Chennai demands more supply of residential spaces in Q3
Chennai’s realty demand during past the three months over residential spaces has been ever increasing. The suburb areas in Chennai like OMR, GST areas where there is very high demand the price keeps appreciating along with the demand increase. There is a huge price appreciation on stagnant micro markets like T nagar due to the increase of demand in every quarter.
Demand and Supply:
The sales over the previous quarters were slightly sluggish, yet the growing demand pushed the rates up in the second half of the year. The sales boosted too owing to the demand. The sales are moving steadily through all the quarters.
This year currently shows a supply of about 25,000 residential units. 65 % of this supply is expected to be absorbed looking at the pre bookings for these residential units. The demand is mostly for the 25-40 lakhs price ranged flats. There supply for this price range is not able to be met. Chennai will seek a minimum demand of 30,000 units per annum in the consecutive four years. The demand for the products at their right price has been always the driving factor for all the apartments at all price ranges.
Trends:
Most of the demand in the south metro cities like Bangalore and Chennai are end user driven making the price appreciation moderate to about 10-12% and lower in the CBD of about 8-10%. There are some ultra-luxury projects coming up in the CBD area. These ultra-luxury projects have become a new trend for the past 8 months. More than 10 projects of this type has been accounted in the CBD area. Another trend observed is the construction of villas and row houses in the peripheral areas like OMR, GST roads. The infrastructure of the city has been developed around this area too. New bridges and flyovers has been announced around this area like East Coast Road, Old Mahabalipuram Road (OMR), Velachery, Porur, Anna Nagar and few other northern pockets.
Outlook on real estate market:
Chennai has a huge residential potential in real estate market. Over the next six months we will be able to witness a mixed bag of real estate market of sales and developers who holds the key to evaluate what customers need and alter size and price accordingly. In a metro city like Chennai the suburban demand on residential spaces are high compared to the central city due to factors like affordability, availability and adequacy.
