Chennai Residential Real Estate Market, Lowest Unsold Inventory
New unit launches in Chennai stood at 4,418 in 2017, with around 45,000 under-construction units. Old Mahabalipuram Road, Perumbakkam, Porur, East Coast Road (ECR) and Pallikaranai are among the most preferred micro markets, with residential property prices floating in the range of Rs 3,500 to Rs 8,300/sq ft. Between 2013-2017, around 1.2 lakh units have been added to Chennai residential real estate market.
Of the four zones (Central, West, North and South), South Chennai surpassed the others to emerge as the most rapidly-growing market, accounting for 65% of the city’s total housing supply since 2013. On this front, South Chennai is followed by West Chennai with a contribution of 27%.
The presence of IT-ITeS establishments, SEZs and manufacturing units have been the primary growth stimulators for the southern region. In addition, rapidly developing infrastructure is boosting the residential real estate market along the Old Mahabalipuram Road (OMR), Thoraipakkam – Pallavaram Road (TPR) and Grand Southern Trunk (GST) Road.
Chennai residential real estate market has the lowest unsold inventory among top 7 cities in India, with its unsold stock of 27,000 units (as of Q4 2017) worth Rs 17,500 crore. The estimated period for the unsold inventory in primary sales to get fully absorbed is approximately 32 months, compared to top metros of NCR and MMR which are likely to take 75 months and 61 months, respectively.
South Chennai tops the unsold inventory chart, accounting for 69% of total unsold units in the city. However, this supply was unleashed to cater to the massive existing demand in this region, and absorption will be rapid.
The mid-income housing segment, consisting of units priced at between Rs 40 – 80 lakh, accounts for 44% of the overall available inventory. This segment currently dominates the primary sales in Chennai residential real estate market, followed by the affordable housing segment (units priced below Rs 40 lakh) which accounts for 29% of the existing primary market supply.
The considerable traction being seen in the affordable and mid-range housing segment is primarily due to the various schemes and incentives offered by the Government to promote its Housing for All mission.
Despite the current sluggishness of the Indian residential property market, Chennai’s housing sector market is gradually gaining new momentum on the back of continuous infrastructure upgrades and inward migration of working population responding to the increasing employment opportunities.
Source Link- http://www.realtyfact.com/.