Reports state that West and South Chennai will continue being real estate hubs on account of the continual influx of IT professionals and widespread employment in this sector in addition to developing physical and social infrastructure. South Chennai offers approximately 60% of overall residential supply in the city and is the most coveted real estate zone in current times on account of widely available and high quality residential housing options, comparative affordability of properties and convenient access to major business zones and offices.
In H2 2017, real estate in Chennai saw a slight slump due to RERA and GST. However, most launches in this period took place in West and South Chennai and some areas along the GST Road and Old Mahabalipuram Road. Several real estate developers offered exclusive offers and discounts to buyers which led to higher sales volumes overall. South and West Chennai were the dominant regions for the second half of 2017 while North Chennai is now seeing more realty activity with quite a few new launches.
Buyers in Chennai mostly seek 2 BHK apartments sized between 800-1100 sq. ft. as per studies. Demand has increased for budget apartments sized between 600-800 sq. ft. as well across peripheral zones in West and South Chennai. 68% of new launches are taking place in South Chennai along the GST and Old Mahabalipuram Roads and 74% of these projects are focused on the mid-range category. Perumbakkam and the Pallavaram-Thoraipakkam Road are key locations in South Chennai along with Perambur in North Chennai and Poonamallee Road in West Chennai.
The residential realty market in Chennai is expected to see solid growth with the Chennai Metro Rail being expanded steadily and the second phase being completed along with the bus station proposed in Kelambakkam and Bangalore-Chennai Expressway. In South Chennai, property capital values have been rising and residential launches have increased in ECR on account of CRZ regulations being relaxed. There is high demand from IT professionals in this belt who majorly look for mid-range housing units near big manufacturing units or IT Parks. Prices are also more affordable than North Chennai in many stretches.
