41 mn sq ft of housing space sold in 2.5 years

Chennai became the most preferred residential real estate market in South India with over 41 million sq ft of housing space sold over the last two and a half years. The city’s residential market has grown by 15% per cent CAGR over the last decade.
41 mn sq ft of housing space sold in 2.5 years
S Krishnan,the Principal Secretary to Government, Housing and Urban Develoment (3R) inaugurated the annual

Chennai

This was revealed by CBRE South Asia (P) Ltd, a real estate consulting firm. Speaking on the growth of residential real estate in Chennai, Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa, said “Chennai’s residential real estate market has witnessed considerable growth over the past decade. Despite the slowdown in the real estate sector, the Chennai market has continued to become stronger and attract investors. While other major cities in Southern India are significantly dependent on their IT population to sustain residential demand, Chennai’s residential activity is driven by not just IT, but by manufacturing and trading as well, resulting in comparatively stable residential market.”

CBRE also inaugurated its annual property fair Prop FEST-2019. Which will showcase of more than 250 projects of 65 developers in and around Chennai.

Sharing details of Chennai’s residential real estate market, Gaurav Kumar and Nikhil Bhatia, Co-Heads and Managing Directors (MD), Capital Markets and Residential, CBRE India, said, “Over 850 projects during the period of 2017-2018 were registered with RERA in Chennai which is promoting accountability and clarity and is gaining the confidence of the end users. In the past decade, the city has observed the launch of more than 150,000 apartments, growing from 51,000 to more than 200,000 by the end of 2018”.

A considerable demand trend has emerged in the city specially in the mid-range segment. The implementation of RERA and GST rate cut has further triggered an upward swing in the residential market. Improvement in infrastructure facilities such as wider roads and proximity to other residential areas, IT parks, schools, entertainment facilities as well as commercial establishments too have acted as a catalyst towards the growth of residential ecosystem.

Affordable housing projects have also witnessed an increase in demand due to the initiatives of the government.

A broad overview of the city’s residential market results show that it has grown by 15% percent CAGR over the last decade and the residential market now has less than 12% percent unsold inventory as against 14% per cent last year. A positive momentum is emerging that appears to signal a steady growth projection.

The migration of working professional in the city for employment prospects coupled with infrastructure developments are the major factors that will ensure a steady momentum in residential housing segment of Chennai. Chennai continues to be e a hot seat for property development.

The residential sector has witnessed significant investment in land by local and national developers, primarily for residential development.

It is becoming increasingly evident that Chennai’s residential real estate market is dependent on the growth of the IT/ITeS sector. The residential market in Chennai and nearby areas have remained positive and buoyant following the increased job security in IT/ITeS and other industries.

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