The Chennai residential market registered a 21% year-on-year (YoY) growth in sales during the first half of 2022.
According to data collated by Knight Frank India in its latest report, India Real Estate: H1 2022 (January – June 2022), Chennai recorded sale of 6,951 housing units in the first half of 2022 compared to 5,751 housing units sold during the corresponding period in 2021. The new home launches increased by 40% to 7,570 housing units in the first half of 2022 from 5,424 housing units in the first half of 2021.
South Chennai accounted for 58% of the sales recorded during first half of 2022. The south micro-market locations along the OMR and GST Road continued to garner buyer interest, followed by the affordable locations such as Porur, Valasaravakkam and Poonamalle.
Srinivas Anikipatti, senior director, Tamil Nadu and Kerala at Knight Frank India, said: “Chennai residential market has been a balancing act between price and demand. While being a price-sensitive market, with broadly stable values, sales volumes were maintained in the last 24 months. “
He said: “However, prices saw a notable decline post the onset of the pandemic, which triggered a growth in sales of residential markets. As the markets turn upwards, we see a rise in prices as a combined effect of robust demand as well as rising input costs. Going forward, while we are sure that there is latent demand, the values have to remain within the acceptable threshold for the demand to remain continuous.”
Office space
During the first half of 2022, office transaction volumes increased by 80% at 2.2 million sq ft. New office completions recorded a growth of 272% year on year with 3.0 million sq ft of new spaces completed during the same period. IT remained the most active sector which claimed 29% of the transacted space. This was followed by BFSI which saw a rise in its share to 23% in the first half of 2022 from its previous 6% during the corresponding period in 2021.
Mr. Anikipatti said: “Despite the third wave of the pandemic in early 2022, Chennai’s commercial market remained strong as offices reopened, resulting in increased transaction activity. We expect the city to see a continued rise in the office market, given its inherent advantage of cost as well as high quality of office space,” he added.
