Steep fall in prices of flats in Chennai
Posted on: 22/Jan/2018 6:28:43 PM
As the job opportunities and the salary levels have been dwindling in the IT (Information Technology Industry), the employees in this industry have refrained from buying houses. This aspect has led to a steep fall in the prices of new houses/flats.
The IT industry in India has been facing several acute problems such as the international economic environment, Visa restriction in the USA, etc. This has led to a reduction in the job opportunities in IT industries. The leading IT companies have substantially reduced fresh recruitments.
IT companies including TCS, Wipro, and Infosys have reduced the induction of new recruitment by 55%. In a similar trend, there is a reduction in the campus recruitment by the IT companies by 23%.
Even the salaries of the existing IT employees are brought under regulations.
Especially the IT companies which paid considerably higher salaries have reduced the same. This has led to a substantial reduction in the income for the IT service personnel. So, they have postponed their plans to buy new houses, especially as money is needed for other expenses as well.
It is gathered that thousands of IT personnel have given up their ideas of buying a house. On their front, even the IT industries have started reducing their expenses on the office administration expenses starting the mode of working in offices with minimum facilities.
The Vice-president of the Human Welfare Department of TCS, Ajay Mukherji explained that decisions regarding acquiring/constructing offices or hiring them are decided on the need-basis.
The Managing Director of Sundaram BNP Paribas Fund Services Home Loan Division, Srinivas Acharya, observed that the contribution of IT industry in the Real Estate business is about 30%. As the IT industry shows a keen interest in setting up need-based smaller offices, the requirement of big buildings has gone down. Similarly, the job opportunities in IT industry is also down when the employees are not keen on buying more houses.So, the business of house sales has come down substantially in Chennai.
The above scenario has led to a reduction in the number of houses to be constructed as planned in 2017 has come down below 10000. Even the real estate requirement of IT segment which was 43% in the 2nd quarter of 2016, has come down to 25% in the 2nd quarter of 2017.
