22,000 apartments will be sold in Chennai by year-end

Buying a house of one’s own within the city is a long-standing dream for most Chennaiites. However, the high price tag tends to discourage middle-class buyers, who tend to settle for homes in the outskirts or suburbs. However, real estate experts believe this could be the best time to invest in a home. According to statistics provided by a property consultancy Jones Lang LaSalle Residential Pvt Ltd (JLL), it is expected that between 20,000 to 22,000 homes will be sold in Chennai this year. 

Sanjay Chug, National Head - Mandated Sales & Business Head – Chennai of JLL (P) Ltd, says, “For the past few months, home buyers have been sitting on a fence thinking whether to buy a house or not. This wasn’t a very healthy scenario for the market. Now, we are witnessing quite a few developers opting for the common strategy of announcing projects with attractive launch prices, (giving discounts of 25 to 33% on the prevailing market rates), which is drawing attention from potential buyers. From a home buyer’s perspective, this is a good time to invest in a property.”

Sanjay goes on to add that these reduced rates are usually applicable for a limited time only and will tend to rise once 30-40% of the houses get confirmed to be sold. While the IT Corridor of OMR, the leisure and entertainment corridor of ECR and GST Road are the hotspots for real estate in South Chennai, Porur and Poonamalle are recommended for housing in West Chennai. Interestingly, township projects with lifestyle amenities seem to be the flavour of the season. 

There’s also a growing market for people who need affordable housing (within the Rs 50 lakh range), who are unwilling to compromise on the location. Two months ago Dharani developers had launched a 112-apartment project in Ashok Nagar at Rs 7,500 per sq ft sending buyers into a tizzy. And just a week ago, VGN came up with its offer of a compact 2 BHK home located in Guindy, priced at Rs 49 lakh. These developments generated quite an expected buzz in the market with developers rushing to get their own sales off the ground, after the extended slow¬down and idle inventory scenario. 

Chandrashekhar, the Secretary of Chennai Real Estate Agents Association (the Chennai Chapter of the National Association of Realtors) says, “There is an untapped market for buyers of homes under Rs 50 lakh. Even banks are enticing young professionals, earning about Rs 50,000 pm to invest in such homes. More builders should begin focusing on offering cost-effective homes than high end luxury villas”.