PropTiger report: 2BHK units remain the most preferred configuration among buyers in Chennai in 2020
- Western and southern localities see an uptick in demand in 2020
Chennai, 3rd March 2021: At a time when demand for larger homes has increased in India because of remote working becoming a common feature due to COVID-19, 2BHK units continued to be the most preferred configuration among homebuyers of Chennai in 2020.
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| Mani Rangarajan, Group CEO |
Traditionally,
2BHK has been the most preferred option for homebuyers in Chennai. This is
reflected in the numbers for the past few years as well. In 2018 and 2019, this
configuration claimed 51% and 50% share in overall sales. Similarly, 2BHK homes
made up for 54% and 49% share in total supply in Chennai in 2018 and 2019,
respectively.
“Chennai’s real estate market has
seen some interesting developments in the last few quarters. It has been among
the three cities that contributed to the maximum launches in the country during
the December 2020 quarter, and also saw an increase in sales as compared to the
previous quarter, according to our Real Insights data. It also has the lowest
unsold inventory nationally and has shown a marginal price increase. While the
city’s real estate market obviously performed better in 2019, the improvement
seen in 2020, especially through the pandemic, point to the resilience of
Chennai’s real estate market. Interestingly, during our Right To Home expo held
on February 6-7, 2021, Chennai’s level of participation in the event, was way
beyond what we had hoped for” said Mani
Rangarajan, Group COO, Housing.com, Makaan.com & PropTiger.com.
Mid-segment properties gain ground amongst Chennai homebuyers
Majority of
launches and sales in this southern housing market take place in the mid
segment i.e. housing units falling in the Rs 25-75-lakh bracket. Of the total
units sold in Chennai in 2020, 58% were from this price bracket. In terms of
new supply, too, 57% of units were from the Rs 25-75-lakh bracket. Of the total
unsold inventory in the city, 58% units also fall in this bracket.
Inventory stock shrinks; yet overhang increases on back of low sales velocity
Even though
Chennai currently has a much lower unsold stock when compared to some of the
markets in MMR and NCR, the low sales velocity has kept the inventory overhang
high for this market. Based on the current sales velocity, developers in this
market would take an estimated 42 months to sell off the unsold stock
consisting of 36,609 homes. This is a drastic change since the inventory
overhang stood at 26 months for Chennai in 2019. The low sales velocity
in Chennai is also reflected in the fact that nearly 31% of the unsold
inventory is from the ready-to-move-in category.
Western and southern localities see an uptick in demand in 2020, garner builder attention
Localities that contributed the
highest to new supply in Chennai in 2020 include Mogappair, Perumbakkam and Vanagaram while OMR, Chennai West and GST
contributed the most to sales numbers during the year.
Numbers also
indicate that demand for property in Chennai is mainly concentrated in the
western and southern localities, including Avadi,
Medavakkam and Tambaram.
Among
renters, localities of Velachery,
Kolathur and Adyar, which lie in proximity to major IT hubs while also
offering smooth connectivity, are most popular.
About Elara Technologies Pte. Ltd.
Singapore-based technology services company, Elara Technologies Pte. Ltd., co-founded by Dhruv Agarwala, Group CEO, is the country’s only full stack real estate technology platform that owns Housing.com, Makaan.com and PropTiger.com. Portals are owned by Elara and Elara is controlled by REA Group.
In October 2020 Elara announced that REA Group Ltd (ASX:REA) of Australia, has acquired a controlling stake in Elara Technologies Pte. Ltd. REA is a multinational digital advertising business specialising in property. REA Group operates Australia’s leading residential and commercial property websites – realestate.com.au and realcommercial.com.au and owns leading portals in many Asian countries.
It is the only player in India that offers a full range of services in the real estate space, assisting consumers through their entire home seeking journey all the way from initial search and discovery to financing to the final step of transaction closure. It offers advertising and listings products to real estate developers and agents, exclusive sales and marketing solutions to builders, data and content services, and personalised search, virtual viewing, site visits, negotiations, home loans and post- sales services to consumers for both buying and renting.
Founded
in 2012, Housing.com is
India’s most innovative real estate advertising platform for home owners, landlords, developers
and real estate brokers. The company offers the largest selection of verified
listings for new homes, resale homes, rentals and co-living spaces in India
through a trained team of data collectors, analysts and auditors. The
one-of-a-kind Data Sciences Lab at Housing.com analyses a significant body of data to
allow buyers and sellers to make intelligent decisions.
PropTiger.com is
India’s leading digital real estate advisory firm offering a one-stop platform
for buying residential real estate. Founded in 2011 with the goal to help
people buy their dream homes, PropTiger.com leverages
the power of information and the organisation’s deep-rooted understanding of
the real estate sector to bring simplicity, transparency and trust in the home
buying process. PropTiger.com helps
home-buyers through the entire home-buying process through a mix of
technology-enabled tools as well as on-ground support. The company offers
researched information about various localities and properties and provides
guidance on matters pertaining to legal paperwork and loan assistance to
successfully fulfil a transaction. Since inception, the PropTiger.com team
has facilitated sales of over 30,000 homes worth nearly Rs. 20,000
crores.
Makaan.com was
acquired by Elara in May 2015, with a vision to establish a true
"marketplace" in real estate. With consumer ratings on more than
30,000 sellers, credible listings data and real-time intelligence on property
search, Makaan.com has
quickly emerged as the preferred partner for consumers looking to rent, buy or
sell a home. Makaan.com offers
its online consumers maximum property options and has become one of the largest
advertising platforms in online real estate in India with over one
million residential properties listed across the country.
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