The Impact of Tech Industry on Real Estate in Chennai
Chennai, also known as the 'Detroit of India', is not just a hub for the automobile industry but has also become a significant player in the tech industry. The city houses several IT parks, with both multinational corporations and startups choosing Chennai as their base, thereby making a substantial impact on the city's real estate market. This article explores the influence of the tech industry on the Chennai real estate landscape.
The Tech Boom in Chennai
Over the years, Chennai has witnessed a surge in the growth of IT/ITeS companies. This growth has been bolstered by the presence of renowned IT parks such as Tidel Park, DLF IT Park, and Ramanujan IT City, to name a few. These IT parks have brought in numerous job opportunities, attracting professionals from various parts of the country and boosting the city’s overall growth1.
Impact on Residential Real Estate
The proliferation of tech companies in Chennai has led to a rise in the demand for residential real estate, particularly in areas closer to IT hubs. For instance, T. Nagar, a commercial and residential district in Chennai, has become a favored residential locality for tech professionals due to its proximity to several IT parks. However, with the growing demand, the prices in this locality have risen considerably1.
Impact on Commercial Real Estate
The growth of the tech industry has not just affected the residential real estate market but also made a significant impact on the commercial sector. Several tech companies are setting up offices in Chennai, driving the demand for office spaces. This, in turn, has led to an increase in the construction of commercial buildings, including tech parks and office spaces. As a result, areas like OMR (Old Mahabalipuram Road) and Guindy have seen a surge in commercial real estate activity1.
The Road Ahead
The tech industry in Chennai continues to flourish, and with it, the real estate market is also expected to thrive. As more tech companies set up bases in the city, the demand for both residential and commercial real estate is likely to increase further. This trend signifies a promising future for the real estate industry in Chennai, making it an attractive investment destination for both developers and investors.