Luxury Market Hit the city of Chennai

After few years, common people wouldfind it hard to own a home in Indian cities like Bangalore, Delhi, Chennai etc, predicts the recent survey. Luxury segment has started to hit the top metros of India such as Chennai, Delhi, Bangalore and so on. For instance, the current price of a residential property in the prime areas of major Indian cities are Rs. 2 crore whereas in the next few decades, the price is estimated to raise about Rs.4 crore displaying a rise of 70%. The experts are expecting the price rise at short stretch since it will increase the economy of the country.

In Chennai, over 200 luxury housing projects were introduced between the years of 2010 to 2014. Among all other metros of India, Chennai holds 30% of the total share during 2014 whereas Bangalore registers 20% share. The survey is taken from the information provided by the buyers who fall into the income bracket of Rs.15 lakhs per annum. Demand for luxury residential homes has been noticed because of growing urbanization, HNIs (high net worth individuals), arrival of western culture and trends, interest from NRIs ( non resident indians), mass entry from service and automobile industries and increasing number of globe trotting Indians.

Since, Chennai peaks the top place in India, ahead of other cities like Delhi, Hyderabad and Bangalore, chennai apartments are likely to notice more appreciation than other metros. Furthermore, the recent survey also registered about that 45% purchasers should go for second-hand or resale property because of insufficiency in housing units. Owning to economic slowdown across the globe, the value of assets have dropped to 20% in 2012 when compared with 2010. This affected the realty builders to a greater extent and made them to concentrate much on the completion of existing buildings than thinking about the new project launch.

Due to the launch of many luxurious projects, new areas have come into the touch light of builders. Since, land space is under shortage in prime localities, builders are focusing on developing localities because getting more acres in those areas will be much easier. Compared to a mid-end homes, construction of luxury residences consume around 40% more cost. So, the builders normally choose developing localities to save upon their income to some extent. But, the appreciation in return gained by the owners are more than 70% higher. In short, higher the risk level, higher will be the profit gained.