It's 'boom-boom' time for Chennai realty sector, as property
prices in the southern city have gone up by a whooping 166% in the last four years, the
highest in the country, followed by Bhopal with a hike of 117%,
according to a survey.
Surprisingly, the commercial and real estate capital of India, Mumbai and capital city Delhi have shown slow rise in rates with Mumbai registering property hike by 87%, while neighbouring Pune has seen a rise of 63%, according to an economic survey report.
The report stated that property prices in other larger cities have gone up by 43% to 166%. This situation in the real estate sector is worsening day-by-day mainly due to the absence of a regulating authority. It was worse in Mumbai, which is ranked third as the most promising investments markets.
The report stated that the cost of land in Mumbai is sky rocketing as very few land is available to accommodate the daily influx of migrants. Scarcity of land is the major problem to construct affordable housing for people, leading to the vertical growth of slums, the report said.
National Housing Bank, which conducted a nationwide survey to know the trend of pricing policy in the real estate sector, has found that Chennai ranked first.
However, astonishing as it was, four cities, according to the survey, witnessed drastic decline in prices. Maximum decrease was observed in Jaipur by 36 per cent in the said five years followed by Hyderabad (14 per cent) Bengaluru (6 per cent) and Kotchi (2 per cent).
According to the report, property prices are going up due to the expanding infrastructure, upcoming projects like the metro, monorail and the new international airport in Navi Mumbai and Chennai have contributed to the inflated real estate prices in these cities.
However, with the real estate market booming, the survey has tried to drew attention of the policy makers to the widening gap between demand and supply of the housing units resulting from inadequate housing.
One of the major reasons for price hike is the rental housing market, which is very unorganised. Renting a house in Mumbai is a very difficult task. In India around 11% people used to rent a flat, while the percentage for Mumbai is 27%. There is a shortage of 3.72 million houses in Maharashtra. Over 90% of this demand is in the 300-800 sq ft size category.
“Despite significant growth of the housing loan portfolio in the sector, access to formal credit was mostly available to people in the formal sector…Sizeable segments of the informal segment market still remain untouched,” said the survey giving a macro and micro-view of the country’s economy.
Surprisingly, the commercial and real estate capital of India, Mumbai and capital city Delhi have shown slow rise in rates with Mumbai registering property hike by 87%, while neighbouring Pune has seen a rise of 63%, according to an economic survey report.
The report stated that property prices in other larger cities have gone up by 43% to 166%. This situation in the real estate sector is worsening day-by-day mainly due to the absence of a regulating authority. It was worse in Mumbai, which is ranked third as the most promising investments markets.
The report stated that the cost of land in Mumbai is sky rocketing as very few land is available to accommodate the daily influx of migrants. Scarcity of land is the major problem to construct affordable housing for people, leading to the vertical growth of slums, the report said.
National Housing Bank, which conducted a nationwide survey to know the trend of pricing policy in the real estate sector, has found that Chennai ranked first.
However, astonishing as it was, four cities, according to the survey, witnessed drastic decline in prices. Maximum decrease was observed in Jaipur by 36 per cent in the said five years followed by Hyderabad (14 per cent) Bengaluru (6 per cent) and Kotchi (2 per cent).
According to the report, property prices are going up due to the expanding infrastructure, upcoming projects like the metro, monorail and the new international airport in Navi Mumbai and Chennai have contributed to the inflated real estate prices in these cities.
However, with the real estate market booming, the survey has tried to drew attention of the policy makers to the widening gap between demand and supply of the housing units resulting from inadequate housing.
One of the major reasons for price hike is the rental housing market, which is very unorganised. Renting a house in Mumbai is a very difficult task. In India around 11% people used to rent a flat, while the percentage for Mumbai is 27%. There is a shortage of 3.72 million houses in Maharashtra. Over 90% of this demand is in the 300-800 sq ft size category.
“Despite significant growth of the housing loan portfolio in the sector, access to formal credit was mostly available to people in the formal sector…Sizeable segments of the informal segment market still remain untouched,” said the survey giving a macro and micro-view of the country’s economy.
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