75% demand for properties from end users in Chennai

By RishabJain, Magicbricks.com Bureau

In the Oct-Dec 2014 quarter, the Chennai real estate posted optimism in comparison to the Oct-Dec 2013 quarter, as per the Housing Sentiment Index report. However, sentiments dropped by 4 per cent in the last three months. Buyers earning an annual income of less than Rs 10 lakh were the most optimistic.

The city has witnessed maximum demand for properties from end-users and 25 per cent from buyers looking for property not as a place of residence but as an investment. Over 25 per cent of the total demand is from IT professionals and a healthy 14 per cent demand is from self employed professionals. In the past few quarters, Chennai real estate market has not witnessed any significant growth due to the slow uptake. However, in the Oct-Dec 2014 quarter, the city recorded a rise in average capital values. About 65 per cent of the total localities in the city recorded a rise in values and showed signs of revival.

Preferred housing category

Apartments continued to remain the most preferred housing category with almost 50 per cent of the total demand across categories. Properties in the budget range of Rs 30-50 lakh were highest in demand. Properties in all other budget ranges either posted a drop of 1-2 per cent or remained stable.

PropIndex (Oct-Dec 2014), the India Apartment Index by Magicbricks, finds that supply was high in this category. In this budget range, the city offered maximum supply of 2 and 3BHK apartments in sizes ranging between 700-1000 sq ft. Medavakkam, Madipakkam, Kolathur, Porur and Ambattur are the top five active areas which have maximum options in the above category.

The upcoming Chennai-Bengaluru Industrial Corridor, Metro connectivity, Mass Rapid Transit System and development of Smart Cities is likely to work well for the Chennai real estate market and is expected to see improved sentiments in the near future.