Quick look At Future Of Commercial Real Estate Market In Chennai
Choosing Chennai over Bangalore, Hyderabad or any other commercially developed cities may seem like a bad decision. But in actual the reality is the other way round. Though the city is still recovering from the demonetization, GST and induction of RERA act, the prospects for Chennai are very good in future. If you are looking for an space for business, we will suggest you to look for office space for rent in Chennai.
Answering to why you should take an office space for rent in Chennai, the reasons are numerous for doing so. The city is developing and the prices are much lesser as compared to other developed cities. The commercial real estate is still taking shape in the city. There are several projects running presently and there are many more to come. The rent which forms a better part of business expenses is relatively lower.
A 92 percent growth in office space renting has been seen recently which is amazing. An average 3% overall rise in office space rentals is also witnessed still it is less than the other cities. The IT companies forms a major part of the office space consumption in Chennai though it s stabilizing now.
Not only the commercial real estate but Chennai is emerging as a trending residential investment option for both Indians and NRIs as foreign investment is also increasing. The residential properties are a very good option for investment in Chennai. So if you are wishing to make a residential investment or office space rent in Chennai, you are on the right track.
Projects For The Future
You would not say no to grab an office space for rent in a city which is going to be a smart city. Yes, Chennai, the Detroit of Asia, is one of the cities which are to be developed under the smart city project. The Chennai govt is also running several projects for making the city first among the choices of business people to come and establish their offices here.
Pattabiram IT Park project is one among them. This IT Park is to be built at Avadi-Pattabiram. The project is expected to be completed by 2021. It will generate thousands of job opportunities in the city. With Bangalore and Hyderabad in the southern belt, Chennai also has its fair share of IT crowd which is expected to increase even more in the future.
Several other projects are at different stages of completion. Some of them are Outer Ring Road Project, bio-methanation power plant project, sathangadu iron and steel market, Mass Rapid Transit System Phase I and Phase II, Koyembadu Wholesale Market Complex, Wholesale Food Grains Market, etc.
So Many Projects?
Yes, so many projects. The MRTS project is managed by the partnership of state government and central government. Then there is outer ring road project and air space exploitation over MRTS to divert the transportation from inner parts of the city.
The city is on the surge of revival after demonetization and GST application. Though the average rentals have increased, the office spaces are filling very fast. The demand is on its way up and up only.
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The government is taking measures to increase supply as the demand is increasing. Several commercial buildings are taking shape in the inner areas of the city as well, which are in proximity to all the important parts of the city. Though the IT sector takes up some space, the manufacturing and service industries are also looking forward to make a future in Chennai.
Facts speak for themselves and will convince you why Chennai is the city for your office. In 2019 itself, a 4% growth has been recorded in sales volume in real estate sector in Chennai. It includes both residential and commercial properties.
The southern zone of the city appeals the people as several IT companies are situated there and maximum demand has been recorded here. Though other areas are also growing but southern Chennai seems like the favorite of buyers. The smart city project has also attracted several buyers to the city.
Demand And Supply
The affordable housing is also playing a important role here. With the growing industries and excellent job opportunities, there is demand for both residential and commercial real estate. The Tamil Nadu government is taking measures to attract IT companies which in turn lead to above mentioned demands.
There is no stopping when it comes to why you should look up an office space for rent in Chennai. Because several factors have arrived to this conclusion as how Chennai is better. Due to demonetization and GST, the demand was falling to the ground. As a result the stock of unsold inventory rose and prices fell. Now that market is rising on its feet and prices are increasing, they are still lower as compared to other cities.
Another reason is Japanese FDI. Around 600 Japanese Industries are operating in Tamil Nadu and so many of them choose Chennai for their operations. Some of the companies are Nissan, Toshiba, Hitachi, etc. All of these factors guide Chennai towards economic development which holds an appeal for the market and ensure a bright future of commercial real estate in Chennai.
It is very important to weigh the pros and cons of each and every aspect of the city. As this is a place where you wish to establish your business. No wonder, Bangalore and Hyderabad are lucrative choices. Also, owning an office in any of these cities sounds wonderful. However, Chennai is right behind them in terms of providing amenities for your business at a relatively lower price.
Office rent being one of the major business expenses drives you to think twice. You think about the office space you so can pay rent. That’s why if you are considering your options, we will suggest you Chennai. Go over office space for rent in Chennai once before making any choices.