Chennai's real estate market shows stability, particularly in residential sales, compared to Bangalore. High demand and limited supply in city centers drive higher rentals and property values, attracting investors.
Surging property prices have led to a significant decline in residential sales across major Indian cities, with reports indicating a 42% drop in 2012.
Bangalore’s real estate sector is set to grow by 25% in the coming year, according to CREDAI Karnataka. Commercial office space demand is rising, while residential sales are slow.
Despite an expected rate hike by RBI, home buying remains robust, with developers expressing confidence in residential sales as buyers seek to invest before potential price increases.
Experts believe that despite RBI's rate cuts, developers need to adjust prices to stimulate the sluggish residential market and address declining revenues.
Sales to NRIs in India show resilience despite domestic slowdown and have tripled over half a year.