According to a latest report by a real estate firm, the residential property segment in Chennai saw some 6,520 units being launched from January till June 2018. This was the highest number in the past three years.
The report says that as compared to 2017, the residential real estate market in Chennai took a steep turn in the early months of 2018 which shows a rise in demand for homes.
It further said, “The number of launches in the city, one of India’s prime real estate markets, rose by eight percent in the first half of 2018. In the past three years, Chennai property market has been affected by various reasons, but with such significant ramp-up in supply, the market has gained momentum once again which is a good sign.”
“The implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), and the launch of the Pradhan Mantri Awas Yojana in 2017 are yet to boost the sector significantly.” Report said.
With the number of units launched during the period saw an increase, developers continued to focus on unloading existing inventories by re-launching old projects at lower prices and in smaller configurations, to attract buyers.
Talking about the favourable regions of Chennai, South and West Chennai saw a large number of launches in recent times. Around 68% of new launches are happening in South Chennai on Old Mahabalipuram and GST Road with 74% of them concentrated on the mid-segment. Also, Pallavaram-Thoraipakkam Road and Perumbakkam in south Chennai, Mt Poonamallee Road in west Chennai and Perambur in north Chennai are also expected to emerge as favoured destinations owing to close proximity to central Chennai.