The city’s real estate market will remain stable in 2013, according to a report by a property investment advisory group.
There certainly won’t be a dip in demand and supply, and a substantial increase in prices is also out of the question, the report further said.
The report prepared by ASK Property Investment Advisors of the ASK group, attributes this steady conditions of supply and demand to the delay in approval of projects in 2012. Although there was an absorption decline by 12 percent in 2012, lower number of launches due to the delay of projects has balanced out the demand and supply for 2013.
Chennai takes the highest amount of time to approve projects, said Sunil Rohokale, CEO and managing director of ASK Group.
“In Chennai, many projects need dual approval from both Chennai Metropolitan Development Authority (CMDA) and Chennai Corporation which takes a lot of time. The process is also quite tedious. But the delay has been cut down considerably. Earlier it used to be as long as 18 months,” said Raman Iyer, director, asset management of ASK group.
When asked why the city does not have many affordable projects, Mr. Rohokale said such projects were not as profitable as those catering to high- and middle-income groups. “There is more risk involved in affordable housing though there is a lot of demand for it,” he said.