aftermath of floods in chennai

aftermath of floods in chennai

IMPACT ON REAL ESTATE

All of us know that the floods swept away Chennai, literally. The city has been slowly and steadily limping back to normalcy. It will take a long time to get restored to complete normalcy. Apart from the lives and livelihood of the millions which got affected, the other thing which was seriously impacted was buildings and the real estate industry. This blog of ours is focussed on how the floods have impacted the real estate sector.

DAMAGES: A DENT TO THE PROPERTY SECTOR

Property across Chennai got submerged. In most places, the ground floors were fully inundated and people had to move to the first floor. In a few places, water levels rose to the first floor as well! Prime property on the prestigious OMR stretch got submerged under water and parking lots were drowned. Any and every area in which water logging was high has seen a steep fall in the property prices. Apartments which were valued at Rs.45 lakhs before the floods have now been re-valued at Rs.25 lakhs! Almost 50% fall in the prices. Similarly, the value of properties on stretches which did not get submerged has more than doubled as the demand has gone up! Rental values have also seen a similar flux and change in prices.

Given that most areas were badly affected, the property prices have gone down uniformly across the city. Buyers do not want to get property on ground floor, and definitely not on those stretches which got adversely affected during the floods.

THE GOOD EFFECTS: NEW CHANGES

As the saying goes, Every cloud has a silver lining, the floods have also bought with them some silver lining for the real estate industry. Fresh land and property rules are being framed to ensure that new buildings being constructed have a higher foundation and hence a lesser risk of getting submerged. Reforms on parking lots and basement places are also being constructed. The Government is also planning to assess and re-evaluate existing construction plans and suggest suitable ways to ensure that the water does not get logged again. The city’s infrastructure and management are being re-looked at. Storage tanks, public tanks, and other water bodies are being cleaned to remove any hindrances to the passage of water. Hopefully, changes will soon be incorporated to ensure better drainage systems.

IN CONCLUSION...

It can be safely said that if the lessons from the flood have been learnt, the city’s infrastructural framework will get revamped and equip the city to handle any torrential downpour! This means that building norms will change and construction will become more rugged. Better construction will lead to better quality being delivered, and this is obviously good for the buyer! The construction industry is all set to enhance its product delivery and emerge stronger! Real estate will get back to its upward swing, but this time buyers will only pay for those houses which are valuable and worth every money being spent on them!

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