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Chennai real estate market is showing signs of recovery now
Posted on: 09/Jan/2019 9:53:57 AM
For the last 5 to 6 years, Chennai residential property market has been falling down is known. The latest information gathered was the Chennai’s residential property is now picking up. It is worthy to note that there has been 3 percent increase in the sales and 12 percent jump in the new launches in the year 2018.
In the year 2017, City of Chennai witnessed a sale of 15520 residential properties and in 2018 this increased to 15986. Ever since the slowdown started in 2012, this was the first increase. This was confirmed by the report of the property consultant Knight Frank. The sluggishness seen all over India due to crisis in non-banking financial companies have been responsible for squeezing the flow of credit to developers as well as the buyers. The important point is the sales figure for 2018 are about 72 percent lower than what it was recorded in the year 2012. When compared to 2017 the new launches in 2018 have gone up by more than 1000 units in the city of Chennai.
It is important to mention here that the sub Rs 50 lakh bracket accounted for the 67% of new branches. In the second half of the year, the southern and western Chennai had 48 percent of the new apartment launches. In the apartment launches, Mumbai city recorded the highest year-on-year increase of amazing 220 percent. Mumbai was followed by Pune with year-on-year increase of 157% and next was Hyderabad with 54%. There was 35 % increase in the launches in NCR and 22% increase in Bengaluru. The point is with regard to the sales Bengaluru recorded 27 % increase followed by Hyderabad with 9%, NCT 8%, Chennai city and Mumbai 3 percent each.
Chennai branch director of Knight Frank, Kanchana Krishnan expressed her thoughts and spoke about how the sales are concentrated in 2 categories namely 30 to 50 lakh segment type and ready-to-move in segment type. She threw light on the fact that the former type was of high demand due to affordability and the latter is picking up slowly. She pointed out that the developers are waiting for the new development regulations to be out.
