Annual housing demand of Chennai increases
Chennai: The annual demand for housing in Chennai is anticipated to be within the range of 35,000-40,000 units. As per the views of industry specialists, the overall realty market would be stable with property prices in the industrial and other growth corridors remaining firm with an upward bias.
The sustained growth of the automobile, banking and financial services industry along with IT and ITES are responsible in defining and driving the growth of Chennai’s realty market since the last decade. It is strongly believed that the trend of Chennai accounting for a major share of investments in the state will further continue in increasing the migration due to a steady growth in jobs and therefore the need for houses.
Chennai’s home loan market is contemplated to range between Rs. 800-900 crore, calculated on a monthly basis. On the basis of the demand for office space by banking and financial services sector, IT and ITES along with the requirement for houses is estimated to be around 22,000 to 25,000 units annually.
A steady supply-absorption trend has been exhibited by the residential sector of Chennai over the past three years. The same trend is likely to continue even in the fiscal of 2013.
The housing demand of Chennai is being lead by South Chennai due to the growing presence of IT and BFSI companies, while south-west Chennai has emerged as the prominent hub for auto and manufacturing sectors, which further fuels the demand for affordable houses.
Meanwhile in the west of Chennai, the increase in demand was expected to keep the prices firm, while localities such as Korattur and Ambattur would witness new project launches.
In North Chennai – due to high inventory prices are expected to remain stable in 2013. Regions like Washermenpet and Tondiarpet are attracting new projects due to improvement in road access and metro rail. The prices are expected to remain stable in 2013.
The property prices of developed premium residential properties range from Rs. 15,000 to Rs. 20,000 per square feet. Emerging growth corridors or developing command a healthy price tag ranging from Rs. 4,500 to Rs. 5,500 per square feet, while the middle-income housing projects located in the outskirts of the city attract prices anywhere from Rs. 2,800 to Rs. 3,500 per square feet. According to recorded data of the last three fiscals, general realty prices have appreciated within the range of 5 to 15 per cent annually.
