CHENNAI: Residential sales in the first quarter of the year in Chennai saw a 30 per cent increase when compared to same period last year, highlighting growing home-ownership sentiment amidst Covid exigencies, according to an Anarock Property Consultants (APC) report.
According to Sanjay Chugh, City Head-Chennai, APC, buoyed by housing sales growth over the last two quarters (fourth quarter of 2020 and first quarter of 2021), average property prices in Chennai recorded a 1% jump in the first quarter this year, against the same period last year. This shows developers saw this period as an opportune time to increase prices, the report stated.
This is backed by A Shankar, Chief Operating Officer, Strategic Consulting, Jones Lang LaSalle (JLL). He says in Chennai, the first quarter of 2021 (January, February, March) saw very good traction in home sales when compared with other cities in India. Also, Chennai witnessed an increase in new launches (of homes).
Cities including Chennai, Hyderabad, Kolkata and Pune surpassed the sales volumes of the first quarter of 2020 with overall sales increasing by 17 per cent on a sequential basis. However, the intensity of Covid second wave will reduce this momentum to an extent, though with increase in vaccination, the outlook in the coming quarters is likely to be positive, says Shankar.
S Sridharan, chairman, Urban Development/Affordable Housing Committee, Credai National, told Express that sales had been good in the first three months of the year. “There has been an increase in prices. It can’t be quantified. The price rise could be attributed to other factors like rise in prices of raw materials,” he said. As per ANAROCK Research, average property prices in Chennai stood at `4,990 per square feet in first quarter of 2021 against `4,930 in first quarter of 2020.
The top five markets in Chennai witnessing this upward trend for average prices in the first quarter of 2021 include OMR, Guduvanchery, Padur, Porur and Madhavaram. The reason for the price rise could be that these areas had maximum housing demand and sales in the last two quarters. All these localities have properties in the affordable and mid-segment categories the two major segments driving demand. Given the good sales, developers have increased average property prices. Also, average prices in these localities have jumped between 12% to 19% over the last six years.
Top 5 markets
The top five markets in Chennai witnessing this upward trend for average prices in the first quarter of 2021 include OMR, Guduvanchery, Padur, Porur and Madhavaram