Panel Examined Imminent Market Changes &
Provided Key Investment Guidelines
Leading
real estate consultant Jones Lang LaSalle India (JLL India) partnered with the
Confederation of Real Estate Developers Association of India (CREDAI) to
conduct a panel discussion on the state of the Chennai residential market.
The
event, which took place on February 12 - 2014 at Hyatt Regency, Chennai was
specifically designed to examine Chennai's residential property market at what
industry stakeholders now perceived to be an important inflection point.
Mr. Om
Ahuja, CEO - Jones Lang LaSalle Residential Services says,
"Investments in the residential real estate sector are typically driven by
sentiment & speculation. However, the fundamentals defining the market are
usually ignored or not well understood by most end users and in some cases even
investors. In Chennai, we have seen speculation have some startling
repercussions on Chennai's property market. This panel discussion aimed to
analyse what is happening in the city's residential market, which is by far its
most dynamic performer."
Mr.
Sanjay Chugh, Head Jones Lang LaSalle Residential Services, Chennai says,
“The residential asset type has, in fact, been the nexus of most development
activity in Chennai. With a rapidly increasing focus on Information Technology,
Chennai now has a pure IT component of 4.5 lakh built into its overall
population. In addition, the city has a massive workforce employed in the
automobile and manufacturing sector. The city now has 3.5 lakh people employed
within its manufacturing hubs, and this number is growing rapidly.”
These
economic drivers, coupled with a high disposable income median level of Rs. 5
lakh within Tamil Nadu and the relatively lower cost of living in Chennai, have
led to surging demand for residential real estate. Capital appreciation for the
residential asset class in Chennai between 2010 and 2013 was the highest among
the major metropolitan cities in India.
As a
result, developers have been extremely prolific in churning out projects to a
willing audience. Investments into the sector have been reaping proportionate
results. However, 2013 brought forth a new market dynamic wherein the sales
velocity dropped.
Mr.
Sandeep Mehta, President – CREDAI (Tamil Nadu) and Managing Director, Jain
Housing & Construction says, "Today, we clearly perceive that
Chennai's residential property market has bottomed and the only way to go is
up. CREDAI perceives this to be a crucial time for both end users and investors
to understand the point at which residential real estate prices in Chennai will
begin to inflect upward. These impressions were amply borne out by the
conclusions we arrived at during the panel discussion."
The panel
discussion, which was a mind-merge for industry thought leaders from across the
Chennai real estate market, includes consultants, developers and financial
institutions. The collective market intelligence and foresight which was
generated during the deliberations provided a clearer way forward for end
users, investors and developers to anticipate and prepare for the imminent
changes on the Chennai residential real estate market.
For media Contact
Mr. Arun
Chitnis
Head –
Corporate Communications & Media Relations
Jones
Lang LaSalle India
Level 6,
Amar Avinash Corporate Plaza
Bund
Garden Road,
Pune - 411 001. Tel: 020 - 30930 441
Fax: 020
- 4019 6101
Mob: +91
9657129999
Website:
www.joneslanglasalle.co.in
Blog:
www.joneslanglasalleblog.com/realestatecompass
Twitter:
JLLIndia_Realty
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