The covid-19 pandemic has hit the real estate sector hard. Aside from the supply chains for building materials being strained and the mass exodus of labour, buyer sentiment has also been impacted. With many facing job loss or pay cuts, many are shelving their dreams of buying a home in the near future.
To facilitate the sector’s revival, union minister of commerce and state Piyush Goyal advised developers to stop holding on to high prices, and scale back to realistic prices for construction and sale of properties.
Unlike the share market where you can see the price of a particular share on real-time basis, or a mutual fund where the value of a unit is declared each day, determining a property’s value is difficult. A property price depends on various factors such as location (proximity to facilities like schools, hospitals and markets, distance from public transport, quality of roads and so on), neighbourhood, quality of construction, amenities and age of building, among others. Though there are some real estate indices like the National Housing Bank’s (NHB’s) Residex, Housing Price Index (HPI) and Residential Property Price Index (RPPI), developed by the Reserve Bank of India (RBI), their utility is limited.
Keep in mind that while investing in a house to earn returns is not advisable, buying for self-use is another matter. If you are in the market to buy a house in Chennai, here are the property prices across different parts of the city.
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Here are the property prices across different parts of Chennai
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