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Chennais residential market is showing signs of modest recovery
Posted on: 10/Jul/2019 10:38:28 AM
As per a report from Knight and Frank, the residential market in the Chennai city is showing signs of modest recovery. The positive growth year-on-year in the first half of 2019 has been because of new launches and sales.
On the back of TNCDR or Tamil Nadu Combined Development Regulations and Building Rules notification of February 2019, launches at 7762 units in the months between January and June in 2019 increased by 19% year-on-year. It should be noted that out of total launches 74 percent belongs to sub Rs 50 lakhs category.
On the back of the demand for affordable housing units, the first half of 2019 also came across a modest 5% growth in the sales. Important point here is in the last year during the same period, the sales numbers stood at 8585. It is worthy to note that this year the residential prices have also corrected by 3% to Rs 47,110/sq. m (Rs 4377 per sq ft) from Rs 48567/sq. m (Rs 4512 per sq ft) in the last year. Information collected is unsold inventory has come down to 17,810 units that is by 21 %.
The city of Chennai has been facing severe water crisis now and it is now revealed that this water crisis has been slowing down the construction activity. There could be 6 to 9 months delay in the projects. The construction of office space slated to be launched in 2021-22 would be affected by the water crisis in Chennai city. Positive growth has been witnessed in the office space.
According to Mr. Joseph Thilak, Senior-Director-Occupier Solutions, Chennai, Knight Frank India, the growth of Chennai office market has been tremendous and this was mainly due to the increased activity in the co-working industry. He later hinted about how the biggest challenge was the inadequacy of quality supply. In the first half of 2018, both IT as well as ITeS sector showed a downward trend. Information is there were some positive signs in the second half of 2018. It is now brought out that in the first half of 2019 the IT/ITeS share of consumption of the office space has decreased.
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