NEW DELHI: Despite economic slowdown, the year 2019 was one of stability and recovery for Chennai’s residential real estate, with sales rising by 6 per cent YoY to 16,959 units, revealed a report by Knight Frank India, a property consultant firm.
Home sales in Chennai increased by 8 per cent year-on-year to 7,980 units during the second half of 2019, the report said.
South Chennai, which includes Perumbakkam, Chrompet, Sholinganallur, Guduvancheri and Kelambakkam, accounted for the highest number of launches as well as sales at 9,145 units (49 per cent YoY increase) and at 11,409 units (9 per cent YoY increase) respectively in 2019, the report said.
“The sub-Rs 3 million (Rs 30 lakh) ticket size segment has been and continues to be the most transacted residential segment in the Chennai market. The stilt-plus-four apartment structures, locally known as special buildings, have regained the favour of home buyers as they failed to find comfort in high rises,” said Srinivas Anikipatti, senior director (Tamil Nadu and Kerala), Knight Frank India.
Primary drivers of the residential demand have been the ready-to-move-in units and the affordable housing segment. It is therefore not a surprise that many developers are shifting to the high traction affordable housing market.
“Meanwhile, the nationwide credit crunch faced by the real estate sector and the economic slowdown impacting job growth pose as challenges,” added Anikipatti.
Even office space transactions in Chennai were at an all-time high of 5.2 million square feet in 2019, registering 50 per cent YoY increase. Supply went up by 31 per cent YoY in 2019 as a total of 1.7 million square feet new office space entered the market, the Knight Frank India report observed.