Rajini of Indian realty: Here is why super rich will make a beeline to invest in Chennai realty

Chennai is doing a Rajinikanth in the global real estate market. And it, definitely, is going to get a good fan following.

A research report has identified the South Indian city as one among 12 global cities that would see residential real estate prices appreciate in the next few years as ultra high net worth individuals flock to invest in.

And it is no mean feat, as the city is the only Indian in the list. Its wealthier and mightier Indian counterparts Mumbai, Delhi and Bangalore seem to have failed to make the cut.

It only adds to the glitter that Chennai has been featured among well established cities such as Chicago, Miami and Mebourne.

You can view the entire list here. Theresearch has been conducted by Candy & Candy, Savills World Research and Deutsche Asset & Wealth Management.

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According to the report these 12 cities are more accessible an offers attractive yield to discerning investors as the prices here are generally much lower than in the other global cities. The prices will appreciate in these cities as they become more fully invested in the next few years, the report has said.

Nick Candy, CEO of Candy & Candy, notes in a press release that for many ultra high net worth individuals real estate has become a unique asset class. However, they have been focused on investing in prime property in the top tier world cities which have shown record market growth.

“Real estate will continue to play an important part in global investment with investors now looking beyond established safe havens and prime world cities,” he said.

These super rich investors are becoming more adventurous in their quest for returns and thus turning to cities such as Tel Aviv and Chennai, said Yolande Barnes, Director, Savills World Research, who conducted the analysis.

“This more adventurous approach is likely not only to provide higher income returns but also the opportunity for significant capital growth. Real estate values will grow as new cities all over the globe rise on fortune’s wheel,” he said.

Barnes expects property rents and values to rise in line with new and growing economic strength of these cities.

A Times of India report said termed this as the first global recognition for the South Indian city and attributed its rise in global stature to strong English speaking skills of its population and the presence of a wide mix of industries.