"Average property rates in Chennai witnessed a marginal jump of a per cent in July to September 2021, against the previous quarter. Like every quarter, South Chennai reported the highest number of new launches in Q3 of 2021, followed by the northern quadrant of the city," a report released said.
As per the report, the demand for houses budgeted between Rs 40 lakh and Rs 1 crore was lower than the supply. There was a gap of 6 per cent between the demand and supply. Similarly, properties above Rs 1 crore also witnessed lesser demand than supply. The gap is about 4 per cent.
On the other hand, the supply was lesser than demand for the houses priced below Rs 40 lakh. The difference is 10 per cent.
Localities such as Porur, Siruseri, Tiruvallur, Pallikaranai and East Tambaram saw maximum new supply as a majority of the new launches were reported in the affordable-to-mid segment, with units priced within Rs 60 lakh. Meanwhile, the industrial hubs of Oragadam, Sriperumbudur, Guindy and Ambattur saw improved demand for residential properties with a larger carpet area.
The report estimated that the city will add over 1 lakh new affordable houses in the coming quarters, especially for the sub-Rs 45 lakh segment, which reported the highest demand. "Several proposed infrastructure projects such as Chennai Metro Phase 2, Chennai Peripheral Road, and redevelopment of George Town, have the potential to spur realty growth," as per the report.
Also, the Greater Chennai Corporation's decision to approve all building plans of non-high rise residential and commercial buildings with a maximum floor space index (FSI) area of 464.50 sqm and up to a height of 12 meters within 30 days improved market sentiment, and the move is expected to fast track the construction schedule and project deliveries in Chennai, which had been a long-pending demand, the report added.
On the other hand, Mumbai and Pune led the realty sector during the period with maximum property registrations. Project launches from the two cities made almost 60% of the total new supply in top metros.