Buying a one‐crore apartment in Chennai can feel safe today yet still become a money drain tomorrow.
Most of the pain comes from construction delays, pre-EMI interest, high upkeep, and poor resale demand for ageing towers. Understanding these risks, and knowing who can genuinely benefit from flat ownership, makes all the difference.
Why many buyers regret their off‐plan dream
The glossy brochure promises possession within twenty four months. Reality often stretches to four or even five years. A 2023 Anarock study covering the top seven Indian cities showed that nearly 37 percent of units launched before 2019 are still unfinished; Chennai is no exception.
During each extra month you:
- Keep paying rent on your current home
- Service a loan where every rupee goes only toward interest
- Face the emotional toll of watching dates slip again and again
A family that booked a one-crore flat with an eighty-lakh loan at 9 percent interest ends up parting with roughly sixty thousand rupees a month in pre-EMI. Three years of delay means twenty one-plus lakh paid without touching the principal amount. That money is gone for good, and the original loan remains exactly the same.
The hidden cost of the three year wait
Numbers tell the story better than words. Compare two friends who each want a one-crore roof over their heads.
| Scenario | Construction Status | Years before keys | Money paid during wait | Principal reduced |
|---|---|---|---|---|
| Friend A | Off plan | 3 | ₹21.6 lakh (interest only) | 0 |
| Friend B | Ready to move | 0 | ₹0 pre-EMI | Starts reducing from month 1 |
Friend A appears to own the same asset, yet begins regular EMIs three years later with the full principal intact. Over a standard twenty year schedule, that delay alone adds close to eleven lakh in extra interest compared with Friend B, based on SBI’s current floating rate of 8.9 percent.
Meanwhile the family still pays rent in those three years. Assuming a modest twenty five thousand per month, the total cash outflow linked to the unfinished apartment approaches thirty lakh before they even step inside.
Life after the keys: maintenance and major repairs
Once the ribbon-cutting photos fade, monthly society bills arrive. Lifts, diesel gensets, security staff, gym equipment, swimming-pool chemicals – they all cost real money. Residents Welfare Association (RWA) data from South Chennai shows an average maintenance fee of ₹3.5 per square foot in mid-rise projects. For a thirteen-hundred square foot three-bedroom unit that is roughly ₹4,500 each month, and charges tend to rise quicker than inflation.
After twenty five or thirty years, another monster lurks: structural refurbishment. A study by the Indian Institute of Technology Madras estimated that comprehensive retrofitting of an older reinforced concrete apartment block can cost ₹800 to ₹1,200 per square foot in today’s prices. Multiply that by forty flats and you end up debating crores in the annual general meeting. Owners who thought they had “locked in” housing expenses end up writing new cheques decades later.
Common RWA complaints collected by Chennai Flat Owners Forum in 2022:
- Escalating diesel costs for generator back-up
- Vendor fraud in garbage disposal contracts
- Delays collecting sinking-fund contributions for major paint or lift replacement
None of these problems ruin the experience for everyone, but they certainly eat time and money.
Will your bank love an old tower? The resale reality
Apartments do not enjoy the same evergreen status as plots. Banks hesitate to finance purchases once a building crosses thirty years unless the structural audit is spotless and the society holds all clearances. That directly shrinks the pool of buyers.
Data from four leading Chennai brokers shows that towers built before 1995 attract at least ten percent fewer inquiries than newer options in the same pin code, even when priced lower. Limited demand can push owners to accept steep discounts or spend lakhs arranging documentation to satisfy the buyer’s lender.
Older societies sometimes rally for redevelopment, but unanimous consent is rare. Court filings over stalled reconstruction projects in Tamil Nadu doubled between 2018 and 2023, according to Madras High Court records.
Who should still buy an apartment and sleep well
Flats are not villainous by default. They shine for certain households:
- Professionals confident they will live in Chennai for a decade or more and crave predictability in commute, school access, and safety.
- Families who want clubhouse perks like a pool or badminton court yet cannot afford a standalone house in the same neighbourhood.
- Buyers choosing a fully-completed building where they can walk in, test the taps, and start reducing principal from day one.
- Individuals with a robust emergency fund that covers at least twelve months of EMIs plus society dues, insulating them from job loss or business slowdown.
If you tick those boxes, the convenience of a managed community often outweighs the drawbacks.
Budgeting smart: a simple EMI safety net plan
Holding back one full year of EMIs before signing the agreement keeps stress levels low. The math is straightforward:
| Loan size | Typical EMI at 9 percent (20 yrs) | Reserve required |
|---|---|---|
| ₹60 lakh | ₹54,000 | ₹6,50,000 |
| ₹80 lakh | ₹72,000 | ₹8,70,000 |
| ₹1 crore | ₹90,000 | ₹10,90,000 |
Seed this cushion in a liquid fund or high-interest savings account. You then pay the builder only from your monthly income, while the buffer stands ready for salary gaps, medical crisis or unexpected school fees.
Remember to revisit your plan every year. Promotions, child-care expenses, or ageing parents can alter cash flow faster than interest rates do.
Frequently asked questions about buying flats in Chennai
Is it safe to book a flat still under construction in 2025?
RERA has improved transparency, but delays remain common. Choose builders with a spotless delivery record, insist on a construction linked payment plan, and set aside funds for at least two years of potential slippage.
What percentage of salary should my EMI consume?
Most advisors suggest keeping total housing cost, including maintenance, under 30 percent of take-home pay. This leaves room for lifestyle, savings, and emergencies.
Are maintenance charges negotiable before purchase?
Not really. The rate is fixed by the RWA based on current expenses. You can, however, study past minutes to judge probable increases.
Do banks finance the purchase of flats older than twenty five years?
Yes, but they demand a structural stability certificate and clear title documents. Interest rates may also be slightly higher due to perceived risk.
Will property tax for a flat change after reconstruction?
Once a society rebuilds or adds floors, the local body reassesses annual value, so owners can expect a higher tax bill.
Is it cheaper to buy land and build instead?
Land plus construction is often cheaper per square foot on the city outskirts, but prime zones leave no vacant plots. Factor in self-management headaches before choosing.
Can NRIs buy residential apartments in Chennai without RBI approval?
Under FEMA rules, an NRI of Indian origin can purchase any number of residential units without prior permission, provided funds come through normal banking channels in Indian rupees.
Closing thoughts
Apartment ownership in Chennai is neither madness nor magic. Weigh the clear benefits of location and convenience against hidden costs, add a healthy cash buffer, and you will avoid painful surprises. If the article helped, share it with friends and drop your questions in the comments.
