Strategic Partner :

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CHENNAIRESIDENTIAL REAL ESTATE MARKET

Chennai – Residential Real Estate Market

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Both demand and unsold inventory in Chennai have seen a decline with 9% CAGR in last two years.

Residential prices in Chennai have shown positive trend over the last few years. Prices in the last two years have hovered in the range of Rs.5,000-5,500 per sq.ft. of saleable area.

Large infrastructure developments proposed in the city like Chennai Metro Phase II Project, Peripheral Ring Road Project, Chennai-Bengaluru Expressway, construction of a second airport and others will immensely boost the demand for residential real estate.

With IT and major automobile companies setting base in Chennai, along with the relaunch of the ‘Mega City Mission 2018-19’, the city is witnessing massive infrastructure improvements.

Kelambakkam, Paruthipet and Perungalathur have been the most preferred locations among the home buyers in last 12 months. 0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2016 2017 2018

Pri

ce (

psq

ft)

Chennai Kelambakkam Paruthipet Perungalathur

Chennai Metro Map : Proposed and OngoingCMRL Corridor 2: Underground

CMRL Corridor 2: Elevated

Product Typology

1 1500-1750 900-1000 600-650

2 1300-1400 800-900 450-500

3 1400-1500 1000-1100 550-600

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12 3

2BHK3BHK

1BHK1BHK9%

2BHK46%3BHK

27%

4BHK2%

Villas7%

Others9%

Product Wise

Based on the last 12 months’ sales, 2BHK flats are the most preferred product among buyers, followed by 3BHK and 1BHKs.

Buyers mostly picked up units between 900-1000 sq.ft. (2BHK), 1500-1750 sq. ft. (3BHK) and 600-650 sq.ft. (1BHK).

Cost range of Rs. 50 Lacs - 1 Cr has the maximum demand closely followed by Rs. 30-50 lacs bracket. Units prices above Rs. 1Cr. Attract only 15% of the total demand.

20%

30%

35%

9%6%

<30 Lac 30 - 50 Lac 50 - 1Cr. 1 - 2 Cr. > 2Cr.

Cost range wise percentage share of Sales

New launches in the city

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Semmancheri is the top gainer in terms of maximum new launches in the last 12 months followed by Chettipunyam and Madamdakkam / Moolakazhani.

Maximum new launches are in the cost range of Less Than Rs.30 Lacs segment.

Amongst the new launches, 2BHK is the most preferred product as can be seen by sales and supply distribution followed by 3BHK.

1BHK11%

2BHK45%3BHK

19%

4BHK0%

Others24%

Sales in New Launch

1BHK15%

2BHK47%

3BHK22%

4BHK1%

Others15%

New Launch Supply

Founded in 1998, Liases Foras is a non-brokerage researchcentric firm that offers data and advisory services. Ourworks on industry and scientific prognosis of the localmarket is highly regarded. We have an organized andstructured data source on real estate and property trends inIndia, which is updated on quarterly basis by primarymarket survey.

With a team of MBAs, urban planners, architects, charteredaccountants and statisticians, Liaises Foras’ forte lies in thefield of valuation, risk assessment, future forecasting &price behaviour and best use studies. Our clientele includesleading mortgage companies such as HDFC Ltd, Axis Bank,among others, real estate funds, developers, governmentbodies and leading international research organisations. Weare also research partner for CNBC Awaaz real estateawards from 2012 onwards.

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Banks/ Housing Finance Companies

Data Services• Quarterly updated data on

residential, commercial & retail• Online Project Interface

Analytical Services• Quarterly presentation on each

city• Developer Performance Rating• Ad-hoc Due Diligence• Project Reports

Key ClientsHDFC, Axis Bank, SBI, Standard Chartered Bank, Kotak Mahindra Bank, Mannapuram, Bajaj HFL

DevelopersFunds/NBFCs

Research Advisory• Best Use Analysis• Feasibility Studies• Valuations

Data Services• Online Project interface

Key ClientsGodrej Properties, ShapoorjiPaloonji, Tata Realty, L&T Realty, K Raheja Universal, HiranandaniGroup, Peninsula Land, Embassy Group, Mahindra Lifespaces

Research Advisory• Feasibility Advisory• Investment Analysis• Valuations• Customized Reports

Data Services• Online Data interface

Key ClientsTCG, Edelweiss, Brookfield Asset Management, Axis AMC, Indiareit, HDFC Fund, Red Fort, Sun Apollo, Aditya Birla Real Estate Fund, Avenue Ventures