Nearly 92 per cent of the under construction units in the city lie in South and West Chennai
Chennai's real estate market witnessed a 20 per cent decline in the number of new residential projects launched in the city during the first half of 2015.
Chennai: Chennai’s real estate market witnessed a 20 per cent decline in the number of new residential projects launched in the city during the first half of 2015, realty consultant Knight Frank said.
While North and Central Chennai saw negligible launches during this period, South Chennai was the only market, which has seen a significant share spike. South Chennai locations such as Pallavaram, Perumbakkam and Kelambakkam saw most of the development interest. Nearly 92 per cent of the under construction units in the city lie in South and West Chennai.
Bad connectivity to office locations and lack of social infrastructure has made North Chennai a poor choice for the homebuyer. The rate at which homes are getting sold have also dropped to 11 per cent in this period compared to the same period last year. But the good news is that Chennai remains the healthiest market among its southern peers.
The Knight Frank report said the premium market, priced at over Rs 1.5 crore, has been hit hard by slowdown. That said, with metro project inauguration, areas around Koyambedu, Ashok Nagar and Alandur will see a positive demand.
“In terms of affordability, West and South Chennai are the preferred zones. It will take around two years to offload the unsold inventory in the city,” said Kanchana Krishnan, director Knight Frank Chennai.
Office market space is seeing a healthy consolidation and the vacancy level is falling in this category. While IT &ITeS continues to be the largest consumer, banking and financial services sector is increasing its footprint in the city. The vacancy level is at a five-year low - 17.9 per cent during January to June period this year.
According to Ms Krishnan, the Chennai office market has traditionally been anchored by the IT/ITeS sector, but recent periods—especially the last 18 months—have seen the BFSI sector also gaining in market share.
“BNP Paribas, Citibank constituted almost 26 per cent of total office space absorption in Chennai during this period,” she said adding that lack of large format office space pushes occupiers towards peripheral locations like Shollinganallur. The total stock in Chennai office space market stands at 58.2 million sq ft, of which 47.1 million sq ft is occupied.
( Source : deccan chronicle )
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