A real estate quarterly report has revealed that more than demonetisation, it was the political instability in the state that had likely put investments in Chennai’s real estate industry on hold. The Chennai market has remained stable over the last few quarters without any major fluctuations in the average price level, said Magicbricks Chennai PropIndex for Jan-March 2017,
The report reflects price movement across 41 localities in Chennai. These localities have a high share of consumer preference as well as actively traded properties. The report revealed that there have been small increments in city average price level over the last few quarters. The Jan-Mar 2017 quarter had 56 percent localities with marginal price gain including high consumer preference localities like Velachery, Porur and Madipakkam. Around 41 per cent of the localities saw a drop in prices and 2 percent localities had no movement. Overall, the impact on city price index went up by 2 percent for the Jan-Mar 2017 quarter.
Magicbricks, CEO, Sudhir Pai said, ‘Chennai market has been stable over the last few quarters without any major fluctuations in the city average price level. Except for the Rs 6,000-8,000 per sq ft and Rs 11,000+ per sq ft price segments, other segments have seen a decline in the price level. As the real estate sector goes through a transitional phase with the introduction of RERA, GST, Benami Act and REITs, a tool like PropIndex becomes a key indicator that will help consumers get a fair idea about the changing times.’
The report also said that this year the total number of launch units were around 450 and that too by small and medium sized builders only. Short term low-risk projects such as plotted developments have seen some investments, but no new multistory apartment projects have been started recently, as most of the developers are following the wait and watch approach. Areas preferred for plotted developments were Ambattur, Vandalur, Maraimalai Nagar and Alandur.