Demand for Property in India is not just driven by IT Workers

Despite the anxious news about the countries IT industry, buying property in India is still a good investment. Many reputed individuals working with the media have over the past few weeks forecast that there would be a large number of layoffs in the countries tech sector. According to such experts, a large number of layoffs in the nation's IT sector would have a harmful impact on demand for the domestic real estate as well.

The IT Real Estate Connection

Much of the real estate in Indian cities is driven by demand from consumers who work in the IT sector. Sales of real estate in cities such as Bangalore, Hyderabad, Pune, Gurgaon, Noida, Chennai, Mumbai, and New Delhi are particularly sensitive to demand from IT workers. Nearly forty percent of the demand for real estate in the cities mentioned is driven by mid-level managers employed in the tech sector.

While the leaders of the largest technology company in India have stated that the outsourcing of jobs from India to overseas is unlikely to result in job losses, many others with less skin in the game are speaking in a different tone. According to the latter, the job losses in the technology sector are imminent and because many more people in India are employed as an indirect result of the tech sector than are employed within the tech sector itself, the impact of layoffs in IT will reverberate across the country.  

Is There Reason to Cheer?

According to reports received by this property site, 9 Indian cities have been counted among the top 300 cities globally where commerce is vibrant and growing. Unsurprisingly the top two ranked Indian cities are Mumbai and Delhi at 17^th and 22^nd positions respectively.

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The two of the highest ranked Indian cities together account for a Gross Domestic Product of 400 billion dollars. Both Mumbai and Delhi are the fifth and sixth largest cities in Asia when measured by the size of commercial activity. While this may sound impressive, when considering per capita income (income per person), the cities rapidly fall in global rankings. Global cities such as Shanghai, Seoul, and Beijing have per capita incomes that are, conservatively, three or four times greater than those of New Delhi and Mumbai.

Why All is not Gloom and Doom

However, the good news is that a credible international study has concluded that the largest cities in India are driven by more than just technology. There is a great deal of buying and selling taking place in all eight of the cities mentioned. According to some property sites, just because there are an unusually large number of layoffs in the tech industry, it should not lead us to the conclusion that the demand for real estate will fall drastically in the cities mentioned.

Taramani: the new spot in the real estate in Chennai

Taramani has nearly turned out to be synonymous with Chennai's IT big tale and has been attracting the interest of realestate in Chennai builders and buyers for many years.

Located in the southern part of Chennai, Taramani is popularly known as the Rajiv Gandhi Salai stretch is one of the few locations in the town in which offer quite some land parcels and new residential projects. Placed adjacent to Adyar, Thiruvanmiyur, Velachery and Perungudi, it houses a number of the town's prominent IT parks like Tidel Park, Ascendas and TCS to name some.

This region has been known as the IT stretch for many years, but from the past few years the locality being converted into a residential hub which additionally enjoys top connectivity to the rest of the city in addition to the outskirts. It is noteworthy, that in past few years many instructional institutes too have mushroomed inside the location.

A property consultant working in this area said that appropriate social infrastructure and adequate vacant spaces  have brought benefit in this vicinity. Many new commercial institutions are rising and this in flip has caused positive market sentiments. Even in terms of amusement, there are many alternatives to pick from.

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Additionally, he commented on factors that have caused the hike inside the demand of real property within the location. He said that the property right here is tremendously cheaper and the locality is in close proximity to some of IT agencies, many IT professionals are moving base to Taramani. Due to high traffic movement in the town, safety worries and lengthy working hours, many city dewellers that it is a superb choice for an alternative housing. Because of the massive potential for growth in Taramani and its surrounding region, housing initiatives right here have also caught the eye of NRI traders. The Chennai property market has been moving in the positive direction due to  the development in this area.

Even though there are several positive factors which are driving the growth of this area, however there some demanding situations too. "One factor which is worrisome is that there's a delay in the expansion plan of Taramani Link Roadway and construction of hurricane water drains for this stretch has no longer but taken location.  In the absence of such fundamental civic facilities will have an effect on the actual property potentialities in the area and accordingly needs to be quick taken care of out.

A director of a renowned property corporation feels that small and medium belongings segments had been doing well. He further said that people rely upon repayment through EMI's for best housing initiatives. In addition to the residential sector, PG accommodations and hostels that cater to the requirements of students and professionals are also available in Taramani. The value of a 2 BHK unit is about 50 lakhs for a 1,200 square Ft residence unit and the apartment rental varies from Rs.7, 000 to Rs.12,000 and Rs.14,000 to 18,000 for two BHKs and three BHKs respectively.

Taramani is new hotspot in real estate projects in Chennai, which will develop in the coming years.

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