There are several avenues for growing wealth. Most people rely on investing in real assets such as real estate properties, jewels, bank deposits, and Government bonds to multiply their wealth. Though stocks and mutual funds may give higher returns on investment, most people are risk-averse as investing in these asset class have associated risks – the risk due to business continuity, political and legal changes, and environmental factors.
Real estate is always a preferred investment for many. People buy homes and plots for their end-use as well as for wealth growth. Let’s see in the blog why Chennai is an ideal investment destination for NRIs to invest.
About Chennai:
Chennai, formerly known as Madras, is the fifth largest city in India. East India Company purchased a piece of land from Damarla Venkatadri Nayaka, the viceroy of the Vijayanagar Empire, on August 22, 1639. This day is widely celebrated as Madras Day since the year 2004.
As per the 2011 census, Chennai is the sixth-most populous city in India and the fourth-most urban agglomeration. The Greater Chennai Corporation is the oldest city corporation in India, established in 1688—the second oldest in the world after London.
Unlike other metros, Chennai has a mix of IT/ITes Companies, Automobile and Auto-ancillary Industries, Mobile Devices Manufacturing Units, Electronics Manufacturing Units, and Chemical Industries supported by a good infrastructure of roads, rails, airports, ports to facilitate growth.
IT/ITeS Companies in Chennai:
Chennai is also home to several top MNCs such as TCS, CTS, Infosys, Accenture, HCL Technologies, CSC, L&T Infotech, Capgemini, Tech Mahindra, ThoughtWorks, Oracle, Zoho, Freshworks, PayPal, Polaris, Aspire Systems, Dell International, HP Enterprise, FIS Global, Ramco, Syntel, Verizon Data Services has set up their offices in various SEZs across Chennai.
Automobile Companies in Chennai:
Several international companies such as BMW, Ford, Daimler, Nissan, and Hyundai, several Indian-grown companies such as Ashok Leyland, Royal Enfield, TAFE, Mahindra & Mahindra, several Tyre manufacturers such as Apollo Tyres, Bridgestone, CEAT, JK Tyres, Michelin, MRF, several auto-component manufacturers such as Bharat Forge, Brakes India, Caterpillar, Delphi-TVS, Rane, TI Cycles, Wheels India have all their plants in Chennai, thus getting a nickname “the Detroit of Asia” due to the presence of major automobile manufacturing units and allied industries around the city.
Manufacturing Companies in Chennai:
Chennai also has top manufacturing companies such as Foxconn, Flextronics, Pegatron, Saint Gobain, Siemens, India Cements, Ramco Cements, Chettinad Cements, Kaleesuwari Refinery, Vestas India, Chemplast Sanmar, Madras Fertilizers Limited, Chennai Petroleum Corporation Limited, Tamilnadu Newsprint And Papers Ltd to name a few.
Road, Rail, Airport, and Port Connectivity in Chennai:
The City of Chennai and its Suburbs are well connected by roads through GST Road, GNT Road, OMR, ECR, Outer Ring Road, and Chennai Bypass Road. Mofussil Bus Stand at Koyembedu, Madhavaram, and Kilambakkam serves intercity connectivity.
Chennai MRTS connects Chennai Beach with Arakkonam in the West, Gummidipundi in the North, and Chengalpet in the South. CMRL Phase 1 connects Wimco Nagar with Chennai Airport and Chennai Central with St. Thomas Mount. CMRL Phase 2 connects Lighthouse and Poonamallee Bypass, Madhavaram Milk Colony with SIPCOT via Adyar, Madhavaram Milk Colony with Sholinganallur via Porur. For more details, click Chennai Transit Map.
Chennai International Airport is the sixth-busiest airport in India and is expected to reach a saturation capacity of 40 million travelers per year by the year 2035. The proposed greenfield airport at Parandur is approved and expected to be operational by 2028. The proposed airport is expected to spur growth alongside Chennai-Bengaluru Expressway.
Chennai Port is the third-oldest port in India among 12 major ports with official port operations in the year 1881. Ennore Port is the 12th major port in India commissioned its operation in the year 2001.
Why NRI should buy properties in Chennai?
This is the right time for NRIs to invest in Chennai real estate. They can make use of the depreciating rupee value to maximize their returns on investment, the Government’s push for better infrastructure and housing projects, the Government’s initiative on GST for real estate properties, the Government’s initiative on RERA for timely delivery of projects and grievance redressal mechanisms, RBI’s initiative to allow NRIs to buy, transfer, inherit properties other than agricultural land/farm house/plantation property without its permission, the Government’s initiative of digitization land records and registration documents should improve the confidence of NRI investors to invest in real estate properties in Chennai.