Real Estate

ITeS, manufacturing sectors to drive demand for Chennai realty

Our Bureau Chennai | Updated on February 04, 2019 Published on February 04, 2019

The continuous expansion of the IT-ITeS and manufacturing sectors are likely to catalyse the next level of growth in the Chennai realty market, a report by Anarock Property Consultants has said.

The current trend of softening prices is likely to generate demand driven by end-users. The western and southern zones of the city are expected to witness high traction.

‘Stable foundation’

“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,” Anuj Puri, Chairman, Anarock Property Consultants said in a statement.

The report indicates that the state government’s recent push to attract investments in SaaS, IT-ITeS, start-ups and MSMEs will activate housing demand in the southern suburbs of Chennai.

More than 20 SaaS companies have already started their operations from Chennai. Further growth of the automobile industry and upcoming investments are likely to spur demand both in commercial and residential segments in the western part of City.

Price correction

Chennai’s residential real estate market was witnessing a continuous fall in prices. But in the last four years, the price correction has been about three per cent from its peak. The average price in the city at present is ₹4,900 per sq ft.

While demand outstripped supply till 2017, the market reversed in 2018, pushing up the unsold inventory to 30,000 units.

In 2018, Chennai witnessed a steep increase in new launches of the affordable segment (units priced less than ₹40 lakh) and this is expected to continue in the coming years as the affordable housing is attracting more traction across the nation due to government’s push with GST incentives.

Affordable housing

The increase in launches in the affordable segment is due to a slight reduction in prices and a general reduction in the configuration of housing unit sizes.

The realty market is expected to be back on the growth trajectory with controlled supply and bottomed-out prices, said the report.

Published on February 04, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.