CHENNAI: The steady decline in the number of new building and layout projects registered over the past three months have sparked concerns among the Confederation of Real Estate Developers’ Associations of India (CREDAI).
New projects have been launched at a sluggish pace as Chennai witnessed the registration of 65 new projects in the second quarter of 2024, marking a 34% slump compared to the 98 projects in the same period last year, according to Research and Analysis Wing (RAW) report of CREDAI.
Meanwhile, the number of residential units registered in the city has improved to 8,793 residential units during the second quarter of 2024, indicating a 37% rise compared to the 6,435 units registered in the second quarter last year.
Mohamed Ali, president of CREDAI Chennai, said, “While we are encouraged by the rise in residential unit registrations, the decline in project launches and sales highlights the need for focused efforts to overcome the existing challenges.”
However, the real challenge is the unsold inventory of residential units creeping up. As of June 2024, the inventory of unsold residential units in completed projects stood at 7,989 units, indicating a slower absorption rate.
Sales figures in second quarter of 2024 were less encouraging, with only 2,597 units sold, a significant 53% decline from the 5,498 units sold in the second quarter of 2023. This decline in sales reflects the difficulties in reducing existing inventory, posing a challenge for developers contemplating new project launches.
Aslam Mohamed, Secretary of CREDAI Chennai, said, “While developers are progressing with larger projects, the growing unsold inventory indicates a misalignment with market demand. We must tailor new developments to better meet the evolving needs of buyers”.