Chennai logged a 25 per cent increase in housing sales in the first half of 2019
Even as the slump in India’s real estate sector continues, despite the package by Finance Minister Nirmala Sitharaman for the sector over the weekend, the silver lining in the clouds has been the resilience in the property markets of the metro cities of South India. Chennai in particular has bucked the trend robustly. A new study released on Monday afternoon says Chennai actually logged a 25 per cent increase in housing sales in the first half of this year.
The southern metropolis also has the least-delayed housing stock among the top cities in the country, says the study by leading property consultants ANAROCK titled Chennai: Driven by Diversified Economic Base. Chennai has just around 8,650 units that have been delayed, and the study notes that none of these projects, worth more than Rs 5,000 crore, are completely stalled or cancelled.
The study also explains how realty majors in Chennai managed to achieve this: By limiting new launches, focusing on completing delayed projects and aiming for apartment projects that are more affordable to the city’s consumers. This approach has been in direct contrast to markets like Delhi NCR, which are in the doldrums due to heavy betting on too many ‘luxury’ projects. Some reports indicate that as many as 1.18 lakh housing units are lying incomplete in the national capital region alone.
Chennai’s housing sales increase is better than those of its fellow southern metropolises Bengaluru and Hyderabad. While the IT capital’s realty sales grew by nine per cent, sales in Hyderabad went up by 12 per cent this year.
“(Chennai’s) developers have remained focused on restricting (launch of) new housing (projects) and deployed resources to complete ongoing projects,” points out Anuj Puri, chairman of ANAROCK Property Consultants. “This has had remarkable results,” emphasized Puri.
The ANAROCK report also examines the reasons why Chennai managed to not just survive, but thrive, during this period of downturn. One factor, of course, has been that it does not depend solely on the auto and auto ancillary businesses, which are in deep decline mode. Chennai also has an evolving services sector, especially IT and ITeS, as well as electronic hardware.
Propertism: NRI Property Management Services in India, Chennai