Chennai Overtakes Bengaluru, Unsold Inventory Less Than 50% of IT Capital – ANAROCK
CHENNAI, India, February 4, 2019 /PRNewswire/ —
- Chennai’s current unsold housing stock at 30,800 units against 73,300 units in Bangalore
- Avg. property prices lowest in 4 years at INR 4,900 per sq. ft.
- 72% new supply in last 6 years in under INR 80 lakh budget range
- PE investment increased by 15% in 2018 against 2017
Bucking all odds including political uncertainty and a major natural calamity, Chennai has trumped southern counterpart Bengaluru in terms of upbeat residential real estate activity. ANAROCK‘s report ‘Chennai: From Resilience to Growth’ confirms that the city is only behind Hyderabad in unsold stock numbers, and has the second-lowest unsold housing inventory of India’s top 7 cities in India. As the event’s knowledge partner, ANAROCK released the report at RECON, an initiative by Tamil Nadu Real Estate Consultants Association, in Chennai today.
Anuj Puri, Chairman – ANAROCK Property Consultants, says, “Residential supply and absorption in Chennai were relatively balanced till 2015. Thereafter, housing supply dropped due to natural calamities, political ambiguity and the overall economic upheavals in the country. The current trend of softening average property prices is generating increasing end-user demand. The growth of Chennai’s residential market rests on a sure foundation of controlled supply dominated by affordable housing coupled with bottomed-out property prices. Software as a service (SaaS) and automobile sectors now drive the bulk of residential demand in Chennai.”
Highlighting the many positives that drive the Chennai real estate market, ‘Chennai: From Resilience to Growth’ covers the expansion and growth of the IT-ITeS and manufacturing sectors in the city. With major infrastructure initiatives supporting this growth, increasing interest of global investors is driving investments into Chennai.
Mr. Joy Britto, President, TNRECA, says, “Chennai’s ability to respond to various external and internal influences maturely and agilely have worked well for the city. Having already beaten considerable odds, Chennai now draws on its inherent economic strengths of rising exports of its IT/ITeS and automobiles industries. Chennai’s economy, banking on the automobile, manufacturing and IT-ITeS sectors, yielded an estimated GDP of USD 78.6 billion in 2018. The city contributes 14% to the country’s IT services, making it the second largest exporter. It also hosts 40% of the automobile production in the country.”
Other Major Report Highlights:
- Private equity investments into Chennai in 2018 stood at USD 576.67 mn – an increase of 15% over 2017
- IT-ITeS exports of the state grew at a CAGR of 8.6% between 2013-14 and 2017-18
- Automobiles and auto components exports grew by approximately 18% in 2017-18 over the previous year, recording the highest in last 5 years.
- West Chennai emerges as the city’s best residential market with high absorption-to-supply ratio of 1.16; it will take only 7.7 quarters to bring its unsold inventory to the lowest across the city.
- Oragadam, Avadi and Ambattur among the most buoyant real estate locations; corridors of Pallavaram – Thoraipakkam in the South zone emerging as the next preferred destinations with IT-ITeS planning its next level of expansion there.
Click here to download the report ‘Chennai: From Resilience to Growth‘