THE CHENNAI REAL ESTATE SCENARIO
The Real Estate Scenario in Chennai is showing an upward trend.
The long period of frenzied demand which we saw in the 1980s and the first half of 1990s, was driven by two kinds of demand. User-demand and profits-inspired demand. Whether the end-user benefited or not, the real estate players stopped at nothing as they strove to gain the maximum out of the spiraling demand. Quality of construction, Comfort and Convenience were often given the go-by, with a few outstanding exceptions.
This period was marked by a bullish phase all over the country - Mumbai, Bangalore, Chennai, Hyderabad, etc. Demand from NRIs further fuelled the trend. This was followed by a natural slowdown.
Mumbai and Bangalore real estate scenarios showed clear evidence of this slowdown. This flattening of the curve, analysts pointed out, signified a period of adjustment and correction. The next phase would reveal demand of a new kind-one that would call for real 'value for money', they said. And that phase has commenced.
Big Corporate players have now entered the real estate arena; and the focus is on Class and Quality. With a number of multinational setting up production units around Chennai, the demand for world-class living units is on the rise. Over the next two years, there is going to be a sharp rise in demand from this sector alone.
The developing industrial growth in the South is also going to accentuate this demand for quality-houses in the near future. Thus the ground rules have been set for this phase of the real estate development. No more fly-by-night operators. It's time for people who deliver Quality, Class and Comfort.
Yes, the Real Estate Scenario is indeed maturing.