Chennai: Chennai real estate has observed mediocre demand in the residential market; though it has accounted several new projects in the calendar year 2012. Along with the automobile industry, IT and ITeS sectors have also affected the real estate market of the Chennai. These sectors enhanced not only the commercial real estate but also the residential real estate in the city. The employment stability of IT and ITeS sector has been improved since last two years which resulted into the steady impetus in the residential real estate. Stable manufacturing and services industry along with a relatively stable government have created the positive environment for home buyers from all income groups in the city.The residential market of the Chennai has been divided in four different sub markets- Central Chennai, North Chennai, South Chennai and West Chennai. The metropolitan region of the city is improving day after day due to several proposed infrastructures and improvement in planning, which further resulted in increased residential demand. Residents of Chennai mostly prefer to live in the prime locations like Ashok Nagar, Adyar and Anna Nagar. These precincts of the city are well known as traditional places to live but now-a-days OMR and GST road areas are the new hot spots; most of the offices are in the closed proximity of these areas. If you are thinking of looking for individual house for sale in chennai, then South Chennai is the best possible location for that. South Chennai is emerging as the latest residential hub in the city with the presence of numerous IT parks and SEZs.New Supply:Chennai witnessed many new project launches as the developers launched number of big scale projects. The residential units launched in the year 2012 were accounted to be 26,000 units, which were 73% higher than the preceding year 2011. Approximately 77,500 units are recorded to be under construction until the end of the 2012. Chennai is divided into four distinct regions and each of these regions has contributed to the fresh supply added into the residential market of the city.South Chennai:
- 60% of the total launches were recorded from South Chennai which was the highest of any region.
- Total new launches in South Chennai were 5% higher than the previous year’s launches.
- Development of residential market has increased in this region as various areas from OMR Road and GST Road have created very large amount of employment opportunities.
- The projects launched in this region included Navin Starwood Towers by Navin Housing, Temple Waves by Amarprakash Group, Aurum by Pacifica Group and Olympia Grande by Olympia Group.
- Southern Chennai mostly constituted in projects of mid range affordable home units as the target customers were mostly IT professionals.
West Chennai:
- West Chennai constituted the second highest percentage of the new residential units; accounting for 32% of the total new launches.
- Depicted to be the 10% higher than last year’s launches in this region.
- Casa Grande Futura by Casa Grande Developers, Sidharth Upscale by Sidharth Foundations, Sukriti by Jain Housing and Palmgrove by Godrej Properties these were the key projects which launched in 2012.
- This region also had the influence of the IT and ITeS sectors.
North Chennai:
- The new supply comprised in this region was only 7% of the total new launches
- The increase of around 17% is observed in the new supply compared to the last year’s supply.
- This region was primarily dominated by the business community, traders and public sector employees along with low budget home buyers.
- Notable housing projects in this region were Green 101 by Green Tree Homes and Orchid Springs Phase II by Alliance Group.
Central Chennai:
- Lowest supply was seen from this region of the city. Only 8% new launches were constituted in this area.
- Consistent momentum was observed in 2012 compared to the year 2011.
- This area of the city was the most sought after residential destinations.
- No notable new supply was seen in this region.
Absorption:Chennai residential market observed the unruffled and moderate absorption in 2012. The year 2012 witnessed the absorption of 29,000 units whereas absorption observed in year 2011 was around 27,500. The increase of 6% was recorded in absorption of properties. 40% of the total supply was remained unsold including the under construction housing units. The highest absorption of the houses was observed in the affordable and mid-range housing categories. Most of the absorption was recorded in the precincts like OMR road. The central region is the best region if you want a house for rent in Chennai.The prices of the city’s residential market have considerably increased across the city. The Central Chennai observed the increase of 11% in the fourth quarter of 2012. South Chennai had the maximum increase in the prices which was recorded to be around 19% in the fourth quarter. This rise was the result of the existing office projects and IT parks in the locale. West Chennai’s prices experienced the hike of approximately 9 per cent. The rental prices of the Chennai’s market were also experienced little price hike.Quick Points:
- The residential market of the city was comparatively steady. And it will not be the same in the year 2013.
- The affordable housing will be the new trend in the Chennai residential market.
- GST Road in South Chennai and city centre in North Chennai will lead the Chennai’s residential real estate for the next five years.