The recent Chennai floods devastated the city and many people lost their lives while thousands lost their homes. Now, it is estimated that the Chennai floods and subsequent damage has caused the real estate builders in the city a whopping loss of nearly Rs 30,000 crores, according to a News Today report.
Post the floods, people in Chennai are now more aware of which areas are low lying and likely to be most affected by such calamities. As a result, home buyers are shunning many areas in the city. Unfortunately, this spells bad news for realtors who have invested in these areas and have already started construction.
Apartments in areas like Tambaram, Urapakkam, Mudichur, Perumbakkam, Saidapet, Siruseri, Keelakatalai, Old Mahabalipuram Road (Rajiv Gandhi Salai), Pallaikaranai and Velachery and the Chennai-Bengaluru highway have few takers as these were some areas that were severely impacted by the rains and floods.
Though builders are desperately trying to woo buyers with offers, people are now wary of investing in any of the rain-affected areas. Builders are said to be having a hard time as they have loans to repay as well and if their property doesn’t sell, it will adversely affect the property market in Chennai.
Most home buyers have currently pushed buying a new home to 2016 and this is likely to put more pressure on the realty market.
