In last few years, Chennai has seen a lot of growth, especially in real estate sector. Due to the presence of many IT companies, educational institutions, many people are flocking towards this city from other parts of the country. As many are migrating so the demand for rental housing is also increasing at a faster rate. Those who can’t afford to buy a flat here always look for a good rental house which provides them all the amenities at a pocket-friendly price.
Let’s take a look at various factors which in recent times has increased the rental demand in Chennai:
Better living standards
These days with the increase in people’s annual income, they look for rental apartments with good amenities and hence the demand for a good rented residence is high these days. For example: If you want to buy a new apartment in the CBD of Chennai, it would cost around Rs 75 lakhs, So a person earning about Rs 10 lakhs per annum, can afford such high price home. On the other hand, if he/she goes for a rented property, then they can get a much better apartment with hi-end amenities.
If you live in a rental house, then you can also claim HRA under section 10. Rental paid saves taxable income and almost the whole amount paid can be easily saved.
As per the latest survey, Tamil Nadu is home to more than million migrants. Out of this 10.67 lakh migrant workers are unskilled workers; about 27% are employed in the manufacturing sector, 14% in textile industries and 11.41% in the construction sector. Thus it can be said that a good portion of people prefers living on rent in Chennai.
Less additional costs
Owning a house involves lots of additional costs like EMI, property tax, maintenance charges etc. But if you are living in a rented house, you just have to pay monthly rent and in some cases, maintenance charges if living in a good society.
To achieve the government’s vision of ‘Housing for All by 2022′, rental market can play a major role. Apart from this many rental housing schemes and government subsidies also help people to live in a better amenities rented home rather than a home with fewer amenities.