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Chennai sees a gradual growth in residential property market

by pptiger123

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Chennai’sresidential property market has witnessed a gradual growth in terms
of valuation, demand and provide within the past 2 years post the
economic recession. Town has generally been a base for the
automobile/auto adjuvant business and is one in every of the premier
port cities within the country.

Withthe appearance of the IT sector, Chennai’s residential realty
market has become progressively hooked into its growth and expansion
for continuing residential demand. The present state of affairs of
job stability during this sector is at a far better position than it
was during year 2008- 2010.
Despite the subdued economic conditions, developers have gone ahead with
their plans and several other large scale residential property in
Chennai are declared throughout FY 2012. The duration of witnessed
the launch of roughly 14900 units that are scheduled to be completed
within the next 2-3 years. This optimism shown by developers is also
due to the very fact that the Chennai market is primarily
self-sustained and not abundantly affected with the upheaval in world

On the valuation front, nearly seventy four per cent of the total
variety of residential units launched in FY 2012 fell inside the Rs
Five million ticket size categories. Many distinguished developers
strove to faucet the cheap housing section with their new launches.
Another fourteen per cent of the residential property in Chennai were
launched in FY 2012 belonged to the Rs 5.0-7.5 million ticket sizes,
line of work to the wants of the higher mid-end section. On the
opposite hand, simply nine percent of the full units launched in FY
2012 surpassed the ticket size of Rs Ten million to represent the
premium section.

As of March 2012, nearly 82 thousand residential units are beneath
varied stages of construction within the Chennai realty market.
Whereas southern region can account for a major share of around fifty
nine percent, west Chennai can contribute thirty three percent,
followed by the northern region with five percent and central Chennai
with three percent

An important trend witnessed is that the modification within the
preference for unit size. The popular size for 3 BHK flats has
accumulated from 1250 square foot to 1450 square foot whereas for
2BHKs from 900 square foot to 1150 square foot. The vacancy level as
on March this year was recorded at just about thirty one percent with
the southern part alone constituting thirty per cent whereas north
and west metropolis have vacancy levels of thirty two percent and
thirty three percent. Central Chennai contains a lower percentage of
twenty two percent.

Chennai’s residential market has been quite resilient to the looming threat of
world economic turmoil however the market witnessed a dip in sales
speed in Q3 FY 2012, compared to the previous 2 quarters. It's been
envisaged that the corridor between Sholinganallur and Thiruporur
within the southern belt will be next investment destination for
residential property in Chennai. One more choice is that the
Sriperumbudur-Oragadam belt towards the west that is one of the most
effective choices with huge manufacturing corporations and MNCs
expanding their footprint there.

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