Chennai real estate market struggles
12-Dec-2023As unprecedented rains pounded the city, Chennai and suburbs were under several feet deep water for a couple of days and the suburbs were the worst affected with water not receding even after 3-4 days.
As unprecedented rains pounded the city, Chennai and suburbs were under several feet deep water for a couple of days and the suburbs were the worst affected with water not receding even after 3-4 days.
The visuals on rescue operations in places like Velachery Pallikaranai, Perungudi, and Perumbakkam gave a glimpse of catastrophe.
The people were seen fuming over the lack of stormwater drains and other amenities for several years. Several hundreds of families living along the IT corridor of Chennai had to move to hotels or relatives’ homes as most of the areas were inundated.
Another flat owner in Pallikaranai said that flooding in that area happens every year--only this time the situation is graver.
Taking a slightly different view, realty industry representatives say there would be only a small impact on home sales in select pockets including the above areas over the short term.
Social media platforms were abuzz with posts accusing the authorities and builders of causing such miseries for home buyers in several locations.
A survey of the Chennai real estate industry by businessline reveals that, after the second hit in 8 years, many home owners are considering selling off.
However, this is unlikely to result in panic selling of houses in those affected areas.
“There will be a panic mood among the people for some time. But, they are unlikely to sell their property unless there is a compelling reason to do so. Because, purchasing a house is very emotional for people in Chennai and they may not sell it just like that. Even if the sale happens, it will be only in certain pockets,” said Sivagurunathan, President, CREDAI (The Confederation of Real Estate Developers’ Associations of India) Chennai.
While it is a bit early to say how many homes in the affected areas have come up for sale, the key sellers are likely to be Non-Resident Indians (NRIs), who have bought houses in those locations and have their parents or relatives residing there, and would have suffered during the flooding.
