Real Estate Investment options in Tamil Nadu
Tamil Nadu is one of the most advanced States of India, thanks to a huge connectivity in terms of buses and trains. In fact, in terms of infrastructure, particularly urban infrastructure, it could rank among the best in India, or is probably the best in India.,
According to latest estimates, the pace of urbanization is so huge that close to fifty per cent of people live in cities and towns that have a very good infrastructure in terms of good schools, colleges, roads, hospitals, and all other essential amenities for a good life.
This makes Tamil Nadu a good destination for those who are not only investing, but also looking to have a home of their own, even if that home were to be a second home.
Take the classic case of Chennai city. Except for the main and posh areas of Anna Nagar, Besant Nagar, Nungambakkam, Kodambakkam and Adyar, where the cost of a flat is not less than one crore for a good two bedroom flat, in the suburbs -- very well connected by good roads from the main city -- the cost of housing, when compared to Mumbai or New Delhi is still very affordable.
For example, at a place called Kelambakkam, which is part of what is now called the IT Corridor, it is very easy to find lovely independent villas, all of them within perfect gated communities with world-class amenities, that cost around sixty hundred thousand rupees. Even this cost is so low, when compared to Mumbai and New Delhi.
Since most of them is spent in offices, and since the dual income families always have disposable incomes, there are cases where the entire house is air-conditioned, and they comfortably beat the heat of Chennai, which is otherwise a very livable city, with excellent CBSE schools, and the Arts and Science Colleges that consistently rank among the best in the country, particularly for commerce and economics and science as well. Apart from there are the VIT and the SRM Universities, where the standards of engineering education is literally equal to that of the IITs and NITs.
In fact, there is a growing trend of people from other States calling Chennai their home. In the evenings, there are superb beaches where one can enjoy the natural atmosphere, and a huge breeze.
The cost in other locations like Tambaram, which is a superbly well developed supurb, is around Rs.4000 to Rs.4500/- per square foot, and this is the cost in gated communities as well. Most of the apartments come with covered car parking.
The suburbs in South Chennai are developing or have already developed to a radius of one hundred kilometers. In a decade from now, the superbs that are selling somewhat cheap, in the background of the on-going recession, will shoot up to record levels. For just around Rs.100 or less per square foot, it is easy to find plots in such areas. It is but natural that these plots will develop very well in the areas to come.
North Chennai has two main routes. One that leads to the Western Ghats and Bangalore, is the route to a town called Arakkonam that has several stations enroute. Most of these areas have developed quite well, and in places just beyond a district headquarters town called Tiruvellore ( around 46 kilometers from Chennai), it is wise to invest, as these areas are very likely to develop in the years ahead.
The development in the areas that lead to the Eastern side town called Ponneri, is not so good, but has picked up of late. Investment in plots in these areas, at current cheap prices, may be a very good idea.
There is another superb city called Coimbatore, which is on the plains of the Queen of Hill Stations -- Ootacamund, called Ooty for short. This hill station is just two hours from Coimbatore.
The city of Coimbatore used to be called the poor man's Ooty, some three decades or more ago.
Not any more. It has one of the fastest developing real estate markets in India. However, the present time of recession, is the best time to buy plots, villa plots, and even areas for agriculture.
Coimbatore city is expanding to a huge radius of around forty kilometers on all the four sides. Unlike Chennai, where there is a huge sea on one side, Coimbatore can expand on all the four sides. However, areas beyond twenty kilometers and the villages that sorround the main areas, are fast developing now, and are available at fairly cheap prices. These will boom to the huge levels in the next ten years and the ideal time for investment is now.
Take for instance, an area called Annooor, which is around 32 kilometers from the city. One "cent" in local language ( in Coimbatore district, land is sold in cents, and each cent is 436 square foot), is around 50,000 rupees in places a little interior of Annoor. This small town is becoming a satellite town of sorts, and huge investments are now available in this area. One can even buy independent houses in gated communities for as less as Rs.20 lakh, and this is a big bargain.
When the recession eases and boom times start, it is but inevitable that places like Annoor on the way to a small city called Sathyamangalam will start to boom.
Coimbatore's climate is the best among the big cities, which includes Chennai. The other two cities that have airports -- called Tiruchirapalli and Madurai -- are also booming on all the sides, but Madurai has reached somewhat saturation levels.
Coming back to Coimbatore, Sulur on the Trichy road ( around twenty kilometers from the heart of the city) and Kinaththukadavu on the Pollachi road, are likely to see huge developments within the next ten years.
Tiruchirapalli is expanding into each of the villages nearby and the most fertile of lands have all gone. This is very sad, but those looking for investments might as well buy independent houses in the suburbs and keep them as such for around ten years. The boom will continue and will get very good returns.
For example, in Tiruchirapalli, those who waited patiently in places like KK Nagar, have now been rewarded. Real Estate prices here have now shot up through the roof, and houses are now selling for over one crore.
So, Chennai, Coimbatore and Tiruchirapalli are the best choices. However, if you buy plots, you will have to fence it and also keep a close watch. There are unsocial elements who often occupy vacant plots and call them their own. One must be very careful here. However, houses in gated communities are much easier to manage and sell for amounts that may double in just around seven years, or less.
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