The tragedy of the recent Chennai floods was harrowing. Thousands of people lost their homes and hundreds lost their lives. The after effects of this natural disaster are still being felt even though the flood waters have receded. As Chennai and its brave inhabitants go back to rebuilding their lives and city, it is important that things return to normalcy as soon as possible. The only thing that helps in forgetting a tragedy is to look forward, to embark on new ventures and to build, create and flourish. And the citizens of Chennai are doing just that – they are looking for new plots, apartments and flats so that they can fulfill their dreams of owning a home.
As is understandable, after a terrible catastrophe like this, the real estate market will undoubtedly be under a lot of pressure. There has been a lot of damage to public property, roads and infrastructure which has an obvious negative impact on real estate prices. Moreover, trends suggest that south Chennai will suffer the most from the floods as the damage has been quite extensive there. However, apart from the negative news, there is a strong consensus among experts that the Chennai market – which was performing well prior to the floods – will recover and bounce back soon and will perform much better after that.
To be clear, the after effects of the floods on the real estate market are likely to last several months – maybe even a couple of years. But the underlying basics of the Chennai real estate market are healthy and once the damage is repaired, investments are expected to continue as usual. One of the most favorable aspects of Chennai real estate which will play a huge part in the recovery is its affordability. Real estate prices in Chennai were on the lower side even before the floods and now they have been pushed down even more. This lays out a fertile scene for investment to flow in and capitalize on the affordability of the real estate in Chennai. Prospective home owners in Chennai are now focusing on areas that haven’t been as badly affected by the floods as some others. As such certain micro markets in Chennai are arousing more interest than others. There has been a marked increase in buyer interest in areas such as Avadi, Redhills and Vandalur. Experts agree that these micro markets will be the seeding ground of the recovery of the Chennai real estate market a couple of years down the line.