Strong rental market is key to Chennai realty’s growth
Chennai has grown exponentially in recent decades. It attracts an endless sea of people who keep moving in to the city, primarily for career and educational prospects. Employment and education opportunities and lifestyle prospects.
Feb 22, 2017
Source : Moneycontrol
Rental Market is key to Chennai Realty Growth

Chennai has grown exponentially in recent decades. It attracts an endless sea of people who keep moving in to the city, primarily for career and educational prospects. Employment and education opportunities and lifestyle prospects, are magnets that pull people into Chennai from all parts of the country. Impact on the demand for rental housing in the city High level of migration: The total migrants into the urban areas of Tamil Nadu, as per 2011 census, accounts to 12.3 million. Of this, around 47% have a duration of residence of up to 9 years. Thus, a fair portion of citizens in Chennai are tenants, who do not necessarily want to buy a flat to live in the city. Better quality of living: Rental housing allows residents to opt for a higher standard of living than their property purchasing power. A new apartment in the CBD of Chennai would cost around Rs 75 lakhs, while a person earning about Rs 10 lakhs per annum, can afford a home costing Rs 60 lakhs in the more affordable suburban location. However, such an individual can afford a CBD-based home on rent within the same annual income. This makes it possible for a MIG (middle-income group) individual to live in a HIG (higher-income group) flat, while the LIG (lower-income group) individuals can comfortably afford to live in a MIG flat. Increased affordability: Chennai continues to be an expensive city to buy a property. An average increase in property prices by 6%-7% from last year, has further constrained the affordability of owning a house. However, the rental trends in Chennai have seen only 2.5%-5% annual increase over the past 4-5 years. Tax benefits: Rental paid saves taxable income, as almost the whole portion of the rent paid can be saved by claiming it under Section 10 as HRA. Flexibility: Offering greater flexibility and requiring less of a financial stretch than home ownership, renting is most common among young adults, in whose lives changes in work and relationships are frequent. Lower additional costs: Owning a house involves a down payment for the loan to the tune of almost 20% of the property value and the EMI to be paid is often 40%-50% of the monthly income. Property taxes are about 1.5% of the property value and the regular maintenance and repair costs account for 40% additional charges, as compared to a simple monthly rental for the same property. However, hunting for a suitable rental house does come with its own set of challenges – not only to outsiders but also locals. Accessibility to the work place, quality of the neighbourhood, connectivity to other parts of the city, adequate living space, amenities, owners’ rulebooks and the budget and value for money being paid, play a significant role in while searching for a good rental flat. Trends in the important housing rental hotspots of Chennai IT Corridor-Old Mahabalipuram Road OMR continues to thrive as one of the preferred destination for the city’s infotech population, due to its proximity to various IT business parks and dedicated SEZs. With a slew of residential apartments and studios for singles coming up along this corridor, the burgeoning population of IT professionals has a logical influence on real estate and rental accommodations in this locality. Being majorly occupied by bachelors (sharing accommodations) as well as families of 4 to 5 members on an average, Shollinganallur, Perumbakkam, Perungudi, Siruseri and Taramani, have average residential rental values ranging from Rs 12,000-18,000 per month for 2-BHK flats and Rs 15,000-30,000 per month for 3-BHK individual houses.

 

Latest Realty News

K-Raheja-Corp’s-IT-building-at-Whitefield,-Bengaluru-gets-USGBC-Gold-LEED-Rating
Feb 20, 2017
K Raheja Corp, India’s leading real estate developer has received the Gold Leadership in Environment and Energy design (LEED) certification from the US Green Building Council for its IT building at Whitefield, Bengaluru.
Piramal-Fund-Management-sanctions-Investments-of-around-INR-2000-Crore
Feb 15, 2017
15 February 2017 : Piramal Fund Management (PFM), the financial services division of Piramal Enterprises, has sanctioned investments worth approximately INR 2000 Crore within three months of launching Flexi Lease Rental Discounting (LRD) for completed commercial assets that include office and retail space.
Government-Rules-Out-Tax-Incentive-Beyond-Rs.-2-Lakh-For-Second-Home
Feb 04, 2017
New Delhi: Ruling out rollback of the proposal to restrict tax incentive for second home to Rs. 2 lakh per annum, Revenue Secretary Hasmukh Adhia on Saturday said there is no point in subsidising purchase of second property by those who have surplus funds.
Union-Budget-2017-gives-infrastructure-status-to-affordable-housing
Feb 01, 2017
In Union Budget 2017,Finance Minister Arun Jaitly reserved his best for the real estate sector,which witnessed a slump post demonetization.
Reliable-Rating-For-Developers-Launched
Jan 26, 2017
The launch of Genuine Reliability and Customer Satisfaction GRACS Star rating for developers by GharaBari.com would bring transparency in the realty sector.
Odisha-capital-city's-growth-linked-to-real-estate-developers
Jan 21, 2017
BHUBANESWAR: Real estate developers have contributed a lot for the fast development of the Capital City by providing facilities of metro life under one roof, said Vice-Chairman of Bhubaneswar Development Authority (BDA) Dr Krishan Kumar.
Credai-Odisha-to-hold-4-days--property-expo-from-12th-January-
Jan 05, 2017
Credai Odisha Chapter is going to hold 4 days property expo from 12th January to 15th January at Janata Maidan, Bhubaneswar.
Property-cards-issued-by-South-corporation
Dec 21, 2016
NEW DELHI: South corporation on Wednesday started distribution of Unique Property Identification Code (UPIC) cards along with inaugurating the "Link your Record" programme for residents in its jurisdiction.
JSW-Cement-launches-Heavy-Duty-Concreel-HD-Cement
Oct 21, 2016
Hyderabad : With its unceasing efforts in expanding its horizons and giving something new and beneficial to the society, JSW Cement, one of India’s leading cement has added to its foray, a superior quality product called as Concreel HD -One Cement Six Strengths.
JP-Infra-to-build-a-Ganesh-Temple-at-JP-North-at-Mira-Road
Sep 12, 2016
Mr. Vijay Jain, CMD at JP Infra made a huge announcement for their landmark project - JP North at Mira Road to build a Ganesh Temple and the planning towards the same has already been initiated.

Latest Realty News Of State

Realty Talk's