Chennai is a city where people seek houses since real estate prices have skyrocketed in recent years due to a scarcity of plots and restricted land for building. On the other hand, there is an increasing demand for newly created properties, spurred in part by the country’s tremendous economic expansion.
What are the advantages of owning a property in this area? Let we begin with something straightforward:
Real estate prices in Chennai have risen considerably in the previous year, and they are expected to continue to climb at a significant rate in the following years. While it is not as high as 40 percent per year as in certain Asian countries, annual growth rates of 25 percent to 30 percent are extremely typical, and these rates will only increase to 10-15 percent in the future. Most of the time, property prices drop during recessions as a consequence of lower spending. However, this has not been the case in India so far, although it is still too early to predict future changes.
Everyone knows how tough the real estate market is, and properties often retain their value over decades, which is one of the primary reasons they are referred to as long-term investments. If they acquire a home on a leasehold property, the lease specifies that they have a limited right to use the land for a certain period of time and then have the option to renew or purchase the lease. The majority of leases are for 10-15 years, and even if they pay to extend their lease, it’s still relatively inexpensive compared to Singapore, where it’s probably 5-10% of property worth.
Acquiring a Chennai apartment is similar to purchasing an ATM: not only can it appreciate over time, but it can also be swiftly sold (within a few months) without a lot of difficulties since everyone wants to invest here owing to the high profits, which means there is always a buyer available. If they are concerned about collapsing markets such as Japan, they need not be; it was 20 years ago, and no one lives in terror of crumbling markets now. However, if they are forced to leave the nation for whatever reason, selling their home may be problematic; prepare appropriately or ensure it is registered under RERA to make the process much smoother.
- Vacation Rentals
If they want a rental income from their investment property, Chennai is arguably one of the greatest cities in South India, since flat and flatmates chennai are prepared to pay above-market prices because of the city’s demand-supply imbalance. If they’re seeking short-term rentals, the returns here are also superior to those in other significant areas like Bangalore and Mumbai (less than 1 year). However, due to the high expenses associated with renting, individuals prefer to own properties, which means a continual demand for new homes, resulting in dropping inventory levels.
- Purchase proclivity
Numerous folks have inquired as to why I desire to purchase a home when they may rent one. They argue that there is no use in buying an apartment that would be occupied for less than five to ten years since gradually growing rental rates will amortize the cost of their investment, making it more valuable after ten years. This is true, but they must consider the possibility that things may not go as planned and something unexpected occurs to their career or company, forcing them to move. In such circumstances, it becomes difficult for them to re-enter the real estate market (since everyone is aware of pricing) unless they are already financially self-sufficient like I am. Thus, although renting is preferable if everything goes well if not, owning their home will be beneficial. While many believe the sole reason I want to buy a home is to prevent rental stress and sleep well at night, I think several additional reasons will benefit my future, and this post attempts to discuss almost all of them in-depth. Purchase proclivity
- Government of Tamilnadu incentives
The state government offers interest subsidy programmes to assist first-time home purchasers in purchasing a home. This indicates that property values will continue to appreciate at a quicker pace than in other cities, even 5-6 years from now, making this a great investment location for anyone looking to increase their money faster than in other cities.
- Chennai has seen remarkable growth during the last several years.
Chennai’s proliferation of IT businesses has resulted in an increase of infrastructure and real estate. As a result, the metropolis is predicted to double in size over the next 25 years, compared to already-congested places such as Bangalore or Mumbai. All of this suggests that demand for housing will continue to grow today and in the future, allowing homeowners’ properties to appreciate at far greater rates than they paid for them.
In a word, stanzaliving is the most excellent alternative for anyone interested in purchasing apartments in Chennai.