Sunday , October 20 2019
Home / Launch / Knight Frank India Residential launches witness a comeback in Chennai in H1 2018

Knight Frank India Residential launches witness a comeback in Chennai in H1 2018

Chennai, July, 2018: Knight Frank India today launched the ninth edition of its flagship half yearly report – India Real Estate. It presents a comprehensive analysis of the residential and office market performance of Chennai for the period January– June 2018(H1 2018).

Office Takeaways:

  • Inadequate supply continues to limit transaction numbers; Chennai saw just 0.42 mnsq m (4.5 mnsq ft) of supply since H1 2015 compared to the 1.4 mnsq m (14.6 mnsq ft) of transaction volume
  • Transaction levels experience 9% YoY dropcompared to the healthy 10% growth in supply
  • Average rentals grow by 4.5% yoy; growth was strong across business districts with SBD locations such as Perungudi, Guindy and Taramani continue to witness above-average rental growth.
  • Vacancy level hovers around 11% over past 12 months; occupier demand continually outstrips supply
  • Other Services sector gains significantly; share of IT/ITeS sector continues to weaken 

Residential Takeaways:

  • Comeback of residential launches with 8% annual upswing; 6,520 units launched in H1 2018 were the highest number of launches in a single period in the past 3 years; significant increase in launches due to right-sizing and right-pricing in under INR 5 mn ticket size
  • Prices decline by 4% YoY as developers dole out aggressive discounts to lighten inventory load
  • Sales recover from H2 2017 lows and end H1 2018 at 3% lower than year ago; marketing campaigns highlighting RERA compliancy, PMAY eligibility and Completion Certificate help developers regain buyers’ trust
  • With a Project Life Cycle of lessthan 6 years, QTS (Quarters-to-Sell) continues to hover around6 quarters in H1 2018. Innovative marketing and aggressive discounts on priceshelp stem the decline in sales 

Speaking about the findings,  Kanchana Krishnan, Director – Chennaisaid,“The Chennai office market that has beenreeling under an acutesupply crunch over thepast 3 years has seen some respite in H1 2018 with the supply scenario easing somewhat with 10% growth in new completions.The paucity of quality office spacealsoled to a strong rental growth.

The residential real estate market, on the other hand,has begun on a positive note as H1 2018 shows the promise of a potential recovery in residential market volumes. H1 2018 saw the highest number of units launched in a single period during the past three years and the persistent drop in sales was largely muted as well, compared to the preceding period.”




About Admin

Check Also

La Flair Official Website launched at HUB, ECR

HOW IT WORKS IN FOUR SIMPLE STEPS Download the La’Flair App. Choose from our long …

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.