The State of the Housing Market in 2023 in Chennai
Investment in Real estate has proved to be immune to market volatilities, and continue to reap good returns for the investors.
Post the Pandemic the need to possess a house, have a stable living space that offers comfort and amenities in a safe and reliable environment has assumed prominence and this has been another major factor in the rising demand for houses, especially gated community apartments. In the fourth quarter of the year 2022 more than 4000 units were launched in the residential sector in Chennai, nearly double the number of launches recorded in the same time frame the previous year. Of these new launches about 55% is from the Mid-segment which continue to dominate the market.
Let us look at some of the predicted trends in the housing market in the City for the year 2023 –
- The Year 2023 is expected to be a productive phase of growth for the real estate market in the city. An expected growth rate between 8%-9% is expected in the year and the demand will be majorly for the Mid-range housing segment which offers the home buyer an ideal living condition and a very dependable and yielding investment.
- The Economic growth in the country is predicted to be promising in the fiscal year and the positive environment would increase Foreign direct investment (FDI) in the country. With the Job market improving and better flow of income, the buyers would look to invest in reliable and rewarding investment options and real estate would witness great demand.
- The accelerated infrastructure growth in the city would encourage investors to choose emerging markets. With better connectivity and accessibility on the cards, the suburbs of the city will continue to experience great demand owing to the more customer-friendly prices and the availability of more space for the development of integrated Townships and Gated Communities. Some of the major infrastructure projects ongoing in the city include – Phase II of Chennai Metro, Satellite Bus Terminus in Madhavaram, Second International Airport near Parandur, and the 6 lane Vandalur flyover. These development activities would lead to the emergence of residential micro markets around these areas.
- Spike in Demand for Gated Community apartments, and investing in a second home for steady rental returns are some of the emerging trends. The WFH and hybrid work culture has increased the demand for Vacation houses and this trend is expected to grow in 2023-24. With better Safety, availability of lifestyle amenities, more space for physical activities and a connected community living, Premium Gated Community apartments in the city are the top Choice of home buyers.
- Industry experts predict an increase in Property prices in the city by 10-20% due to the increase in the cost of raw materials. Cost of all basic materials like Cement, Steel, Copper Wire, and other fixtures have increased and this would eventually result in the increase in the price of property. However, this price increase has been predicted to have little or no impact on the investors as they comprehend the stability of the investment and also the scope for appreciation and returns.
Real estate investment has time and again proved to be a reliable and stable investment. With Millennials and Gen Z investors also showing interest in this sector, leading real estate developers being aware of the expectations of the home buyers are offering New Gen Homes in the Mid-Segment range loaded with lifestyle amenities. Both as a comfortable living Space and a stable investment real estate would continue to be the primary choice of home buyers and property enthusiasts in the Year 2023-24. With the Price of properties expected to increase owing to the increase in the price of raw materials, the time is just perfect to make this ideal investment.