MUMBAI, JULY 31: The Chennai residential market appears resilient to global economic threats and 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 per cent, according to a new report.
After the economic recession , Chennai’s residential property market witnessed steady growth in terms of pricing, demand and supply, according to a Knight Frank report titled ‘Residential Traction’.
Nearly 82,000 residential units are under various stages of construction in the Chennai market, the report adds. Out of the total residential units, FY12 witnessed the launch of approximately 14,900 units which are scheduled to be completed in the next 2-3 years.
Around 74 per cent of the total number of residential units launched in FY12 fell within the Rs 50-lakh ticket size category. The preferred size for 3BHK flats in Chennai has increased from an average of around 1,250 square feet during the recession to an average size of 1,450 sq ft in the revival phase.
The preference for 2BHKs has also increased from an average of around 900 square feet to about 1,150 square feet.
END-USER DRIVEN
Chennai market is end-user driven and 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 report adds.
The presence of the IT corridor along the 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 city in the coming years, according to the report.
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, says the report.
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 and chemicals, adds the report.
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 and Tiruporur will be the next investment destination for residential property in the city, adds the report.
amritanair.ghaswalla@thehindu.co.in
Keywords: Chennai residential property market, Knight Frank report, Residential Traction,
Source: http://www.thehindubusinessline.com/news/real-estate/article3707534.ece
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