Chennai Residential Real Estate Market 2024

Mr. Mohamed Ali, President of CREDAI Chennai

Chennai Residential Real Estate Market 2024

 

The Chennai residential real estate market in 2024 demonstrated impressive resilience, overcoming early challenges and gaining momentum as the year progressed. While the market experienced a slower start, September marked a turning point with increased activity, paving the way for a strong finish in Q4. Developers have strategically focused on clearing unsold inventory and aligning with new policies, fostering cautious optimism for sustained market growth. This positive trend is expected to continue through Q4, driven by renewed buyer interest and the festive season.

 

Market Growth – Q3 -2024

 

In 2024, Chennai recorded a total of 182 residential projects registered with TNRERA, representing 19,109 residential units across the city. Steady sales of 9,396 residential units reflect the market's adaptability and the continued demand for quality living spaces, especially in areas benefiting from improved infrastructure and connectivity.

 

Expectations - Q4-2024

 

As the year comes to a close, the Chennai residential market is poised for robust activity. The festive season is expected to further strengthen buyer sentiment, leading to a significant rise in sales and launches. This anticipated momentum highlights the market's ability to rebound and conclude the year on a positive note.

 

Developers have focused on addressing existing inventory while carefully adapting to evolving policies. This approach has laid the foundation for a strong Q4 performance, with sales projected to increase by 15%-20% and new project launches expected to grow by 10%-15% compared to Q3. This anticipated growth reflects strengthening buyer confidence and renewed enthusiasm across the market.

 

Projections for 2025

 

Looking ahead, the residential market is expected to build on this momentum, with projected sales growth of 20%-25% in 2025. This optimism is fueled by ongoing infrastructure development, a stable economic outlook, and rising demand for modern, well-connected housing. Additionally, new project launches are anticipated to grow by 15%-20%, particularly in emerging regions, which are set to benefit from enhanced infrastructure and urban expansion.

 

Which area in Chennai is the most preferred location for customers in 2024

 

In 2024, South Chennai remains the top choice for residential sales, with areas like Medavakkam, Tambaram, Velachery, and Porur seeing strong demand due to improved infrastructure. North Chennai is gaining traction with emerging areas like Manali and Korukkupet, driven by new development projects. Central Chennai continues to attract buyers, especially in neighbourhoods like T. Nagar, Nungambakkam, and Chetpet, known for their vibrant lifestyle and proximity to commercial hubs. Western Chennai, particularly areas like Ambattur and Avadi, is also emerging as a preferred destination due to better connectivity and affordable housing options.

 

Expectations from the Government

 

The sector looks forward to the government's continued support to ensure sustained growth and development.

 

·         Simplifying and expediting the approval process will significantly enhance delivery timelines, benefitting homebuyers and developers alike.

 

·         Support from utility providers like TANGEDCO is crucial to ensure the timely availability of transformers and essential electrical infrastructure for new projects.

 

·         The Grid of Roads initiative, a transformative urban infrastructure project, holds immense promise for improving urban connectivity and unlocking growth potential in suburban and underserved regions. Swift execution of this initiative will encourage investments and spur development in emerging markets.

 

·         Policy measures promoting inclusivity and homeownership can further bolster the sector's growth. For instance, introducing stamp duty discounts for women homebuyers, similar to the successful policy in Maharashtra, would empower women, enhance affordability, and improve buyer sentiment. Such progressive measures can significantly contribute to the sector's overall development.

 

·         To meet global sustainability goals and buyer preferences for eco-friendly homes, government incentives for green building projects will be highly beneficial. Encouraging energy-efficient developments through tax rebates or subsidies will promote sustainable urban living and benefit both developers and buyers.

 Any particular trends seen in the year 2024

 

Chennai's residential market in 2024 saw robust demand for affordable and mid-segment housing in suburban areas like OMR, Medavakkam, and Pallavaram, driven by the growth of IT and manufacturing sectors along with infrastructure upgrades such as the Chennai Metro. Additionally, there was a noticeable shift towards ready-to-move-in properties, reflecting buyers' preference for immediate possession.

 

Conclusion

 

The Chennai residential real estate market has demonstrated strong adaptability and resilience in 2024. With renewed buyer interest, improving infrastructure, and positive government initiatives, Q4-2024 is set for a strong finish, and 2025 holds the promise of robust growth in sales and project launches.

 

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