CHENNAI: Various macro and micro factors impact real estate investment in a city. Here the author talks about factors that impact property investment in Chennai. However, before that let us understand what these macro and micro factors are
A pro-active civic body and a pragmatic and practical state government can stimulate real estate investment in and around a city and spurt demand naturally and in an organized manner. This largely forms the macro factors that impact real investment in a city.
In addition, the satisfaction index of the people living in a particular city with regard to the quality of life style and services offered in the locality will also benchmark the macro outlook on that city.
Some facilities may not be available uniformly across the city and hence on a micro level demand on such regions fall, compared to other parts of the same city where the satisfactory index scores would be higher. The study of individual micro markets within a city needs an exhaustive mapping of individual zones and an analytical survey and study of the reasons for their growth during the previous years.
Investing in Chennai
If we take Chennai as a test case, the outlook of Chennai real estate market with respect to the macro factors is good. It has a long history of over 350 years. From the start the city was conceived and developed by the British. It has been seeing steady growth in terms of quality of infrastructure and is one among the four major cities of India. It is the gateway to South India with a very rich heritage and cultural background. The city has a major port, an international airport, excellent rail and road network that connects very well within the city and across all corners of India. It is one of the best educational centres in India, both at the school and university levels.
It has several hospitals and health care facilities of global standards. It has a rich tourism and IT industry and is also one of the top automobile manufacturing centres in Asia. It is the headquarters of the South Indian cinema. On a macro level Chennai thus, has become a very hot and vibrant real estate destination of India. We may have to wait and see how it scores over other peers such as Bangalore and Hyderabad.
On a micro level, within the city, costs and demand wise, there are lots of differences from one area to another. South Chennai continues to hold its forte over the northern side as it has infrastructure bottle necks. But whatever may be the case today, it may not hold good in the future. As said earlier, a very pro-active municipal corporation and a pragmatic government can make the market more buoyant and vibrant and stimulate it in different corners within the same city.