Residential sales in Chennai grow for the first time since 2012

Knight Frank India has launched the 10th edition of its flagship half-yearly report - India Real Estate.  The report presents a comprehensive analysis of the residential (across eight cities) and office (across seven cities) market performance for the period July – December 2018 (H2 2018). 
According to the report, sales in Chennai’s residential market grew for the first time in five years at 3% YoY in 2018. In the commercial market, co-working players accounted for four of the top 10 transactions in terms of transacted area in H2 2018. New supply of up to 2.3 mn sq m (25 mn sq ft) is expected to hit the Chennai office market by 2021-22. "For the first time since 2012, sales grew and witnessed a 3% YoY growth in 2018. These sales have been mostly concentrated in the INR 3-5 mn ticket size segment and the ready-to-move-in segment," it said.

According to the report,  major thrust to sales  has come from rationalisation in residential prices which have come down further by 3% YoY in H2 2018. Also, to increase sales, developers are running attractive discount deals and offering subvention schemes. The upcoming season of Pongal in January 2019 is expected to clock even greater sales. It said 20% YoY increase in launches was recorded in H2 2018 owing to the low base of H2 2017. Developers were holding back launches for better clarity on Tamil Nadu Combined Development Regulations (TNCDR) and Building Rules 2018 which will bring into effect the increase in floor space index (FSI) from 1.5 to 2 for all types of buildings in the state.