CHENNAI: Realty sector in Chennai is yet to show a significant growth. According to a report by property consultant Anarock, the city saw an overall rise of 15 per cent new supply of residential homes in the third quarter.
It stated that 40 per cent of new supply was added in the lower budget housing segment — homes that cost below `40 lakh.
As per the study by Anarock Research of seven cities, Chennai’s supply in the third quarter increased to 4,850 units from 4,200 units in the second quarter, an increase of 15 per cent. Overall, the National Capital Region, Mumbai Metropolitan region, Chennai, Bengaluru and Kolkata saw 52,150 new units being launched in third quarter, which is a notable increase over the 50,600 units in the second quarter.
Cities contributing most to the new additions in the third quarter are Mumbai Metropolitan Region, Pune, Bengaluru and Chennai and together these cities account for 76 per cent of the new supply.
The report also states that sales of properties also increased in Chennai by eight per cent.
“There has been an increase in the sales of properties from 2,700 units in the second quarter to 2,925 units in the third quarter."
Interestingly, Mumbai Metropolitan Region saw the highest jump in sales this quarter with sales increasing by 16 per cent. The third quarter saw a meagre three per cent increase in the overall fresh housing supply across the seven cities as against the preceding quarter.
These new launches were dominated by low-budget segment (less than Rs 40 lakh) with nearly 42 per cent of the total supply. It was also found that 33 per cent launches were in the mid segment (Rs 40 to Rs 80 lakh) and the remaining 25 per cent in the luxury and ultra-luxury segments.
However, Ajit Kumar Chordia, President of Chennai Real Estate Development Authority of India, Tamil Nadu, says the realty sector is yet to pick up, “What is happening is need-based buying.” He said that there is an all-round increase in sales including luxury housing.
“My East Coast Road property sales have gone up and Old Mahabalipuram Road stock is coming down,” he said.
Developers blame GST for hitting the realty sector hard as the cost of land is not eligible for input credit under GST because it is an immovable asset.