Press Release

Property Prices in Chennai grow by 5% in Jan - Mar 2015over Oct - Dec 2014: 99acres Insite Report

June 1 2015

Major Highlights:

  • Growing metro connectivity and the introduction of REITs propelled growth in Chennai&rsquos realty market.
  • Almost half of the new residential developments of Chennai happened in the South.
  • Saidapetfrom South Chennai emerged as the top grosser with 25% price appreciation in property prices.
  • The rental market remained robust in last one year and grew by 12%.Sholinganallur was the top grosser with 31% rise in rental rates

 

Chennai, 28thFebruary, 2015: 99acres.com Insite is a quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India. The report not only captures the significant trends but also analyses and highlights the insights that make it valuable for both investors and end users. The report also includes an in-depth supply analysis to enable sellers and buyers determine the direction of the market.According to the report, the capital market in Chennai witnessed agrowth of 5% in Jan-Mar 2015, as compared to Oct-Dec 2014. The rental marketsaw a surge of 12% in the last one year, i.e. between Jan-Mar 2015 and Jan-Mar 2014. On the supply front, Chennai witnessed a in number of properties available on sale by 5%, this quarter.

Commenting on the report, MrNarasimhaJayakumar, Chief Business Officer, 99acres.com,said, &ldquoChennai&rsquos real estate market has been clocking consistent rise quarter-on-quarter. Thriving IT industry and expanding Metro network are seen as growth stimulators in the city. South Chennai continued to be the most flourishing zones with maximum new launches concentrated here. Chennai is highly end user driven.&rdquo
Price Analysis of Chennai (Jan-Mar 2015 vs Oct-Dec 2015):

  • Amongst all zones, Chennai Central recorded an average price appreciation of 8%, followed by Chennai South which saw a 5% surge in property prices.
  • Chennai West and North saw a 4% spike in capital values.
  • Upcoming metro played a major role in giving a fillip to prices in Saidapet. A few other localities which recorded a hike in property prices due to seamless connectivity were Kolapakkam, Arcot Road, Thoraipakkam, Pallavaram and West Mambalam.
  • Capital values in Selaiyur and Navalur appreciated due to the presence of IT companies, proximity to the Grand Southern Trunk Road (GST Road).

Summary for Rental Analysis (Jan-Mar 2015 vs. Jan-Mar 2014):

  • South Chennai recorded the maximum average spike in rental values, to the tune of 14%, in last one year. Presence of IT industry fuelled housing demand in this region.
  • West Chennai followed with an 11% hike, maximum being noted in Arcot Road (14%).
  • Central Chennai and North Chennai recorded an average jump in rental rates to the tune of five and 8%, respectively.

Supply Analysis:

  • Availability of Different Types of Property- Multi-storeyapartments were the most supplied in the city and captured close to 70% of the market share. Chennai had the second highest supply of independent houses/villas in the country, after Hyderabad.
  • Availability of Property in Different Budgets- The mid-income segment (Rs 25-40 lakh)and the high-income segment (Rs 40-60 lakh) saw the maximum supply in the city (26-27%, each). The affordable bracket (within Rs25 lakh) was the least supplied.
  • BHK-wise Distribution of Property- The increasing number of IT professionals in Chennai led to maximum demand, and thus supply, for 2BHK units. These mid-sized homes captured nearly 60% of the total market share.
  • Ready to Move vs. Under-construction- The number of ready-to-move-in housing units in the city increased in this quarter, and stood at 66%. Out of the total under-construction properties, maximum were offered within Rs 25-40 lakh (mid-income housing).


About 99acres.com:
Launched by Info Edge India Ltd. in September 2005, 99acres.com is a gateway to the one of the fastest growing property markets of the world, an information 'exchange' for buying, renting and selling of all types of residential and commercial properties anywhere in India. The website enables easy access to a huge property bank and allows direct connect with brokers/builders in cities as well as remote parts of the country. With over 8.5 million visitors visiting the website every month looking for real estate solutions, 99acres.com over 8 lakh residential and commercial property listings and over 90,000 new projects. Not only this, it has the highest traffic share, time spent on site and maximum page views, making it the most popular real estate portal in the country. Backed by a strong team and a network across 40 cities in India, 99acres.com has garnered faith and support of the real estate community in India within a very short time span.
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