also witnessing a downfall. The Central Business
District in Chennai has seen a 15 per cent drop, media reports.
IT companies largely drive the demand for Chennai properties but due to
the current market recession many companies have postponed their
expansion plans. As a result supply of office space in the city has
exceeded demand. Huge chunks of office space are lying unoccupied.
Subsequently, Chennai real estate builders are now waiting to launch
Besides global recession, inflation, the rising home loan rates and
increasing input costs have also resulted in slump in property
transactions in Chennai. Realtors in Chennai are struggling to sell
properties. Though price correction is taking place in Chennai Real
Estate sector but realty experts predict that the market will bounce
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