Affordable Segment witnessed maximum demand in Chennai in 2014
Despite a roller-coaster ride in the overall Indian real estate market, the Chennai market had a relatively smoother sail in the year 2014. The overall journey was, more or less, pleasant for the real estate market with demand being somewhat consistent in each quarter and, thus, showing a steady growth. Amongst the various market segments in the city, as per analyses, affordable properties garnered maximum demand throughout 2014. Various reasons can be cited for this particular trend. More importantly, CommonFloor data also validates this key trend.
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As per data, out of the total supply in Chennai in 2014 , affordable properties topped the list with 33 per cent, followed closely by mid-segment with 30 per cent. Interestingly, ultra-luxury segment witnessed more new supply as against the luxury market.
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Data further indicates that west Chennai is mainly skewed towards affordable new supply whereas south zone comprises of an equal mix of affordable and mid-segment projects. North region was seen to be governed by the mid-segment projects.
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Moreover, new policies defined by the RBI for loan facilities for affordable homes also helped to promote this segment. As per the new policy, any property costing less than 50 lakhs in metros such as Chennai is classified as affordable property and banks are allowed to allot loan under affordable property loan section.
Going forward, demand for affordable segment is likely to increase steadily in the city in 2015 as well. And to keep up with this demand, both south and west Chennai are likely to witness good supply in the affordable category.
