As with all real estate markets across India, the residential market in Chennai had experienced a slump during the lockdown, but is now on the pathway to a strong recovery, driven by pent-up demand and revival of economic activity.
“Serious buyers have resumed their search for homess to match their needs and new launches are already being planned for 2021,” said Vimalendra Singh, Chief Sales Officer, Mahindra Lifespaces talking about Chennai’s current market scenario.
So, how did residential real estate fare for the city?
RoofandFloor research reveals that about 1,550 properties entered Chennai’s market in 2020. About 37% of this new supply was in the affordable segment (Less than Rs 40 Lakh), followed by 33% in the mid-segment (Rs 40-70 Lakh). Properties in the ultra-luxury (Rs 1 Crore and above) and luxury (Rs 70 Lakh – Rs 1 Crore) segments recorded 16% and 14% supply respectively.
Plots regaining its lost sheen
In terms of property type, apartments ruled the roost with 63%, followed by plots and villas with 22% and 15% respectively. Interestingly, as against 2019, the inclination towards plots increased in 2020.
“Covid-19 has drastically altered real estate investment preferences, with plotted developments now trending across cities. In Chennai, key developers have so far launched at least five different plotted development projects comprising >900 units in last 4-5 months. Trends indicate that the corresponding period last year did not see nearly as many plotted development sales as this year,” said Sanjay Chugh, City Head – Chennai, ANAROCK Property Consultants.
Iyyappanthangal, Vandalur, Manivakkam, Avadi, and Thirumazhisai were some prominent markets that saw plotted development projects launched this year. “The plot sizes start as low as 560 sq. ft. and go all the way up to 2,400 per sq. ft. or more. Most of these localities are towards the peripheries of the city where average prices hover at Rs 2,500 per sq. ft,” he added.
BHK trends
Regarding BHK configurations, 2BHK apartments ruled the roost with maximum supply, followed by 3BHK and 1BHK apartments.
Explaining the trend, Vimalendra said, “1 and 2 BHK entry-level and mid-segment apartments sized 600 sq. ft. and 1000 sq. ft. witnessed good traction from homebuyers. While pricing is determined by multiple factors including location, project specifications, and developer brand, these apartments are typically priced over Rs 25 Lakh.”
Localities to watch out for in 2021
South Chennai has seen stupendous growth over the past few years with OMR and ECR transforming into IT hubs. Increased commercial activity has helped the region maintain healthy residential demand. Not to mention, the southern part of the city also boasts of robust social and physical infrastructure.
Porur, Perumbakkam, Shollinganallur, Padi, and GST Road are some of the micro-markets to watch out for in 2021.
“Demand drivers for these markets include the presence of various IT parks and industrial hubs, well-developed social and retail infrastructure, and multiple connectivity options to Chennai city centre. Larger apartments and ample availability of space are also important factors,” added Vimalendra.
The way forward
Given the prevalent work-from-home trend, homebuyers are increasingly seeking provisions for dedicated workspaces within apartments. Also, there is a rising preference for fast-growing, well-connected suburban and peripheral residential destinations, especially from customers who are seeking quality value homes in well-planned, relatively unpolluted environs.
