Thursday, June 27, 2013

Chennai’s Real estate report

 Chennai’s Real estate report

Chennai’s residential property market was marked by moderate demand throughout year 2012, however despite the subdued economic conditions, the town witnessed many new project launches. With absorption staying at around twenty nine,000 units in 2012, a rise of solely vi per cent over the previous year, the surge in new launches augmented the proportion of unsold units alarmingly, that currently hovers round the forty per cent mark, up from the previous level of thirty one per cent in 2011. This has forced developers to resort to freebies and schemes to draw in consumers.

Chennai’s realty sector seems to be swimming against the present of the commercial holdup.

In the last few months one or two of deals calculable at over Rs one,000 large integer are finalised among the town.

The sellers area unit either firms or high web price people and therefore the consumers, all of them, area unit Chennai-based developers WHO have focused until currently on the city’s suburbs and therefore the peripheral areas, that area unit 20-25 metric linear unit removed from the town.

Now they need bid for and bagged giant land parcels within the heart of the town.
Big deals

Some of the distinguished deals in Madras area unit Akshaya Ltd shopping for IFCI’s one-acre property in Nungambakkam for Rs ninety three.75 crore; Ceebros reading the Atlantic edifice property in Egmore, about 1.65 acres, for Rs one hundred sixty crore; and VGN sacking 2 properties — one.5 acres from Tata Communications for Rs 195 large integer, and a 10-acre parcel from HTL Communications for Rs 273 large integer. an additional deal, per reports, has been finalised in Central Madras on the same scale.

The National Housing Bank’s residential property index offers a sign of Madras reordering alternative giant cities in property valuation.

Pratish Devadoss, manager, VGN, says within the town folks in want of money area unit marketing land to require advantage of the buoyant costs.

Developers area unit on the look-out for prime locations among the town to fulfill the growing residential demand. “It is complementary,” he says.

T. Chitty man, Chairman and corporate executive, Akshaya, says the residential market has been showing steady growth in Madras.

Within the town, rising land costs have elicited firms to give up land.

Price points

The Madras residential market has usually been defined by low worth volatility. Yet, variety of things have light-emitting diode costs to extend significantly across the city’s residential market, one in all them being rising construction prices throughout 2012 that light-emitting diode to steady worth appreciation despite increasing pile-up of the proportion of unsold units. Moreover, costs conjointly touched upwards as a result of the positive impact of major infrastructure comes, like the underground Rail, clinical trial of the MRTS from Velachery to St. Thomas Mount, the Outer route and therefore the railroad.

The report concludes with the finding that whereas the expansion momentum achieved in new launches in 2012 might not be sustained through 2013, developers area unit expected to continue corporal punishment comes already launched. However, unsold inventory can still be a significant purpose of competition.