- Limited new inventory and stable property prices improved housing demand in the city in Jan-Mar 2021, as against Oct-Dec 2020.
- Affordable housing segment comprising homes priced between Rs 40 lakh and Rs 50 lakh remained popular among buyers.
- Enquiries witnessed a jump of 20 percent, QoQ, in the ready-to-move segment. Units configured as 2 BHK and 3 BHK remained the prime choice of buyers.
- The average housing prices grew marginally by a percent during the quarter.
- Avadi, Guduvancheri, Perumbakkam and Tambaram, remained the most sought-after localities on the back of improving social and physical infrastructure.
- The rental market remained grim on the back of continued work-from-home trend as the second wave of COVID cases prolonged the opening of offices and educational institutes. Housing rentals went downhill due to high vacancy rate.
- South Chennai reported the maximum share of new launches by renowned developers, such as Casagrand, Appaswamy Real Estate and Radiance Realty.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The Jan-Mar 2021 quarter witnessed an uptick in overall housing sentiment and residential sales, as compared to
the previous quarter, ending December 2020. Limited new inventory and stable property prices improved demand for existing housing units in the city.
The affordable housing segment with units priced within Rs 40-50 lakh remained the most sought-after. Factors such as all-time low home loan interest rates, and discounts and deals offered by developers led to a revival in housing sales in the city during JanMar 2021. Despite the uptick in sales, challenges, such as high raw material costs, shortage of labourers, and paucity of funds, remained constant deterrents to the growth of the real estate market in Chennai.
The city added over 4,500 new housing units in Q1 2021. South Chennai reported the maximum share of new launches. Most of the new units were launched by Grade A developers, such as Casagrand, Appaswamy Real Estates and Radiance Realty. On the demand front, enquiries witnessed a jump of 20 percent, QoQ, in the ready-to-move segment. Units configured as 2 BHK and
3 BHK remained popular.
The average weighted property prices showed a marginal uptick of a percent, QoQ. However, popular residential localities, such as Velachery, Tambaram, Poonamallee, Anna Nagar and RA Puram, showed a negative price trend. The rental market remained subdued, too, amid the continuing work-from-home model due to the global pandemic.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental ïAsksÍ||Rental Yield|
|Within Rs 40 lakh||Guduvancheri||3,200-4,000||11||3.29%|
|Rs 40 lakh - Rs 1 crore||Ambattur||3,900-5,000||13||3.02%|
|Rs 1 crore and above||Sholinganallur||4,700-5,700||17||3.71%|
* Note: Rental Yield has been calculated for a 1,000 sq ft apartment. **Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter. ***The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments