Infra development boosts demand in Chennai, Bengaluru
In recent infra development news, South India micro real estate markets are eyeing growth due to the boost in demand. Lower interest rates, waiver of stamp duty, reduction in GST, flexible payment methods, enhanced buyer protection, and similar other benefits introduced last year are still helping in 2021.
The demand has particularly been increasing in Bengaluru and Chennai for residential infra development.
What is driving the Real Estate market boost?
Few factors are responsible for driving the demand even after the havoc caused by COVID-19 since March 2020. Change in the working landscape enforced by the pandemic to work from home is a significant contributing factor to boosting the real estate market, especially in Chennai and Bengaluru.
Besides, both the cities are also witnessing increased industrial and IT infrastructure growth, which is generally ideal for a mid-housing segment. It is expected that both Chennai and Bengaluru may witness a significant increase in residential real estate demand in the upcoming years. The traction is expected to be enjoyed by both middle and upper-middle housing segment markets.
Another major factor of this demand boost is the construction of the Chennai-Bengaluru Industrial Corridor (CBIC), which is being constructed as a joint venture of Indian and Japan.
What do the numbers say?
East Bengaluru was a top performer in 2020 wherein it accounted for 40% of the residential housing sale. The micro-markets include Whitefield, Varthur, and KR Puram. However, North and South Bengaluru accounted for 30% and 25% of the sales respectively. Key micro-markets for North and South Bengaluru include Hennur, Yelahanka, Kanakapura Road, and Sarajapur Road respectively.
In Chennai, middle to premium housing market segments in the South were amongst the top sale performers. Key micro-markets include Old Mahabalipuram Road, PTR Road, East Coast Road areas with places like Perungudi, Pallavaram, and Siruseri. The old market in Chennai West accounted for 31% of the residential real estate sales in 2020. The price in such markets has also risen significantly due to high demands.
Infra developments undergoing in Chennai and Bengaluru
Major infra developments undergoing in Chennai and Bengaluru are:
- Chennai-Bengaluru Industrial Corridor (CBIC)
- Metro lines
- Transit corridors in proximity to established corporate and social infra developments
- Satellite Town Ring Road (STRR)
- Peripheral Ring Road
- Bengaluru-Mysore Industrial Corridor
- New airport terminal at Kempegowda International Airport
- Additional commercial airport at Parandur (Chennai)
All these infra developments currently in progress are expected to drive growth in large and small scale industries along with the real estate sector.
The road ahead
The COVID-19 pandemic has opened multiple micro-markets, especially in the real estate sector to serve customers. Besides, the long-term vision of CBIC to develop it at par with global standards will help create lakhs of additional jobs in Chennai, Bengaluru, and other places in vicinity of the corridor.
Keeping infra developments aside, the new real estate micro-markets are still susceptible to adversities caused by the proceeding and succeeding COVID-19. The under-construction projects look like bright sunshine on a snowy morning for the real estate market.
But not to forget, the housing demands are currently rising in Chennai and Bengaluru. If the trend continues with infra developments, we shall see a quick economic recovery.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
