Chennai real estate market down, say experts
Posted on: 05/Aug/2015 11:12:41 AM
A report released by experts has said that Chennai has experienced a decline in the number of new projects in the residential sector. The decline is said to be 20 per cent in the first half of 2015. According to the report, only the South Chennai market saw a significant rise. Of this, the areas that saw most development were Pallavaram, Perumbakkam and Kelambakkam. West Chennai also saw a decent number of launches.
North and Central Chennai saw very negligible launches. Reasons stated for this were bad connectivity and lack of social infrastructure. However, compared to other southern markets, the Chennai market remains the healthiest.
According to experts, 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... 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.’
