Reports have stated that Chennai’s residential real estate sector saw growth in house sales in 2019 even in the midst of price corrections and inventory decline. This is quite positive news for both buyers and sellers. The residential properties and even the properties like office spaces have also seen an enormous spike in 2019.
The India real state 2019 report enclosed the performance of the real estate market in the nine prominent cities in India for both commercial and residential properties from July to December 2019 (H2 Phase). This report states Chennai’s residential sector saw excellent stability in the year 2019 when compared to other previous years and has recovered fully from a real estate drought. The residential property sales increased 6 per cent in 2019 with over 16,959 units sold and 11,542 units newly launched projects, showing a visible growth.
The sales of 30-50 lakh residential properties were soaring in the calendar year 2019 even when the price correction stay put. This is because the demands for these properties were high, and builders simply catered to that demand. Also, the unsold home inventories in Chennai came down from 28 % to only 13,610 units. The age of inventory is an essential metric in the real estate sector to determine average days to sell an inventory, is just 15 quarters now.
The significant sales were from the 30 lakh property units, which were mostly apartments and, luxury properties like villas saw an increase in sales in the 1.5 crore property segment. The 30 lakh property segments seem to be the most popular and the sold-out ones amid the liquidity crisis.
Industry experts say that there is a new property trend in the real estate market in Chennai where the builders sell a bulk unit of entirely constructed residential properties for customers who like to co-live. This trend was very efficient and bought in a lot of money.
When it comes to new launches in 2019, about 59 per cent of sales were from the 50 lakh residential segment in the H2 phase of 2019.
Statistics say that over 5.2 million square feet sold in total in the year 2019 under office spaces; this undoubtedly saw an increase of 50 per cent when compared to the year 2018. The most properties sold were for the IT industry where the demand is more than ever before, and it does not seem to stop anywhere soon.