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October 27, Surprisingly, Chennai did not feature in the list and there are many reasons behind this. The floods, cyclone Vardah and the prevailing political uncertainty have put buyers on the fence. Job creation in the city has been very slow and this coupled with the lack of capital investments has also led to the slowdown.
Be it the new airport, metro rail, water and sewage infrastructure or laying new roads: Navin explains how land price inflation between and has been so high that commodity inflation has not caught up with it even after five years.
The saturated supply in sub markets of OMR and GST, the poor infrastructure in certain areas, and the fact that the city is an end-user driven market and not an investor-driven one, are a few of the factors.
He hopes initiatives such as the Metro, parking management, cycle sharing and Wi-Fi enabled public spaces will boost prices. Compared to other cities, Chennai and Bengaluru led the demand and supply for housing in India in the first half of But why are markets like Medavakkam and Madipakkam - that were slated for growth - now stagnant?
There is less scope for new and organised developments to come up here. These markets saw a slowdown earlier due to lack of social and physical infrastructure, but things are changing now.
Shankar, however, sounds more optimistic.
He points out that saw 6 million sq. Another factor is the improvement of the overall business scenario to increase investments. Neighbouring states like Andhra Pradesh and Telangana have been constantly wooing capital investment by promising and delivering fast approvals, incentives and easy acquisition of land and physical infrastructure, says Navin.
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