Houses priced between Rs 40 lakh and Rs 1 crore see huge demand: Report

“Average property rates in Chennai witnessed a marginal jump of a percent in July to September 2021, against the previous quarter. Like every quarter, South Chennai reported the highest number of new launches in Q3 of 2021, followed by the northern quadrant of the city, “ a report released by 99acres stated.

As per the report, the demand for houses budgeted between Rs 40 lakh and Rs 1 cr was lower than the supply. There was a gap of 6 pc between the demand and supply. Properties above Rs 1 cr also witnessed lesser demand than supply. The gap is about 4 per cent.

On the other hand, the supply was lesser than demand for the houses priced below Rs. 40 lakh. The difference is 10 per cent.

Localities such as Porur, Siruseri, Tiruvallur, Pallikaranai and East Tambaram saw maximum new supply as a majority of the new launches were reported in the affordable-to-mid segment, with units priced within Rs 60 lakh. Meanwhile, the industrial hubs of Oragadam, Sriperumbudur, Guindy and Ambattur saw an improved demand for residential properties with a larger carpet area.

The report estimated that the city will add over 1 lakh new affordable houses in the coming quarters, especially for the sub-Rs 45 lakh segment, which reported the highest demand. S Sridharan, chairman of policy advocacy (urban development and housing), which is a part of Confederation of Real Estate Developers’ Associations of India said the realty sector is in upward trend. “During this quarter, we expect existing stocks to be cleared. There is a higher demand for segments up to Rs 75 lakh. There is also an increased number of enquiries.”

Meanwhile, S Ram Prabhu, state secretary of Builders’ Association of India said the prices of houses haven’t come down as there is demand. “Also, increase in prices of construction materials is a reason for increasing costs.”