CHENNAI: Chennai recorded a 93 per cent year on year increase in residential demand in the first half of 2021 as sales jumped from 2,981 in first half of 2020 to 5,751 units sold in the first half of this year, according to a report by Knight Frank.
The report, which was released on Thursday, stated that new project launches grew by 54 pc to 5,424 units in the first half of 2021. The Chennai residential market witnessed a slow demand and supply momentum during the first half of 2021. South Chennai accounted for the largest share, 56 pc of the total units sold in the first half of 2021 followed by West Chennai with a 34pc share.
The Rs 2.5-5 mn and Rs 5-7.5 million ticket-size categories emerged as popular choices during this period, according to the report. The report also stated that city-level average residential prices recorded a 2 per cent year on year dip in the first half of 2021. However, sequentially the prices have moved up 7pc from INR 40,843 per square metre (INR 3,794 per square feet) in second half of 2020 to Rs 43,619 per square metre (INR 4,052 per square feet) in first half of 2021.
Further, the demand for spacious homes and second homes in Chennai has picked up in the last few months on account of the pandemic-induced work from home and digital studying trends. Srinivas Anikipatti, Senior Director - Tamil Nadu and Kerala, said, “The second wave of pandemic has shown the bottom level of price reduction of residential real estate in Chennai.
This bottoming out of prices has driven many who were on the fence, to conclude with a home deal. The affordable and mid segment continues to be a major demand driver in Chennai. The city is witnessing an increasing demand for second homes and spacious homes owing to the work from home and study from home trends.”
On the supply front, 5,424 units were launched in first half of 2021 recording a 54pc year on year increase. West and South Chennai together accounted for 98 pc of the total first half 2021 launched units. In terms of ticket-size split, developers continued to focus on the affordable housing segment, especially in the Rs 25 lakh to 50 lakh category.
On the supply front, 5,424 units were launched in first half of 2021 recording a 54pc year on year increase. West and South Chennai together accounted for 98 pc of the total first half 2021 launched units.