South, southwest Chennai top performers in realty sales

Chennai: South and South-West micro-markets with low inventory have been the top performers in the city with high absorption rates and fewer launches, said a study conducted over a year-long period on the realty scene in Chennai by PropTiger.

The study done on realty performance in Chennai from April 2015-March 2016 showed that Perumbakkam, Guindy, Tambaram and Karapakkam, some of the areas that were marooned badly during the floods in December last year, scored high on liveability score and have low inventory overhang.

“West and South markets have done well. OMR, Porur and GST sides have been good when it came to sales but the floods had a major impact on the sales,” said Suresh Krishn, President , CREDAI Chennai.

“Chennai is the only city in the country where the launches have decreased because of lack of demand. And now prices have started going up, so those who were waiting to see a decline in the prices have started looking for property to buy,” he said.

Though the Goods and Services Tax (GST) bill will bring down the construction costs, the prices of property would see an increase. “Because of floods, there was an average decrease in the number of launches by 65 per cent and during January and December the fall in absorption was 40 per cent,” said Anurag Jhanwar, Head - Consulting and Data Insights, PropTiger.

“But most of the launches were before the floods, with only 24 per cent of the launches being after it. The localities that have performed well in South and South West Chennai, have stood out.”