CREDAI report highlight decline in house sales

CHENNAI: A study released by CREDAI (Confederation of Real Estate Developers' Associations of India) highlighted that the sale of residential units has declined by 41 per cent in the third quarter of 2023 when compared to second quarter.

According to the report, there has been a substantial decrease in the number of registered residential projects in Chennai, showing a 19.39 per cent drop from 98 projects in the previous quarter to 79 projects. Moreover, there was a 30.09 per cent decrease compared to the same quarter last year, which had 113 projects.

"In terms of figures, the total residential units sold in Chennai during September 2023 alone was 2,509 units by CREDAI members and 747 units by others, totaling 3256 units. The unsold units for the same period in September 2023 were 5118 for CREDAI members and 2715 by others, amounting to 7833 units, " the report said.

The report added that there has been a substantial 40.78 per cent reduction in sales compared to the previous quarter and a 10.45 per cent decline compared to the same quarter in the previous year. This indicates a substantial downturn in the real estate sector in Chennai.

These numbers witnessed in the third quarter of 2023 are due to the impact of increased registration fees by the Tamil Nadu Registration Department. The higher fees have made it more expensive to buy properties, which may have contributed to the decline in sales. While CREDAI members remain influential within the market, it has shown signs of decline, underscoring the intricate dynamics at play in the Chennai real estate sector, " S Sivagurunathan, President of CREDAI Chennai, said.

The data reveals that new micro-markets have emerged, such as Surapet and Kodungaiyur in North Suburbs, Muttukadu and Kanathur in South Suburbs, and Madanandapuram and Mel Ayanambakkam in West Suburbs, apart from the ongoing locations that have been witnessing registrations, he added.