Growing demand for expatriate housing in Chennai

Chennai

With the influx of global auto majors and the expansion of IT majors in Chennai, the number of expatriates looking for housing is up over the years. The city is now home to an estimated 7,000 expatriates mostly from the European countries.

In Chennai, expatriate housing demand invariably revolves around coastal area for independent units. Gated community development and row houses are also in demand. While South Chennai is the preferred location, demand exists for Anna Nagar from Japanese expatriates who are working in North Chennai.

Among the criteria for selection of housing in particular for expatriates moving with family, specific mention must be made about the presence of an international school, access to key centres, ambience for a comfortable social lifestyle, etc. In terms of housing, they are specific about 3 BHK units with a range of amenities like guest room, study room, party area, balcony, swimming pool, garden area, power back up and 24×7 water supply.

A number of such facilities are mostly available on the coastal area which is one reason for the surge in demand for housing from expatriates in the vicinity.

Rentals range from Rs 1 lakh to Rs 1.25 lakh per month for luxury apartments and independent units built to international standards on the coastal area overlooking the sea vary from Rs 3 lakh to Rs 4 lakh per month. Of course there are properties available in the price range of Rs 1 lakh – Rs 4 lakh.

According to Anita Krishnaswamy, President, Global Adjustments Services Pvt Ltd., the demand for expatriate housing will fluctuate depending on the schooling time in the city. During the months of January and August, demand is high as new people will be joining and school reopens for the new academic year.

Apart from villas, demand for serviced apartments is gaining momentum now as short-term assignments ranging from 4 to 8 weeks upto three months drive expatriates to the city. In which case expatriates do not prefer to take an independent house but instead wish to stay in serviced apartments. Most of the relocation agencies operating in the city are able to provide pre-travel services to gear up the expatriates for a comfortable living in the city.

Most of the lease arrangements are through corporates and renewable every year. Landlords prefer company leases to individual ones in the city.

On the flip side there are cultural and communication barriers. For many, going through multiple stakeholders to resolve minor issues irks them as they are exposed to single agency in other countries. This is where relocation agencies play a key role in providing training on how to handle varied groups while living in India.

V Nagarajan, Property Consultant

Source: http://content.magicbricks.com/growing-demand-for-expatriate-housing-in-chennai