Chennai is a hub for various industries such as automotive, information technology, manufacturing, and healthcare. Constructing a home in Chennai can offer significant employment opportunities and avenues for professional growth for specialists in these fields, both for residential and commercial purposes.
Chennai’s real estate market has seen a substantial rise in recent years, thanks to its expanding economy and growing demand for homes and business spaces.
The dynamics in the growth trends are attributed to various influencing factors in Chennai’s real estate world. Deciding between residential and commercial real estate is critical when choosing the right building contractors in Chennai. Each approach has distinct advantages and considerations that can significantly impact budgets, time, and overall day-to-day operations and living.
To assist you in making a decision aligned with your requirements and objectives, we will assess the benefits and influencing factors of residential and commercial construction in Chennai.
Residential properties are exclusively designed for private living while commercial properties are those that are used for business operations.
Residential properties include apartments and individual houses. Commercial properties large-scale living complexes and privately owned public spaces such as industrial buildings, manufacturing facilities, land investments, medical clinics, large-scale multifamily housing, and many others.
Differences between residential and commercial construction
The differences between residential constructions and commercial ones vary in many terms:
1. Construction Costs in Chennai
To make informed decisions regarding the viability and profitability of projects, builders and real estate investors should have a comprehensive understanding of construction costs in Chennai is essential.
The distinctions in construction between residential and commercial structures go beyond the variations in materials and compliance standards. Costs related to labor, overhead, and equipment play a significant role. The final project costs are greatly influenced by factors such as the number and quality of workers and the utilization of specialized equipment.
Residential properties incur substantial expenses for labor and equipment, but the scale of residential construction is considerably smaller. The scheduling of work is often based on referrals or marketing compared to a competitive bidding process.
Residential projects involve extensive communication among contractors, subcontractors, and homeowners.
Residential construction projects use the below methods for payments:
- Bank loan
- Insurance loan
- Cash
- Government Agencies /Non-profit Organizations
Residential buildings are constructed based on the preferences of homeowners. Their design is tailored to accommodate a load capacity significantly lower than that of commercial buildings. Residential constructions tend to incur lower costs due to a lower probability of damage.
In contrast, the maintenance expenses for commercial buildings surpass those for residential structures. Commercial building constructions are tailored to accommodate the diverse needs of business owners who will occupy various spaces within the structure.
Funding for commercial projects typically comes from:
- Corporations securing bank financing
- Real estate developers
- Government agencies
- Business owners or developers investing in the project
For commercial constructions, a general contractor is responsible for hiring and scheduling subcontractors through a competitive bidding process.
Commercial buildings are favored for their high ROI (Return on Investment) upon completion and the lucrative ventures that can be conducted within them.
2. Materials and Equipment
The construction materials employed in fabricating structural components have substantial variations in both residential and commercial building construction processes.
Materials utilized in commercial building construction often have superior durability and strength properties. This includes the incorporation of heavy steel reinforcement, higher-grade cement, and finer-quality sand.
Although specialized skills are necessary for residential construction, only the most luxurious homes demand the use of industrial-scale construction equipment.
3. Regulatory Permissions, Codes, and Compliance
Governmental restrictions and taxation policies can also impact the building construction in Chennai.
Commercial buildings come with more stringent regulations compared to residential structures. Both necessitate compliance with specific codes, and project requirements and obtaining permits from the municipality where the construction is taking place.
Commercial buildings implement additional regulations to address safety considerations related to elevators, IT infrastructure, handicap accessibility, parking lots or garages, and other factors.
Compliance with commercial codes and building permits is intricate and demands the expertise of experienced professionals to ensure adherence.
Residential buildings on the other hand also adhere to building process standards but are simple to comply with.
For commercial real estate and residential buildings, local ordinances and required permits must be adhered to. Your choice will depend on the extent of time, money, and effort you are prepared to invest in navigating the process.
4. Estimated Project Deadlines
For builders and owners, time is money. Commercial building construction is geared towards business purposes demanding faster completion within a shorter timeframe to generate the anticipated revenue from business ventures. Consequently, commercial building construction is typically accomplished more quickly compared to residential buildings.
Choose the Right Company for Your Construction Project
The construction company you select for your large or small-scale construction project should be highly recommended with a dependable history of satisfied customers, minimal maintenance issues, and successful projects.
If you’re looking for a construction company to handle and successfully execute your large-scale construction projects, NV Infra is one of the best building contractors in Chennai reputed for building Indian and international commercial construction projects worth INR 2,500 crores Pan India.
