By Rohan Patil
Chennai’s homebuyers are on a buying spree, with approximately 10,300 homes sold in the city during the second half of 2023. This marks a significant 41 per cent increase in homebuying compared to the previous year. What’s driving this surge in demand?
According to Sridharan Swaminathan, vice president of CREDAI South Zone, rapid infrastructural developments like the extension of the Metro rail and improved road networks have made Chennai more attractive to buyers. There’s also a noticeable shift in homebuyer preferences towards premium housing, as indicated by the dominance of mid-segment projects in the city’s housing supply.
The growth in the commercial sector, particularly in areas like warehousing and data centers, is another contributing factor. This development is drawing people from across India to Chennai, boosting the demand for quality homes. Suburban areas such as Vandalur-Kelambakkam Road, Porur, and Kattupakkam have witnessed significant mid-segment launches, positively impacting housing sales.
Anshuman Magazine, CEO of CBRE, highlights the influx of expatriates contributing to the rise in housing sales. Professionals from countries like the US, UK, and Australia are choosing Chennai, especially in suburban and peripheral areas of the city.
Furthermore, there’s been notable growth in the high-end and luxury segments, which now account for 28 per cent of quarterly unit launches. Preferred locations for these offerings include Perambur, Saligramam, Korattur, and Navalur, indicating a positive sentiment in these areas.
Chennai’s real estate market is also witnessing a shift towards sustainability, with developers focusing on innovative, green-certified developments. This trend resonates with eco-friendly homebuyers, further boosting housing sales. Additionally, there’s a growing preference for apartments over layouts due to their convenience, amenities, and community living aspects.
Looking ahead, the mid-segment and high-end projects are expected to continue driving sector growth, with the mid-segment leading the way based on the number of project launches and sales share. The trend of buying a second home is also anticipated to give a further boost to the residential sector.
Despite a marginal drop in home sales in Q1 2024 compared to the same period last year, the market is expected to rebound. The rollback of Tamil Nadu government’s three-tier guideline values for apartments provides relief to potential homebuyers without further hurdles. Mid and high-end segments are expected to drive sales, with launches concentrated in the South and West Zones of the city. Upcoming residential areas like PT Road, OMR Zone 2, MPH Road, Ambattur, Perambur, Madhavaram, and Velachery-Tambaram stretch are expected to attract homebuyers.
This surge in demand coupled with ongoing developments signals a promising outlook for Chennai’s real estate market in the coming months.
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