BANGALORE: Property prices in Chennai is expected to remain firm with upward bias in growth corridors, says a recent report by ASK Property Investment Advisors the real-estate private equity arm of ASK Group.
"The growth of auto hub and growth of IT/ITeS and BFSI industry has defined the growth of Chennai in last decade and will continue to drive migration and need for houses. Chennai which accounts for major share of US $ 185 bn investments in the State will lead to steady growth in jobs and rising need for houses," says Sunil Rohokale, CEO & Managing Director, ASK Group.
The report analyses the economic and infrastructure drivers that would impact the demographic growth of the Chennai metropolitan area. The study gives an outlook on the housing requirement and supply and its impact on prices.
"The housing requirement in Chennai is expected to be in the range of 30,000-35,000 houses annually. We expect prices to remain firm due to balanced demand-supply, while growth corridors are expected to witness upward bias in prices" said Amit Bhagat, CEO and MD, ASK Property Investment Advisors Ltd.
The PE fund has invested in two residential properties- Mantri Developers and Real Value Promoters, with expected revenue of Rs 725 crore in Chennai between December 2010 and March 2011 respectively. ASK Group has raised Rs.1300crore through its 2 domestic funds. Till date the group has invested Rs. 740 crore in 11 investments.
Chennai-Top 10 global auto Hub and major contributor to State's US$ 10 bn Software exports is expected to witness stable growth in medium term
Chennai's annual housing requirement is expected to be 30,000-35,000 houses (MIG and HIG segment) driven by 2.6% yearly growth of population
Overall Real estate prices are expected to remain stable with upward bias in growth corridors like Medavakkam, Pallavaram, Porur and Sholinganallur