Chennai: The end of August marks the beginning of the festive season in which countless Indians plan important purchases and investments.
The 2016 season proved disappointing because of general uncertainty and the demonetisation move in November blew the real estate market off the track. The 2017 season seems to have begun on a much more positive note in India, and particularly in Greater Chennai, according to realtors and experts on real estate market movements.
Recovering from the demonetisation effect in H1 2017, Chennai’s residential market has launched nearly 5,300 residential units, showing
a rise of 19% from H2 2016.
Out of this 33% were concentrated in peripheral locations of the city’s south quadrant along Old Mahabalipuram Road (OMR), Grand Southern Trunk (GST) and East Coast Road (ECR).
Almost 70% of the total launches were from the reputed developers belonging to the mid-market category with small developers remained watchful. The data is based upon the recent research by Colliers -India Residential Property Market Overview.
“RERA has acted as a catalyst for the much-needed consolidation in the industry particularly the Chennai market.
It is expected that this will bring better funding into the industry thus tackling supply side issues including timely delivery. RERA as a policy measure has the potential to revive the sector.
The act has the potential to drive unprincipled or unorganised developers off the market and leave a level playing field for credible players; It is also supposed to trigger consolidation of the sector making it more organised” said Vineet Relia, MD, SARE Homes.
It is expected that there will be an improvement in the metro corridor and the prices will remain stable this year as both the developers and buyers are cautions in the post –RERA market scenario.
Overall, the southern markets have performed well with the maximum number of new launches, according to the industry....