Chennai

Residential sales in city saw a year-on-year growth of 6% in 2019, says study

South Chennai accounted for the highest number of launches as well as sales.

South Chennai accounted for the highest number of launches as well as sales.  

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Home launches increased by 11%, according to a report by Knight Frank India

Residential launches in Chennai grew by 11% year on year (YoY) to 11,542 units in 2019.

This growth momentum was marginalised in the second half of 2019 as launches dwindled to -2% YoY on account of the credit crunch being faced by developers and slow demand, according to a report by Knight Frank India.

The twelfth edition of its flagship half-yearly report — India Real Estate: H2 2019 — which presents a comprehensive analysis of the residential and office market performance across eight major cities for the July-December 2019 (H2 2019) period.

The report establishes 2019 to be a year of much-awaited stability and recovery for Chennai’s residential real estate, with sales rising by 6% YoY to 16,959 units in 2019 and launches rising by 11% YoY to 11,542 units.

South Chennai, which includes Perumbakkam, Chromepet, Sholinganallur, Guduvancheri and Kelambakkam, accounted for the highest number of launches as well as sales at 9,145 units (49% YoY increase) and at 11,409 units (9% YoY increase), respectively in 2019.

The sub ₹3 million (₹30 lakh) ticket size segment has been and continues to be the most transacted residential segment in the Chennai market.

Srinivas Anikipatti, Senior Director - Tamil Nadu & Kerala, Knight Frank India, said, “Primary drivers of the residential demand have been the ready-to-move-in units and the affordable housing segment.”

Office transactions in Chennai were at an all-time high of 0.5 mnsq m (5.2 million square feet (mnsqft)) in 2019, registering a 50% YoY increase.

Supply went up by 31% YoY in 2019 as a total of 0.2 mnsq m (1.7 mnsqft) new office space entered the market.

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Printable version | Jan 29, 2020 8:50:55 PM | https://www.thehindu.com/news/cities/chennai/residential-sales-in-city-saw-a-year-on-year-growth-of-6-in-2019-says-study/article30507398.ece

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