West Chennai has now emerged as the city’s best residential market with high absorption-to-supply ratio of 1.16, said a new report released on Monday. The study said it would take only 7.7 quarters (upwards of two years) to bring West Chennai’s unsold inventory to the lowest across the city.
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It also rated Oragadam, Avadi and Ambattur as among the most buoyant real estate locations.
The western and southern zones are expected to witness high traction. The western region is expected to witness demand for residential real estate driven by the growth of the automobile industry in the region. The corridor of Pallavaram–Thoraipakkam in the South emerged as the next preferred destination with IT-ITeS planning its next level of expansion there. The supply of Rs 40 lakh–Rs 80 lakh segment is targeted towards the large base of junior to mid-level IT-ITeS professionals in southern parts of the city. Property prices of micro markets in the southern suburbs are in the range of Rs 4,100 to Rs 5,000 per sq ft. Residential properties in the western suburbs are priced between Rs 3,600 and Rs 4,600 per sq ft. This is targeted towards the industrial and blue collared workforce employed in the MSME, SME and auto manufacturing sectors. This segment within the region is expected to witness traction in the short to medium term.
Property consultants Anarock’s report
‘Chennai: From Resilience to Growth’ confirms that the city is only behind Hyderabad in unsold stock and has the second-lowest unsold inventory of India’s top seven cities. Anarock released the report at RECON, an initiative by Tamil Nadu Real Estate Consultants Association. 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 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.”