New launches spurred residential market in Chennai

Chennai

The good economic density, progress in infrastructure development and growing influence of IT/ITeS has enhanced sales in the Chennai realty market. The Chennai property market showed a remarkable improvement seeing an average appreciation of 10-12 per cent in the residential sector across the city during past June-Nov 2012 period.

According to K Raju of Kumar Enterprises, “The Chennai realty segment witnessed location-wise appreciation in values. There was a fragmented demand-supply across locations and henceforth value appreciations.” Areas such as Thoraipakkam, Sriperumbudur, Medavakkam and Kelambakam noted an escalation of up to 20 per cent in residential property values in past six months and is still appreciating, he adds.

“The new projects being launched in past one year is the key factor leading to elevated inventory level in realty markets,” says Harish Gopal of Vinayak Properties. The new segment offering variety of deals to the end users and in wide range of price brackets to choose from has created buzz in the property market. With options of investing in a luxury apartment to a sea-facing villa has fetched NRI’s, HNI’s and buyers and investors from different parts of the country, he adds.

“Chennai’s supply of new residential units has tripled in Jul-Sep 2012 quarter as compared to the previous quarter.” Maximum new supply has been witnessed in Chromepet, Thirumallaivoil and Egmore in the mid‐segment price range of Rs 50 lakh onwards.

The new segment witnessed more number of transactions compared to the resale segment. “New residential units are equipped with all the basic and luxury features which are missing in resale market and therefore it is more preferred,” says Gopal. The average capital values of newly launched apartments vary from Rs 3,200-4,500 per sq ft depending on location and other facilities.

Better infrastructure, availability of land parcel for development and relatively lower land prices as compared to Bangalore, Mumbai, Pune and Gurgaon makes Chennai an attractive destination for investment.

Nidhi Vashisth, MagicBricks.com Bureau