Chennai: Residential Market Grew By 21% In Jan-June, Says Study

The city recorded sales of 6,951 housing units during the first half of the year.

A construction site (Image for representation)

Chennai: The Chennai residential market has registered a 21 per cent year-on-year growth on sales during the first six months of this year, a study by Knight Frank India revealed on Wednesday.

The city recorded sales of 6,951 housing units during the first half of the year compared to 5,751 sold in the same period last year, Knight Frank India said in its report 'India Real Estate H1-2022.' New residential units launched during the first six months of the year grew by 40 per cent to 7,570 units compared to 5,424 units recorded in the first half of last year, the report said.

With improved consumer sentiment, the city observed a continuous rise in the number of homebuyer inquiries and conversions in recent period. The office space transaction volumes increased during January-June 2022 to a record 2.2 million square feet and the new office completions recorded a growth of 272 per cent year-on-year with three million sq ft spaces completed during the period.

Information technology remained the most active sector which claimed 29 per cent of the transacted space, the report said. Banking financial services insurance (BFSI) sector saw a rise of 23 per cent in the first six months of the year against six per cent recorded in 2021.

South Chennai dominated the residential sales accounting 58 per cent followed by west Chennai. Residential demand was focused on ready-to-move-in or near-ready properties, the study said.

"The Chennai residential market has been a balancing act between price and demand. While being a price-sensitive market, with broadly stable values, sales volume were maintained in the last 24 months," Knight Frank India (Tamil Nadu and Kerala) said senior director Srinivas Anikipatti said.

"As the market turns upwards, we also see a rise in prices as a combined effect of robust demand as well as rising input costs. Going forward, while we are sure that there is latent demand, the values have to remain within the acceptable threshold for the demand to remain continuous," he said.