2016 was year of several big announcements. From the Smart
Cities mission to demonetization, there have been several headline-making
events that will change the face of Indian real-estate in the times to come.Chennai Realestate embraced these changes and lived up to its standing of being fully a
city that bounces back, whatever the odds.
Chennai is among those metros which has a healthy
diversification of economic growth driver. Its economy has a broad industrial
base, with Chennai's port and its thriving IT/ITeS and BFSI sectors
contributing to its growth. The city's building sector includes the
automobile, computer, technology and hardware industries.
This diverse economic base ensures that the city continues
to attract new businesses and industries, guaranteeing sustained and robust
demand for both commercial in addition to residential projects in Chennai . Also, being
among India's IT hotspots, Chennai has witnessed a constant influx of talent
and skilled workforce.
In 2016, over 70% of the office space absorption in the city
was from the IT/ITES sector. The city also witnessed a record gross absorption
of 6 million sq. ft. This is a 20% increase over the prior year. With limited
option of ready-to-move-in office spaces, occupier demand is only likely to
rise.
The steadily-improving office market scenario will have an
evident positive affect residential property in chennai demand, as well. This means that locations
in Chennai where office space market activity is higher – including the
Southern suburbs - will dsicover significantly increased traction.
The Government's recent demonetization move has triggered
more cash being pumped in to the banking system, and this may make substantial
funds available to banks for lending to businesses, construction,
infrastructure development, and home buyer financing. Chennai, using its
massive development and growth potential, is likely to be certainly among the
principle beneficiary cities.