 "Chennai housing market seeing renewed interest")
The real estate consultant anticipates a boost if the Reserve Bank could further reduce the lending rates.
It, however, said there was no scope for further reduction in housing prices.
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"With the recent interest rate reduction and a gradual rationalisation of home prices, there has been a renewed interest in the home buying segment," according to Sanjay Chugh, head of Chennai residential services at JLL India.
With the segment having bottomed-out, it expects no further scope of reductions in housing prices.
It observed that over the last year, home buyers here had been more cautious and were prolonging their decision to acquire homes citing reasons such as high home loan interest rates and unattractive property prices. Chennai is one of the most stable and the least volatile residential real estate markets in India, it noted.
An interesting trend in the recent past is the arrival of premium and luxury apartment projects in central areas of Chennai such as Nungambakkam, Egmore, Alwarpet, T Nagar, Kotturpuram and Adyar. Buyer interest in this segment has been on the rise.
The Phase I of the Chennai Metro Rail from Koyambedu to Alandur would be operational shortly, a development which is stimulating buyer interest along the 10-km stretch covering the residential Anna Nagar (West), Koyambedu, Vadapalani, Ashok Nagar and Ekaduthangal, it said.
Moreover, the state government is expected to complete the four-laning of a 33.5-km section on the East Coast Road (ECR) between Akarai and Mamallapuram by March 2016. The reduction in travel time along this stretch would attract buyers in search of beach homes, villas and high-rise apartments, it added.
The development of social infrastructure, including cinemas, hotels, educational institutions and hospitals in the IT corridor on the Old Mahabalipuram Road was also increasing attention of end users and investors, JLL added.