Chennai
With Chennai’s residential property prices consistently moving north, location specific homebuyers are keen to settle for resale units available in city areas. Proximity to educational institutions, hospitals and retail facilities convince them to opt for resale properties.
Moreover, those looking at investing in larger units in city areas are also keen to dispose of their existing city units and opt for new units through bridge finance. All these compelling factors have virtually pushed the prices for resale apartments to a new high.
The price mismatch between old and new units is narrowing down to just 20-25 per cent now due to surge in demand for resale units, according to industry sources. Here again the demand varies depending on the specific location and property developers have a long waiting list from location specific customers for booking new units as and when new projects are launched at city locations.
For instance, in Kodambakkam while the new units are quoted anywhere between Rs 9,000 and Rs 10,000 per sqft, a resale unit deals took place place at Rs 6,500 per sqft, say realtors. Similar is the case in Nungambakkam at Rs 8,000 per sqft and Nolumbur at Rs 4,000 per sqft.
The demand for resale units particularly for middle class budget segment has been strong and growing, feels H Balasubramanian, Managing Director of Bhoomi Realty. The apartments coming up for resale are mostly located in gated community developments and in proximity to a range of facilities which makes life a little bit easier for Chennaites to avoid commuting long distances, he adds.
The demand for resale units is particularly strong in city areas like T Nagar, Nungambakkam, Chrompet, Nanganallur, Velachery, Nolumbur, Anna Nagar, Adyar and Besant Nagar apart from suburban locations like Sholinganallur on the IT corridor. There is a growing demand for other areas as well but the demand hinges on competitive pricing.
Even housing board flats with larger UDS are in big demand in areas like Besant Nagar and Kotturpuram as city land prices are soaring, says Murali, a realtor with Estate Points. With the redevelopment trend gaining momentum people are keen to invest in resale units now, he adds.
According to realtors, the trend is likely to continue until infrastructure development improves in suburban and peripheral areas with the emergence of more educational, health and retail amenities and connectivity levels.
V Nagarajan, Property Consultant
Source: http://content.magicbricks.com/resale-property-prices-in-chennai-reach-a-new-high
