ANAROCK's latest report 'Chennai: Driven by Diversified Economic Base' finds that the city's real estate market reflects little of the automobile sector's slowdown. In fact, Chennai’s diversified economy is keeping the momentum upbeat for its realty market.
Anuj Puri, Chairman - ANAROCK Property Consultants says, "The report confirms that Chennai logged a 25% jump in housing sales in H1 2019 against the preceding year - much higher than Hyderabad’s 12% and Bangalore’s 9% over the same period. The city's developers have remained focused on restricting new housing supply and deploying resources to complete ongoing projects. This has had remarkable results - Chennai has the least number of delayed housing units among the top 7 cities. The 8,650 delayed units, worth around INR 5,620 crore, were launched in 2013 or before - however, none of these projects are completely stalled or cancelled by their developers.
The major factor favouring Chennai is its diverse economy, which does not depend solely on the automobile and automobile ancillary industries but also banks heavily on its evolving services sector - especially IT/ITeS - and electronic hardware. Chennai houses more than 20 electronic hardware technology parks situated in the major IT-centric SEZs of Sriperumbudur, Oragadam and Mahindra World City. The upcoming aerospace park at Sriperumbudur, spanning 250 acres, will pave the way for continued growth.
The report examines Chennai's residential real estate market in detail, revealing that the bulk of housing demand in Central and South Chennai comes from the IT/ITeS sector while demand in the peripheral areas is driven by the manufacturing industry.
The city's real estate sector has successfully attracted institutional investments to the tune of nearly US$ 2.0 billion since 2015, which accounts for nearly 14% of the capital deployed in the country. The highest infusion volume of US$ 674 million was recorded in 2018.
Other Major Highlights
Download the full report here.
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.