Chennai is referred to as India’s own Detroit for its prowess in automobile manufacturing and exports. Chennai is also home to several large MNCs and IT and ITeS companies along with a plethora of manufacturing and engineering units. Chennai has the fourth largest economy in the country at present and there are multiple Fortune 500 companies located in the city as well.
In 2017, the total number of new launches of residential real estate in Chennai stood at 4, 418 units. There were around 45, 000 units being constructed. Key areas preferred by buyers included Perumbakkam, Old Mahabalipuram Road, East Coast Road (ECR) and Porur as per reports. Pallikaranai was also a coveted residential micro market for buyers in 2017. Property prices in these micro markets ranged between approximately Rs. 3, 500 and Rs. 8, 300 per sq. ft. Between 2013 and 2017, 1.2 lakh housing units were added to the residential market inventory in Chennai according to studies. South Chennai is the fastest growing market in the city and contributed 65% of the total housing supply in the city since the year 2013 based on reports. West Chennai has contributed 27% and comes in at the second position.
South Chennai has benefited primarily from the predominance of IT and ITeS companies and other commercial establishments along with manufacturing units and SEZs. Infrastructure development is also boosting realty markets along the OMR (Old Mahabalipuram Road), GST (Grand Southern Trunk) Road and Pallavaram Road along with the Thoraipakkam and Pallavaram Road (TPR). Chennai also ranked the lowest in terms of unsold residential inventory amongst India’s top 7 cities. This indicates at a steadier real estate market in comparison to other metros and top Indian cities. Premium residential projects like Akshaya Disney and VBHC Oragadam are also making their presence felt in the residential realty market as per reports.
The mid-income category is the predominant one in the Chennai real estate market. Buyers prefer units priced between Rs. 40 and 80 lakhs and this takes up around 44% of total available inventory in the city at present as per reports. The affordable housing segment takes up 29% of the current supply and covers housing units which are priced lower than Rs. 40 lakhs. The residential real estate market was impacted by the floods of 2015 and subsequent instability in the Government. However, things have straightened out now and the number of new launches should go up in 2018 as per reports.
Chennai is steadily seeing new momentum in its residential housing sector with more infrastructural developments and the steady migration of working professionals to the city on account of growing employment prospects in various sectors.
