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Decoding Chennai's Residential Real Estate Market: Latest Data Analysis Breakdown

REAL ESTATEJULY 5, 20242 min & 28 sec read
Decoding Chennai's Residential Real Estate Market

Chennai's real estate landscape is a dynamic reflection of the city's evolution, blending tradition with modern aspirations and offering diverse property options to suit varied lifestyles. As a pivotal hub for IT and industrial sectors, Chennai attracts a steady influx of job seekers and residents, driving a consistent demand for housing. Government initiatives aimed at bolstering the real estate sector further contribute to the city's housing market growth.

A Recap of the Past Year

In 2023, Chennai witnessed a significant surge in new property supply, marking a remarkable 74% increase compared to the previous year. This surge translated into the launch of 16,153 units, showcasing growing developer confidence in the market's potential.

Key localities such as Pallikaranai, Manapakkam, and Sholinganallur emerged as hotspots for new property launches in 2023. Despite broader economic fluctuations, residential sales remained resilient, recording a modest 5% year-on-year growth. Noteworthy areas like Pallikaranai, Medavakkam, and Perumbakkam stood out for robust sales performance, attracting discerning homebuyers.

In terms of pricing, the mid-range segment, with properties priced between INR 45-75 lakh, dominated the sales landscape, capturing a significant 35% share. The luxury segment, comprising properties above INR 1 crore, continued to command a notable share of 23%, indicating sustained demand from affluent buyers. 2BHK units were particularly popular, constituting 49% of total units sold, followed closely by 3BHK units at 35%, reflecting buyer preferences for spacious living.

Positive Demand Trends in Q1 2024

The first quarter of 2024 showcased a positive trend in residential sales compared to both Q1 2023 and the preceding quarter, Q4 2023. Year-on-year data revealed a notable 22% growth in Q1 2024, indicating strengthening demand for housing in Chennai.

This growth is attributed to factors such as economic stability, population growth, and favorable market conditions. Quarter-on-quarter, there was a modest 3% growth compared to Q4 2023, signifying sustained momentum in residential sales.

Strong Quarter-on-Quarter Growth in New Supply

Q1 2024 witnessed mixed trends in Chennai's new residential supply compared to both Q1 2023 and Q4 2023. Year-on-year, there was a slight 2% decline in new supply compared to Q1 2023. However, quarter-on-quarter data revealed a notable 58% growth in new supply, indicating increased developer activity or strategic market movements.

In Summary

Chennai's residential real estate market displayed significant growth in 2023, characterized by a surge in new supply, reflecting heightened developer confidence. Moving into 2024, positive demand trends in Q1 underscored the city's resilience, with sustained momentum in residential sales. While new supply showed a nominal year-on-year decline, strong quarter-on-quarter growth signals increased developer activity. With these promising trends, Chennai's real estate market presents ample opportunities for growth and stability in the foreseeable future.

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