Chennai PBD-an Example of Fundamentally Strong Property Market
- Date: 2007-11-27 - Word Count: 364
Share This!
The Chennai real estate markets have brought forward a perfect example of how market fundamentals can control property values and developments. In the past 12 months, the residential real estate values in Chennai have not only corrected to reasonable levels but have also shown signs of fundamental strength.
Commercial properties too have defied nationwide trends of non-justified price escalations in property values and rentals, as witnessed in the office space segment at Mumbai, Delhi and Bangalore.
Emerging picture at Chennai PBD
Just like most other parts of the country, the real estate market of Peripheral Business District (PBD) of Chennai has seen a massive rise in construction activities, in the past 5-years.
Today, most of the new capacity additions in the commercial property segment in Chennai come from PBD. According to DTZ, a real estate advisory firm, reports, 92 per cent of the total office space supplies to Chennai in the second quarter of 2007 came from PBD.
The major commercial property projects basically meant for IT and ITeS industry, included 1.52 lakh sq. ft Central Square and Chennai Tech Park spread in staggering 9.8 lakh sq. ft of office space. Another giant commercial project completed in the region with ITPC that was spread in 6.70 lakh sq. ft of office space.
Perhaps, the largest commercial property project in the PBD at this moment was Menkur that covers area as large as 12-lakh square feet.
Property Values and Absorption
The absorption rates for these properties are at fair decent levels and the targeted group of IT and ITeS companies have responded well for these new additions. Sony Ericson leased 1.24 lakh of office space at DLF IT Park recently, while Indian technology giant HCL also leased 3-lakh square feet of commercial space at ETA Technology Park.
And it is not that the rental values have triggered here, after taking cue from the corporate response. At present, the same is hovering at Rs 45 per sq. ft and is expected to remain so at least for the next 3-4 quarters, market analysts say.
For more details on Chennai Properties, log on to magicbricks.com
For more information on India Properties visit magicbricks.com, here you can also know about Ahmedabad Properties.
Commercial properties too have defied nationwide trends of non-justified price escalations in property values and rentals, as witnessed in the office space segment at Mumbai, Delhi and Bangalore.
Emerging picture at Chennai PBD
Just like most other parts of the country, the real estate market of Peripheral Business District (PBD) of Chennai has seen a massive rise in construction activities, in the past 5-years.
Today, most of the new capacity additions in the commercial property segment in Chennai come from PBD. According to DTZ, a real estate advisory firm, reports, 92 per cent of the total office space supplies to Chennai in the second quarter of 2007 came from PBD.
The major commercial property projects basically meant for IT and ITeS industry, included 1.52 lakh sq. ft Central Square and Chennai Tech Park spread in staggering 9.8 lakh sq. ft of office space. Another giant commercial project completed in the region with ITPC that was spread in 6.70 lakh sq. ft of office space.
Perhaps, the largest commercial property project in the PBD at this moment was Menkur that covers area as large as 12-lakh square feet.
Property Values and Absorption
The absorption rates for these properties are at fair decent levels and the targeted group of IT and ITeS companies have responded well for these new additions. Sony Ericson leased 1.24 lakh of office space at DLF IT Park recently, while Indian technology giant HCL also leased 3-lakh square feet of commercial space at ETA Technology Park.
And it is not that the rental values have triggered here, after taking cue from the corporate response. At present, the same is hovering at Rs 45 per sq. ft and is expected to remain so at least for the next 3-4 quarters, market analysts say.
For more details on Chennai Properties, log on to magicbricks.com
For more information on India Properties visit magicbricks.com, here you can also know about Ahmedabad Properties.
Related Tags: property, real estate, properties, buy, apartments, land, rent, chennai, flats, shops, paying guest
Your Article Search Directory : Find in Articles
Recent articles in this category:
- 5 Reasons to Buy Jasper Real Estate
Jasper is a small town in North Georgia and it is growing rapidly. Since North Georgia Foreclosures - Ellijay Real Estate
Ellijay Georgia has always been known for it's outdoor activities and seasonal festivals. Downtown E - How to Deal With Blocked Drains
A blocked drain is an occurrence that happens eventually to all households. You may have experienced - The Benefits of Hiring a Plumbing Consultant
Your dream home may not always be brand new, with fresh paint and home essentials. There are certain - The Worst Mistake You Can Make When You Apply to Rent a Home
A whole new class of people has become renters and potential renters in America during the last thre - State of Individual Real Estate Markets
Everybody is well aware of the hit that the real estate market has taken over the past three years. - Thoughts on Avoiding the Landlord Trap
I've heard several people say they would never invest in a multifamily rental property because they - An Idea to Increase the Bottom Line of Your Investment Property
Are you pretty sure that you've already maximized the income coming from your property? If you've cl - Finding the Value of a Piece of Investment Real Estate
There is a lot of confusion about how much investment property is really worth. We'll look at three - Arkansas Land For Sale - Search Engine Optimization and Your Website
If you have Arkansas land for sale and are interested in advertising it on your website I have a few
Most viewed articles in this category:
- How High Did Home Prices Really Go
The U.S. Census Bureau released data on Tuesday that revealed where the nation's hottest markets wer - New Homeowners Tips for Household Safety
With so many items on their ¡°buying a home¡± checklist, few homeowners take into considerati - Truth About VA Foreclosures
Many people now days are finding themselves out of work and not being able to make the mortgage paym - Avoid Rookie Real Estate Investing Mistakes
When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of cours - Finding The Perfect Roommate On Craigslist
Craigslist, Roommates, and The Concerns Craigslist is "great" when it comes to looking for housing - The Forgotten Secret To Selling Property - Simple, Quick And Cheap
Why spend big dollars trying to get people to drive a long way to see your house, when your best pro - Get Amazing Results Selling Real Estate Online
This is the age of the internet. Why not take advantage of the widespread use of the internet to ad - Dallas Real Estate Information
In the United States, Dallas is considered as the second leading state according to the area. If any - The Largest Private Equity Indian Real Estate Deal
In the largest private equity deal won by the real estate sector, Morgan Stanley Real Estate has inv - Fractional Real Estate Ownership
Fractional ownership of vacation ski condos is growing in popularity. Park City Utah a popular ski t
