Is the real estate market on the revival path in Chennai?

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The Chennai real estate market has remained relatively stable over the last couple of years without any huge fluctuations in terms of average price levels of property, thereby leading to an increase in the number of prospective buyers for new property.

The real estate market has been through several tough times over the last few years and prices have largely remained pretty flat. The markets have witnessed growth and currently, some interesting trends are being seen. The number of active potential property seekers has grow to 29, 300 in June, 2017 as compared to 20, 900 in June, 2016 which is a rise of almost 40%. The number of new property seekers has also increased to 13, 200 in comparison to 11, 300 in the same month last year as per reports. There are some revival signs which are being witnessed in the Chennai real estate industry and this information indicates how prices have largely remained flat for prospective buyers.

In a period of 6 months after demonetization, the Chennai real estate market has not witnessed any major impact as of yet. Chennai is one of the only two cities in the country for the April-June, 2017 quarter to witness growth in excess of 1% in terms of average property prices. Reports also indicate that 69% of localities across the city witnessed heartening price gains. Localities in the mid-range segment (priced between Rs.5-6,000 per sq. ft.) and premium segment (Rs.11,000+ per sq. ft.) witnessed the highest gains in prices between 1.5-2.5%.

The number of older property seekers has also increased by a whopping 68% to 16, 100 people from 9, 600 in the same period. This is majorly because of the fact that the average process of home buying has gone up to 7.4 months from 4.1 months as per reports. Customers generally prefer ready to move properties in order to stay insured from any risks arising from delays or lengthy completion procedures. Chennai is one of the few cities in the country where prices are higher for under construction projects in comparison to ready to move properties. However, property demand has considerably increased over the last year in terms of under construction and ready to move properties alike. Under construction properties command the largest premium of more than 11% over ready to move properties amongst fourteen leading Indian cities.