Chennai, Jul 10:
Residential launches in Chennai witnessed a growth rate of 19% on a year on year basis during the first half of 2019, according to a report published by Knight Frank India.
The report presents a comprehensive analysis of the residential (across eight cities) and office (across eight cities) market performance for the period January – June 2019 (H1 2019).
The report findings establish that the number of residential launches in Chennai increased by 19% in H1 2019 to 7,762from 6,523 in H1 2018. The housing units sold saw an increase of 5% in H1 2019 to 8,979from 8,585in H1 2018.
Chennai’s office market witnessed 6% increase in volume of office space transacted in H1 2019 to 0.2mnsq m (1.9mnsqft) from 0.2mnsq m (1.8 mnsqft) in H1 2018. Sales saw a modest growth of 5% YoY in H1 2019 on the back of the demand for affordable housing units.
Joseph Thilak, Senior Director – Occupier Solutions, Chennai, Knight Frank India said, “The Chennai residential market is showing modest signs of recovery with a considerable growth in launches and a slow but steady momentum in sales.
The present water crisis in Chennai has been slowing down construction activity and could eventually result in six-to-nine-month project delays. The ongoing water crisis is also the biggest challenge for developers.” “The Chennai office market is showing definite signs of market stability.
Transaction numbers have seen a positive growth for the first time since H1 2017. Increased activity in the co-working industry has significantly contributed to the growth of Chennai’s office market. However, inadequacy of quality supply continues to remain the biggest challenge, he added.