Chennai buyers want ready-to-move-in residences, reveals survey

Central Chennai accounted for 29% of projects developed in the city during the first quarter of 2023, followed by the south central part of the city, at 26%. The number of layout projects has also been steadily increasing, and has grown significantly, in contrast to building projects in Chennai.

Central Chennai accounted for 29% of projects developed in the city during the first quarter of 2023, followed by the south central part of the city, at 26%. The number of layout projects has also been steadily increasing, and has grown significantly, in contrast to building projects in Chennai.

These numbers were revealed in a study carried out by CREDAI (Confederation of Real Estate Developers’ Association of India) Chennai’s Research and Analysis Wing (RAW). In the first quarter this year, the number of building projects climbed by 94.89% as compared to the first quarter of 2022, showing a tremendous development in the city over the year.

Despite a general rise in the sales of building projects, the number of units registered in Chennai fell by 9% when compared to the previous quarter, or Q4-2022. In the first quarter of 2023, CREDAI members owned 78.1% of the registered units in Chennai.

In March 2023, a total of 31 residential projects were registered with the Tamil Nadu Real Estate Regulatory Authority (TNRERA). North central Chennai had three residential projects, south central had eight, the southern suburbs had four, west central had four, and the western suburbs had three projects. Central Chennai witnessed nine residential developments. These were a combination of CREDAI and non-CREDAI projects.

“When compared to Q1-2022, we are overall pleased with the performance of the first quarter of 2023, and it has generally met our expectations, regardless of a large decline in the number of projects and units registered in March 2023,” said S. Sivagurunathan, president, CREDAI Chennai.

Around 67% of the year’s first quarter sales were made by CREDAI members, despite a fall in overall sales volume by 7% compared to the previous quarter Q4-2022. “What is more encouraging is that the market has observed an apparent decline in the amount of unsold inventory from completed projects, and sales by non-CREDAI members have gone up as well,” he said. “Based on sales and unsold inventory from completed projects, the trend seen is that home buyers are now favoring ready-to-move-in residences,” he added.

The CREDAI RAW Survey also provided some interesting data regarding the breakdown of buildings and registered layouts in Tamil Nadu through March 2023. In the three months ending March 2023, 138 buildings and 1,128 layouts were registered, which also suggests that the demand for layouts is steadily growing.