Chennai realty’s abysmal performance

Chennai

But, new office space completion saw an unprecedented growth of 1064 % YoY to 0.3 mnsq m (3.3 mnsq ft) in H12020. This was due to one large commercial space deal in Q12020 

ONGOING COVID-19 CRISIS IMPACT H12020

HOME SALES IN CITY

• 67% sales decline YoY in H12020, while launches saw a 55% YoY decline in same period
• Rs sub-5 million (Rs 50 lakh) ticket size sales comprised 51% of total units sold
• City recorded a further 5.5% YoY fall in weighted average prices

REALTY SCENARIO PRIOR TO PANDEMIC

• Chennai’s residential market had just begun to show some promise of recovery in 2019, especially during the H2 of the year
• Onset of COVID-19 sabotaged all recovery hopes
• H12020 lowest performing period for Chennai residential market in last decade
• A lacklustre demand scenario coupled with lockdowns caused this drop in launches
• Most launches, 65% of the total in H1 2020, belonged to the Rs sub-5 mn ticket size segment in sync with current demand trends
• Over Rs.10 mn ticket size units contributed a minor share of 4% in total launches

LOCATION PREFERENCES

• Rs. 2.5-5 mn ticket size segment highest sales recorded in terms of ticket size split
• South Chennai preferred choice, accounting for 56% of total launches and 54% of total sales in H12020
• Sholinganallur, Mogappair, Chembarambakkam and Thiruninravur were micro-markets, where most of the action was concentrated during H12020
• Demand in Chennai residential market had been gradually slowing down since 2015 with a few spurts of growth in between
• Unsold inventory numbers dipped by 21% YoY to 14,149 units in H12020
• Developers offering discounts and attractive schemes to lure buyers

CITY’S OFFICE MARKET TRANSACTIONS

• 0.1 mnsq m (1.3 mnsq ft) was total absorption, a 28% YoY decline
• Weighted average transacted rentals however grew by a modest 2% YoY
• Highest transaction activity seen in IT/ITES sector accounting for 54% in total transactions
• IT-ITES sector registered largest single deal this half-year
• Co-working sector activity severely hit resulting in a 77% YoY slump in office space absorption

Visit news.dtnext.in to explore our interactive epaper!

Download the DT Next app for more exciting features!

Click here for iOS

Click here for Android