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Chennai property prices have been on a high throughout the last few years and they are expected to see an upward trend this year too.

The ITES and BPO industries are a primary reason for this boom in the real estate market in Chennai. Not only has it increased the capital and rental values of commercial property, it has fuelled a demand for housing for its workforce. The IT corridor Old Mahabalipuram Road is seeing a facelift. A six-lane highway stretching 20 kms is home to many MNCs who are setting up operations here. This has pushed property prices in this area of Chennai.

Chennai property prices have already skyrocketed in the ECR (East Coast Road) almost upto a few kilometers short of Pondicherry. This tips the scale in favor or older industrial estates. Land prices in the industrial areas of Guindy and Ambattur are also seeing climbing rates.

Residential property prices in Chennai have also seen an upswing due to increased demand for premium housing apartments as well as budget flats. Chennai properties have been buoyant since 2004. Consequently rental prices have also shown an upswing. Certain suburbs are seeing increased real estate development activity.

By and large, builders are concentrating on the middle-income group and upper-middle group, for their buyer base. With an increase in the number of software professionals in the city, apart from the usual Non-resident Indian (NRI) investors, there is increased demand for flats even in the range of Rs 15-25 lakhs. Despite an increase in land and construction cost, the demand for both housing and commercial space has gone up in the Chennai property market.

According to media reports the demand for Real Estate in Chennai have gone up as people opting to buy their own houses in Chennai has gone up as most people preferred to pay the monthly installment on bank loans rather than to rent.

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