Chennai realtyscape shows scope for unparalleled growth: Report

CHENNAI: Pan India housing market trends across Delhi NCR, MMR, Pune, Chennai, Ahmedabad, Bengaluru, Hyderabad, Kolkata reveal trends that reflect buyers’ confidence, as per a report.

All the eight cities have seen a year on year increase in housing prices. ‘Grade A’ developers started increasing prices from the latter part of 2021 led by robust demand and higher input prices. Delhi-NCR saw the highest YoY change with a 11.3% surge in housing prices.

Unsold inventory constantly dropped starting Q2 2020 till Q4 2021 as demand improved in the market, led by low loan rates and largely stable prices. However, an increase in launches and third wave of COVID-19 in Q1 2022, led to an uptick in the unsold inventory. Hence, after dropping for 7 consecutive quarters, unsold inventory rose 1% QoQ.

MMR accounts for the highest share of unsold inventory, followed by Delhi NCR and Pune.

As per Ramesh Nair, CEO, India & MD, Market Development, Asia at Colliers, “While 2021 was the year of recovery, 2022 has been the year of unparalleled growth. Office and Industrial demand have gained momentum led by economic revival and increased occupier confidence. We are witnessing healthy leasing across office and Industrial assets through large sized deals, which contributed to half of the total office leasing and two third of the total warehousing leasing during the quarter. As occupiers fast-track their hiring and portfolio expansion plans, we might see an uptrend in rentals in the coming quarters, along with a dip in vacancy levels.”