Chennai Residential market is well known for its growing demand due to the large sea-line, which remained stable even in the toughest time of the Indian Realty. Although slowdown of the Indian real estate has burnt Chennai market in bits and pieces, it has been flexible and relatively stable than the other top-notch cities of the country. Erratic price fluctuation across the country for properties has made end-user more cautious about the Indian real estate, but Chennai remained unaltered as the price fluctuations in the city were comparatively less than other cities of India. Chennai market has been recognized as one of the most stable real estate markets in the country, especially the residential real estate market.Despite being one of the most stable and favored realty market in the country, Chennai witnessed very low market traction during 2013 due to current slowdown in the real estate sector which had ambushed all the top cities in India. Steadily slowing Indian economy, inflation, increasing interest rates by banks and weakened rupee all these factors have directly or indirectly influenced the overall real estate market of Chennai keeping residential real estate at its all time low mark with negative sentiments of buyers, and growing price trend for properties. Negative sentiments in buyers has postponed plans of buying home and are waiting for some sort of respite to make their property buying experience much more lucrative. Over the last four quarters Chennai has witnessed sluggish trend in terms of property sale due to poor market sentiments and gradually increasing property prices. In 2013, about 18,200 units were sold, and the number observed dip of about 33 percent as compared to the previous year’s property sales. On the other hand, same trend was observed in new launches which observed dip of 35 per cent in 2013 with respect to the 2012 new supply.According to the QTS values of Chennai, it has observed sudden surge in the unsold inventory as of to the December 2013 which increased the OQTS value of Chennai as of December 2013. QTS is the number of quarters required to exhaust the existing unsold inventory in the market, for Chennai it was 5 quarters in September 2012 but it further grown to 7 quarters in December 2013. The absorption in the last quarter of 2013 was observed to be falling at much sharper rate than the previous quarters which further resulted in increase of QTS value of Chennai.According to the demographics of the city, Chennai can be divided into four micro-markets – South Chennai, West Chennai, North Chennai, and Central Chennai.South Chennai has the largest share of under construction units with 60 percent of the total under construction units across the city which was followed by West Chennai with 30 per cent share while the remaining 10 per cent was shared by the two other micro-markets of the city.
New SupplyOld Mahabalipuram Road (OMR), GST Road and various locations coming between in these two roads have witnessed largest chunk of new launches in the South Chennai. South Chennai Contributed for 74 per cent of the total new launches in the city which observed growth of 14 per cent over the year. OMR has been top-class destination for IT/ITeS sectors and it has most favored by the IT professionals working in the adjacent IT Sectors along OMR. Proximity of Chennai airport has served as an additional catalyst which significantly influenced the residential market of South Chennai. Employees working in these regions refer living in the closed-by places and certainly want affordable properties and South Chennai serves best for both of these conditions. Due to varying demand from end users south Chennai has been emerged as diversified mix of urban fabric with all sorts of property types.West Chennai witnesses significant dip in the new launches in 2013 which has come down to 22 per cent from preceding year’s new launches. Skyrocketing prices in Central Chennai and West Chennai’s proximity with city centre has worked for its residential real estate market. West Chennai has attracted immense buyer interest in certain regions, especially regions situated closer to the city centre. Central Chennai shared only one percent of the total new launches in city which dropped by two per cent compared to the previous year’s new launches. The main reasons behind this drop were the unaffordable property prices in the central Chennai and significantly low availability of land parcels.AbsorptionOn the other hand, the situation was same with absorption levels in the city and it witnessed one of the worst performances of the residential real estate market. South Chennai the largest micro-market of the city has witnessed a sharp fall in absorption and it has dropped by 25 per cent in a year’s period. Absortion in the west Chennai has also fallen down substantially by 38 per cent in 2013 which was observed at 24 per cent in 2012. The unprecedented price rise in the west Chennai has highly influenced on the absorption in the region which observed hike of 10 to 12 per cent in past year or two. Central Chennai has undergone the hardest time to create a mark on the absorption graph of the city areas with volume dipping by more than 49 per cent in a year’s period. Due to scarcity of land parcels and less availability of properties, the property prices in Central Chennai have seen up swinging day by day.The significant drop in absorption and new supply during 2013 has drastically affected the Chennai real estate market, though the respite was that Chennai real estate market remained more stable than the other top regions of the country. Chennai real estate market observed great traction in the first half of 2013 but from July 2013 it started seeing sign of slowdown due to quick spreading negative sentiments among the home buyers across the country. In Chennai’s real estate, west Chennai will continue to attract buyer interest in coming quarters while north Chennai home buyers are strongly prefer to relocate to new projects with better amenities. Chennai real estate market will remain subdues for the next few quarters and will come up strong in the second half of 2014.займ на карту без отказов круглосуточновзять кредит онлайн