Affordable housing segment dominates Chennai real estate market, says report
‘Pandemic has turned the real estate into a buyer’s market’
The Chennai residential market continues to be dominated by properties in the affordable (sub-Rs 40 lakh) and mid-segment (Rs 40-70 lakh).
“About 50% of prospective home buyers in the city were looking to buy a property within ₹40 lakh, followed by 42% users looking for a home within Rs 70 lakh,” according to RoofandFloor Research.
With fear over job loss and an overall slump in economic activity, the case for affordable properties, which have low entry points, is likely to get further strengthened in the near term.
“Affordable homes require low upfront capital and are easier to sell. Thus, it is good for both self-use as well as investment,” the report quotes Rakesh Reddy, director, Aparna Constructions & Estates.
South Chennai tops
In terms of consumer preference, South Chennai remains the sought after spot with suburbs such as Adyar, Sholinganallur, Thoraipakkam, and Velachery, among others, witnessing exponential growth in the residential market due to increased commercial activity.
About 53% of home-seekers were interested in buying a house in this zone. However, Western Chennai (Guindy, Manapakkam, Thirumudivakkam, Sriperumbudur and Ambattur) is also catching up fast with 36% looking to buy property here. North and Central Chennai cumulatively recorded interest from 12% of home seekers.
Also, in recent months 5 micro-markets in and around Chennai have seen considerable interest from consumers. They include Guduvanchery, Medavakkam, Poonamallee, Sholinganallur and Tambaram, said the report from India’s first home buyer-centric digital platform.
Preference for integrated townships
In the post-Covid-19 era, self-sustainable integrated townships will be the preferred choice of home buyers. “Projects close to conveniences, such as grocery stores, medical shops, petrol pumps, will see more traction,” said Rohit Poddar, MD, Poddar Housing, in the report.
Covid , the report added, has turned the real estate into a buyers’ market. The prospective home buyers in the Chennai market could benefit from all-time-low interest rates on housing loans as well as special deals offered by developers.
The pandemic has also brought out a new-found appreciation for owning a home and as many as 60% of home seekers in Chennai are looking to buy a property in the short term.
This could be attributed to several sops announced by the government over the last two months. Additionally, several developers will now try to lure home buyers with good discounts and freebies to sell their existing inventory. Buyers entering the market in the short term can definitely take advantage of the buyers’ market, said the report titled: ‘A real-time pulse on changing buyer preferences in Covid-19 era’.