RENTALS IN CHENNAI

Rentals in Chennai are firming up, what with the advent of the myriad software Companies, the retail scene booming and so many foreign banks setting up office in Chennai. While prices have not become prohibitive yet, most real estate agents predict an upswing trend. Suddenly there seems to be a demand for good quality residential properties. The reason for this is of course, the coming of the expatriates. When it comes to rentals, demand seems to have outstripped supply in both the commercial and residential segment.

In the commercial segment, IT seems to be the prime reason for this boom. In the last few years, the real-estate space in Chennai, has become dotted with countless IT firms. About 90 % of the commercial space has been taken up by IT and related services Companies, in the last two years. With the Tidel Park being fully occupied, software companies are now looking for alternatives. There seems to be a lack of good quality commercial space in Chennai, and the Tidel Park has really increased the expectations of most IT companies, when it comes to quality.

Other than the regular commercial spaces, software companies are now looking at sick industrial unit areas such as Guindy, Taramani, Ambattur and Padi, which are being converted into Software Technology Parks (STPs). The reason for this being the impetus given by the Government for setting up STPs.

The upsurge of the retail market seems to be another reason for commercial rentals going up. What RPG started as a small innovative venture, has today blown into a full-fledged industry. Several Mumbai and Delhi based retailers are looking to come into Chennai to set up their outfits. Growth rates for this segment are pegged at 50 % every year. Depending on the area you are looking for, the rental can be anywhere between Rs 20-70 per square feet.

With the development of the IT corridor on the Old Mahabalipuram road, Velacherry (Rs 3-6 per square feet) seems to have become a preferred destination for the new generation software professionals, when it comes to residential property. Among expats, the most preferred destination are "Kotturpuram , Boat Club, Poes Garden and Wallace Garden", says, Ranjini Manian, Director, Global Adjustments. The rentals range anywhere between Rs 10-20 per square feet in these areas.

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