Buyers will now find the Chennai residential real estate market more attractive with price corrections, lowered unit sizes and several freebies and incentives from real estate developers. New launches in Chennai in H1 2018 were the highest observed over the last three years according to reports. Realty players are also concentrating on selling off existing inventory by re-launching old real estate projects at prices which are lower. This is attracting new buyers and fence sitters alike and the trend is expected to continue since Chennai is something of a buyer’s market at present.
According to reports, approximately 6, 250 units were launched in the first half of 2018. Inventory levels have come down to 6 quarters from 7 previously. As per reports, the number of new launches in Chennai went up by 8% in H1 2018 while sales volumes were marginally lower by 3% to stand at 8, 580 units in this period. Average prices have corrected by around 4% to stand at Rs. 4, 510 per sq. ft. Unsold inventory has also come down by 20% to stand at 22, 579 units in the period between January-June 2018.
The considerable increase in housing supply and demand has been a shot in the arm for the real estate market in Chennai. The country has also witnessed previous political uncertainty and other issues like the floods which have all been tackled now. RERA and the PMAY benefits will also be boosting the Chennai real estate market significantly in the near future, particularly in case of the affordable housing space.
Higher supply of housing units has spurred demand as far as property buyers are concerned. The drop in sales volumes has also been arrested to a large extent. Real estate developers are still going all out to clear existing stocks while new launches are also going up steadily. Configurations and prices are now lower for several projects and this is drawing more buyers to the same. The reduction in average asking prices has been 4% on a year-on-year basis. Some buyers are even managing to get discounts up to 10-15%.
Chennai real estate markets are more attractive now to buyers