The
Chennai residential market appears resilient to global economic threats &
has witnessed healthy sales as the ticket size of buyers has increased. Some
14,900 new units were launched with a vacancy recorded at 31%, according to a
new Knight Frank report.
Pricing,
Demand and Supply..!
After
the economic recession, Tamil Nadu capital Chennai’s residential property
market witnessed steady growth in terms of pricing, demand and supply,
according to a Knight Frank report titled ‘Residential Traction’.
About
82,000 residential units are under various stages of construction in the
Chennai market.Out of the total residential units, 2011-12 witnessed the launch
of nearly 14,900 units which are scheduled to be completed in the next 2 to 3 years.
Highlights
of Knight Frank report,,!
*
About 74% of the total number of residential units launched in 2011- 12 (FY12)
fell within the Rs. 50 lakh ticket size category. The preferred size for 3 B H
K flats in Chennai has increased from an average of about 1,250 square feet
during the recession to an average size of 1,450 square feet in the revival
phase.
*
The preference for 2 B H Ks has also increased from an average of about 900
square feet to nearly 1,150 square feet.
*
Chennai market is end - user driven & therefore has been stable. Demand has
been more evident in the mid - end category, primarily towards the peripheral
locations of the city where a majority of the affordable projects are located.
*
The presence of the IT corridor along the OMR (Old Mahabalipuram Road) and the
concessions given by the government in promoting the industry have indirectly
led to the growth of the residential market in South Chennai. This region will
account for a major part of the upcoming supply in the Chennai city in the
coming years.
*
The influx of IT companies has led to an increase in demand for quality
residential space. The growth potential of the region has seen many prominent
developers from other cities keen to invest in its residential market.
*
Another important stretch which has come up on the residential real estate map
in Chennai is the GST Road, with a number of prominent projects being located
there as well.
*
The central part of Chennai has the highest property prices, the highest being
Boat Club Road and Poes Garden.
*
In the North, the belt has been a little less developed than others and is
dominated by small scale industries like textiles & chemicals.
*
While in the West, the setting up of an electronic hardware corridor at
Sriperumbudur has increased prices in the vicinity; in the South, the corridor
between Sholinganallur & Tiruporur will be the next investment destination
for residential property in the city..
Chennai
- Knight Frank
3,
Gitex Building, IIIrd Floor, Khader Nawaz Khan Road,
Chennai
600 006. T +91 44 4296 9000
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