3,085 new homes sold in Chennai between July and September

CHENNAI: The pandemic may have hit the real estate sector hard but hinting at revival, a study by Knight Frank has found that Chennai developers had sold 3,085 new homes between July and  September. Last year, they had sold a average number of 4,240 homes each quarter last year.

The report also pointed out that developers were also able to garner buyer interest through active usage of digital platforms during the lockdown. Lower home loan interest rate also supported pick-up in residential sales. The acute labour crunch experienced in the initial stages of the lockdown have also begun to ease out. The city witnessed a launch of 2,547 housing units, which is 88 per cent of the average number of the 2,886 housing units it sold during the same quarter last year.

Meanwhile, the weighted average prices in Chennai between July to September registered a year-on- year decline by seven per cent which is high when compared to other major cities. The report also stated that the residential market has displayed a better than expected recovery rate between July and September, given the macro-economic challenges and lockdown that have impacted every sector directly and indirectly.

However, the developers’ cash flows remain under tremendous pressure despite the extension on loan moratoriums and RERA completion deadlines. The festival season in the next quarter will be crucial for developers. Meanwhile, the recovery in office transactions and new completions have helped rental values of office space remain stable.

Residential market witnesses boom
The city witnessed a launch of 2,547 housing units, which is 88 per cent of the average number of the 2,886 housing units sold during the same quarter last year. The report also stated that residential market has displayed a better than expected recovery rate between July and September, given the macro-economic challenges.