After the recent flooding of the capital city of Tamil Nadu the demand of apartments for sale in Chennai has dropped drastically. Since Chennai is a coastal area it is prone to flooding due to cloudburst or heavy rainfall. After the recent heavy rainfall post Diwali the real estate in Chennai has taken a beating. Many Arterial roads like Poonamallee High Road, Anna Salai, and GST Road were affected by unabated rainfall water hitting vehicular movement.
Currently things are not looking good for flats in Chennai as people think that it is not safe to invest in the region. The worst hits are the apartments for sale in Chennai that are located in low lying areas or near the coastal or lake area. High lying areas which do not flood much are still preferable investment option in real estate in Chennai. This is not the first time such a trend is been seen in Chennai. Similar situation was seen when tsunami had hit the area at that time too the flats n Chennai along the beach which usually demanded a premium were been sold at extremely low prices. The tsunami had completely devastated the demand for flats in Chennai like apartments in Poonamalle and there was no buyer in the market to purchase them.
The demand of apartments in Poonamalle has also taken a hit. Just like other localities people are afraid to invest in poonamalle flats. The area has seen severe flooding, as water raised upto almost two feet. It is expected that over the next few months the demand for Poonamalle flats will take a beating. This trend is worrying the owners of poonamalle flats and sellers of flats in Chennai. Flooding points out to lack of proper infrastructure in the city and it might hamper the mood of investors.
However real estate experts point out that this is just a passing phase in real estate in Chennai. According to the realty experts’ people will forget the flooding incident and it is unlikely that the demand of apartments for sale in Chennai is going to be affected in the long run. They feel since the flooding incident is quiet recent therefore it is impacting the sales in real estate in Chennai. Over a period of time the demand of apartments for sale in Chennai will revive after the investors’ confidence is restored, which will eventually happen in a few months time.