Chennai: CBRE South Asia Pvt. Ltd., India’s leading real estate consulting firm, organizes a 3-day mega property show – CBRE PropFair, an attempt to accelerate the city’s residential market by getting over 300 projects and about 60 developers to showcase their projects for the convenience of the consumers. CBRE also launched its research report ‘Resurgence of Chennai’ and shared an overview on Chennai’s residential real estate market.
The Chennai city has witnessed steady growth in residential sales over the years and currently has less than 4% of unsold inventory in the completed residential stock. The CBRE PropFair markets both under-construction/ completed properties which are approximately 14% (as of 2017) of the total residential stock in the city. The steady decline in the unsold inventory over the last four years from about 21% in 2014 is signaling a positive momentum in the segment.
The market witnessed launch of over 170,000 apartment units in the last 10 years, resulting in an organized residential stock growing from about 38,000 units in 2007 to more than 195,000 units by 2017. As per the report, over 500 projects in Chennai has been registered with RERA which is promoting transparency and accountability in the residential segment which in-turn results into end-user confidence.
The report also shares interesting insights in other segments such as the commercial office space which has seen a steady increase in the region and grew at a CAGR of approx. 19% from the year 2000, to reach more than 63 million sq. ft. in 2017, a trend which is likely to propel demand in the residential space.
Approximately 15 million sq. ft. of Grade A office space is expected to be added to the stock over the next three years with major players already developing projects in the city. Apart from a robust commercial landscape, the city’s retail stock is also expected to touch 6.0 mn sq. ft. in 2019.
The 3-day exhibition, inaugurated by Ajit Chordia, Managing Director, Olympia Group also witnessed the presence of dignitaries including Rajat Johar, Head of Residential Services, India, CBRE; Preetham Mehra, Executive Director & Head Chennai, CBRE along with the city’s top residential real estate developers.
With display of over 300 prestigious projects, the fair is being held at Chennai Trade Centre, Nandambakkam from 29th June- 1st July 2018 and expected to see witnessed high footfalls.
Anshuman Magazine, Chairman, India & South East Asia CBRE, said, “We are very proud to announce that we have successfully completed 20 years of our presence in Chennai. Our vision fuels our purpose and we have endeavored to provide exceptional outcomes for clients by combining local market insight, broad services, specialized expertise and premier tools and resources. The market has witnessed exponential growth over the past decade and the property fair starting today further promises to provide highly informative and valuable experience for buyers looking to invest in properties across the city.”
In terms of Chennai’s residential landscape, the Central and East micro markets are most preferred due to excellent social and physical infrastructure; however, affordability and organised development is very limited when compared to other micro-markets. South Chennai remains the most sought-after location due to availability of quality residential options, affordability, ease of access to workplace and emerging social and physical infrastructure.
The next most sought-after location for residential real estate is West Chennai, owing to the presence of large scale IT developments, compatible social and physical infrastructure, availability of sufficient talent pool, relative affordability plays a major role for residential demand in the micro-market.
Speaking about the city’s housing market, Rajat Johar, Head of Residential Services, India, CBRE said, “The residential market in Chennai has grown by 17% CAGR over the last decade and the city has witnessed increased residential development activity owing to increased urbanization and escalation in capital values. We have spent the past two decades continuing to build our brand, which has now become synonymous with our commitment towards building advantage for our clients in Chennai. We are hopeful that the policy initiatives by the State government will further augment housing demand, with a long-term impact on the residential market in the region.”
The city’s positive commercial real estate development, coupled with a robust social and physical infrastructure, and growing talent pool especially in the IT/ITeS segment, is expected to further support the growth of the housing market in the city.