Chennai Residential Traction, August 2013

Chennai has been the second most sought after coastal city in India in the residential real estate market after the financial capital Mumbai. Mumbai’s expensive residential real estate has made the Chennai’s residential market much better selection for the affordable market in the country. Earlier, Chennai was typically known as the automobile and auto ancillary hub in the country being the premier coastal port on the South Indian coastal line. The residential demand in the Chennai real estate market has been significantly driven by the IT/ITeS sector since it has grown as the IT city in the past decade. Since 2000, IT/ITeS sector has grown immensely in the city which has attracted a number of people to migrate to the Chennai’s soothing and picturesque surrounding.Chennai Residential SupplyIf you consider an over all real estate market of the city, Chennai has witnessed new launch of about 13000 units in the first half of this year which was declined by 13 per cent as compared to the same period of the preceding year. The first quarter saw the maximum new launches in the current year but the first quarter momentum was lost in the next quarter and the new supply was lowered by about 50 to 60 percent. Approximate new launches observed in the second quarter of 2013 were lowered by 36 per cent as compared to the second quarter of the 2012.The southern region of the Chennai accounted for huge 72 per cent of the total new supply witnessed in the city during the first half of the year. The most sought after location in the South Chennai region include Old Mahabalipuram Road and GST road. The presence of IT/ITeS companies, IT Parks, and various industrial estates have created large employment opportunities in Chennai which attracted a bunch of people to the southern part of the city. The PBEL city from the PBEL and Aqualily Apartments from Mahindra Lifespaces are the notable projects which were launched in the first half of the 2013.The West Chennai launched notable projects like VGNTempleTown by VGN developers and Compact homes by Arun Ecello builders during the first half of the year and remained the second highest new supplier in the Chennai residential market. With only 2 per cent of the total new launches in the city, North Chennai did not observe any notable project in the first half of the year. The same situation was observed in the central part of the city; only key project with new supply in the central Chennai was TVH Quadrant which was actually launched in the late 2012. The Chennai residential market is highly end user oriented which witnessed volatility in the residential prices and remained at the low level.AbsorptionThe drop in the virgin supply can be attributed to the low absorption level of the city which gradually decreased from the first quarter to the second quarter of the year. The absorption of only 10,500 units was witnesses during the first half of the year against the new supply of 13000 units. The absorption level was decreased by about 31 percent compared to the previous years same period. The over all market witnesses drop in the absorption level and submarkets was also declined proportionate to the overall residential market. The highest absorption was observed in the suburbs of Chennai, especially along the OMR.Prices also witnessed a downfall in the Chennai real estate market except few locations like GST road and OMR. The GST road remained in the spotlight in Chennai residential market owing to the good infrastructures and growing industries along the GST road. The GST road and OMR will play an important role in the future of the Chennai residential real estate as they cater numerous industries including IT/ITeS sectors.займ на карту без отказов круглосуточновзять кредит онлайн