CHENNAI: The Confederation of Real Estate Developers’ Associations of India (CREDAI) has raised concern over the sales of residential units across the city dipping by 44% over the last two quarters, and blamed it on the frequent changes in registration charges and a lack of clear directives regarding under-construction projects.
“Only 2,983 units were sold in the first quarter of 2024 in Chennai with CREDAI members accounting for 89% of the sales. This is a 44% decline from the 5,332 units sold in the fourth quarter of 2023. The frequent changes in registration charges and a lack of clear directives dispirited the potential buyers to a large extent,” Mohamed Ali, President of CREDAI-Chennai said.
As of March 2024, Chennai had 7,717 unsold units in completed residential projects. This high level of unsold inventory indicates that while new developments are in progress, the market’s ability to absorb these units remains challenged. “Our sales have been impacted by uncertainties around under-construction projects. However, we are committed to working closely with the state government to resolve these issues,” he added.
Meanwhile, there has been a 28% increase in the total project registrations during the first quarter of 2024 signalling a positive trend in new project launches, as per CREDAI-Chennai. Data reveals that 78 projects were registered with TNRERA in Chennai, with 59% of these projects undertaken by CREDAI members. The report states that the registration saw a substantial rise, with 7,218 units registered in the first quarter of 2024. The total units registered increased by 40% with the south suburbs accounting for 29% of the projects followed by Central Chennai at 26%.