Chennai witnesses home sales of 7,297 units in second half of 2022
The Hindu
The effects of rising interest rates and fears of recession have been less severe in Chennai because of the city’s development as an information technology centre and the number of job opportunities it has created, Knight Frank India said in the 18th edition of its flagship half-yearly report – India Real Estate: 2022.
During the second half of 2022, Chennai’s residential market registered sale of 7,297 units, registering a growth of 18% year-on-year (YoY), according to details provided by Knight Frank India.
The effects of rising interest rates and fears of recession have been less severe in Chennai because of the city’s development as an information technology (IT) centre and the number of job opportunities it has created, Knight Frank India said in the 18 th edition of its flagship half-yearly report – India Real Estate: 2022 – which presents a comprehensive analysis of the residential and office market performance across eight major cities for the July-December 2022 (H2 2022) period.
In tandem to the homebuyers’ sentiments, developers too launched various projects to capture the ongoing optimistic wave. New launches in the city were recorded at 7,846 units in second half of 2022, a 7% YoY increase. The micro-markets of South and West together accounted for 92% of total sales during the period.
The more affordable locations, like Porur, Valasaravakkam, and Poonamalle, in the west made up 33% of the overall share, while micro-markets in the south between Old Mahabalipuram Road and Grand Southern Trunk Road continued to draw a majority of homebuyer interest (59% of the total share). Increased development activity was observed in places like Pudur, Kolapakkam and Tiruvottiyur during July to December 2022.
Srinivas Anikipatti, Senior Director – Tamil Nadu & Kerala at Knight Frank India, said, “The residential market in Chennai has been gradually improving since H2 2020. Strong sales momentum and increase in number of inquiries from homebuyers, helped along by a sharp improvement in consumer sentiment towards home ownership in the city.”
On the office market front, Chennai recorded 3.5 mn sq.ft of transactions recording a 29% YoY surge in H2 2022. New completions increased by 45% YoY with the addition of 1.4 mn sq.ft of office space in the second half of 2022.
SBD-Old Mahabalipuram Road (SBD-OMR) dominated transaction trends with 38% of the total transactions in H2 2022. Peripheral Business District (PBD-OMR) and Grand Southern Trunk Road (GST) increased momentum with share increasing from 19% in H2 2021 to 26% in H2 2022.