- Chennai witnessed a slight uptick in the overall realty sentiment due to gradual restoration of economic activities.
- The quarter Oct-Dec 2020 witnessed the launch of 20 projects, including phases, as against seven projects in Q3 2020. South Chennai accounted for the maximum share of new launches in Q4 2020.
- Home enquiries witnessed a spike of 10-15 percent in Oct-Dec 2020. Of all, properties priced up to Rs 60 lakh garnered maximum buyer traction.
- Sales witnessed a minimal surge of 10 percent as buyers held their home buying decisions ahead of the auspicious Pongal month in January.
- Average weighted 'asks' largely remained stable during the quarter.
- Areas such as Mogappair, Nolambur, Porur, Manapakkam, Tambaram, Siruseri, and Sholinganallur remained the popular residential catchments.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The Oct-Dec 2020 quarter saw improved market sentiment backed by new residential supply in Chennai. As against seven projects in Jul-Sep 2020, about 20 projects, including phases, were launched in Q4 2020, albeit with a few months delay in their original timelines. Similar to Q3 2020, South Chennai held the maximum share of new launches, followed by the western and northern zones. Despite the restoration in supply, challenges, such as high input costs, shortage of labourers, and paucity of funds, remained evident throughout the quarter.
With the onset of physical site visits by the mid of October 2020, enquiries witnessed a jump of 10-15 percent, QoQ. The conversion rate remained the highest in the affordable segment.
Properties priced up to Rs 60 lakh remained the mainstay of residential demand in Q4 2020. Units configured as 2 BHK and 3 BHK, measuring up to 1,300 sq ft, remained popular with buyers. Unlike Jul-Sep 2020, properties priced above Rs 1 crore reported a slight uptick in buyer enquiries in Oct-Dec 2020.
Coming to sales, Chennai witnessed an increase of 10 percent in housing deals, QoQ. Buyers held their purchase decisions for the auspicious festival of Pongal in January. The Jan-Mar 2021 quarter is expected to see sales volume going up further. Average weighted property prices remained largely stable in the studied quarter. The progress of infrastructure projects, especially the metro corridor, is also likely to spur residential demand in the city.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Guduvancheri||3,210-3,940||11||3.29%|
|Rs 40 lakh - Rs 1 crore||Sholinganallur||4,500-5,560||17||3.71%|
|Rs 1 crore and above||Thoraipakkam||5,050-7,350||17||2.96%|
* 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