Amidst COVID-19 outbreak, Chennai’s
residential prices witness 6.7%YoY growth, reveals MagicbricksPropindex Q1, 2020
-
Anna Nagar and Ambattur micro-markets
witnessed a significant surge in
-
Price increments for UC and RM
properties in the range of Rs.7,000/sqft and above
Noida, April 29:At the outset of the COVID-19, Chennai’s residential prices
witnessed a YOY increase of 6.7% in the first quarter of 2020, fuelled by
development in infrastructure and improved connectivity,revealed the latest edition of Magicbricks’ PropIndex (Q1, 2020).
While the global outbreak of
COVID-19 and the ensuing lockdown
did impact India’s real estate, Chennai witnessed a decent rise of 6.4% YoY
in demand for residential real estate during the Jan-Feb-March period of 2020. Improving
connectivity via Chennai Metro, Chennai-Bengaluru infrastructure corridor, and
peripheral road are particularly driving the residential market in peripheral
regions.
In both the Under Construction
(UC) and Ready-to-Move(RM) property categories, positive demand
patterns were observed in almost all price brackets in Q1 2020, defying fears
of a systematic slowdown in the larger Indian economy. Under construction
segment prices also improved with almost 2% price growth YoY. The city reported
a noticeable increase in demand for the premium
segmentthat witnessed 20% of its consumer searches for properties costing
more than Rs.9,000/sqft.
Commenting on the PropIndex,
SudhirPai, CEO, Magicbricks, said, “The Government is taking stringent measures
to contain the Covid-19 outbreak, but the long-term impact on property market
is uncertain, and yet to be assessed. But it seems that the consumer interest
has not tapered off. There is a pent-up demand for ready-to-move in properties
as our data suggests that the 80% of searches are happening in this segment and
the rest for under-construction.”
The PropIndex also
suggests that in Chennai, OMR micro-market continues to do well, while being
most favored by buyers, as major IT developments and various industries are
located within this region. Anna Nagar and Ambattur micro-markets have witnessed
a significant surge in demand in Q1 2020, as buyers anticipated the current and
upcoming metro lines to significantly enhance the future prospects of these
locations.
According to Magicbricks’ PropIndex,
the residential sectorwas primarily being driven by threecritical factors:
·
Good metro connectivity is
turningMount Poonamallee road into OMR 2.0 for IT firms, driving demand for
residential space
·
2 BHK configuration received the most
traction in Q1 2020 with 56% of the city's searches falling in this segment
·
Outer ring road's Nemilichery to
Minjur stretch, and peripheral ring road connecting Poonjeri Junction to Ennore
Port, may also get completed in 2020
However, it will be
interesting to see how these factors play out as the market recovers from the
outbreak of COVID-19 and the ensuing national lockdown.
As
things return to normalcy, Magicbricks Research foresees the next two years to
be crucial for the residential segment, as most of the stuck projects are
likely to get completed with the help of the Rs.250 billion bailout fund. At
the same time, completion of major metro lines should ease connectivity between
peripheral and commercial areas, opening the next phase of growth. At last,
it’s imperative for the sector to withstand these testing times and come out
more robust and well prepared, once the COVID-19 situation gets better.
About Magicbricks:
Magicbricks is India’s No.1 property site. With monthly
traffic exceeding 20 million visits and with an active base of over 14 lakh+
property listings, Magicbricks provides the largest platform for buyers and
sellers of property to connect with each other in a clear, transparent manner.
With this in mind, Magicbricks has innovated several product features, content
and research services, which have helped us, build the largest audience pool.
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