Office leads the way for Chennai Realty;
residential soon to follow! Knight Frank India
Knight Frank India today launched the third edition of
its flagship half yearly report - India Real Estate. It presents a
comprehensive analysis of the residential and office market performance of
Chennai for the period between January–June
2015 (H1 2015).
Residential
takeaways:-
·
Sales
to exceed 10,000 units in the coming period
·
With
metro project inauguration, areas around Koyambedu, Ashok Nagar and Alandur to
see positive demand.
·
Chennai
remains the healthiest amongst its Southern peers; will require nearly 2 years
to offload the unsold inventory
·
Premium market hit hard by slowdown, however, price growth in this segment will continue to
be higher than the overall market
·
West and South Chennai locations are now preferred
zones for
affordable housing.
Chennai
Residential Market Trend:
Office
Takeaways:-
 |
| Dr. Samantak Das, Chief Economist & National Director - Research |
·
Vacancy
level at historic low, drops to 17.9% in
H1 2015
·
BFSI
increases its footprint although IT & ITeS continues to be the largest
consumer
·
The
growth trajectory of the office market to remain intact
·
Lack of large format office spaces force occupiers
toward the peripheral locations like Shollinganallur
Chennai new completions and
absorption:
Speaking
about the findings, Kanchana Krishnan, Director - Chennai said,
 |
| Dr. Samantak Das, Chief Economist & National Director - Research & Kanchana Krishnan, Director, Chennai |
“Chennai
is currently undergoing a prolonged phase of time correction characterized by a
persistent slump in launches and absorption levels where market players are
wary about entering the market at this time. Our interactions with the
developer’s and investor’s community corroborate our analysis and lead us to
believe that residential supply will take more time to revive due to the still
high unsold inventory levels.”
“On the
office front, we believe that the absorption levels will continue their uptrend
in H2 2015, as occupier interest remains strong at the end of the current
period and no significant supply is scheduled to come online in the short term.
Based on our analysis, the current rate of enquiries and our interaction with
market players, we estimate that approximately 2.4 mn sq ft of office space
will be absorbed in H2 2015 – a
healthy 6% growth over H2 2014. This, in tandem with a limited 1.2 mn sq ft
scheduled for delivery in the Chennai office space market, will force vacancy
levels to under 17% and support sustainable rental growth, inevitably setting
the stage for further office space development”.
About Knight
Frank:
Knight
Frank is the leading independent global property consultancy. Headquartered in
London, Knight Frank and its New York-based global partner, Newmark Grubb
Knight Frank, operate from 370 offices, in 55 countries, across six
continents. More than 12,000 professionals handle in excess of US$1
trillion (£643 billion) worth of commercial, agricultural and residential real
estate annually, advising clients ranging from individual owners and buyers to
major developers, investors and corporate tenants.
In
India, Knight Frank is headquartered in Mumbai and has more than 1000 experts
across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad. Backed by strong research and
analytics our experts work with clients to offer a comprehensive range of real
estate services across advisory, valuation and consulting; transactions
(residential, commercial, retail, hospitality, land, capitals); facilities
management; and project management.
For futher information please contact:-
Please contact:
Daniel@9500055980, Blue Lotus Communication
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