The Importance of Proximity to Educational Institutions in Chennai's Property Market

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    The Importance of Proximity to Educational Institutions in Chennai's Property Market

    The Information mentioned here was last updated on:

    18/7/2024

    Chennai, the capital of Tamil Nadu, is known for its rich culture, historic monuments and bustling streets. However, in recent years, the city has also emerged as one of the top destinations for quality education in India. With prestigious institutions like IIT Madras, Anna University, and Loyola College, Chennai draws students from across the country. Not surprisingly, this has also impacted the city’s property market, with proximity to educational institutions now a key factor in property purchases.

    Demand for properties near educational institutions in Chennai has grown exponentially in the recent decade. Students and parents alike prefer to be located in areas that provide easy access to their educational institutions, enabling them to save precious time and money on commutes. Additionally, being located close to schools and colleges provides easier access to essentials such as groceries, medical facilities, and public transport, further adding to the convenience factor.

    Apart from students and their parents, investors too have taken note of this trend and are eager to capitalise on it. The demand for rental properties in these areas is immense, and investors are looking to cash in on the multiplying demand by buying apartments and flats in areas near educational institutions. These rental properties also provide a steady income stream to the investors.

    However, proximity to educational institutions comes at a price. Properties located in prime educational areas come at a premium, and developers are taking advantage of this trend to hike up prices. The cost of Apartments and flats in areas near top educational institutions like IIT Madras, Anna University, and SRM University, have seen prices rise significantly over the past decade. Due to the heightened demand for properties in these areas, it has become increasingly difficult for students or investors to find affordable properties.

    Despite the high prices, the demand for properties in Chennai's educational areas remains undeterred. For students and their parents, being closer to their educational institution is an indispensable factor in choosing the right rental property. On the other hand, investors are keen on owning property in the area because it provides higher returns and capital appreciation compared to other areas. The trend also benefits the builders and developers who have found new market opportunities in the education sector and can now aim for premium prices for properties they develop in these areas.

    In conclusion, proximity to educational institutions has become a critical factor in the property market in Chennai, and it is a trend that will no doubt continue. Properties in these areas come at a premium, but the returns, in terms of convenience, rental income and capital appreciation, make them a worthy investment. As long as educational institutions continue to thrive and attract students from across the country, the demand for properties in close proximity to these institutions will continue to surge.

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