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Building vs Buying: What’s More Cost-Effective in Chennai

namashivayan

Updated: Nov 6, 2024


A contemporary architectural modern house

 

 

It’s 6:30 AM in Chennai, and you’re sitting on your balcony, sipping a hot cup of filter coffee. The cool morning breeze from the Bay of Bengal fills the air as you glance at your smartphone—an advertisement pops up for a newly launched apartment complex on the outskirts of the city. You've been saving up for your dream home, but the question remains: Should you build your home from scratch or buy one already constructed? This dilemma is one that many potential homeowners in Chennai grapple with as they make one of the most significant financial decisions of their lives.

 

Building a home offers customization, while buying provides convenience. But what’s more cost-effective, especially in a fast-growing market like Chennai? Let's break down both options and provide insights to help you make an informed decision.

 




 

The Real Estate Landscape in Chennai


A house model for Real estate plot.

 

Chennai, often referred to as the "Detroit of India," is one of the country’s fastest-growing cities. Its population of over 10 million has led to a thriving real estate market that’s continuously expanding due to urbanization and infrastructure developments. The demand for residential spaces has skyrocketed, and with more construction companies in Chennai investing in new projects, both buyers and those looking to build from scratch are spoiled for choice.

 




 

The Cost and Convenience of Buying a Home in Chennai

 

The cost and convenience of buying a home

 

Why Buying a Home May Be Easier


Buying a home, particularly in a well-developed area, offers convenience and immediacy. You don’t have to wait through the lengthy construction process and can move in almost immediately after purchasing. This is particularly appealing for younger professionals who may not have the time or expertise to oversee a construction project.


How Much Does Buying a Home in Chennai Cost?


In Chennai, the average price per square foot for an apartment ranges between ₹5,500 to ₹14,000 depending on the location. A 1,200 sq. ft. apartment in areas like OMR (Old Mahabalipuram Road) or Anna Nagar can cost anywhere from ₹70 lakh to ₹1.5 crore. This pricing typically includes amenities such as security, gym access, and parking. Additionally, you have the option to take out a home loan, which offers flexible financing.


 

Hidden Costs to Consider


While buying a ready-made home has its advantages, buyers often overlook hidden costs such as stamp duty, registration fees, and maintenance costs. These costs can add up to 10-12% of the property's value. Furthermore, the property may not offer the exact design or features you envisioned for your home.

Statistic: According to a report by JLL India, the total sales of residential units in Chennai witnessed a 7% year-on-year growth from 2021 to 2022.

 

 

 

 


 

 

The Case for Building a Home: Personalization and Control

 

 A high-quality modern Indian home with traditional Indian elements

 

 

What Are the Benefits of Building Your Own Home?


Building your own home offers a significant level of personalization. You can choose the layout, materials, and every design element according to your taste. From creating an open kitchen to designing an eco-friendly rooftop garden, the possibilities are endless.


 

The Cost of Building a Home in Chennai


The cost of construction in Chennai ranges from ₹1,500 to ₹2,500 per square foot for a standard build, depending on the quality of materials used. For a 1,500 sq. ft. home, the total construction cost can range from ₹22.5 lakh to ₹37.5 lakh, excluding the cost of the land. Additionally, architectural fees, approvals, and legal expenses should be factored in.


 

Is Building Time-Consuming?


Building a house is a laborious process that typically takes 12-18 months to complete, depending on various factors such as permits, labor availability, and weather conditions. It’s not just about the financial investment but also the time and energy that goes into overseeing the construction.


Statistic: A survey by Magicbricks found that 60% of homebuyers in Chennai prefer properties built with sustainability in mind.

 

 



 

 

Avantas Construction: A Trusted Partner for Both Building and Buying

 


A sign of Trusted partners

 

As one of the best builders in Chennai, Avantas Construction offers the perfect solution for those divided between building and buying. Avantas Construction combines the convenience of buying ready-made homes with the flexibility of customization typically associated with building.

 

 

 

Tailored Home Solutions


Avantas Construction offers semi-customizable homes, where buyers can choose from a range of design options while the core structure and essential services are pre-built. This allows homebuyers to move in sooner but still have the option of adding personal touches.

 


Quality and Sustainability


Known for delivering projects with high-quality materials and timely completion, Avantas bridges the gap between personalized construction and efficient project execution. The company also focuses on sustainable home construction, using eco-friendly building materials and energy-efficient designs, reducing long-term costs and contributing to environmentally conscious living.

 


 

 

Comparing the Costs: Building vs. Buying in Chennai

 

Aspect

Building a Home

Buying a Ready-Made Home

Initial Investment

Cost of land + ₹1,500-₹2,500 per sq. ft. for construction

₹5,500-₹14,000 per sq. ft., depending on location

Time to Move In

12-18 months

Immediate or within a few months

Customization

Full customization of layout and design

Limited customization options

Financing

Requires construction loans and land financing

Home loans available with flexible terms

Hidden Costs

Permits, legal fees, construction oversight

Stamp duty, registration, maintenance fees

Long-Term Value

High if built with sustainable and smart features

High if in a prime location with good amenities

 

 



Key Factors to Consider When Deciding


 

  1. Budget: Do you have the finances to buy a ready-made home, or would you prefer the potentially lower cost-per-square-foot associated with building?

 

  1. Time: Are you looking to move in soon, or do you have the flexibility to wait for construction completion?

 

  1. Customization: Do you want a completely personalized living space, or are you okay with the standard layouts and designs that come with ready-made homes?

 

  1. Long-Term Value: A home built with modern technologies and eco-friendly materials may have a higher resale value, whereas buying in a prime location may offer better immediate returns.

 



 

 

Conclusion: Which Option is Right for You?

 

Ultimately, the decision between building and buying a home in Chennai depends on your personal preferences, financial situation, and long-term goals. Building a home offers personalization and potential cost savings, but it requires time, effort, and patience. On the other hand, buying provides convenience and immediate occupancy, though it may come with a higher price tag and fewer customization options.

 

For those looking for a middle ground, companies like Avantas Construction offer a hybrid approach that combines the best of both worlds—customization options with the convenience of a pre-built home.

 

No matter what you choose, Chennai’s thriving real estate market provides ample opportunities to build or buy your dream home, all while securing a sound investment for the future.

 

 

 

 

 

 

 

 

 

 

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