Chennai
The demand for residential units in and around Chennai has remained stable in the third quarter, with around 5,600 units absorbed in the quarter when compared to some 5,550 units in April-June 2012 quarter, according to Jones Lang LaSalle. The growth corridors like OMR and GST along with its link road and neighbourhoods continued to remain the most demanded areas in the city with healthy absorption levels. However, strong demand for housing was also witnessed in emerging locations like Porur, Ambattur and their neighbourhood areas. Rentals and capital values across the sub-markets are also expected grow.
With IT SEZ’s and easy access to emerging locations such as Orgadam and Sriperumbadur, demand for housing continues to improve in the western suburbs sub-market. In addition, attractive office rentals and quality office space in Ambattur has been attracting IT/ITES occupiers, which in turn has triggered housing demand around this location, situated in the western suburbs.
Supply
Chennai’s developers continued to bet on the demand potentials of the city residential market as they supplied 10,165 units in July-September 2012 quarter compared to 8,570 units in April-June 2012 quarter. More than 33,000 residential units were supplied during the first nine months of the year in comparison to around 18,000 units supplied during the same period last year.
The supply level in the southern suburbs continued to dominate this quarter, however, increasing housing demand in western suburbs continued to attract developers to launch more units in this sub-market. Around 44 per cent of the residential units launched during the third quarter were launched in western suburb sub-market and 35 per cent of the total launches in the first nine months were witnessed in this sub-market.
With increasing demand for villa projects, developers supplied 1332 villa units this quarter. This represents around 13 per cent of the total launches during the third quarter.
With housing options within the city getting costlier, suburbs sub-markets offering relatively affordable housing options, continued to witness faster capital value growth. Strong housing demand along with investor interest in the western and southern suburbs sub-market have increased the rental and capital values. Moreover, on-going and upcoming infrastructural activity within the city continued to support the capital value growth across all the sub-markets.
However, the rate of growth in rentals, residential and capital values will highly depend on the implementation and completion of the upcoming and on-going major projects such as the Monorail, the Metrorail, the Outer Ring Road, and the Greenfield airport.
V Nagarajan, Property Consultant
Source: http://content.magicbricks.com/residential-rental-and-capital-values-expected-to-grow-in-chennai
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