September 6, 2021

Chennai: Aspiring developers looking to make money from the real estate sector need to consider a new option, says K.R. Gautam, a partner in real estate consultancy PwC Chennai.

The city is also one of the fastest growing destinations for the global tech sector, but developers are now facing the challenge of finding suitable apartment buildings in the area.

“In a city like Chennai, where the realty sector is booming, developers need to think about getting the right type of apartment,” said Gautams co-founder and CTO of Realestate vizAGP.

“For instance, if you want to build a new office space in a building where there are only two apartments, you will need to find the right apartments.”

He added, “The best thing to do is to get an office space where there is no existing apartment building.

You don’t need to pay any rent, and there is a lot of available space.”

The problem is, while most office space is located in the city, there is still a lack of office space for developers to work from.

That’s why K. R. Gaudiya, founder of the online real estate brokerage, PwD, said it’s not surprising that Chennai’s office market is among the least attractive in the world.

“It is because of the low vacancy rate in the market, which is at 5 percent,” said K.G. Gao, president of the realtor portal, Real Estate Bazar, in an email interview.

“You will need a high level of expertise and have the skills to build up a good team, which means you need to know how to work as an independent contractor and work in multiple locations.”

The availability of offices has also contributed to the shortage of office spaces.

The real estate agent portal, eRealts, lists the average vacancy rate for offices in Chennai at 7 percent.

“I am surprised that in Chennai, which has one of Asia’s fastest growing real estate sectors, the office vacancy rate is still low, which indicates the need for more office space,” said B.S. Thampu, chief executive officer of the brokerage, in a statement.

“A lot of the projects that are being done now are not necessarily office based, which would have a huge impact on the vacancy rate,” he said.

But the problem of office vacancy is not limited to Chennai, said Gaudiyas co-Founder and CEO, Realestate VizAGP, adding that developers also face difficulties in finding suitable office space across the city.

“Many developers in the real property sector are looking for offices that are on the outskirts of the city and that will not require the use of a parking lot,” he added.

The most common office space type in Chennai is in a commercial or retail building.

The market is also saturated with office space.

However, according to Gaudya, “the number of available spaces has also been increasing, which will also mean a lack for office space.”

In order to make the real Estate sector attractive, developers are often looking for the best offices that they can find, and for the most efficient parking spaces.

This will mean the need to take advantage of a wider range of office buildings across the cities, said PwB Bangalore’s Ramesh Kavatakkal, head of real estate and development, PWRB Bangalore.

“There are also a lot more residential offices, so we need to do our best to find office space that will satisfy the residents,” he told CBC News.

“Most of these offices are located on the edge of the cities core, so they need to have a parking facility and amenities.

We will have to work with developers to find space for these residential buildings.”


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