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Substantial growth in Chennai realty
Posted on: 06/Jul/2017 12:02:06 PM
In the past few years, the residential market in Chennai has been facing a down time. This year, it has started getting gradually recovered. It started with a healthy bounce back in the sales and unit launches.
The lull in real estate was caused due to the relaxation in foreign direct investment, real estate bill and demonetization drive. With this, because of political uncertainty, collapsing of buildings caused by flouting of norms, floods in 2015 and other aspects worsened the realty sector in the city.
In an analysis made between January and June 2017, it is observed that there is an increase in interest with the buyers.
Mirco market split of launched units:
|
Area |
H2
2016 (%) |
H1
2017 (%) |
|
Central |
20 |
2 |
|
North |
10 |
2 |
|
South |
52 |
67 |
|
West |
36 |
29 |
This year has started with a positive note. During H1 2017, there is 14 percent growth as compared to last year that had a significant impact of the demonetization drive. There was also 5 percent of YoY growth right during the initial period, say the analysis reports.
In the cheaper micro markets, there is substantial residential development. Here, the consumers will prefer to stay close to their office hubs.
Hence, maximum development is observed in local sections of South Chennai. In locations like Pallavaram, Mahindra World City, Navalur, Thalambur, Sholinganallur, Siruseri, Padupakkam, etc, there is 2-3rd growth observed of the total H1 2017 units.
The average ticket size of 50 lakh has increased in H1 2016 have increased from 39 to 69 percent from H1 2016 to H1 2017.
There is 30 percent increase in the unsold inventory levels in the past two years and is 28,110. Reduced number of launches is said to be the reason behind. There is 6.5 QTS in the Chennai market.
At the same time, the growth in residential market is weakening with the growth of H1 2017 prices.
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